Understanding the difference between leasehold and freehold property rights is essential for Zanzibar property buyers.
Freehold
Freehold ownership in Zanzibar is generally restricted to citizens of Tanzania. Foreign investors typically cannot hold freehold title directly.
Leasehold
Foreigners acquire property through leasehold interests — typically 30–99 years with renewal options. Leasehold provides effective ownership including the right to use, rent, improve, and sell the property.
Company Ownership
Foreign investors can establish a locally registered company to hold property, providing more flexibility in ownership structures. This is common for larger investments and developments.
Practical Implications
Leasehold properties in prime locations hold their value well and are actively traded. The leasehold system is well-established in Zanzibar and accepted by banks, developers, and the legal system.