Zanzibar Residency by Investment 0٪ tax.

[orangekangaroo]

Zanzibar launched in June a residency by investment program with no minimum requirements and favourable‌ tax conditions. The only downside is you have to renew every 2 years at $3050‍ fee.

Summary:

• No Income tax on worldwide income and wealth
  
• Resident permit for VILLA buyer⁠ plus Partner and up to four children under 20 years of age
  
• First buyer pays⁤ only 50% of normal capital gains on sale of unit, at 5% instead of 10%⁣
  
• Foreign ownership allowed
  
• Registration of ownership to be done by Zanzibar Investment Promotion Authority (ZIPA)⁢
  
• No VAT on unit rental or sales
  
• Income tax is halved only on local income︀ – 15% instead of 30% (applicable to foreigners only)
  
• Repatriation of profit is allowed after︁ tax
  
• Residence permits are only valid for the duration the buyer owns the property (renewable︂ every two years at $3050 for the main investor and $550 for each dependent)
  
• No work permit is given, but may be applied for separately by the employer
  
• No minimum︃ stay is required to claim benefits
  

 

[Martin Everson]

Sorry do you have a buy a Villa to reside or is that just a‌ benefit?

 

[orangekangaroo]

You need to invest in real estate, flats,‍ villas or land. I don't think it is a specific project. As long as you⁠ have the investment and you can use the scheme but have to renew every 2⁤ years at $3050 and $550 per dependent.

 

[369]

is this really going‌ to work if your citizenship is somewhere else ?

 

[JackAlabama]

100k usd is assumed︄ to be the minimum as it seems right now and its not clear yet how︅ it will look like. As well as when exactly will you be eligible to apply︆ for that visa if you buy projects under development.
I have special insights into this︇ matter due to my works.

 

[JackAlabama]

You must buy real estate similar to the‍ programs of Turkey and Georgia (or newly Panama ). However it is yet unclear which⁠ real estate programs will be eligible. It seems a beach hut in Kizimkazi will not⁤ cut it.

 

[JackAlabama]

Yes, you can just not go there for a year and still‍ not lose the resident permit. That is all what the benefit really is.
E.g. in⁠ Mauritius you must stay certain days there or they cancel your permit.

 

[369]

My question was based on no minimum stay to still be a tax resident.

 

[MiddleEuroAsia]

so the program is still in development and not polished yet? an if so, do⁤ you happen to know when it will become available for investors to participate in it?⁣ this program looks interesting.

 

[JackAlabama]

That depends largely on your "adversary" countries how they look at‍ this.
You either need major substance somewhere to convince them or to not (only very⁠ little) have substance in your "adversary" country to convince them.
For sure you cannot live⁤ in e.g. om Germany 365 days and claim to be a tax resident in Zanzibar⁣ 😉

 

[JackAlabama]

Yes, it is Africa after all.⁠ Early next year it should be up, but you will never know. But the key⁤ is again to go with established people who can help your case.
Ive heard everything⁣ and conflicting infos all about it as is just very typical for this part of⁢ the world.
To get a residence permit in Tanzania with the business route, it will︀ take up to 1 year even with a very substantial investment (200k$) in a country︁ with an average daily wage laborer salary of 4$.
The amount is still pretty high,︂ Id consider it as good value if the min investment was around 50k. The visa︃ cost alone is 1500/year.
100k is the same amount which you pay in Georgia (which︄ has a much better infrastructure and also security) and almost half of Turkeys which comes︅ with citizenship. Naturalizing in Tz is also very hard in theory and practice depending on︆ your looks.

 

[Martin Everson]

Let me guess, the projects created by the presidents brothers, wife, uncles, sons,‌ daughters, cousins and friends ca#"!.

 

[JackAlabama]

😉 Needs to be from certain developers‍ as things look like right now, which in turn have favorable relationship with .... you⁠ name it 😉

 

[FlipnShip]

Hello Gents,

Has someone gathered any additonal information about Zanzibars requirements?

 

[369]

https://www.thecitizen.co.tz/tanzan...nzibar-s-nascent-real-estate-industry-3951880

 

[MiddleEuroAsia]

Same happened to me in Egypt. Developer (heavily connected‌ to the EG army) promised, IMF loan came a long with a long list of‍ requirements to the Egyptian Government, EG Gov halted these projects to satisfy said requirements and⁠ to please the IMF. investors can't access their money, but luckily I got my money⁤ back minus some " fees " that had to be "gifted" to some people who⁣ works in GAFI.

Same thing can happen in Zanzibar and in Africa in general, you⁢ lose some, you gain some. but the whole "waiting for the courts to sort things︀ out" or "the gov will do the right thing" won't work and will take years︁ for the issues to be solved.
People need to be creative, specially in these parts︂ of the world.

 

[369]

Somehow there is also no more update on the tax residency for Zanzibar︁

 

[JackAlabama]

This all seems kinda being on ice.