Highlights

• Introduction
• Process and Procedures on Property acquisition and Transfer under TIC
• Project Registration to TIC
• Requirements for registering the Project under TIC
• Transfer and Obtain Derivative rights of Occupancy.
• Timeline
• Conclusion.

Introduction:

Acquiring and transferring property in Tanzania through the Tanzania Investment Centre (TIC) involves several detailed steps. This process ensures compliance with legal requirements while facilitating investment opportunities. Below are the key procedures and requirements.

Section 1: Process and Procedures on Property Acquisition and Transfer

1. Land/Property Search

• Conduct a Thorough Search: Initiate a comprehensive land search at relevant government agencies, including the Land Registry and Municipal Offices, to confirm the property’s title, check for any encumbrances, and understand zoning restrictions.
• Documentation: Acquire copies of the property’s title deed along with other necessary documents. For individuals, this may include a National Identification Card (NIDA) and passport-sized photographs. For corporate buyers, relevant company documentation such as the Memorandum and Articles of Association, Business License, TIN, Tax Clearance, and identification for directors is required.

2. Negotiation Process

• Price Negotiation: Engage in negotiations between the buyer and seller to agree on a selling price that reflects the property’s market value.

3. Valuation

• Engage a Qualified Valuer: Hire a certified valuer to perform a property valuation and produce a detailed valuation report. Ensure that this report is signed by a Chief Valuer to confirm its authenticity.

4. Sale/Purchase Agreement

• Drafting the Agreement: Create a comprehensive Sale and Purchase Agreement that outlines all transaction terms, including the purchase price, payment schedule, property description, and any specific conditions that need to be met.

5. Transfer Documents

• Prepare Necessary Documents: Complete all required transfer documents, including Landforms No. 29, 30, and 35, in accordance with the applicable land laws.

6. Stamp Duty, Approval, and Registration Fees

• Submission and Payment: Submit the prepared transfer documents to the Municipal Office for an assessment of stamp duty, approval fees, and registration fees. Pay the assessed amounts promptly to avoid delays.

7. Commissioner’s Consent

• Obtain Consent: Secure the necessary consent from the Municipal Office, which is a prerequisite for proceeding with the property transfer.

8. Capital Gains Tax

• Tax Assessment: Complete the capital gains tax assessment, which is typically charged at 10% of the property’s market value. Obtain a tax clearance certificate as proof of compliance.

9. Land Ministry Registration

• Submit Transfer Documents: After obtaining the necessary approvals, submit the transfer documents to the Land Ministry for formal registration. Upon successful registration, surrender the title deed to the TIC.

Section 2: TIC Registration and Project Development

1. Project Registration

• Register the Project: Register your project with the Tanzania Investment Centre (TIC). For foreign investors, a minimum investment of USD 500,000 is required.
• Required Documentation:
  • Company documents (Memorandum and Articles of Association, Business License, TIN, and Tax Clearance)
  • Proof of ownership (lease agreement or sale agreement)
  • A detailed business plan
  • Bank statement indicating at least 25% of the projected investment
  • Payment receipt for the registration fee of USD 1,100

2. TIC Certificate

• Obtain Certificate: Upon successful registration, secure the TIC certificate, which confirms your project’s registration and compliance.

Section 3: TIC Transfer and Obtain Derivative Rights of Occupancy

1. Deed of Surrender

• Prepare the Deed: Create a deed of surrender to formally transfer the title deed to the TIC.

2. Title Deed Surrender

• Submit Documentation: Present the title deed along with supporting documents (valuation report, tax clearance certificate, original title deed, TIC certificate) to the Commissioner for Land at the Land Ministry.

3. Landform No. 1

• Submission for Title Preparation: Submit Landform No. 1 to the Registrar’s Office to initiate the preparation of the Title Deed, and subsequently submit it to the TIC Office.

4. Government Gazette Publication

• Publish Notice: Publish a notice in the Government Gazette (GN) announcing the intended land allocation. This process usually takes between 7 to 14 days.

5. Land Allocation Committee Meeting

• Committee Approval: Attend the Land Allocation Committee meeting to discuss and secure approval for land allocation intended for investment purposes.

6. TIC Invoice

• Invoice Issuance: The TIC will issue an invoice categorized into three codes:
  • Premium (calculated based on Property Size multiplied by Rate of Sale Price)
  • Stamp duty
  • Land rent.

7. Title Deed Preparation and Derivative Rights

• Payment and Preparation: Settle the invoice amount, after which TIC will prepare the derivative rights of title as necessary.

8. Issuance of Derivative Title

• Receive Title: Finally, TIC will issue the Derivative Title, granting you the rights associated with your investment.

9. Timeline

The entire process, encompassing property acquisition, transfer, and TIC registration, may take several months. This duration is influenced by various factors, including the complexity of the transaction, the pace of government processes (notably the quarterly meetings of the Land Allocation Committee), and the availability of required documents.

Conclusion.

The acquisition and transfer of property under the TIC involve a structured process aimed at promoting foreign investment while ensuring compliance with Tanzanian laws. The entire process can take several months, depending on various factors such as document availability and government processing times. By following these procedures diligently, investors can navigate the complexities of property acquisition in Tanzania effectively.

Disclaimer: This article is authored by Jacqueline Hima, from Rive & Co, a new and innovating law firm as a result of the partnership between ABC Attorneys, Stallion Attorneys and Sepia Attorneys, built on the foundation of trust, credibility, and novelty, offering expert legal solutions. This Article is for informational purposes only and should not be construed as legal advice. It is recommended to consult with a qualified legal professional for advice specific to your situation