Buying and Selling Property in Tanzania: Stamp Duty and Capital Gains Tax
Two taxes sit on a Tanzanian property transaction, and they fall on different people. The buyer's side carries stamp duty on the instrument that transfers the property; the seller's side carries capital gains tax, which must be paid before the Registrar of Titles will move the title.
Reviewed by the Calculator editorial team · Last updated 19 September 2026
Stamp duty is charged on the instrument, not the deal
Stamp duty is a tax on documents. The Stamp Duty Act, Cap. 189, lists the instruments it charges in its Schedule, and the rate depends on which instrument it is — a conveyance of land, a lease, a transfer of shares or an exchange of property each has its own entry.
| Instrument | Stamp duty |
|---|---|
| Conveyance of land or property (over 20,000 TZS) | 0.5% of the first 100,000, then 1% of the excess |
| Conveyance of land or property (up to 20,000 TZS) | Nil |
| Conveyance of agricultural land | 0.5% of value |
| Lease | 1% of the annual reserved rent |
| Transfer of shares or debentures | 1% of value |
| Instrument of exchange, or a gift | 0.5% of the first 100,000, then 1% |
The rate on agricultural land changed in 2026
Agricultural land used to attract a flat 500 TZS — a nominal fee. The Finance Act No. 2 of 2026 replaced it with 0.5% of the value with effect from 1 July 2026, so a farm worth 10 million TZS now pays 50,000 TZS. It is the kind of change that catches people out, because the consolidated Act still shows the old figure until you read the amending Act.
Capital gains tax falls on the seller
A person who realises an interest in land or buildings pays income tax by way of a single instalment: 10% of the gain for a resident and 30% for a non-resident. The gain is the selling price less the purchase price, acquisition costs, improvement costs, maintenance and repair costs, disposal costs and incidental costs — and that last group is broader than people expect, covering legal fees, brokerage, valuation, advertising, transfer taxes and survey fees.
When the seller cannot prove what it cost
If the seller has no documentary evidence of the cost, TRA does not attempt to compute a gain: the tax is 3% of the incomings or the approved value of the land or buildings. Keeping the purchase documents is therefore worth real money years later, particularly on land bought informally.
Exemptions worth knowing
A principal residence is exempt where it has been owned continuously for three years or more and lived in for a total of three years or more, provided the gain is not more than 15,000,000 TZS. Agricultural land is exempt where its market value is under 10,000,000 TZS at realisation and it has been used for agriculture in at least two of the previous three years. Shares listed on the Dar es Salaam Stock Exchange are outside the charge where the holder controls less than 25%.
The certificate that gates the title
Capital gains tax on land is paid as a single instalment before transfer, and the Registrar of Titles will not register the transfer without a certificate from TRA confirming the instalment has been paid or is not payable. Practically, that makes the tax part of the closing mechanics rather than something settled afterwards.
A worked example
On a 100,000,000 TZS property, the buyer pays 999,500 TZS in stamp duty on the conveyance. If the seller bought at 60,000,000 TZS and spent 8,000,000 TZS on costs, improvements and the sale, the gain is 32,000,000 TZS and the capital gains tax is 3,200,000 TZS — payable to TRA before the Registrar of Titles will transfer the title. Legal fees, broker commission, survey work and registration charges are additional, on both sides.
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Frequently asked questions
How much is stamp duty when buying a house in Tanzania?
0.5% of the first 100,000 TZS of the price and 1% of the rest, so about 1 million TZS on a 100 million TZS property. Nothing below 20,000 TZS.
Who pays the capital gains tax — buyer or seller?
The seller, as income tax on the gain, paid as a single instalment before the title is transferred.
What if I have lost the receipts for what I paid?
The tax becomes 3% of the sale price or approved value rather than 10% of the gain, so the documents are worth keeping.
Can I deduct the cost of improvements?
Yes — improvement costs, maintenance and repair costs and the costs of selling are all deducted from the price to arrive at the gain.