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Today we’re presenting you with a new residency by investment program – a real estate residency option in Zanzibar, Tanzania.
With the introduction of the new investor program, announced by the Government foreign buyers will now be afforded the opportunity to enjoy a number of benefits, thereby luring investment and boosting Zanzibar and broader Tanzania’s economy.
Real estate investors are now able to acquire a residency permit as an investor, meaning the party will be allowed to live in Zanzibar as a non-Citizen. They are also not required to live in Zanzibar permanently.
This new program is available to anyone who buys property in Zanzibar, it can be land or commercial property as well as residential property. Purchasing property will get you a residency permit. There are no minimum stay requirements, you’re allowed to stay in the country as little or as much as you please.
The application will cover the main applicant, the spouse, and up to 4 children of the age of 20 or younger. This residency permit is renewable as long as you keep the property.
There are also some tax benefits that come with this program! No tax on your worldwide income. Capital gains tax on the sale of the property is cut in half, as well as income tax on the locally sourced income. No withholding taxes either.
New tax and residency benefits for real estate buyers:
1) No Income tax on worldwide income and wealth
2) Resident permit for VILLA buyer plus Partner and up to four children under 20 years of age
3) The first buyer pays only 50% of normal capital gains on the sale of the unit, at 5% instead of 10%
4) Foreign ownership allowed
5) Registration of ownership to be done by Zanzibar Investment Promotion Authority (ZIPA)
6) No VAT on unit rental or sales
7) Income tax is halved on local income only, 15% instead of 30 percent (applicable to foreigners only)
8) Repatriation of profit allowed after tax
9) Residence permit is only valid for the duration the buyer owns the property (renewable every 2 years at $3050 for the main investor and $550 for each dependent)
10) No Work permit given but may be applied for separately by the employer
11) No minimum stay is required to claim benefits
New tax and residency benefits for business investors:
1) Foreign ownership allowed
2) No business license fees for the first three months
3) Company tax: Income tax-free for the first five years. After first five years: 50% (Income Tax is 30% so it will be 15%)
4) Repatriation of profit allowed after tax
5) 100 per cent exemption on withholding tax on interest paid to foreign banks
6) Deduction of depreciation rate of 100% within five years
7) Residence and work permits for investors and employees.
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We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
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Author: Michael Rosmer
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