Obtaining Land Rights

In Tanzania, foreign individuals and companies can own land by way of long term lease (called ‘derivative rights’) for the purpose of the project registered by Tanzania Investment Centre (‘TIC’). Leases can be created out of a right of occupancy for any term which does not exceed 98 years. A company is considered to be a foreigner if fifty one percent of its shareholders are foreign individuals or companies registered in other countries. Accordingly, before acquiring land, a foreign entity must submit the project to TIC for registration. It is possible for a ‘foreign entity’ to enter into a contract to purchase land subject to obtaining TIC certificate. To qualify for and obtain the certificate of incentives under this Act, a minimum fixed direct investment must be at least US$ 500,000 for projects wholly owned by foreign investors or joint ventures between Tanzanian citizens and foreign investors.