Legal Update – 23 March 2024
Court Reverses Decision which Allowed Non-Citizens to Inherit Land
- Non-citizens barred from inheriting land in Tanzania
- Land ownership by transmission now limited to citizens only
- Purposive interpretation of laws relied upon
- Land Act held to prevail over probate laws on land matters
- High Court’s decision overturned
On 22 August 2025, the Court of Appeal of Tanzania (the Court) rendered its decision in Civil Application No. 278/01 of 2023 on a controversial topic of land ownership by non-citizens in Tanzania. The Court, in its decision, held that non-citizens cannot inherit land in Tanzania. It should be remembered that, in May 2011, the High Court of Tanzania delivered its judgment in Civil Case No. 1 of 2011 and held, among others, that a foreigner could inherit land in Tanzania. This was based on the High Court’s reasoning that the restrictions on ownership of land by non-citizens under the Land Act were applicable on new allocations, grant or transfers of land by other means and not by way of transmission/inheritance.
Background
The case involved the estate of the late Diana Artenis Ranger, a naturalized Tanzanian citizen of Greek origin, who died intestate (without a Will) in 2006. The dispute concerned her property located in Upanga, Dar es Salaam. Although the High Court had granted administration of the estate to the Administrator General and allowed transmission of the landed property to her heir, Anastasious Anagnostou (a non-citizen), the Attorney General intervened to challenge the legality of such transmission, arguing that it violated the National Land Policy and the Land Act, Cap. 113.
Court’s decision
In its decision, the Court agreed with the Attorney General’s position, emphasizing that section 20(1) of the Land Act categorically prohibits allocation or grant of land to non-citizens, save for investment purposes under the Tanzania Investment Act. The Court underscored that this prohibition extends even to acquisition of land through inheritance, for allowing otherwise would defeat the protective intent of the law and provide a backdoor for foreign land ownership. Although the concept of ‘transmission’ under section 2 of the Land Act refers to the passing of interest by operation of law, the Court held that such a mode of acquisition remains subject to the same legal restrictions imposed on direct allocation or transfer. In other words, the Court, in reading section 2 of the Land Act together with sections 67 and 68 of the Land Registration Act, observed that interest in land of the deceased can only be bequeathed to heirs or beneficiaries through transmission after having been registered in the name of the legal representative of the deceased. As to who will benefit, section 20(1) of the Land Act explicitly prohibits such transmission to non-citizen. The Court further held that, according to the said provision of the law, it only permits a non-citizen to occupy land for investment purposes under the Tanzania Investment Act. Moreover, as the transmission under section 67 of the Land Registration Act gives the beneficiary the right to occupy and use land, and since right to be given in relation to probate matters does not relate with investment purposes, a non-citizen cannot inherit landed property in Tanzania.
In reaching its decision, the Court highlighted the importance of reading statutes contextually and purposively. The Court emphasized that, ‘when the question arises as to the meaning of a certain provision in a statute, it is not only legitimate but proper to read that provision in its context. The context here means, the statute as a whole, the previous state of the law, other statutes in pari materia, the general scope of the statute and the mischief that was intended to remedy.’ Further, the Court observed that permitting a non-citizen to inherit land not only contravenes the Land Act but also undermines the objectives of the National Land Policy, 1997, which aims to preserve land ownership for Tanzanian citizens. The Court further noted that no provision in the Probate and Administration of Estates Act, Cap. 352, overrides the limitations imposed by land laws. Moreover, section 181 of the Land Act mandates that any other laws inconsistent with Land Act shall cease to apply in land related matters.
Consequently, the Court quashed the decision of the High Court that had allowed a non-citizen heir to inherit landed property. This ruling sets a binding precedent that non-citizens, including heirs, cannot now lawfully acquire land in Tanzania unless it is for purposes of investment under the appropriate legal framework. The ruling reaffirms the government’s position on safeguarding land ownership as a preserve of Tanzanian citizens and is expected to have significant implications for estate planning, particularly for citizens with foreign heirs. As for leaving landed property to a non-citizen in a Will, it is likely that the executor or administrator will have to sell the landed property and give the proceeds to the non-citizen beneficiary.
To read the Ruling click here
To read our previous update on non-citizen land ownership click here