RESIDENCE OF FOREIGNERS IN TANZANIA THROUGH ACQUISITION OF LANDED PROPERTY: LEGAL IMPLICATIONS ON LAND OWNERSHIP AND INVESTMENT

[{"type":"h2","text":""},{"type":"paragraph","text":"The Immigration (Amendment) Regulations, 2023 introduced Residence Permit Class C-11, allowing foreigners to obtain residence permits in Tanzania by purchasing real estate worth at least USD 100,000. Applicants are required to provide, among other documents, proof of ownership, tax clearance, police clearance, and a recommendation letter from the Tanzania Investment and Special Economic Zones Authority (TISEZA).\n\nThe amendment aims to promote foreign investment in the real estate sector. However, it creates legal uncertainty because Section 20(1) of the Land Act limits land ownership by foreigners to investment purposes through derivative rights issued by TISEZA. Under the new Regulations, foreigners may obtain residence through property ownership without following the traditional investment and derivative title process.\n\nThis creates uncertainty regarding the legality of land transfers to foreigners, the type of tenure they may hold, and the procedures applicable under the Land Act. The Regulations also remain silent on issues such as the duration of the permit, dependent coverage, and whether the framework applies only to residential properties or other forms of real estate.\n\nUnlike jurisdictions such as Zanzibar, the UAE, Portugal, and Malta, Mainland Tanzania’s framework lacks clear designated investment zones and comprehensive implementation guidelines.\n\nTo ensure legal certainty and effective implementation, the Government should harmonize the Immigration Regulations with the Land Act and investment laws by clearly defining the rights of foreign real estate buyers, the applicable land tenure system, and the procedures for land acquisition and permit issuance"}]