As a general rule, a foreigner cannot own land in Tanzania unless it is for investment purpose and that land has to be held by the Tanzania Investment Center (TIC) which grants Derivative Right of Occupancy. This is provided under Section 20 (1) of the Land Act [Cap 113 R.E 2019] which provides as follows;
For avoidance of doubt, a non-citizen shall not be allocated or granted land unless it is for investment purposes under the Tanzania Investment Act.
It should be noted that, it not only the natural person but also foreign companies are not allowed to own land in Tanzania. However the laws does not prohibit foreigners from inheriting land in Tanzania which means a foreigner can own the interests in land by way of inheritance.Procedure through which a foreigner can follow to own land under the derivative right of occupancy.
The foreigner has to allocate/identify land that suits his purpose. Although Tanzania Investment Center is the body vested with a duty to designate land, the foreigner must first locate the land that suits his/her desire.
After locating the land, the foreigner will then make an application for certificate of incentive to the TIC as is provided for under section 17 (2) of the Tanzania Investment Act, 26 of 1997. The application shall contain the followings;
The name and address for the proposed business enterprise, its legal form, its bankers, the name and address of each director or partner and the name, address, nationality and shareholding of each shareholder.The qualification, experience and other relevant particulars of the project management.
The nature of the proposed business activity and the proposed location where that activity is to be carried on.
The proposed capital structure or the amount of investment and the projected growth over the next five years.
How the investment will be financed.
Evidence of sufficient capital available for investment.
An undertaking that the project shall be implemented as indicated in the projections of the project.
Where TIC sees that an applicant has meet all the criteria above, it will proceed to award a certificate of incentives to the applicant.
Thereafter the applicant will make an application for right of occupancy to the commissioner for land and he will attach his certificate of incentive. The application shall be in accordance with the provision of section 25 of the Land Act [Cap 113 R.E 2019] which requires that application;
Be submitted on a prescribed form and accompanied by a photograph;
be accompanied by the prescribed fee;
be signed by the applicant or a duly authorized representative or agent of the applicant;
be sent or delivered to the Commissioner or an authorized officer;
contain or be accompanied by any information which may be prescribed or which the Commissioner may in writing require the applicant to supply;
where any law requires the consent of any local authority or other body before an application for a right of occupancy may be submitted to the Commissioner, be accompanied by a document of consent, signed by the duly authorized officer of that local authority or other body; and
Be accompanied by a Certificate of Approval granted by the Tanzania Investment Centre under the Tanzania Investment Act, and any other documentation which may be prescribed by that Act or any other law.