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  • Writer's pictureAfrica Luxury Properties

Benefits of Buying Zanzibar Real Estate



  • Zanzibar is comprised of several islands, but two are the larger ones. Unguja is the largest one and is erroneously called Zanzibar. The other is called Pemba.


  • Tourism in Zanzibar is on a steady increase, enjoying an increase from 19,000 tourists in 1985,to over 500,000 in 2021.


  • Zanzibar is an economically, politically and socially stable island. Private investments are protected under Zanzibar domestic law and through international conventions.


  • The United Republic of Tanzania is a member of the Africa Continental Free Trade Area (AFCFTA). This grants Zanzibar easy access to the entire African market.


  • Zanzibar boasts of a young and dynamic workforce. The government also grants investors an opportunity to employ expatriates in key positions.


  • Zanzibar also allows foreign investors to own 100% of their business.


Benefits of Buying Zanzibar Real Estate


When flirting with the idea of investing in Zanzibar real estate, a savvy investor will look at the bigger picture. Zanzibar – one of the key attractions are the extensive tax benefits available to investors. Zanzibar offers excellent opportunities for long-term investment viability and almost guaranteed ROI.


If you are a potential investor, you would be happy to know that as a region, Zanzibar's economic, political, and social aspects are stable, with all investments enjoying constitutionally protection. As an island economy, which relies heavily on tourism, there is huge investment potential.


Here are a couple financial factors that make Zanzibar a great investment opportunity\


  • Residents permits given upon purchase to the buyer, their partner and children under 25 – residency to be renewed every 3 years and valid for the length of property ownership

  • No minimum length of stay

  • No stamp duty on property purchase

  • No capital gains tax on properties

  • No inheritance tax on property

  • Zero tax due on income outside of Tanzania

  • Personal local income tax of just 15%


Zanzibar has become one of the most sought after tourist destinations in East Africa becoming increasingly popular amongst the masses. The Zanzibar tourism numbers have been on a steady increase, considering that 2010 saw an average of 100,000 tourists visiting the island which number increased drastically over the last decade, seeing over 500,000 tourists in 2021.


Though Zanzibar is a small island economy, its aura, culture, geography, flora and fauna is unique, it has enjoyed relatively high economic growth over the last decade, averaging 6-7% per annum according to the World Bank. The Zanzibar economy is extremely diverse, involving tourism, agriculture, export, mining, construction, electricity generation and transport, all playing a part alongside tourism. However, tourism still dominates the economy and where the particularly exciting investment opportunities lie.\


Here are 10 more reasons to invest in Zanzibar


  1. Peace & Tranquility - Zanzibar is simply tranquil, peaceful and offers a secure environment, bolstered and contained within a peaceful community.

  2. Strategic Location - Zanzibar is one of the oldest East African slaving posts that has benefited from its proximity to mainland Africa, Europe, Asia, and North America.

  3. Market Potential - Zanzibar is a member of multiple coalitions and trading groups, such as the East African Community (EAC), Southern African Development Community (SADC), Africa Continental Free Trade Area (AfCFTA), and Small Islands Development Economies (SIDEs), totaling a market of over 300 million individuals.

  4. Abundant Resources - Zanzibar is an archipelago of islands, abundant with land and marine resources - all used for investment purposes.

  5. Exotic Leisure and Business Destination - Zanzibar is internationally renowned for its gorgeous scenery ,captivating landscapes and its exotic atmosphere.

  6. 100% Foreign Ownership Rights - Zanzibar allows 100% foreign ownership of businesses and assets.

  7. Predictable Fiscal Regime - Zanzibar's fiscal policy is stable and predictable, and it emphasizes the necessity of businesses recovering investment expenses before paying corporate tax.

  8. Enabling Environment - Zanzibar has made investing easy for foreigners by instituting straightforward policies, legal processes and institutional framework beneficial to investors

  9. Support Services & Platforms - With organizations like the Zanzibar Investment Promotion Authority (ZIPA), Zanzibar Association of Tourism Investors (ZATI) and the Zanzibar Commission of Tourism, there are a range of support systems/platforms for new or potential investors.

  10. Investment Guarantee - All legal investments are protected under Tanzanian law in addition to international conventions and charters.

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