Tanzania (TZ)

Confirm whether you are buying on Tanzania Mainland or Zanzibar — the legal frameworks are completely separate. On the Mainland: foreigners must obtain a Derivative Right of Occupancy via TIC (Tanzania Investment Centre), which requires TIC registration and a qualifying investment of at least USD 500,000. On Zanzibar: foreigners can access 33-, 66-, or 99-year leaseholds through ZIPA-approved developments or direct government leases. Determine whether you will hold in your own name, through a Tanzanian-registered company, or through a joint venture. Consult an independent Tanzanian advocate (lawyer) licensed in the relevant jurisdiction before any further steps.

Hire an advocate (lawyer) licensed to practise in the relevant jurisdiction (Tanganyika or Zanzibar Bar). Do not use a lawyer introduced solely by the seller or developer. The advocate will: conduct a title search at the land registry, verify the seller's authority to transfer, check for encumbrances (mortgages, caveats, disputes), advise on the correct legal structure for your purchase, draft or review transfer documents, and attend government registration. Legal fees range from 1-3% of transaction value or a fixed fee for straightforward transactions — agree fee structure in writing in advance.

For Mainland derivative rights: apply to the Tanzania Investment Centre (TIC) for investor registration. Submit: business plan or investment proposal, company registration documents (if applicable), proof of investment funds, passport, and application fee. TIC assesses the investment and issues a Certificate of Incentives, which enables the land right application. The derivative right TIC then grants is typically 99 years less 10 days (to maintain the structure of TIC as the primary holder). For Zanzibar: apply to ZIPA for approval if operating within a designated investment zone; otherwise engage directly with the Ministry of Lands and Housing, Zanzibar for government lease documentation.

Your advocate conducts formal title searches at: (1) the Land Registry (Registry of Titles, maintained by the Ministry of Lands, Housing and Human Settlements Development for Mainland; the Department of Lands for Zanzibar); (2) the local urban/district council for any planning restrictions or outstanding rates; (3) TIC records for any prior derivative right or encumbrance. Verify: current valid holder of the Right of Occupancy, lease term remaining, any registered mortgages (debentures) or caveats, permitted land use (residential, commercial, agricultural — conversion requires separate approval), boundaries (survey plan), and any disputes or court orders affecting the land.

Commission a licensed land surveyor to verify boundaries and confirm the survey plan matches registry records. Commission a structural engineer to inspect buildings. Commission a licensed valuer (registered with the Valuers Registration Board — VRB) for a market valuation. Assess: flood risk (Dar es Salaam has significant flood-prone areas), access road status (public vs. private), utilities connectivity (water, power), and proximity to planned infrastructure changes. In Dar es Salaam, also assess construction quality and drainage.

Your advocate drafts or reviews the transfer agreement (agreement for sale of interest in land). All instruments affecting land must be stamped under the Stamp Duty Act — stamp duty is 1% of the consideration or market value for transfers of land or buildings, payable within 30 days of execution to the Tanzania Revenue Authority (TRA). Capital gains tax on land transfers may apply depending on the seller's status and transaction structure — confirm with TRA or your tax adviser. For TIC-based transfers, TIC approval of the transfer may be required. Property rates (annual local government charges) arrears must be cleared before transfer. Pay agreed purchase price through documented bank transfer.

Your advocate registers the transfer at the appropriate land registry: Ministry of Lands Registry of Titles (Mainland) or Zanzibar Department of Lands. For derivative right transfers, TIC endorsement of the new holder is also required. Registration fees are payable (rates vary — confirm current schedule with the registry at time of transaction). Obtain and safeguard all original stamped and registered documents: the registered transfer instrument, the Certificate of Title or Right of Occupancy document in the new holder's name, TIC certificate (if applicable), survey plan, and tax clearance receipts.