Zanzibar beach front TZS 1,423,500,000 - 1.4 acre Beach Front Plot at Zanzibar (Matemwe)
Land Ownership by foreigners
The Land Act is very clear that a non-Tanzanian is not allowed to own land, save for investment purposes under the Tanzania Investment Act. This includes corporate bodies which are registered in Tanzania and have a majority shareholding by foreigners, which are considered as foreign entities.
The Tanzania Investment Act establishes the Tanzania Investment Centre (TIC), an entity over which the land designated for investment is registered under its name. It has mandate to issue derivative rights to investors who meet the requirements provided under the law. Under the TIC, a foreigner can be allocated land designated for investment purposes and which is already listed, or can look for desirable land owned by a Tanzanian national, and after agreeing on the acquisition of such land with the owner, the owner will submit the existing title deed to the Ministry of Lands whereby it will be re-issued as a land designated for investment purposes under the name of TIC and thereafter derivative rights issued to the investor (foreign entity).
Foreigners have a wide range of options when choosing land, depending on their requirements, and are not limited to only acquiring land listed under TIC. However, when choosing land so listed, should the foreigner/investor fail to meet the conditions of investment agreed upon on granting of the said derivative right, TIC can re-acquire the said land and the foreigner is entitled to compensation on the developments made on such land.
There is a conflict of law between the Companies Act [Act No. 12 of 2002] and the Land Act because the Companies Act provides that any company incorporated under the Companies Act shall have the same power to hold land in Tanzania. This is in direct contradiction to the Land Act which disallows land ownership by a company with majority foreign ownership; however it is an established principle that in any conflict with the Land Act, the Land Act takes precedence meaning that the Companies Act provision of Land Ownership would likely not be valid under our laws.
Lease
Lease Most foreign companies opt to enter into lease agreements with land owners who have been granted right of occupancy. Persons granted right of occupancy may enter into lease agreements either with citizens or non-citizens provided that the maximum term for which any lease may be executed shall be ten days less than the period for which the right of occupancy has been granted. This is the quickest way for such a company to enjoy land rights in Tanzania.
When looking at the concept of land ownership in Tanzania, it is important to understand the court systems especially relevant to land matters in case a dispute arises. Under Tanzanian law, land matters fall under the District Land and Housing Tribunal (DLHT) which covers the district level, and matters involving amounts above one hundred million Tanzanian Shillings, or appeals from the DLHT, are referred to the High Court Lands Division.
Due to its pecuniary jurisdiction, most matters fall under the High Court Lands Division, which has a huge backlog of cases and the timing for a case to reach judgment ranges between 4 and 10 years. One of the reasons for this state of affairs is that much of the land is not surveyed. Another reason is lack of awareness of the land regulations which means a large number of people do not have formal documentation in relation to ownership of land. These are just a few causes of land disputes in Tanzania. As in other countries, it is also highly advisable to do proper due diligence before buying land in Tanzania. Situations such as a fake title deed, a fake owner, no consent of the spouse, and inherited land sold by some of the beneficiaries without proper estate administrators being appointed are some of the common problems.