A QUICK GLANCE AT LAND TRANSFER IN TANZANIA

Published by Flora Erasto

Land transfer in Tanzania can be a complex, lengthy procedure if one is not conversant with the entire process. This is because land in Tanzania is government owned and as such interests in land are heavily guarded by the state. The process of transferring interests in land in Tanzania, is governed by two main laws, The Land Registration Act CAP 334 and The Land Act No. 4 of 1999.

Other laws such as the Stamp Duty Act CAP 189 R.E. 2019, Income Tax Act R.E. 2019 CAP 332, Registration of Documents Act CAP 117, Investment Act CAP 38, The Unit Titles Act No. 16 of 2008, provide  financial obligations that parties will incur in the process of transfer.  The Investment Act specifically applies when the transfer of a landed property involves a foreigner (as foreigners can only acquire land in Tanzania for investment purposes).

The government offices involved in the transfer process, are the Municipal council, Tanzania Revenue Authority, Tanzania investment Centre (for foreigners) and the Land Registry (Office of Registrar of Titles).

WHAT WE NEED TO KNOW

Land in Tanzania can be transferred in two (2) ways namely, by way of sale or by way of gift. The transfer by sale involves several vital steps that are meant to protect the interests of both buyer and seller. These include:

  1. Conducting of an official search
  2. Employ valuer for valuation report of the landed property
  • Payment of Land rents
  1. Employ a lawyer for advice and drafting of transfer documents
  2. Payment of Capital Gain tax and all related taxes
  3. Submit the documents to the land registry for registration and transfer

Transfer by way of gift is not very different, The major difference here is on the documents of transfer especially the agreement and deed of transfer. Transfer by way of sale the agreement will be named as SALE AGREEMENT but transfer by way of Gift the agreement will be named as DEED OF GIFT.

The Deed of Gift does not show the consideration amount, but the property shall be transferred to another person in consideration of LOVE and AFFECTION. Also, under this way of transfer of land there is no payment of Capital Gain Tax because there is no consideration (money is not involved).