Africa & Indian Ocean · East Africa
Tanzania
Zanzibar's USD 100,000 property permit is real and codified. But it buys a 33-year lease, not the 99 years advertised, a two-year renewable permit, and a citizenship that is structurally impossible to obtain from it.
Frequently asked
Is the Zanzibar USD 100,000 property residence permit real?
Yes. Unusually, the marketed number really is in the statute. The Zanzibar Investment Act No. 10 of 2023, Fifth Schedule, Part Four, paragraph 6 grants a buyer of real estate worth at least USD 100,000 resident permits (Class C-11) for the buyer, spouse and four children under 20, plus a 50% stamp duty exemption. Note the permissive wording, that such permits may be granted. It is discretionary, not an entitlement. The detailed qualifying criteria are delegated to regulations under section 51 that could not be located. Everything procedural downstream of the USD 100,000 is therefore unconfirmed.
Is it really a 99-year lease?
No. The 99-year lease is fiction, and this is the central legal risk every developer site glosses over. Foreigners cannot own land under the Land Tenure Act No. 12 of 1992. Paragraph 5(c) of the same Schedule grants a land lease agreement of 33 years. The figure of 99 years is really 33+33+33, with renewals that are not guaranteed on the face of the statute. You are buying a 33-year leasehold with hoped-for extensions, not a near-freehold.
Does the Zanzibar permit lead to permanent residence or citizenship?
No to both. Tanzania has no permanent residence status at all. No permit of any class exceeds two years, and the Class C-11 permit is two years, renewable. Citizenship is structurally impossible from this route, because citizenship and immigration are union matters, and Zanzibar has no power to confer either. Sites selling what they call Zanzibar citizenship by investment are describing something that cannot legally exist. The permit is best treated as a by-product for someone who genuinely wants a Zanzibar property.
What is the tax cost of selling a Zanzibar property later?
Selling as a non-resident is punitive. Capital gains tax on the gain from land and buildings runs at 30%, raised from 20% by the Finance Act 2025 with effect from 1 July 2025. The Schedule advertises 100% repatriation of sales proceeds, but that applies only after tax, so it doesn't soften the exit charge. Tanzania is also a CRS non-participant, listed among developing countries not yet asked to commit, with no exchange date set.
Can I keep my current citizenship if I naturalise in Tanzania?
No. Dual citizenship is prohibited. Section 7(4) strips Tanzanian citizenship the moment you voluntarily acquire another nationality, and section 7(5) requires renunciation on naturalisation. The proposed Diaspora Tanzanite Card is meant as a substitute for dual citizenship, not a step toward it. Ordinary naturalisation takes roughly eight years. That means 12 months of continuous residence plus seven years of aggregate residence in the preceding ten, along with a Kiswahili or English test.
Do I need ZIPA approval before buying in Zanzibar?
Yes, and this is a live risk. A ZIPA public notice of 22 February 2026 requires every real estate project to be ZIPA-approved before implementation, including marketing, and states that sale and purchase agreements are not valid unless ZIPA-endorsed. The clear implication is that unapproved projects are being marketed right now. A buyer can pay USD 100,000 and end up holding a void agreement with no permit eligibility. Insist on a ZIPA-endorsed agreement in an approved project.
Is the Tanzania Investment Act 2022 still the governing law?
No. It has been repealed. The Tanzania Investment and Special Economic Zones Act No. 6 of 2025 merged the Tanzania Investment Centre and the EPZ Authority into TISEZA, live from 1 July 2025. Any structure or advice referencing the Tanzania Investment Act 2022 is built on a repealed statute. On the mainland, the TISEZA certificate threshold for a foreign or joint-venture investor is USD 500,000, and all permit classes remain capped at two years.
Are the two USD 100,000 figures in the Zanzibar Act the same thing?
No. Do not conflate them. The Fifth Schedule's USD 100,000 is the real-estate buyer's residence-permit threshold. The Second Schedule's USD 100,000 is the Certificate of Investment threshold for Tanzanians. Foreigners there need USD 2.5m for hotels and real estate, or USD 500k for other sectors. They appear in the same Act but do entirely different jobs, and marketing sometimes blurs the two.
Tax position
- Income tax (top)
- 30%; non-resident individuals pay a 15% flat final tax on employment income
- Capital gains
- Land and buildings: residents 10%, non-residents 30%. Raised from 20% by the Finance Act 2025 with effect from 1 July 2025.
- Wealth tax
- None
- Inheritance tax
- None
- Special regime
- Short-term resident relief: a person resident for no more than 2 years in their whole life is taxed on Tanzanian-source income only, then on worldwide income thereafter.
- Territorial
- No, worldwide income taxed
- CFC rules
- Yes
- Exit tax
- No
- CRS
- Not participating
More programmes in Africa & Indian Ocean
Every route is verified the same way. Compare Tanzania against its neighbours.
Is Tanzania actually right for your family?
We will tell you if it is not. That is the whole service.