Zanzibar Land Tenure Explained: Leasehold, Condominiums, and Foreign Access

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Zanzibar has its own land laws separate from Mainland Tanzania, even though they share a union government. Land is not part of the union matters, so Mainland rules on foreign ownership don’t apply there. Understanding Zanzibar land tenure is essential for anyone planning to buy property or invest on the islands.

Zanzibar’s land system rests on the Land Tenure Act, 1992. This principle forms the foundation of the Zanzibar land tenure system and determines how citizens, investors, and foreigners can access land. Under this Act, all land in Zanzibar, whether occupied or vacant, is public land vested in the President on behalf of the people. There is no freehold in Zanzibar. Not for citizens, and certainly not for foreigners. Zanzibari citizens can be granted a Right of Occupancy, a long-term right to use land, but even this falls short of outright ownership. Non-citizens, including Mainland Tanzanians, cannot be granted a Right of Occupancy directly.

The Land Transfer Act, 1994 adds a second layer of control. It establishes the Land Transfer Board, which must approve any transfer of land interests, particularly transfers to foreigners or any long-term lease arrangement. No transaction involving a non-citizen bypasses this body.

How Foreigners Actually Acquire Property

Under the Zanzibar land tenure framework, foreigners cannot own land outright but can legally secure long-term leasehold interests through approved investment structures. For foreigners wanting property, there are two main ways. One is through a locally registered company wholly owned by the foreigner. This company applies for a government lease via the Zanzibar Investment Promotion Authority (ZIPA) and the Commission for Lands. This method, used for bigger projects or individual properties, needs approval from both the Land Transfer Board and ZIPA before the lease is registered.

The second option is buying a condominium or unit within a registered development. Thanks to the Condominium Act of 2010, buyers get a leasehold title in their name without needing a company. This method is simpler and better for individual buyers.

In both cases, the underlying land remains state property. What the buyer holds is a long-term lease, standard practice is an initial 33-year term, renewable in further 33-year blocks up to a maximum of 99 years. Lease renewal is not automatic but is routinely granted where terms have been met and the property maintained. The leasehold can be inherited by heirs as long as the lease hasn’t expired.

The Role of ZIPA and Investment Thresholds

The Zanzibar Investment Promotion Authority sits at the centre of nearly every foreign land transaction. Its remit was reinforced by the Zanzibar Investment Act, 2023, which updated the earlier Investment Promotion and Protection framework and streamlined approval processes while retaining tax incentives for qualifying investors.

For real estate and hospitality projects structured through the company route, the minimum capital requirement is USD 2,500,000 for foreign-owned companies, against USD 300,000 for domestic ones. Investors submit a concept note and Investment Intention Form to ZIPA, followed by a full application with a business plan, proof of capital, passport copies, and supporting corporate documents. Approval results in an Investment Certificate, which is required before ZIPA will issue the No Objection Certificate needed for land registration. Condominium purchases by individuals, by contrast, do not require this company and certificate structure, only registration at the Commission for Lands and payment of applicable stamp duty.

Residency Through Property

Zanzibar does not offer a direct property-to-citizenship pathway; citizenship remains governed by national Tanzanian law. It does, however, offer investment-linked residence permits through ZIPA. Property purchases in ZIPA-designated developments valued above USD 100,000 have qualified buyers and their immediate families, spouse and children, for residency permits, a route sometimes marketed as a “Golden Visa”  though it’s just a regular investment permit.

Registration and Due Diligence

A lease or unit title only has legal effect once registered at the Land Registry under the Registered Land Act. Buyers should insist on an official search at the Commission for Lands before completing any transaction, checking specifically for existing mortgages, caveats, or court claims against the parcel or unit. Stamp duty must also be settled with the tax authorities; registration can be blocked where this hasn’t been completed.

One risky practice to be aware of is using local nominees, Zanzibari citizens holding land for foreigners. This is common but legally uncertain since local law sees the nominee as the real owner. Lawyers generally recommend avoiding this and sticking with the company lease or condominium methods.

Zanzibar Versus Mainland Tanzania: The Key Distinction

The critical difference from Mainland Tanzania isn’t really foreigner versus citizen; it’s Zanzibari versus non-Zanzibari. Mainland Tanzanians without Zanzibari status are treated much like any other foreign national when it comes to land access in Zanzibar, so a Tanzanian passport alone confers no special standing on the islands. This is a frequent point of confusion for buyers who assume that Tanzanian nationality is sufficient, and it underscores why Zanzibar transactions need to be treated as a distinct legal process from the outset, not an extension of Mainland dealings.

The Practical Takeaway

In short, Zanzibar’s leasehold system is close to ownership in practice, especially with renewable 99-year terms. But legally, all land stays state-owned, foreign access needs ZIPA approval, and proper registration is essential. Buyers who follow these rules and insist on clear titles and approvals are in a good position to invest safely in Zanzibar.

Discover how the land tenure system works in mainland Tanzania with our blog Can Foreigners Own Land in Tanzania? A Guide to Land Tenure and Ownership.