Zanzibar has opened its real estate market to foreigners
[MEPRwire, Tue Mar 01 2022] What's not to love about purchasing a tropical island property, surrounded by azure blue seas - with residency rights, tax benefits and more?
Is Zanzibar the next Mauritius?
Zanzibar, a paradise island located off the East coast of Africa, is characterized by a unique cultural heritage, beautiful white sand beaches, tranquil forests, and world-famous Stone Town as its historical jewel.
And now, for the first time, Zanzibar has opened its real estate market to foreigners.
Zanzibar is stable - politically, socially, and economically. Though a small island economy, it forms an autonomous part of the Republic of Tanzania.
Tanzania has enjoyed relatively high economic growth over the last decade, averaging 6-7% 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.
Tourists flock to Zanzibar. In fact, the number of tourists visiting the island has increased dramatically in the past few years and more than 620,000 foreign tourists were recorded visiting in the 2020/2021 financial year - almost 200,000 more than was anticipated.
Strategic Investment Projects for foreign buyers
Until recently, non-residents where unable to purchase property in Zanzibar. However, the government has recently changed the law, announcing a new tax and residency program, allowing non-Tanzanian residents to invest in property on the tropical island on 99-year leases with the option to extend ownership by 49 years.
Zanzibar's government is working hard to attract foreign investors to Zanzibar, implementing Strategic Investment Projects, which allow property owners to gain significant tax and residency benefits - no tax on worldwide income, a 15% tax rate on local income earned, and no stamp duty or inheritance tax on properties purchased.
Property investors, together with spouses and children under 20, are eligible for residence permits, which last for the duration of property ownership. There is also no minimum amount of time that must be spent in-country to qualify.
Zanzibar is also offering a benefit in terms of capital gains tax (CGT). New buyers/ investors in the island nation on selling their properties will receive a 50% CGT exemption. That means you will pay just 5% CGT, rather than 10%.
Where can you buy property in Zanzibar?
Blue Amber is Zanzibar's leading leisure island resort development. When completed it will be the largest mixed-use resort in East Africa. Stretched over 410 tropical hectares with 4km of pristine coastline offering an untouched natural beach, with pristine views of the adjacent Mnemba Island.
It will feature Zanzibar's first all-suite hotel, luxury villas for purchase, and Zanzibar's first signature championship golf course.
The first phase of the project has commenced with the construction of 54 luxury pool villas. These are available to purchase - with prices starting from only US$197,125 for a two-bedroom, two-bathroom unit with a roof-top terrace, or from US$319, 000 for a double-storey three-bedroom, three-bathroom villa. With further options of Premium 3, 4 and 5 bedroom villas available at under US$500000
There's also a payment scheme for purchasers. US$5000 is payable upfront as a reservation payment, followed by four instalments, payable during the villa construction.
Construction of the five star Shirazi Resort & Villas hotel, a key element in the Blue Amber project, will also near completion by 2023. This all-suite resort hotel will boast two 'barefoot' luxury eateries, a world-class spa, yoga pavilion and gym, as well as a beach club and pool replete with pool bar.
The Shirazi Resort complex will boast an impressive shoreline aqua leisure centre, where both residents and hotel guests can enjoy water sports, a beach eatery and a selection of thoughtfully-curated retail stores.
The new Mauritius?
"Blue Amber will strongly attract property investors from around the globe, and the pricing makes it an attractive option for savvy global investors," says Grant Anderson, CEO of Blue Amber.
"Zanzibar is well poised to become the next Mauritius and I foresee immense investment potential in Zanzibar, as a safe, politically stable, year-round leisure destination. It is a dream destination for investors wanting to enjoy a tropical island escape while benefitting from the many tax breaks, the residency scheme, and the potential rental return on their property investment. Furthermore Zanzibar offers massive value for money in comparison to other islands such as Mauritius"
Anderson explains that, when not in residence, villa owners at Blue Amber can opt to place their property back into the rental pool - earning an attractive return on investment. The rental villas will be managed by NEWMARK Hotels and Reserves, which offers a fully-integrated property management service.
"This prestigious new resort development will place Zanzibar firmly on the map as a high-end lifestyle destination offering sound investment opportunities as a year-round permanent residential or rental destination," concludes the CEO.
For more information about Blue Amber and the Shirazi Resort & Villas visit: www.blueamberzanzibar.com.