Benefits of ZDFZ
Why entrepreneurs and businesses choose the Zanzibar Digital Free Zone.
Business Benefits
Fast Incorporation
Incorporate your company fast with fully digital processes.
Flexible Capital
Share Capital must equal the total nominal value of issued shares - you determine your company's capital structure.
100% Foreign Ownership
Maintain full control of your company without requiring local partners or shareholders.
Multi-Currency
Operate in multiple currencies including USD, EUR, GBP, and digital assets.
Privacy Protection
Confidential information is protected and not released without consent, except as required by law or judicial order.
Profit Repatriation
Freely move profits out of the free zone without restrictions or additional taxes.
Operational Benefits
Fully Digital Management
Manage all company affairs through our online portal. No paperwork, no physical presence required.
Virtual Office Services
Get a registered business address in Zanzibar for official correspondence.
Digital Signatures
Sign contracts and documents with legally recognized electronic signatures.
Streamlined Compliance
Annual reporting and compliance requirements are simplified and managed online.
Banking Access
Open business bank accounts with our partner financial institutions.
Tax Benefits
*Tax rates apply to income earned from transactions with Zone Entities. Ventures created by OWZ Venture Creator enjoy 0% tax for 10 years. Citizens of Tanzania are not eligible for these tax benefits. Subject to regulatory approval and ongoing compliance.
Companies registered in ZDFZ benefit from a favorable tax environment designed to attract international businesses. The 5% rate applies to entities with no physical residence in Zanzibar (less than 183 days per year), while the 15% rate applies to Zanzibar residents. All entities are exempt from capital gains tax, wealth tax, and VAT on services provided outside Tanzania.
Digital Residency Benefits
As a digital resident, you gain:
- ✓ Legal Recognition - Official status as a resident of the Zanzibar Digital Free Zone with a digital certificate.
- ✓ Company Formation Rights - Ability to incorporate and own companies within the free zone.
- ✓ Banking Eligibility - Access to financial services through partner institutions.
- ✓ Contract Capability - Enter into legally binding contracts under Zanzibar law.
- ✓ Cooperative Membership - Join or form cooperatives with other digital residents.
Comparison with Other Jurisdictions
| Feature | ZDFZ | Dubai | Estonia | Singapore |
|---|---|---|---|---|
| 100% Digital Process | ✓ | Partial | ✓ | Partial |
| Income Tax Rate | 5%* | 0% | 20% | 17% |
| Capital Gains Tax | 0% | 0% | 20% | 0% |
| Cooperative Support | ✓ | ✗ | ✗ | ✗ |
| Smart Contracts Legal | ✓ | Partial | Partial | Partial |