TANZANIA: Zanzibar Opens Up to Overseas Real Estate and Business Investors
03 August 2021
Zanzibar’s government has introduced a new tax and residency programme aimed at attracting foreign investment. Foreign investors in local businesses such as restaurants, bars, watersports or retail operations, will receive benefits if they invest in approved ‘strategic investment’ projects, including zero business licence fees for the first three months; zero corporate tax for the first five years, and only half the normal 30% rate thereafter. Investors will be allowed to repatriate any profits after paying any taxes due. There is also a 100% withholding tax exemption on interest paid to foreign banks; 100% deduction on the depreciation rate within five years; and the option of receiving residence and work permits for both the investor and their employees.
Investors in real estate, meanwhile, will receive similar benefits. Villa buyers can apply for a residence permit plus permits for their partners and up to four children under 20 years of age. Permits are only valid while the buyer still owns the property and cost about US$3,050 for the buyer and US$550 for each further dependent. Permit holders will enjoy zero income tax on worldwide income and wealth should they take up residence.
- Finance & Investment