Can Foreigners Buy Property in Zanzibar? Leasehold, Condominium Titles and the Real Pathways (2026)

Last updated: August 2026

Yes. Foreigners can buy property in Zanzibar, but not freehold land. Under the Land Tenure Act 1992 there is no private freehold ownership of land. Foreign buyers obtain long-term leasehold interests. For most residential purchases the practical and secure route is an individual unit title in a ZIPA-approved condominium project under the Condominium Act No. 10 of 2010. A second route exists through a company structure for larger land or development projects.

Why Freehold Is Not Available

Zanzibar’s land system is governed by the Land Tenure Act of 1992. All land — occupied or unoccupied — is public land vested in the President, to be held for the use and common benefit of the people of Zanzibar. There is no private freehold title available to anyone.

Foreigners (and non-Zanzibaris) cannot be granted a Right of Occupancy in their personal capacity. Right of Occupancy is no longer newly issued; new grants are by lease. What foreigners acquire is a long-term leasehold interest, typically commencing at 33 years and renewable up to a maximum of 99 years. The lease carries the practical rights that matter — the ability to occupy, develop, rent, sell the remaining term, and pass it by inheritance — subject to the usual regulatory clearances and the conditions of the lease.

The public-land framework gives the government the ability to ensure land is put to productive or beneficial use rather than left idle or held purely for speculation. This is consistent with the statutory principle that land is held for the common benefit of the people of Zanzibar.

The Two Main Routes for Foreigners to Buy Property in Zanzibar

1. Individual unit title in a ZIPA-approved condominium project (the standard residential route)

When a villa or apartment sits inside a project approved by the Zanzibar Investment Promotion Authority (ZIPA) and registered under the Condominium Act No. 10 of 2010, a foreign buyer may take title in their own personal name. No local company is required. The buyer receives an individual title deed recorded at the Land Registry. The underlying project lease is normally 33 years, renewable up to 99 years in total. The unit owner holds full rights to live in the property, generate rental income, transfer the remaining lease term to a new buyer (subject to ZIPA and tax clearances), and leave it to heirs. This is the structure used for the majority of high-quality residential inventory marketed to international buyers.

Current examples of this structure can be viewed on our residential projects page.

2. Company / ZIPA investment route (larger land or development projects)

For stand-alone land, commercial schemes, hotels or larger development parcels, foreigners generally acquire the interest through a Zanzibar-registered company. There are three practical approaches:

• New company + acquisition of a land interest: The buyer incorporates a Zanzibar company, obtains the necessary ZIPA approvals, and acquires the interest from the current holder. Fully foreign-owned companies face higher capital thresholds — commonly in the region of USD 2.5 million for significant hotel and real-estate projects.

  
  

• Share acquisition in an existing company: The buyer acquires the shares of a Zanzibar company that already holds a valid government lease and the necessary licences. Because the lease remains with the company, there is no need to transfer the land interest itself. This is often a cleaner and faster route, particularly for hotels, commercial villas or other assets that already have an operating track record and approvals in place. Tax clearance is essential: the target company must have current tax clearance certificates and no outstanding tax liabilities, as any unpaid tax or unresolved assessment stays with the company and becomes the buyer’s responsibility after the share transfer.

  
  

• Assignment of an existing lease into a buyer-controlled company: An existing lease is assigned or transferred into a company controlled by the buyer. This requires the usual regulatory approvals (ZIPA involvement, Land Transfer Board clearance, registration at the Land Registry).

  
  

Under current rules a long-term lease must be held by a Zanzibar-registered company. Older leases were sometimes issued to foreigners in their individual names; those can still be transferred, but the receiving interest is now structured through a company. A lease interest (or Right of Occupancy) can be acquired from a Zanzibari individual (who may hold either a Right of Occupancy or a lease), from a foreigner holding an older individual lease, or from an existing company.

Practical note on accessibility

If a foreigner wishes to purchase a residential villa or apartment that is not part of a ZIPA-approved condominium scheme, they must set up a Zanzibar company, meet ongoing company filing and compliance requirements, and satisfy the relevant ZIPA minimum investment thresholds. This makes the route significantly more complex and capital-intensive. As a result, many non-condominium residential properties are often priced lower because the pool of eligible foreign buyers is limited. The condominium route remains the clearer and more accessible path for most individual residential purchasers.

The same dynamic applies to land. Smaller parcels are frequently out of practical reach for foreign buyers because the company must present a project that meets the typical USD 2.5 million minimum investment threshold for fully foreign-owned hotel and real-estate projects. In practice this often makes sub-5,000 sqm parcels difficult to structure; larger sites give more room to design a project that can meet the threshold. It is possible to lower the minimum investment requirement by taking a local partner, but this usually requires the local partner to hold around 70% of the shares. That level of ownership concentration creates high risk and is generally not recommended — it demands a very high degree of trust and extremely careful structuring of control and exit rights.

Unit Title vs Company Lease: Which Route for Foreign Buyers?

The difference between an individual unit title and a company-held lease is the single most important technical distinction for foreign buyers. The correct route depends entirely on the type of property.

Aspect	Individual Condominium Unit Title (Condominium Act 2010)	Company / ZIPA Lease Route
Buyer structure	Individual (own name)	Zanzibar-registered company
Company required	No	Yes
Typical minimum investment	Project-dependent (often from ~USD 100k+)	Usually USD 2.5m scale for new 100% foreign companies; share deals and lease assignments vary
Title registration	Individual unit title at Land Registry	Lease in company name
Lease term	Usually 33 years, renewable to max 99 years	Project-specific, often similar terms
Rights	Live, rent, sell remaining term, inherit	Similar rights held by the company
Best suited for	Residential villas & apartments	Larger land, hotels, commercial development
Complexity	Lower	Higher for new companies; often lower for clean share purchases or straightforward lease assignments
Practical accessibility for typical residential buyers	High	Lower — company setup + ZIPA thresholds limit the buyer pool

Use the individual condominium title route when the property is a villa or apartment inside a ZIPA-approved condominium project. Use the company route for stand-alone land, hotels, commercial projects, or any residential property that sits outside a condominium scheme.

Residency via Investment (USD 100,000+)

Investment of more than USD 100,000 in a qualifying ZIPA-approved condominium project opens a residency pathway (often referred to as the Golden Visa) for the buyer and immediate family members. The project must carry the necessary condominium accreditation, and the individual unit title is typically issued once construction of the condominium is complete and the unit title is registered in the buyer’s name. This pathway is available on many of the residential projects currently offered to foreign purchasers (see our residential projects page).

Common Pitfalls and Red Flags

• Claims of “freehold” or “full ownership of the land” — these are legally incorrect under the 1992 Act.

• Properties marketed as condominium titles that are not in fact ZIPA-approved or registered under the Condominium Act.

• Stand-alone land or villas outside approved projects being offered directly to foreigners without a company or special status (retiree visa, marriage, etc.).

• Unclear or incomplete lease documentation, missing ZIPA approvals, or titles that cannot be independently verified at the Land Registry.

• Share purchases of existing companies without proper tax clearance or with unresolved tax liabilities.

• Lease assignments into a new company that lack the required ZIPA and Land Transfer Board clearances.

• Pressure to proceed without independent legal review by a qualified Zanzibar lawyer.

• Structures that rely solely on informal agreements or developer promises rather than registered title.

  
  

Always verify the precise legal status of any specific property before committing funds.

Step-by-Step Process, Timeline and Key Risks for Foreign Buyers

For individual unit titles in a condominium project

1. Confirm the property sits within a ZIPA-approved condominium scheme registered under the Condominium Act No. 10 of 2010.

   
   

2. Review the key project documents (ZIPA approval, condominium registration, underlying project lease and draft individual unit title). Reputable agents already collect and verify these before listing. Independent legal review by a qualified Zanzibar lawyer is optional but recommended for additional comfort, particularly on larger purchases.

   
   

3. Pay the reservation fee to secure the unit.

   
   

4. Complete the purchase agreement, pay the remaining consideration according to the agreed schedule, and settle transfer taxes and fees.

   
   

5. The individual unit title is registered at the Land Registry in the buyer’s name. This is typically coordinated by the developer or condominium body (especially on new projects); on resales the buyer may handle it directly. Registration involves statutory fees and costs, which are sometimes included in the overall purchase price and sometimes payable in addition.

   
   

6. Where the investment exceeds USD 100,000 and the project carries the necessary accreditation, apply for the residency permit once the unit title is registered.

   
   

For company / ZIPA investment route (land, hotels, commercial or larger projects)

Under current rules a long-term lease must be held by a Zanzibar-registered company. Older leases were sometimes issued to foreigners in their individual names; those can still be transferred, but the receiving interest is now structured through a company. A lease interest (or Right of Occupancy) can be acquired from a Zanzibari individual (who may hold either a Right of Occupancy or a lease), from a foreigner holding an older individual lease, or from an existing company.

The precise steps depend on the structure used:

A. New company acquiring a land interest from the current holder

(There is always a current holder — a Zanzibari with a Right of Occupancy or a lease, a foreigner holding an older individual lease, or an existing company holding a lease.)

1. Identify the specific land and the current holder.

2. Engage a qualified Zanzibar lawyer to conduct due diligence (official search, title, encumbrances) and to manage the subsequent regulatory steps.

3. Progress the ZIPA application (the land is identified first; ZIPA approval is recommended before completing the acquisition or making full payment). Payment can be structured in milestones by agreement between the parties.

4. Complete the transfer documentation and obtain Land Transfer Board approval.

5. After Land Transfer Board approval, apply for and register the Government Lease in the company’s name at the Land Registry.

   
   

B. Share acquisition in an existing company that already holds the lease and licences

1. Conduct full legal, financial and tax due diligence on the target company (tax clearance is essential).

2. Complete the share-purchase agreement and pay the agreed consideration.

3. Update company records and make any required notifications (including to ZIPA where change of control applies).

   
   

Note: the lease remains with the company; there is no land transfer and no new lease registration.

C. Assignment of an existing lease into a buyer-controlled company

1. Identify the existing lease and current holder; confirm the buyer’s company structure.

2. Engage a qualified Zanzibar lawyer to conduct due diligence on the lease and assignment conditions, and to manage the regulatory steps.

3. Progress any required ZIPA clearance (recommended before completing the assignment or making full payment).

4. Obtain Land Transfer Board approval and complete the assignment.

5. Register the assigned lease in the buyer’s company name at the Land Registry.

   
   

In all cases a competent local lawyer is strongly advised.

**Timeline and key risks**

For a completed condominium the process is mainly a title transfer and can move quickly once documents are in order. For an off-plan or under-construction condominium, the booking, document review, SPA signature and first instalment (or full payment) can often be completed in as little as two weeks. The individual unit title itself is often only issued once the project is completed and registered. Company-route purchases (land, hotels or non-condo properties) usually take longer — typically 3–6 months — due to company setup, ZIPA approvals and Land Transfer Board clearance. The biggest risks are incomplete title documentation, missing ZIPA approvals, and proceeding without independent legal review by a qualified Zanzibar lawyer.

Closing

Zanzibar’s leasehold framework is clear once the distinction between individual condominium titles and company-held leases is understood. For most foreign residential buyers the condominium route under the 2010 Act offers a direct, title-registered interest without the need for a local company and without the higher capital thresholds that apply to fully foreign-owned companies. Larger or commercial projects follow the ZIPA company path. In all cases the legal interest is long-term leasehold, not freehold.

As Warren Buffett observed, “Risk comes from not knowing what you’re doing.” The same principle applies here: the correct structure is straightforward once you understand it, but the wrong structure creates unnecessary complexity and risk.

Zanzibar Luxury Properties specialises in guiding international buyers through the right pathway for each property. We work only with properly approved projects, coordinate independent legal review, and operate on a zero-buyer-commission basis.

If you are considering a purchase, view current residential opportunities that follow the individual unit-title route on our residential projects page, or get in touch and we will walk you through the correct structure for the property you have in mind.

Frequently Asked Questions

Can foreigners own freehold land in Zanzibar? No. Under the Land Tenure Act 1992 there is no private freehold. Foreigners acquire long-term leasehold interests only.

What is the simplest route for a residential apartment or villa? An individual unit title in a ZIPA-approved condominium project under the Condominium Act No. 10 of 2010. Title is registered in the buyer’s own name. No company is required.

Does buying property give residency? Investment of more than USD 100,000 in a qualifying ZIPA-approved condominium project opens the Class Residence Permit (Golden Visa) for the buyer and immediate family once the unit title is registered.