Zanzibar opens for property investment
Content: Property News
new investment opportunity in Zanzibar allows South Africans to purchase affordable luxury property on this tropical island paradise, receive residency, as well as benefit from a host of attractive tax benefits.
“Zanzibar only opened its doors to non-Tanzanian resident investors recently when the government announced a new tax and residency programme,” says Blue Amber managing director Saleh Said. “Prior to this, foreign buyers could not own property on the island at all.” It is the first time in the country’s history foreigners are allowed to invest here.
Located just off the East African coast in the Indian Ocean, Zanzibar (also known as the Spice Island) offers white sandy beaches, beautiful sunsets and landscapes, including forests.
Although it’s a small island economy, Zanzibar is politically, socially, and economically stable and operates autonomously as part of the Republic of Tanzania, which has enjoyed relatively high economic growth over the last decade, averaging 6% to 7% per annum, according to the World Bank.
The economy is diverse with agriculture, quarrying, mining, industry, electricity generation and services all playing a part – together with tourism.
The blue deal
“The Blue Amber resort enables non-Tanzanian residents to buy residential property in Zanzibar on 99-year leases with the option to extend ownership by 49 years,” says Said.
Blue Amber is a luxury mixed‑use, seaside resort development which ribbons along 4km of magnificent, unspoilt Indian Ocean coastline – and occupies 410ha of tropical landscape on the north-eastern side of Zanzibar.
The resort is situated along an untouched natural beach, offering views of the pristine Muyuni beach and Mnemba Island.
It incorporates residential, hotel, tourism, community and public amenities and is the largest resort development of its kind in East Africa. It’s positioned to become Zanzibar’s premier island resort hotel.
The country recognises Blue Amber as a strategic investment project, allowing property owners significant tax benefits such as a 15% tax rate on local income earned, no tax on worldwide income, and no capital gains tax, stamp duty or inheritance tax on properties purchased.
Additionally, property investors, together with their spouses and children under the age of 20, are eligible for residence permits during their property ownership. There’s also no time limit to be spent in the country to qualify.
Starting from just over R3m (based on fluctuating rand/dollar exchange rates), South Africans can purchase a two-bedroom, two-bathroom luxury coastal villa in Blue Amber. Three, four and five-bedroom homes are also available.