TANZANIA

Comprehensive Guide & Checklist

This guide provides a complete and practical overview of acquiring property (land or buildings) in Tanzania, covering the legal framework, types of ownership, procedures, documentation, timelines, and risks. It includes detailed information relevant to both mainland Tanzania and Zanzibar.

1. Legal & Institutional Framework

·       All land in Tanzania is vested in the President as trustee for the people.

·       Private ownership exists through granted rights such as the Right of Occupancy or leasehold titles.

·       Key laws include the Land Act (Cap. 113), Village Land Act (Cap. 114), Land Registration Act, and the Tanzania Investment Act.

·       The Tanzania Investment Centre (TIC) and the Special Economic Zones Authority (TISEZA) facilitate land access for investors.

2. Types of Land Rights

·       Right of Occupancy — a long-term lease (up to 99 years), renewable.

·       Derivative Rights — subleases or secondary rights, often for foreign investors.

·       Village Land — governed by village councils; conversion may be required for development.

·       General Land — managed by the Commissioner for Lands; suitable for transactions.

·       Reserved Land — protected or special-use zones (parks, forests, etc.).

3. What Foreigners Can and Cannot Own

·       Freehold ownership is not permitted for foreigners on mainland Tanzania.

·       Foreigners may hold long-term leases or derivative rights through approved investment frameworks (TIC/TISEZA).

·       Foreigners can own strata (apartment) units but not the land beneath.

·       Agricultural or village land acquisition requires conversion to general land and government approval.

·       In Zanzibar, foreigners can acquire property via long-term leases (up to 99 years) under the Condominium Act (2010).

4. Required Documents & Approvals

·       National ID or passport.

·       Tax Identification Number (TIN) from the Tanzania Revenue Authority.

·       Proof of funds and bank statements.

·       Business registration (if buying through a company).

·       Existing land title or certificate of occupancy.

·       Survey plan and valuation report.

·       Environmental Impact Assessment (EIA), if required.

·       Approval from TIC or TISEZA for investment-related acquisitions.

5. Step-by-Step Process for Acquiring Property

1.     1. Identify and inspect the land or property.

2.     2. Conduct a land search with the Ministry of Lands or Land Registry.

3.     3. Verify seller’s ownership and boundary details with a certified surveyor.

4.     4. If foreign, apply for investment permission through TIC or TISEZA.

5.     5. Obtain planning, zoning, and EIA approvals if required.

6.     6. Draft and sign a Sale Agreement with legal counsel.

7.     7. Complete payment using traceable financial channels.

8.     8. Prepare title transfer documents and obtain stamp duty assessment.

9.     9. Register the transfer at the Land Registry and pay registration fees.

10.  10. Obtain the new title certificate and ensure ongoing compliance (land rent, property tax).

6. Timelines & Costs

Property acquisition typically takes between 3–6 months. Costs vary depending on location, property value, and whether conversion or foreign investment approvals are needed. Common fees include legal, survey, valuation, registration, and stamp duty charges.

7. Risks & Safeguards

·       Fake or unclear titles — always verify with official records.

·       Village land disputes during conversion — ensure all consents are documented.

·       Unapproved foreign acquisitions — confirm TIC/TISEZA approval before contract signing.

·       Lease misunderstanding — note leaseholds are time-bound and renewable.

·       Hidden costs — clarify all potential government and professional fees in advance.

8. Zanzibar Property Acquisition

Zanzibar operates a distinct land system allowing foreigners to hold long leases (up to 99 years) or purchase condominium units under the Condominium Act No. 10 of 2010. These transactions often require approval from the Zanzibar Investment Promotion Authority (ZIPA).

9. Due Diligence Checklist

·       Confirm authenticity of land title.

·       Verify land classification (village, general, or reserved).

·       Engage a licensed surveyor for boundary verification.

·       Check for encumbrances or existing charges.

·       Obtain TIC/TISEZA approval if foreign investor.

·       Draft and notarize Sale Agreement.

·       Ensure all duties, taxes, and registration fees are paid.

·       Retain copies of all official documents.

·       Maintain annual compliance for land rent and tax.

10. References & Key Sources

·       TISEZA – Tanzania Special Economic Zones Authority (www.tiseza.go.tz)

·       Tanzania Investment Centre (TIC) – www.tic.go.tz

·       Land Registration Act – TanzLII (www.tanzlii.org)

·       Eden Law Chambers – Zanzibar property law guides

·       The African Investor – Foreign investment documentation guides

·       Mrisho Consult – Land registration procedures in Tanzania