How Can a Foreigner Sell Land in Tanzania?

Question from Binti Pera, How Can a Foreigner Sell Land in Tanzania?

Answer from AI:

Selling land in Tanzania as a foreigner involves a series of legal steps and adherence to the country’s land laws. Tanzania has specific regulations governing land ownership and transactions for non-citizens, primarily outlined in the Land Act No. 4 of 1999 and the Village Land Act No. 5 of 1999. It’s crucial to understand these laws and the procedures involved to ensure a smooth and legally compliant sale. Here’s a general guide to the process, but remember, this is not legal advice. Consulting with a legal professional in Tanzania is strongly recommended to navigate the complexities of land transactions.

Understanding Land Ownership for Foreigners in Tanzania

Before diving into the sale process, it’s important to note that foreigners cannot directly own land in Tanzania for residential purposes. Land ownership is typically available to citizens, while non-citizens can acquire land for investment purposes under a derivative right, granted through the Tanzania Investment Centre (TIC) for the duration of the investment. This distinction is crucial when considering selling land, as the type of ownership affects the sale process.

Steps for Selling Land as a Foreigner

1. Verify Ownership and Land Use: Ensure that the land was acquired legally and is registered under the Tanzania Investment Centre (TIC) for investment purposes. Verify that all land use compliances are met according to the initial investment agreement.
2. Obtain a Valuation: Have the land professionally valued. This is a legal requirement and helps in setting a fair market price. The valuation must be done by a registered valuer recognized by the Valuation and Valuers Registration Board of Tanzania.
3. Find a Buyer: While foreigners can sell to both Tanzanian citizens and non-citizens (for investment purposes), it’s essential to ensure that the buyer is legally allowed to acquire the land. Marketing the property can be done privately or through a real estate agent.
4. Engage a Lawyer: Consult a Tanzanian lawyer who specializes in land transactions. They will guide you through the legal requirements, draft the sale agreement, and ensure that all legal procedures are followed.
5. Transfer Process: The transfer of land to another foreigner for investment purposes must be approved by the TIC. This involves submitting an application detailing the transfer and the new investment to be undertaken on the land. The TIC’s approval is crucial for the legality of the sale.
6. Payment of Taxes and Fees: Before the sale is finalized, all necessary taxes and fees must be paid. This includes capital gains tax, property transfer tax, and any other local government levies. Your lawyer can advise on the specific amounts and payment procedures.
7. Registration of the Transfer: Once the sale is approved, and all taxes and fees are paid, the transfer of ownership must be registered with the relevant land registry office. This legalizes the change of ownership and updates the land title deed.

Relevant Authorities and Legal Framework

• Tanzania Investment Centre (TIC): The primary agency responsible for coordinating, encouraging, promoting, and facilitating investment in Tanzania and is involved in land transactions for investment purposes by foreigners.
• Ministry of Lands, Housing, and Human Settlements Development: Oversees land administration and registration, including the transfer and registration of land ownership.
• Valuation and Valuers Registration Board: Regulates property valuations and valuers in Tanzania, ensuring that valuations are conducted professionally and ethically.

Conclusion

Selling land in Tanzania as a foreigner is a complex process that requires careful adherence to the country’s land laws and regulations. It’s essential to engage with professionals, including lawyers and registered valuers, to navigate the legal requirements successfully. Remember, this guide provides a general overview, and laws can change. For the most current information and personalized advice, consulting with a legal professional in Tanzania is highly recommended.

For more detailed information on the legal framework governing land transactions in Tanzania, you can visit the Tanzania Investment Centre and the Ministry of Lands, Housing, and Human Settlements Development websites.