Zanzibar Luxury Properties 
FAQ 

At Zanzibar Luxury Properties, we pride ourselves on our professional approach. Here's why clients love working with us: Clear and Honest: Transparent communications and fees with no hidden costs. Trustworthy: Commitment to honesty and ethical practices. Competitive Commission Rates and No Exclusivity: Competitive rates and no exclusivity agreements, giving you flexibility. Multilingual: We speak English, Italian, and French. Financial Knowledge: Over 20 years of investment experience in Europe. Great Connections: Strong local connections and expertise in farming and permaculture. Community Love: We share a significant percentage of our commissions with local agents, positively impacting the community at no extra cost to clients.

Following the Land Tenure Act of 1992, outright ownership of land in Zanzibar is not permitted. However, the Act does provide the avenue to acquire "Leasehold rights" ( typically a 33-year lease renewable up to 99 years).

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This leasehold arrangement gives the buyer significant rights and benefits similar to owning the property.

At Zanzibar Luxury Properties we strongly advise you to consult accredited real estate professionals and engage a reputable lawyer before finalising any transaction.

While the regulatory landscape is subject to change, and we consistently recommend consulting with a trusted legal expert it’s worth noting that the leasehold rights can be granted in the following scenarios:

• Retirees desiring to reside in Zanzibar and obtain a retiree VISA;

• Business projects approved by the Zanzibar Investment Promotion Authority (ZIPA);

• Tanzanian/Zanzibari citizens, or individuals married to them;

• For individuals that are non-retirees, the leasehold acquisition is feasible through the Condominium Act No. 10 of 2010, allowing the purchase of unit(s)- villa or apartment- part of a condominium property project.

Let’s take a closer look at each category in detail.

Retirees Buyers

Retirees may be eligible to purchase a villa in their personal name, provided they obtain a Retirement Visa and comply with the relevant regulatory requirements.

Business investment approved by ZIPA

Foreign individuals or companies may acquire leasehold rights by establishing a registered business in Zanzibar and obtaining approval from the Zanzibar Investment Promotion Authority (ZIPA).

📌 ZIPA’s key requirements for foreign investors include:

• Business registration in Zanzibar

• A feasibility plan demonstrating the business purpose and benefits

• Proof of funds of at least USD 2.5 million, confirming financial capacity to carry out a significant investment

• ZIPA approval confirming alignment with Zanzibar’s development goals

Local Businesses

If a company is 75% owned by a Zanzibari/Tanzanian, it can still obtain the lease. For such companies, depending on the nature of the business, the relevant ministry (e.g., Tourism, Agriculture, etc.) may require proof of funds, which could be as low as USD 300,000.

Individuals buying units as part of an approved project by Condominium Act No. 10 of 2010,

Condominium Act No. 10 of 2010 allows foreigners to own apartments or villas that are part of an approved condominium development.

The project holds a government-issued lease (33 years, renewable up to a total of 99 years) and grants each buyer an individual ownership title for the specific villa or apartment they purchase. Title Deeds are issued, granting full rights, including inheritance, rental income, and resale.

Under current regulations, anyone investing more than USD 100,000 in a ZIPA-approved real estate development is eligible to receive a residency visa for themselves and their immediate family members.

The process for land transfer in Zanzibar involves several distinct steps, which may vary based on documentation, the geographical location of the property, and the intended use of the land.

Here's a general overview:

Step 1: Offer to Purchase (Duration: Usually 3 to 7 days)

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• The Buyer initiates the process by presenting an offer to purchase the identified property to the Seller

• All conditions and terms are outlined in the Offer to Purchase (OTP) prepared by the Real Estate Broker

• The Buyer formally signs the OTP

• The Seller responds with either acceptance, a counter-offer, or rejection

• Once the OTP is accepted, Step 2 takes place

Step 2: Compensation Agreement (Duration: 1 to 2 weeks)

• The seller accepts the buyer's offer

• The lawyer involved in the transaction drafts the Sale/Compensation Agreement, aligning it with the terms established in the OTP

• Both the Seller and Buyer sign the Sale/Compensation Agreement

• The Buyer provides evidence of funds to the Seller, confirming an amount no less than the agreed-upon selling price

• If negotiated during the process, the Buyer pays a deposit (typically amounting to 10-15% of the final selling price)

Step 3: Land Transfer Process (Duration: 4-6 months)

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• Submission of Land Transfer Application Form to the Sheha Council

• Sheha Council reviews and submits the form to the District Commissioner (DC).

• DC conducts a comprehensive review, performs a site inspection, and grants approval for the application

• The DC forwards the form to the Land Commission (LC) for further review.

• The LC secretariat conducts an inspection of the property, and the Board deliberates on the application, finalising its decision

• The Transfer approval letter get issued by the Board

• The Buyer pays any balance due to the Seller

Step 4: Land Lease Issuance (Duration: 4-12 months)

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• The Buyer submits an Investment Plan along with a ZIPA certificate /Business licence and a commitment letter (in the scenarios that requires so)

• The LC issues an approval letter, specifying Transfer taxes and Government bills to be paid

• The Buyer pays to the Seller the balance, which amount should total the selling price less the deposit already paid

• The Land Ministry reviews the application and conduct a site visit

• The Land Lease Agreement is issued

• The Lease Tenure will depend on the project and the type of land use

It is important to note that the durations provided for each step are approximate and may vary based on specific circumstances and regulatory requirements.

All properties listed with us have undergone thorough Due Diligence Reports, verifying the legal rights of owners to claim and transfer ownership. The property buying process in Zanzibar has specific requirements and regulations. We highly recommend working with local professionals, such as a real estate agent and lawyer, to navigate the process effectively and ensure compliance with local laws.

We strongly advise you to engage a third-party legal advocate to assist you with the legal aspects of the land transfer process.

Our legal team conducts internal due diligence reports, prepares legal contracts, and facilitates the signing process.

It's important to note that all costs related to the land transfer, including license/permit applications, stamp duty levies, transaction processing fees, and other associated expenses, are the responsibility of the buyer unless mutually agreed upon by all parties involved.

To list your property with us, you'll need to provide the following documents: 1. Property Title Deed: Proof of legal ownership (e.g., Land Lease or Certificate of Land Transfer). 2. Property Site Plan: A detailed drawing or map of the property layout, stamped and signed by the land department. 3. Identification Documents: Government-issued ID of property owners (e.g., passport, driving license). 4. Company Memorandum of Association: Evidence of majority shareholding if the property is owned by a company. 5. Photos & Videos: High-quality images and videos of the property. We can assist with capturing these if needed. 6. ZIPA Approval: Documentation of ZIPA approval if applicable. 7. Licenses: Operational licenses if applicable (e.g., for food and beverage).

At Zanzibar Luxury Properties, we believe in empowering our sellers.

We understand that every property is unique, and the selling price should reflect its individual value.

That's why we leave the pricing decision entirely up to you, the seller.

We can provide valuable insights into market trends and data related to properties of similar size and location in the area to help you make an informed decision.

Our goal is to support you in achieving the best possible outcome for your property sale.