Short answer
Foreigners selling property in Tanzania pay 20% tax on the gain (10% for residents), usually settled before the transfer can be registered. Selling can take time, because buyers may need approvals and the remaining lease term affects value. The best exits are planned at the time of purchase:
- Choose the right structure.
- Keep every purchase record.
- Protect the length and quality of your title.
- Know in advance who can buy from you and how you’ll bring the money home.
Key facts at a glance
Item | Detail |
|---|---|
Tax on property gains, non-residents | 20% of the gain |
Tax on property gains, residents | 10% of the gain (3% of the sale price if there are no cost records) |
Tax on gains from selling shares in a Tanzanian company | 20% for non-residents, 10% for residents |
Stamp duty on transfer | About 1% of the price |
When the tax on the gain is paid | Usually before the transfer can be registered |
What reduces value | Short remaining lease, weak title, missing approvals |
“We’d like to sell. How long will it take?”
Years after buying, life changes. You want to move on, release your capital, or simply bring the money home. You call an agent and discover the questions you never asked: Who can buy this? What will the tax be? How do I get the money out?
Most foreign owners think about selling only when they want to sell. By then, the decisions that shape the exit were made years ago.
The best time to plan your exit is before you buy.
How is the sale of property taxed in Tanzania?
The gain on a property sale is taxed at 20% for non-residents and 10% for residents. The gain is the sale price minus what you paid and the allowable costs.
The tax is usually settled before the transfer can be registered, so it must be planned into the sale timeline.
What it means: your purchase records directly affect your tax. Without them, proving your gain becomes difficult, and you may pay more.
Who can buy property from a foreigner?
It depends on what you hold.
What you hold | Who can usually buy |
|---|---|
A titled apartment unit | Buyers able to hold units, subject to transfer approvals |
Investment land through TISEZA | Typically investors able to take over the investment, with approvals |
A lease in Zanzibar | Buyers acceptable under the lease and approvals |
Shares in a company that owns the property | Buyers of the company, subject to approvals in regulated sectors |
What it means: the narrower your pool of buyers, the longer the sale and the lower the price may be. Check this before you buy.
Does the remaining lease term affect value?
Yes. A shorter remaining term usually means a lower price and fewer buyers. A lease with 90 years left is a very different asset from one with 30 years left, even if the building is identical.
What it means: at purchase, check how long your right lasts and whether it can be renewed.
Should you sell the property or the company?
If you own through a company, you can sell either the property or the company’s shares.
- Selling the property: tax on the property gain, transfer costs and approvals.
- Selling the shares: gains on shares in a Tanzanian company are taxed at 20% for non-residents, and some sectors need approval for a change of ownership.
What it means: the right choice depends on your structure, the buyer and the sector. Plan it with your tax adviser, ideally when you set up the structure.
How do you get the sale proceeds out of Tanzania?
Through your bank, with clear documentation. Banks will want to see the sale agreement, proof that the tax was paid and the transfer records. Investors with an investment certificate may also benefit from guarantees on transferring capital and profits abroad, depending on its terms.
What it means: complete records turn repatriation into a formality. Missing ones turn it into a delay.
What can make selling slow or expensive?
- Missing purchase records, which increase your tax
- A weak or unclear title, which puts buyers off
- Missing approvals, such as building permits, licenses and investment approvals
- Unpaid ground rent or charges
- A short remaining lease
- Property held in someone else’s name
- No plan for currency or repatriation
How do you plan your exit at the time of purchase?
- Choose the structure with the exit in mind: direct, through a company, or through an approved development.
- Keep every record: price, fees, taxes and improvements, with receipts.
- Buy a strong right: a clear title, a long remaining term, and approvals in place.
- Keep obligations up to date: ground rent, licenses and taxes.
- Know your likely buyers before you buy.
- Plan repatriation: bank, documents and currency.
What does a well-planned exit look like?
- Your records prove your gain, so you pay the right tax.
- Your title and approvals are clean, so buyers trust the property.
- The buyer pool is clear, so the sale moves quickly.
- Tax is paid on time, so the transfer registers smoothly.
- The proceeds reach your bank, and the investment you made years ago ends exactly as you planned.
How Glenrich helps
The best time to plan your exit is before you buy.
Your agent helps you find the property. Glenrich makes sure your investment is structured right, checked properly and protected for as long as you own it.
As your independent financial and risk partner, with no interest in the sale itself, we act only for you. Our accountants, tax consultants and investment advisors, working alongside our legal partners, support you at every stage:
- Before you buy: Pre-Purchase Review. We confirm the right legal route for your goal, assess the deal and its risks, and show you the return you can realistically expect.
- When you buy: Acquisition Management. We structure your ownership and tax position, coordinate title and seller checks with our legal partners, protect your payments, and oversee the transfer through to registration.
- After you buy: Property Oversight. We monitor your rental income, manage your tax and records, and provide regular reporting, so you always know how your investment is performing.
From the first conversation to the day you sell, you have a reliable team on the ground in Tanzania, looking after your interests.
Planning to buy or sell property in Tanzania? Let’s talk.
We work with international clients by video call, in English, around your time zone.
Glenrich Consultants, Samora Tower, Dar es Salaam
Frequently asked questions
What tax do foreigners pay when selling property in Tanzania?
Gains on land and buildings are taxed at 20% for non-residents and 10% for residents.
When is the tax on a property sale paid?
Usually before the transfer can be registered, so it should be planned into the sale timeline.
Can a foreigner sell property to another foreigner in Tanzania?
It depends on what you hold and whether the buyer can hold it. Transfers usually need approvals.
Is it better to sell the property or the company that owns it?
It depends on the structure, the buyer and the sector. Gains on shares in a Tanzanian company are taxed at 20% for non-residents.
How do I take the sale proceeds out of Tanzania?
Through your bank, with the sale agreement, proof of tax paid and transfer records.
About Glenrich
Glenrich Consultants is a finance and risk partner for investors and businesses in Tanzania. Our team of accountants, tax consultants, investment advisors and risk specialists supports clients from market entry through to compliance, reporting and protection, across Tanzania Mainland and Zanzibar.