HILTON LAW GROUP
Can anyone (including foreigners) own and occupy real estate in your jurisdiction (including shares in property owning companies)? Are there any restrictions?
Yes, foreigners may occupy and use real estate in Tanzania, but cannot own land in their personal capacity pursuant to section 20(1) of the Land Act, Cap. 113 [R.E. 2023] . Land in Tanzania is publicly owned and vested in the President as trustee for all citizens. Foreign investors may acquire land through a derivative right granted by the government under sections 45 - 47 of the Tanzania Investment Act, 2023 , specifically for investment purposes. Such land must be designated, allocated, and registered through the Tanzania Investment and Export Promotion Authority (TISENZA) . Foreigners may also hold shares in land-owning companies, provided that the land is used strictly in accordance with approved investment objectives.
Are there restrictions on lending for the purchase of real estate by foreign companies? If so briefly give an outline?
There are no express statutory prohibitions on lending to foreign companies for the acquisition of real estate in Tanzania. However, where land is involved, it must be held under a derivative right granted pursuant to the Tanzania Investment Act, 2023 and administered by TISENZA. Under section 46 of the Act and the Land (Amendment) Act, 2023, such derivative rights may be mortgaged as security, subject to prior written approval by the Commissioner for Lands. Lending institutions must also comply with the Mortgage Financing (Special Provisions) Act, Cap. 125, and any applicable prudential and collateral requirements issued by the Bank of Tanzania, particularly where land constitutes part of the security.
Buying
Please provide a short summary of the fees and costs (including tax) relating to buying real estate in your jurisdiction.
Under Tanzanian law, the purchase of real estate entails several statutory charges. Stamp Duty is levied at 1% of the property's market value pursuant to the Stamp Duty Act, Cap. 189 R.E. 2023. Registration Fees are payable at 0.25% under the Land Registration Act, Cap. 334 R.E. 2023. Capital Gains Tax, under the Income Tax Act, Cap. 332 R.E. 2019, is payable by the seller at 3% for developed land and 10% for undeveloped land or land without proof of development. Buyers also incur valuation fees (based on location and value), legal fees (3–10%), and must clear outstanding land rent.
Owning
Are there taxes applicable to owning real estate and can the burden of the taxes be passed to someone else (e.g. a tenant or an occupier - not being the owner
Yes, under Tanzanian law, real estate ownership is subject to Property Tax payable annually to the local authority, governed by the Local Government Finance Act, Cap. 290 R.E. 2023. The amount varies based on property use and location. Land Rent is also payable annually to the Ministry of Lands under the Land Act, Cap. 113 R.E. 2023. While these obligations rest with the registered owner, the burden may be contractually shifted to a tenant or occupier through a lease or tenancy agreement. However, liability to the government remains with the owner unless formally assigned or recovered.
Tax Breaks
Are there tax breaks or other incentives for foreigners to buy real estate in your jurisdiction? If so, what are they?
Under Tanzanian law, there are generally no specific tax breaks or exemptions granted to foreigners solely for purchasing real estate. Foreigners may only acquire land through derivative rights granted by the Tanzania Investment Centre (TIC) under the Tanzania Investment Act, Cap. 38 R.E. 2023 or through the Export Processing Zones Authority (EPZA). Where approved, investors may qualify for incentives , such as tax holidays , customs duty exemptions, and VAT reliefs—but these apply to investment projects , not directly to real estate acquisition. Land ownership by non-citizens is regulated under the Land Act, Cap. 113 R.E. 2023, which prohibits direct acquisition of general land.
How is the ownership of Real Estate evidenced in your jurisdiction?
In Tanzania, ownership of real estate is legally evidenced by a Certificate of Title issued under the Land Registration Act, Cap. 334 R.E. 2023. The Certificate confirms the holder’s legal interest in the land, typically Right of Occupancy or a Derivative Right , both recognized under the Land Act, Cap. 113 R.E. 2023. All interests in land must be registered with the Registrar of Titles. The Land Register maintained by the Ministry of Lands is conclusive proof of ownership. For derivative rights (e.g., leases or TIC-granted interests), a registered Derivative Right Certificate serves as proof of title.
Is it possible to keep the identity of owners of real estate confidential in your jurisdiction?
In Tanzania, ownership of real estate is recorded in a public land register maintained under the Land Registration Act, Cap. 334 R.E. 2023. The Certificate of Title issued by the Registrar includes the registered owner’s name and is publicly accessible. There is no legal mechanism allowing the owner’s identity to be kept confidential; ownership details are open to public inspection through land registry searches. Attempts to conceal ownership through nominees or trusts are not recognized by law and may be considered invalid. Thus, real estate ownership transparency is mandated by current Tanzanian legislation.