YES ... Foreigners are now legally entitled to buy houses, land and property in Zanzibar and receive an official title deed, land lease and site plan, with owners having the liberty to renew their land lease prior to expiry.
Land leases are often issued for 33 year period phases with hassle free renewable structures in place to ensure that the long lease duration period, often exceeding a life span - is inheritable and easily transferable.
So what tax and residency benefits are there for investors:
1) Foreign ownership 100% authorized
2) ZERO business license fees for first three months
3) Income tax free for first five years
4) Repatriation freedom of all profits allowed after tax
5) 100% exemption of withholding tax on interest paid to foreign banks
7) Residence and work permits issued to investors and employees, renewable every 2 years at USD$3050 for main investor(s) and USD$550 for each dependent (under 20 years of age)
8) Zero income tax on worldwide income and wealth
9) Registration is done under Zanzibar Investment Promotion Authority (ZIPA)
6) No VAT on unit rental or sales
7) Income tax is only, 15 % of local income(applicable to foreigners only)
8) Repatriation of profit allowed after tax
9) No minimum stay required to claim benefits
Fully understanding property ownership prior to investing in Zanzibar Real Estate, can significantly assist when considering investing, here are some notes -
Long Lease Ownership – Property in Zanzibar is usually issued under a 33-99 year lease, that is often issued gradually in 33 year phases.
Condominium Act – New legislation, the Condominium Act, has enabled overseas investors, to purchase properties and have their interests, assets and investments protected.
Official Documentation – Buyers are now issued clear, official government documentation, confirming their claim to their property. (Title Deed, Lease Certificate, Land Transfer Certificate or Sales Deed)
Lease Renewal - There is a clearly defined lease renewal structure, allowing the property owner to easily renew their lease title prior to expiry.