INVESTING AND DOING BUSINESS IN TANZANIA 3:
Land and Property
Courtesy of:
According to the Tanzania Land Act, all land is vested in the President as trustee for and on behalf of all the citizens of Tanzania.
The law recognizes three types of land namely;
- General land: –
General land is a surveyed land usually located in urban and peri-urban centres.
- Village land: –
Village land is usually in villages in rural Tanzania. Village land cannot be used for investment until it is transferred into general land.
- Reserved land: –
Reserved land includes that reserved for forestry, National parks, public recreation etc.
Land for Foreign Investors
Foreign investors can obtain land for investment through Tanzania Investment Centre (TIC), where a ‘‘Derivative Right’’ is granted. There are two main ways by which investors can obtain land for investment:
- To apply for land acquisition from a village within Tanzania, and then follow the necessary steps required to transfer the land from village land to general land. Subject to approvals, the land will thereafter be handed over to TIC in order to prepare a Derivative Right for the investor.
- To purchase a parcel of land from individuals/Companies. Once the buyer and the seller have agreed upon the price, the seller is required to surrender the land title to the Commissioner for Lands in order to re-issue it in the name of TIC, which will eventually prepare a Derivative Right for the investor.
Constructing Property
Construction permits are issued by the Municipal council in the municipality where the construction will take place. Foreign Investors need to obtain derivative rights to the land before they can obtain construction permits.
