Frequently Asked Questions

Rental service, property value maintenance and tenant management for my property in Fumba Town – how does it work and what are the costs?

Valor Hospitality Partners, a management company specialising in hotel operations, has also taken over the management and administration of houses and apartments in Fumba Town and Paje.
Valor opens and operates Hilton Hotels worldwide and will also be opening and managing the Canopy by Hilton Hotel in Fumba Town on behalf of Hilton.

Click here for the official statement from Valor Hospitality

Owners can entrust their apartments to Valor for management and rental, with no costs to the owner. Valor actively manages and rents apartments and houses through platforms like Booking.com, Airbnb, and others. This ensures a top-tier experience for guests or long-term tenants. Valor takes a 20% commission from short term rental income and 8–15% for long term rentals of one month or longer.

After deducting 10% tax on rental income and additional costs, owners can typically retain about 50-60% of the income, with almost no effort required on their part. Thanks to Valor’s exceptional property management, you can expect above-average occupancy rates and premium pricing, making investing with Valor a smart choice.

The decision to rent and manage through Valor is entirely up to the owner. They can also choose to work with other local partners or rent out their property themselves

What additional costs are associated with my property in Fumba Town, Zanzibar?

The annual fee for all city services is $1.10 per sqm. So for a 50sqm apartment, this would be $50 per month. In premium facilities with a private pool, gym, or other amenities, as well as concierge service, the city fees are $2.00 per sqm.

What do you need to enter Zanzibar

You will need a tourist visa (available online or at the airport) for $50.
Additionally, since October 1, 2024, only a travel and health insurance policy purchased in Zanzibar is valid. This can be purchased either upon arrival or online in advance, costing $44 for individuals. Family and group discounts are available. You can purchase this insurance before your trip here: https://visitzanzibar.go.tz/

I have more questions or would like to visit Fumba Town and Zanzibar.

We’d be happy to answer your questions over the phone, Zoom, FaceTime, or WhatsApp—just reach out to us.

We also offer group trips for investors and expats in partnership with PerspektiveAusland. (Click here for more information)

What is the process from purchase to contract signing?

Our investment advisors will show you available properties for sale, the locations within the city’s master plan and various apartment layouts. Once you transfer the reservation fee, the property will be held for you, and we’ll prepare your contract.

• Four days after transferring the reservation fee, you will receive your personalised contract.

• You will have 30 days to sign and return the contract.

• You have 30 days after signing to transfer the first instalment.

  -> You will receive your property reservation confirmation from the government authority ZIPA.

Invest and generate returns through property value appreciation and rental income.

Fumba Town or Paje in Zanzibar/Tanzania

What ROI is realistic if I invest in Fumba Town?

• In recent years, the average annual property value increase has been around 10%. In prime locations, this increase has reached 20-30%.

• For long-term rentals, you can expect an ROI of 5%, and in prime locations, up to 10% (depending on the property and investment price).

• If you rent your property through the service provider VALOR, here’s how the potential ROI can be calculated: VALOR estimates the likely occupancy rate depending on the property and number of rooms. For example, at BORJ or Soul Paje, they project an occupancy rate of up to 68% annually.

  VALOR calculates a minimum rental price of up to $175 per night for a double room.

  This can be easily verified on internet platforms like Booking.com for the Soul Paje property.

  The rental income is split between you and VALOR, with the owner receiving 50-60% of the rental income and VALOR taking 20%. The remaining 20% covers costs and taxes for the owner.

  Example Calculation: Renting out your studio for 240 nights at US$150 per night generates US$36,000 in revenue. The owner would receive US$21,600, and VALOR would receive US$7,200. The remaining $7,200 would cover the 10% tax on rental income in Zanzibar, as well as estimated additional costs. Please note that depending on your country of residence, your earnings might also be subject to tax. In most cases, taxes already paid in Zanzibar can be credited. For more information on tax matters, our partner PerspektiveAusland can assist you.

Organised Investor Trips to Fumba Town und Paje.

You are welcome to plan a personal trip at any time to explore our city, construction projects, homes, and apartments. If you schedule an appointment in advance, we will gladly set aside 1 to 2 hours for you. To arrange a visit, please contact us at office@fumbatown.agency.

An Investor Trip offers the advantage of a comprehensive 1- to 3-day program designed specifically for investors and those considering relocation to Fumba Town and provides plenty of time to answer all your questions. You will also have the opportunity to explore the island and the historic Stone Town. This trip will give you a clear idea of what Fumba Town has to offer.

Additionally, we cover important topics such as visa applications, company formation, and taxation in detail.

Tentative Upcoming Investor Trip Dates:

📅 April 30–May 2, 2025
📅 July 14–16, 2025

You can also join our waiting list to receive updates on future trips. Alternatively, feel free to suggest dates that work best for you!

🔗 More details on Plan B property tours for investors & expats:

https://www.perspektiveausland.com/events/plan-b-reise-sansibar

How many people can obtain the Golden Visa in Zanzibar or Tanzania?

The Golden Visa can be granted to up to six people—typically, the parents and up to four financially dependent children under the age of 20. The only requirement is an investment of at least US$100,000 (approximately €91,000) in an apartment or house.

The visa remains valid as long as you own the property. However, the visa in your passport must be renewed every two years, costing US$500 for the primary applicant and US$50 for each additional person. Children over 18 are no longer eligible for a permanent visa through their parents’ investment. They would need to either make their own investment or obtain a different visa, such as a student visa or a work-related visa. We are happy to provide personalised guidance on this.

Retirees aged 55+ do not need to invest $100,000 USD to obtain a visa in Zanzibar or Tanzania. Instead, they can apply for a retirement visa, which requires proof of sufficient financial means, such as a pension statement or passive income sources like rental income or interest earnings.

Is the power grid in Zanzibar/Tanzania and Fumba Town stable?

Many digital nomads and internet freelancers live and work in the city. To ensure a reliable power supply, Fumba Town offers an automatic backup power system that activates during outages. This optional service can be added for just $0.09 per sqm per month.

For a 50sqm apartment, the additional cost for automatic backup power is only $4.50 per month.
As of December 2024, the electricity price was only 8.9 US cents per kWh.

Is the internet in Zanzibar and Fumba Town stable and fast enough for remote work?

In Fumba Town, Zanzibar, every apartment and house is equipped with a fiber-optic connection, ensuring fast and highly reliable internet. Many international residents work remotely for companies abroad without any issues.

In contrast, internet service in hotels and tourist areas is often unreliable and may not be sufficient for video conferences or applications requiring a fast connection. However, a local prepaid SIM card offers an affordable and fast LTE internet solution, which can be used to create a hotspot for your computer.

Relocate to Zanzibar or Tanzania with an Investor Visa

Golden Visa in Zanzibar & Tanzania – What Are the Conditions?

The Golden Visa is granted for up to six people, usually the parents and up to four financially dependent children under 18. The right to the visa remains as long as you own the house or apartment. The visa in the passport must be renewed every two years and costs $500 USD for the main applicant and $50 USD for each additional person.
Children over 18 years old can no longer obtain a permanent visa through their parents’ investment. They must either make their own investment in their name or stay in Tanzania/Zanzibar with their parents using a different type of visa, such as a student visa or a work visa. We are happy to provide individual advice on this.

ZIPA Authority Website with Full Information: https://www.zipa.go.tz/services/investment-incentives/

Can you visit Fumba Town in Zanzibar? When is the next trip for investors and expatriates?

You can either schedule an individual appointment for an on-site visit or join a group trip with investors and individuals considering relocating to Zanzibar, Tanzania.

An investor trip or Plan B trip for expatriates offers the advantage of a structured program for one to three full days, including accommodation, half-board, and workshops. We take plenty of time to answer all your questions, and you’ll also get to explore the island and the historic old town of Stone Town. Daniel from Perspektive Ausland will be there as well to provide insights on tax-related matters.

You’ll also receive detailed guidance on applying for the Golden Visa, starting a business, and legal questions.

Where can you book the Plan B trip to visit Fumba Town in Zanzibar?

Simply send us an email at office@fumbatown.agency and we’ll provide you with all the details.

What is required for entry into Zanzibar?

You will need a tourist visa (which you can obtain online or at the airport) for $50 USD.

Additionally, since October 1, 2024, only travel and health insurance purchased in Zanzibar will be valid. This insurance can be purchased either upon arrival or online beforehand, and costs $44 USD for individuals. Family and group discounts are available.

You can purchase the insurance online before your trip here: https://visitzanzibar.go.tz/

Entry, Stay and Life in Zanzibar – What You Need to Know

Entry as a Tourist to Zanzibar – What You Need to Know

You can stay in Zanzibar and Tanzania for up to 90 days with a tourist visa. The visa can be obtained online or directly at the airport. The application process at the airport can take 30 minutes or longer, so it may be advisable to apply for your Zanzibar/Tanzania visa online in advance. The cost for a 90-day visa is $50 USD.

Tip: If you want to stay longer, you can fly to Kenya for around $100 USD and return to Zanzibar the next day to apply for a new 90-day visa.

Apply for your visa online here

Important: There are many websites offering visa services at unnecessarily high prices. You can easily apply for the visa yourself or get it directly at the airport. The immigration officers are very friendly.

Since October 1, 2024, travel insurance from Zanzibar is mandatory. The online application and payment take less than 5 minutes, and the cost is $44 per person, with family discounts available.

Apply for Zanzibar travel insurance here

Can you get a pilot’s license and flight training in Zanzibar or Tanzania? How much does it cost?

If you decide to relocate to Zanzibar or invest here, you have the fantastic opportunity to obtain a pilot’s license at a comparatively low price, starting from just $5,000 USD. This is possible both in Zanzibar and in Dar es Salaam, which is only a 25-minute flight away.

We’d be happy to advise you on how the process works!

Does Amazon deliver to Zanzibar and Tanzania?

Yes, but only for products that sellers have registered for global shipping on Amazon. However, there are Amazon forwarding services available via the UK, costing approximately £5 per kg.

How reliable is postal delivery to Zanzibar and Tanzania?

DHL is reliable and fast. Regular postal service also arrives—eventually 😉.
In Fumba Town, there is a DHL drop-off point where you can also send mail worldwide.

Does IKEA deliver to Zanzibar and Tanzania?

If you live in Fumba Town, you can order from IKEA in Dubai. Additional fees for customs clearance and shipping apply.

Which health insurance is best for a long-term stay in Zanzibar and Tanzania?

For long-term stays abroad, there are various providers, although some offer a maximum contract period of up to five years. If you’re looking for coverage and service comparable to German health insurance while living abroad, we recommend PassportCard.

The key advantage is that you won’t have to deal with paperwork or make upfront payments at doctors or hospitals. The insurance comes with a prepaid card that allows you to pay directly at the doctor’s office or hospital before or after treatment.

For investors and expatriates in Fumba Town, Zanzibar, we have negotiated special conditions with PassportCard when you inquire through us. If you request a quote directly through us, you may be eligible for exclusive discounts.
You can check the prices for all three available plans immediately via the provider’s website. If you prefer, you can contact us to inquire about a custom discount or request a callback through our contact form.

What construction quality can be expected in Fumba Town, Zanzibar/Tanzania?

The German developer CPS in Fumba Town works with three construction companies, two of which are directly managed by experienced German and Swiss managers and foremen. In total, more than 300 employees are employed and trained by these two construction companies.

In Fumba Town, about 50% of the houses are built using timber construction. Are there no issues with termite infestations or high humidity?

Our German and Swiss specialists have developed a timber construction method that is ideally suited for Africa. The challenge of termites is addressed both in terms of processing and construction techniques. The wood is dried to 8% moisture content, which termites do not like at all. Additionally, the wooden walls are designed in such a way that they are protected from pest infestations even after construction. When you visit Zanzibar, we would be happy to take you on a tour of the production facility.

Legal matters, tax questions, construction standards in Fumba Town

What are the requirements to obtain a Golden Visa in Zanzibar or Tanzania?

In Tanzania and Zanzibar, you can obtain a permanent residence permit similar to a Golden Visa for up to 6 people (a family with 4 children) if you invest at least 100,000 USD in real estate. As long as you own the property, you are entitled to a long-term visa.

Source for the legal text regarding the requirements for a Golden Visa in Tanzania and Zanzibar:
https://www.zipa.go.tz/services/investment-incentives/

What type of wood is used for the timber construction in Fumba Town?

For the Chei Chei residential complex, African engineered wood products from South Africa are being used for the first time.

All other timber buildings are made using engineered wood products from Germany and Austria.

The world’s tallest wooden building will soon be built in Fumba Town, Zanzibar, Tanzania. This will use 4,000 square meters of engineered wood from Austria.

The Borj Zanzibar will be 27 stories tall. The first 6 floors will be used entirely by Hilton as a hotel. Construction is set to begin in May 2025, with completion expected by the end of 2027.

Thanks to the pioneering work of the city planners at CPS, along with the engineers and architects involved, a new, sustainable timber construction method for Africa is being developed. This will drive demand for engineered wood, and plans for the first engineered wood factories in the region are already underway.

What is the cost of electricity in Zanzibar, Tanzania?

The current electricity price (12/2024) is 8.9 cents per kWh.

Does a visa for Zanzibar also apply to Tanzania, and does a visa for Tanzania also apply to Zanzibar?

Yes, a visa for Tanzania covers both the mainland and Zanzibar, so you can travel freely between the two. You can easily travel between Zanzibar and the mainland using domestic flights or ferries.