Buying property in Zanzibar as a foreigner
The rules, the costs and the mistakes to avoid. 2026 guide.
The short answers
Who owns land in Zanzibar
In Zanzibar all land belongs to the state and is held on behalf of the people. Nobody, Zanzibari or foreign, buys land as freehold. Zanzibaris hold a right of occupancy; foreigners and companies hold leases. If someone promises you “full ownership of the land”, walk away.
The legal ways for a foreigner to buy
1A home in a ZIPA-approved project
The simplest way. Villas and apartments in projects registered under the Condominium Act 2010. The title is in your own name, no company is needed, and the lease is usually 33 years, renewable up to 99. Prices often start around US$100,000.
2Through a Zanzibar company approved by ZIPA
For land, hotels and larger projects. Under the Investment Act 2023, a foreign-owned hotel or real estate project needs a minimum investment of US$2.5 million (US$100,000 for local investors). It usually takes 3–6 months.
3Buying an existing company or lease
Buying the shares of a company that already holds a valid lease and licences, or taking over a lease. It needs ZIPA and Land Transfer Board approval and a full check of the company’s taxes.
Putting a property or a business in a Zanzibari’s name (“proxy”) is illegal. In January 2026 the Zanzibar Commission for Tourism announced that proxy-registered businesses will be closed and treated as economic sabotage.
Residence permit through property
- A property worth US$100,000 or more, in one ZIPA-approved project (several smaller properties cannot be added together).
- Class C permit valid for 2 years, about US$550, renewable while you own the property.
- It can include your spouse and your children under 18.
- It is a residence permit, not a work permit.
Step by step
- Choose the area and the property. We show you options across all of Zanzibar and Pemba.
- Legal checks: official search at the Land Registry, the real owner, site plan and beacons, approvals of the project.
- Reservation and purchase agreement, signed and registered.
- Approvals: ZIPA, Land Transfer Board, government lease or unit title.
- Taxes and registration paid, title in your name or in your company’s name.
- Building permit before any construction.
Costs (indicative)
| Stamp duty | about 1% (about 0.5% in ZIPA strategic projects) |
| Registration | about 0.25–1.5% |
| Lawyer | about 1–2% |
| Local levies | depend on the district |
| Every year | a small property tax and the ground rent |
| When you sell | capital gains tax, around 10% |
In total usually 5–10% of the price. Rates change: always confirm them with ZRA, ZIPA or a licensed advocate.
Red flags
- “Freehold” or “100% ownership of the land”
- Projects with no ZIPA approval or condominium registration
- Land offered to a foreigner with no company and no approval
- A title you cannot verify at the Land Registry
- Pressure to pay before an independent lawyer checks everything
- Using a local person’s name
How Essence helps you
We live and work in Jambiani and Paje and we work across all of Zanzibar and Pemba. We help you choose the right property, check the documents and the approvals, and follow every step with you.
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General information, updated October 2026. It is not legal advice: laws and fees change, so every purchase must be checked by a licensed Zanzibar advocate.