Mozambique (MZ)
Portuguese-speaking East African country with 2,500 km of Indian Ocean coastline, extraordinary marine parks, growing LNG energy sector, and low cost of living for expats in Maputo.
Buying Property in Mozambique
The full buying process, transaction costs, mortgage, and legal requirements.
Property ownership in Mozambique is fundamentally different from most countries: all land in Mozambique is owned by the state under the Constitution. Individuals and companies cannot own land outright — instead, they hold a DUAT (Direito de Uso e Aproveitamento da Terra — Right to Use and Benefit from Land), which is a land-use title granted by the state. Buildings and improvements on land can be privately owned. The DUAT can be held for 50 years (renewable for a further 50 years) and can be transferred, sold, or inherited. Foreign nationals can hold a DUAT but the process is more complex than for Mozambican citizens. Property transactions in Mozambique are risky for the uninformed — use an OAM-registered property lawyer and verify all documentation thoroughly before any transaction.
Rent vs. Buy
Most expats in Mozambique rent rather than buy — rental tenure is typically annual DIRE-linked and the legal complexity and capital requirements of property purchase are prohibitive for most assignments. Buying is most relevant for long-term residents (10+ years), investors, or those running businesses requiring a permanent base. The advantages of buying include potential capital appreciation in the Maputo property market and stability of tenure. The disadvantages are significant: legal complexity, DUAT system limitations, high transaction costs, limited mortgage finance, and difficulty selling to other foreigners. For shorter assignments (1–5 years), renting is strongly recommended.
Buying Process — Step by Step
Engage a Property Lawyer
1–2 weeks to appoint and briefAppoint an OAM-registered property lawyer (advogado especializado em direito imobiliário) before making any offer. They will conduct due diligence on the DUAT title, verify building ownership, check for encumbrances, and draft the sale agreement.
Due Diligence on DUAT
2–6 weeksYour lawyer verifies the DUAT at the Direcção Nacional de Terras e Florestas (DNTF) and the local land services (Serviços Provinciais de Terras). Confirms: DUAT is valid and current, no encumbrances, correct identification of the parcel, legal right of the seller to transfer.
Due Diligence on Buildings
2–4 weeksVerify building ownership at the Conservatória do Registo Predial (property registry). Confirm the building is legally constructed and has appropriate licences. Commission a structural survey by a qualified engineer.
Negotiate and Agree Terms
1–3 weeksAgree on the sale price (typically quoted in USD), payment schedule, and conditions precedent. Consider the exchange rate risk between USD asking price and MZN payment.
Preliminary Agreement (Contrato de Promessa de Compra e Venda)
1–2 weeksA preliminary sale agreement (CPCV) is signed by both parties — a deposit (typically 10–20%) is paid. This agreement is notarised.
DUAT Transfer Application
4–12 weeks (can be longer for large or complex transfers)Apply to transfer the DUAT to the buyer's name at DNTF or the relevant land authority. This requires approval from the competent minister for DUATs above certain sizes or values.
Final Deed (Escritura Pública)
1–2 weeks after DUAT approvalThe final transfer deed is executed before a notary (Cartório Notarial) after the DUAT transfer approval is granted. Both parties sign in the presence of the notary. The balance of the purchase price is paid.
Registration
2–4 weeks post-deedRegister the transfer at the Conservatória do Registo Predial and update DUAT records at the relevant land registry. Pay transfer stamp duty (SISA) and other registration fees.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Property lawyer fees | 1–2% of purchase price (minimum MT 30,000–80,000) | Essential — do not transact without a lawyer |
| Notary fees (Cartório Notarial) | 0.5–1% of transaction value | Regulated fees; both parties typically share |
| SISA (Transfer Stamp Duty) | 2% of declared property value | Paid to ATM at the time of transfer |
| DUAT transfer application fee | MT 5,000–20,000 depending on size and authority | Paid to DNTF or provincial land authority |
| Registration fees (Conservatória do Registo Predial) | MT 3,000–10,000 | Building ownership registration |
| Structural survey / engineer inspection | MT 10,000–40,000 | Strongly recommended for older buildings |
| Certified translations of foreign documents | MT 2,000–8,000 per document | Required for foreign buyers |
| Real estate agent commission (if used) | 3–5% of purchase price | Paid by seller in most cases; verify in advance |
The Notary — Mandatory for All Purchases
A notary (notário) is required for the final transfer deed (escritura pública) and for authenticating key documents in the process. Notary fees are set by law (regulated tariff). The notary is a legally neutral officer — they do not represent either party. For complex transactions, your property lawyer and the notary play complementary roles: the lawyer represents your interests; the notary authenticates the transaction.
Mortgage
Mortgage finance for residential property is available in Mozambique through BCI and Millennium BIM but is difficult to access for foreign nationals. Loans are primarily in MZN at high interest rates (15–25% per annum in 2026). Most international expats fund property purchases through offshore savings or employer housing loans rather than Mozambican bank mortgages.
30–50% of property value required for mortgage eligibility
Foreign nationals can technically obtain a Mozambican mortgage but in practice face significant barriers: higher income and residency requirements, limited loan-to-value ratios, high interest rates, and lender preference for Mozambican-citizen borrowers. Some international employers provide housing loans at favourable rates as part of employment packages — check your contract.
Land Registry
Two registries are relevant to Mozambican property: (1) Conservatória do Registo Predial — registers buildings and improvements (the physical structure you own); (2) DNTF (Direcção Nacional de Terras e Florestas) and provincial land services — registers DUAT land-use titles. Both registrations must be completed for a complete property transaction. Verify records at both registries before purchase.
Taxes
Property-related taxes in Mozambique: (1) IPRA (Imposto Predial Autárquico) — annual property tax levied by the municipal council on the assessed value of properties. Rates vary by municipality. (2) SISA — 2% transfer stamp duty on property sales, paid to ATM. (3) IRPC/IRPS — capital gains on property sales are taxed as income. (4) Rental income from a Mozambican property is subject to IRPS (for individuals) or IRPC (for companies) at standard rates. Obtain advice from an ATM-registered accountant before any property transaction.
New Build vs. Existing Property
New construction in Mozambique requires: a DUAT over the land, municipal building permit (licença de construção) from the CMM or relevant autarquia, compliance with the Mozambican Urban Planning and Building Code, and a completion certificate (habite-se) after construction. The new build process is complex and slow — budget 12–24 months from permit to completion. Many expat investors purchase existing properties rather than building. For new construction, engage an OAM-registered lawyer AND an OEM-registered engineer from the outset.
Selling Property
To sell a DUAT or property, follow the same process in reverse: engage a property lawyer, agree terms, execute a preliminary agreement, complete the DUAT transfer and deed process. Capital gains (more received than the original purchase price) are taxable under IRPS or IRPC. The seller typically pays the real estate agent commission if one is used. Foreign nationals are subject to 20% withholding tax on any Mozambican-source income including property sale proceeds — consult your tax adviser.
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Property Buying
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