What Is a Right of Occupancy in Tanzania?
Updated 3 November 2026 · Land & Property editorial team
A right of occupancy is the legal right to use and occupy land in Tanzania, which is the way most land is held instead of freehold. A granted right is issued over general land, and a customary right is issued by a village council over village land. Clyde & Co gives terms of 33, 66 or 99 years. As of November 2026, confirm terms with the Land Registry.
- Granted right
- Over general land, from the Commissioner for Lands
- Customary right
- Over village land, from the Village Council
- Terms (one law-firm source)
- 33, 66 or 99 years. Confirm in the Act
- Derivative right
- 10 days less than the granted right it comes from
What is a right of occupancy?
In Tanzania the law is built on rights to occupy and use land, created by the Land Act and the Village Land Act of 1999. Law-firm guides describe two main kinds. A granted right of occupancy is a right to occupy and use land, granted over general or reserved land. A customary right of occupancy is a right to use village land, granted by a village council (Clyde & Co). A third kind, a derivative right, is created out of a granted right.
If you come from Uganda, think of it as closer to a lease than to freehold or mailo. The big picture is on the Tanzania Land Ownership Guide for Ugandan Investors.
What is the difference between granted and customary rights?
| Granted right | Customary right | |
|---|---|---|
| Land category | General land (or reserved land) | Village land |
| Who issues it | Commissioner for Lands and the land authorities | Village Council |
| Term | 33, 66 or 99 years per Clyde & Co | 33, 66 or 99 years per Clyde & Co |
| Open to foreigners? | Only for approved investment, via a derivative right | No. Citizens or groups of citizens only |
The Legal 500 guide notes that the Land Act text on foreigners is in s.20(1) and s.20(4), and Clyde & Co says a customary right goes only to citizens or groups made up entirely of citizens.
What do village councils do?
Village land lies inside a declared village and is managed by the Village Council. The Council issues customary rights of occupancy, and the village is the first place to ask who uses a plot. Village Land Act s.17(1) lists the limited "non-village organisations" that may occupy village land, and foreign companies are not on that list. If an outsider or a foreign-owned company wants village land, it must first be converted to general land before a granted or derivative right can be given.
For a buyer, the point is simple: a customary right is not the same as a granted right, and village land cannot be treated like a titled plot in a town. Ask which category the land is in before you discuss a price. Compare how Uganda's customary tenure sits next to freehold and mailo on Uganda vs Kenya Land Tenure Compared.
How long does a right of occupancy last?
Clyde & Co says a granted right is for 33, 66 or 99 years, up to a maximum of 99 years, and a customary right can also run for 33, 66 or 99 years. A derivative right has a term 10 days less than the granted right it comes from. The Legal 500 guide says derivative rights do not exceed 99 years.
We have not read the section of the Act ourselves, so treat the term as unconfirmed. The two firm guides agree on a 99-year ceiling, but the exact section and the term you will actually be granted can depend on use and approval. As of November 2026, ask the Commissioner for Lands or a Tanzanian advocate to confirm the term in writing for your parcel.
How are rights transferred?
The Citizen's 2017 explainer (updated 2021) describes the transfer of land under a right of occupancy in three stages:
- Before the contract. Inspect the site, ask the vendor to disclose known defects, run an official search at the Registrar of Titles to confirm ownership, and get a valuation report.
- At completion. Sign the sale agreement and draft the deed of transfer.
- After completion. Obtain a rent clearance certificate, a tax clearance certificate and a capital gains certificate, pay stamp duty, register the transfer with the Registrar of Titles, and receive the certificate of registration.
The Citizen says a transaction without stamp duty paid is invalid. The Commissioner for Lands approves a transaction before stamp duty is paid, per the same article. Rates of stamp duty and capital gains tax vary between sources, so we do not publish a figure, and a foreigner should expect additional steps with the Tanzania Investment Centre. Legal 500 notes that compensation is due for improvements if the right is revoked or reacquired.
Who should ask a lawyer, and where does Land & Property fit?
Every buyer should, and a foreigner especially. A right of occupancy comes with conditions, such as use and development obligations, and a breach can end the right. Compare the rules in our neighbour countries on the Kenya Land Ownership Guide for Ugandan Investors and Buying Land in East Africa as a Foreigner. Our own listings are in Uganda, so browse all listings for Ugandan land, and if you are a Tanzanian agent, join as a verified agent. The regional hub is the East Africa Property Hub.
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Frequently asked questions
What is a right of occupancy?
It is the right to occupy and use land in Tanzania. A granted right of occupancy is issued over general land and a customary right of occupancy over village land by a village council. A derivative right is created out of a granted right, typically for an investor.
How long does it last?
Clyde & Co gives terms of 33, 66 or 99 years for granted and customary rights, with 99 years as the maximum for a granted right. A derivative right is 10 days shorter than the granted right it comes from. We mark the term as unconfirmed, so check with the Commissioner for Lands.
Can a foreigner hold a right of occupancy?
Only for investment under the Tanzania Investment Act, normally as a derivative right through the Tanzania Investment Centre, according to Clyde & Co and Legal 500. Residential use alone does not qualify, and a customary right goes only to citizens.
Can a right of occupancy be lost?
Yes. Legal 500 notes that a foreigner's right can be ended and the land returned to the TIC if investment conditions are broken, and that compensation for improvements is due if the President revokes a right or the TIC takes land back.
Sources
- Land acquisition in Tanzania: what foreign investors should know, Clyde & Co (accessed 2026-11)
- A guide for foreigners on land ownership under the laws of mainland Tanzania, Legal 500 (formerly Mondaq) (accessed 2026-11)
- Real estate overview of transfer of land in Tanzania, The Citizen (accessed 2026-11)