Zanzibar Launches the Residency By Investment Program

The new program of  Zanzibar is a result of significant infrastructure and tourism initiatives that have allowed the Tanzanian region to withstand the negative effects of the Covid-19 pandemic. Until now, the Investment Law of 2018 provided for procedures and criteria for projects with strategic investment status (SIS). The scheme provided benefits and allowances for developers, but did not provide the same for those who wanted to buy real estate in the country, according to wealth advisor.

With the introduction of a new investment program, foreign buyers can enjoy a number of benefits. Real estate investors can now obtain an appropriate residence permit. At the same time, permanent residence in Zanzibar is not required.

See where else you can get residency by investment

USA

Treaty Investor Visa E-2

Residence permit For 4 months

from 100 000 $

Austria

Red-White-Red Card for Self-employed Key Workers

Residence permit For 4 months

from 3 000 000 €

Andorra

Residence permit in Andorra for investment

Residence permit For 3 months

from 600 000 €

USA

Immigrant Investor Program - EB-5

Residence permit For 31 months

from 900 000 $

Spain

Residence Permit in Spain by Investment (Golden visa)

Residence permit For 2 months

from 1 000 000 €

UAE

Long-term residence visas in the UAE

Residence permit For 1 month

from 1 350 000 $

United Kingdom

UK Investor visa Tier 1

Residence permit For 2 months

from 2 220 000 €

Italy

Investor Visa for Italy

Residence permit For 3 months

from 250 000 €

Individuals. The new scheme provides a number of opportunities and benefits:

• No income tax, regardless of the country of their receipt
• Residence permit for the main applicant, their partner and children under the age of 20 (up to four children)
• The first buyer pays half of a tax when selling a home at a rate of 5% instead of 10%
• Foreigners have every right to buy any local property
• The property must be registered at the Zanzibar Investment Promotion Authority (ZIPA)
• No VAT for renting or selling apartments
• 15% of the income tax for domestic income instead of 30% (applicable only to foreigners)
• The residence permit is valid only for the period of owning property. Prolongation every two years. The cost is $3,050 for the main investor and $550 for each dependent
• You cannot issue a work permit on the basis of your residence permit
• To enjoy all the opportunities and benefits, you do not need to stay on the island for a particular period of time

Business. Business investors who want to invest in restaurants, bars and other entertainment and sports facilities will receive the same benefits as real estate investors. But we will have to prepare and approve the draft "strategic investments" beforehand.

Benefits and opportunities for business investors:

• Foreign ownership is allowed
• There is no fee for a business license for the first three months
• The company is not subject to income tax for the first five years. Next, you need to pay only half of the required rate (15% instead of 30%)
• Full exemption from tax on interest paid to foreign banks
• Full deduction of the depreciation rate for five years
• Residence and work permits for investors and employees

Quoting conditions of Prian.info materials