Real Estate Investor Magazine Mozambique Real Estate Investor Magazine Mozambique 2014 | Page 11

upfront

targeting these crimes, thanks to many
informational websites and social media
platforms exposing these unlawful practices.
From an individual investment perspective,
in 2007 the Mozambican government passed
legislation allowing foreigners to buy into
sub-let developments. The result is foreign
investors can purchase a fractional ownership
title in sub-let developments. All procedures
and responsibilities of DUATs and title
ownership are now the responsibility of the
developer and not beholden on the individual.
This has been a common trend for many
South African investors looking to diversify
their assets, or simply individuals who are
seeking a secondary holiday home in some
of the beautiful destinations of Mozambique.
The two most common ownership options
under this category are:
A. Fractional ownership:
Fractional ownership simply means the
division of any assets into various portions or
shares. If the asset is a property, the title deed
www.reimag.co.mz

“The process of
obtaining legal
and certified
land is lengthy
with much
documentation
required.”

can be legally divided into shares. In certain
cases this is done by creating a ‘mezzanine
structure’ (i.e. the creation of a company
which owns the property as a whole). This
new company then allows multiple owners
or investors to own shares in the holding
company (i.e. the company that holds the
ownership to the development).
These shares can be purchased and owned
by more than one individual and can be
transferred from one owner to the next. The
reasons for this structure can vary but two
common reasons are;
i) To allow for the transfer of shares (i.e.
ownership of structure within overall
development) without the need to reflect
changes on the holding title or deed to the
property;
ii) And secondly, for tax benefits.
B. Shared Ownership:
This form of ownership of the property and
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