Foreigners are allowed to purchase land in Tanzania, but the process can be complex and there are certain restrictions and requirements that must be met. Here are the basic steps for buying land in Tanzania as a foreigner. Note that foreigners are allowed to own land only if that land will be used for commercial investment purposes.
The first step is to register a company that will carry out the commercial investment in Tanzania. The government shall register the land title deed in the name of that company. Company registration can be done online through the Business Registration and Licensing Authority (BRELA) website www.brela.go.tz Alternatively, you can use a lawyer or any other business consultant of your choice. A list of verified business consultants and law firms capable of registering companies in Tanzania are found at www.return.africa/resources
Register your investment project(s) with the Tanzania Investment Center (TIC) who will issue your company with a Certificate of Incentives.
Identify the land you want to buy. You can do this by working with a real estate agent or by searching online. Make sure the land is suitable for your intended use and that all necessary permits and approvals are in place.
Verify ownership: Once you have identified the land, you should verify that the seller is the rightful owner of the land. This can be done by conducting a title search at the local Land Office or by working with a lawyer or consultant. At this point you will also need to establish if the land has any incumbrance such as loans, back taxes, family disputes etc. An official search of the land documents at the lands office usually reveals this information. You may also wish to talk to the Village, Ward or Estate chairperson of the area where the land is located as additional due diligence. Some vital information which is occasionally not revealed at the official search might come to light from the chairperson's office.
Negotiate the price with the seller and agree on the terms of the sale, including the purchase price, payment terms, and any other conditions. A conveyancing lawyer should draw (write) the sale agreement and draft the transfer documents. Note that the government land office must receive a signed copy of the land transfer document in order to transfer the ownership to your company. A sale agreement IS NOT enough to effect transfer of ownership.
Pay the purchase price to the seller by making a direct deposit into the seller's bank account or his appointed attorney. It is important to use a reliable and secure payment method such as a telegraphic wire or The deposit slip from your bank is an important document that you should preserve for future reference if needed.
Register the transfer of the land with the Land Office. This involves submitting the necessary documents and paying the registration fees. Fees involved during the transfer include Capital Gains Tax, Stamp Duty as well as Registration Fees. Once the transfer is registered, you will receive the Certificate of Occupancy that bears your company name. This is the final confirmation that ownership of the land has been transferred to your name. You may wish to conduct an official search a few weeks after your purchase to confirm that the records at the lands office reflect your ownership.
It is important to note that the process of buying land in Tanzania can take several months and may involve multiple parties, including lawyers, real estate agents, and government officials. It is recommended that you work with experienced professionals who can guide you through the process and ensure that all legal requirements are met. For assistance in investing in Tanzania including purchasing your own land, real estate property and registering your own company email us on admin@return.africa
Hey there, This is Ben, born in East African but raised in the US. I deeply appreciate you taking time and write this helpful and very informative info. THANK YOU AND BLESSINGS.