Buying Property in Zambia as a Foreigner: What You Need to Know
As a foreigner, buying Zambian real estate may be both a smart and profitable choice. Property investors from all over Africa and the world are drawn to Zambia because its economy is booming, its politics are relatively stable, and it has a lot of natural resources. But the country’s real estate regulations are different, especially for people who aren’t citizens. This book will cover everything a foreigner needs to know about buying property in Zambia, such as the laws that apply, the best places to buy, the costs, and safety precautions.
Is it possible for foreigners to own land in Zambia?
In short, no, foreigners cannot own land in Zambia on a freehold basis. However, there are legal ways to get around this rule that let foreigners lease land for up to 99 years, which is basically the same as owning it for most investors.
In Zambia, land is either State Land or Customary Land. The Land Act of 1995 applies to both categories, which says that
Only Zambian citizens or companies that control more than half of Zambian land can own land.
Foreigners can only rent land, which they usually do through:
Companies in Zambia that are owned by at least 51% Zambians.
Government permission through investment permits, like the Zambia Development Agency (ZDA).
Long-term leaseholds for development projects are one type of special arrangement.
Before doing any business, you need to understand these legal frameworks.
What Foreign Buyers Need to Know About the Law
There are a number of things that foreigners must do in order to legally acquire or rent property in Zambia. These are the most important ones:
a) Starting a Zambian business
One of the most prevalent and legal ways for foreigners to buy property in Zambia is to start a local company with a Zambian partner who owns at least 51% of the company. This firm can then own land legally.
b) Title to Leasehold
Land in Zambia is usually available for residential use on a 99-year leasehold or for business usage on a 25- to 99-year leasehold. The Ministry of Lands gives out leasehold titles, which must be registered.
d) An investment license from the Zambia Development Agency (ZDA)
The ZDA gives foreigners who want to participate in big or commercial property developments the chance to get an investment license. This license might let you use land on good conditions and give you tax breaks.
d) Checking the title and doing due diligence
Before buying or renting, it’s very important to:
- Check to see if the title deed is real.
- Make sure there are no problems or debts.
- Hire a real estate lawyer or qualified conveyancer.
Not doing appropriate due diligence can lead to legal problems or losing money.
Different kinds of properties that are for sale
There are many ways for foreigners to invest in Zambia, such as
a) Homes
Lusaka and Ndola have apartments and flats.
Detached residences or villas in the suburbs
Communities with gates, security, and amenities
b) Business Properties
Stores and office buildings
Industrial and warehouse buildings
Investments in hospitality, like lodges and guesthouses
c) Land for farming
Foreigners can rent agricultural land for agribusiness ventures, especially if they have an investment license, even if access to this land may be more limited.
The best places to buy real estate in Zambia
To get the most out of your investment, you need to pick the correct place. Some of the greatest places for foreigners to think about are:
a) Lusaka
The capital city is the center of politics and business. Foreigners typically put money into
Leopards Hill
Roma
Ibex Hill
The Media
These places have modern infrastructure, international schools, and embassies.
c) Ndola and Kitwe (Copperbelt)
These are big cities with lots of industry, making them great places for commercial and industrial properties. There are also a lot of new home complexes in Ndola.
c) Livingstone
This tourist town close to Victoria Falls is a great place for anyone who want to buy hospitality real estate, including lodges or vacation rentals.
c) Lake Kariba and Siavonga
Great for ecotourism, vacation homes, or building on the lake.
5. Costs of Buying Property
Foreign buyers should set aside money for the following costs:
ItemEstimated Cost Legal and Conveyancing Fees 1% to 5% of the price of the item The Property Transfer Tax is 5% of the sum you paid for the property. Fee for registering a lease Survey and title processing costs between ZMW 500 and ZMW 10,000. Annual ground rent ranges from ZMW 3,000 to ZMW 10,000, depending on the size and use of the land.
Note: The value of a property can change a lot based on where it is, what kind of infrastructure it has, and what kind of property it is. A new three-bedroom house in Lusaka’s posh suburbs may cost between $150,000 and $350,000. On the other hand, a simple flat in the city could cost as little as $40,000.
How to Buy Property in Zambia
Here’s a simple, step-by-step instruction for people from other countries who want to buy property:
Make a Zambian firm or work with a citizen.
Find the right piece of land or property with the help of a qualified agent.
Do your homework: examine the title deed, make sure the seller is real, and look into zoning rules.
Talk to the vendor about the price and terms.
Hire a lawyer to write the Sale Agreement and help with the paperwork.
After paying the transfer fees and taxes, you need to register the lease with the Ministry of Lands.
Get a Certificate of Title or Lease in the name of your business.
7. Possible Risks and How to Avoid Them
There are hazards to buying property in Zambia, especially for foreign buyers who don’t know what they’re doing. Here are some typical mistakes and ways to avoid them:
a) Disputes over titles
Some properties have titles that aren’t complete or are fake. Always check with the Ministry of Lands to make sure the title is real and do a title search.
a) Problems with customary land
Land owned by traditional chiefs may not have official titles. If you want to buy customary land, make sure it is changed to state leasehold first.
c) Costs that aren’t obvious
There may be unexpected taxes, transfer costs, or legal fees. Before you agree to anything, always ask for a comprehensive breakdown of the costs.
c) Agents who aren’t registered
Don’t work with property agents that aren’t registered. Only hire licensed real estate agents and lawyers to help you with your deal.
Tips from experts for a safe purchase
As a foreigner, following expert suggestions can help you make a simple and safe property investment in Zambia:
Hire a good lawyer who has worked on buying and selling property in other countries.
If you want to do a big project, you need to register your investment with ZDA.
Before you buy, be sure you know what the land will be used for: residential, business, or agricultural.
Before you buy, go see the property in person or send a reputable local person.
Have a legitimate land lease agreement that is notarized and filed with the government.
Questions that are often asked (FAQs)
Q1: Is it possible for a foreigner to own land in Zambia?
No, foreigners can’t own land outright, but they can lease it for up to 99 years through recognized means.
Q2: Is it possible for someone from another country to buy a house in Zambia?
Yes, but the house is usually on leasehold land that was bought through a company or a long-term lease.
Q3: How long does it take to buy a house in Zambia?
If you have the correct legal help and paperwork, it can take 30 to 90 days to finish a property deal.
Q4: Is it safe to invest in real estate in Zambia?
Yes, but only if the right legal and due diligence steps are taken. The Zambian legal system protects property rights, even for investors from other countries.
Q5: What kinds of taxes are there?
The principal tax is the 5% property transfer tax, along with legal expenses, registration fees, and ground rent that is paid every year.
In conclusion
It is possible for foreigners to buy property in Zambia, but they need to plan ahead. Foreigners can successfully rent residential, commercial, or investment properties in Zambia’s most lively areas if they have the necessary legal structure, trustworthy agents, and knowledge of local rules. Zambia is a great place for real estate investors to put their money since it offers a lot of long-term value, whether you’re looking for a home in Lusaka or a tourist lodge in Livingstone.
