Kenya investors are turning to Zanzibar as a new investment destination following the opening up of the island’s economy to foreign investors.
According to German Real Estate Firm CPS Kenyan investors amount to 30 percent of investors betting on the island.
“We are seeing a lot of interest from Kenyans who want to invest in the island, Kenya is currently the third largest investor after Tanzanian locals in first place followed by UAE,” said Sebastian Dietzold, Chief Executive CPS.
The firm set up operations in the Kenyan market, to offer investment opportunities for real estate projects in Zanzibar.
The Zanzibar based firm is also targeting Kenyan investors seeking to expand their investment portfolios to buy into its current projects Fumba Town and The Soul in Zanzibar, with backing from the Government of Zanzibar which aims to increase private investments into the islands.
“Fumba Town is the first big project we have in the East African region, and we are here to promote Zanzibar as an investment destination for Kenyans, with very attractive properties, high return on investment and appreciation of capital. We offer low starting prices, which are hard to find in Kenya, investing into a booming economy which is very investment friendly,” he added.
Fumba Town is a modern spacious cosmopolitan community located in the tropical island of Zanzibar. It is a combination of beautiful, equitable homes within a carefully designed masterplan creating safe, green and family-friendly communities.
Further CPS is developing the residential resort ‘The Soul’ on the East Coast of Zanzibar, one of the most attractive tourism spots on the island and famous worldwide as a kite surfing destination. The Soul offers holiday apartments which can be managed on a serviced apartment scheme, generating high returns for its investors.
Zanzibar has seen strong development as a highly attractive tourism destination with growth rates of 15 percent and above each year. Additionally, Zanzibar’s Urban West Region is experiencing a strong population growth with over 6 percent per annum, creating a huge demand in the housing sector.
In July, the government of Zanzibar, announced a new tax and residency programme for foreigners seeking to live and invest in the island.
The new investor programme, allows real estate investors to acquire a residency permit as an investor, meaning the party will be allowed to live in Zanzibar as a non-citizen.They are also not required to live in Zanzibar permanently.
New tax and residency benefits for real estate buyers include; No Income tax on worldwide income and wealth, Resident permit for VILLA buyer plus Partner and up to four children under 20 years of age, First buyer pays only 50 percent of normal capital gains on sale of unit, at 5 percent instead of 10 percent, Foreign ownership allowed ,Income tax is halved only on local income- 15 percent instead of 30 percent, applicable to foreigners only.
Business investors wanting to invest in ventures such as restaurants, bars, watersports and retail operations will receive similar benefits as real estate investors through approved “Strategic Investment” projects only.