Zanzibar Approves Crypto “Cyber City” to Attract Digital Nomads

Zanzibar Approves Crypto “Cyber City” to Attract Digital Nomads
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Zanzibar has approved a blockchain-focused cyber city aimed at digital nomads, tax innovation, and testing crypto-based governance systems.

Zanzibar has approved plans for a cryptocurrency-focused “cyber city” on its western coast, designed to attract digital nomads and blockchain businesses. The private-sector project will be built on a 71-hectare site near the Fumba Peninsula under special Digital Free Zone rules passed in 2024.

The city will combine housing with a digital residency system, allowing remote workers to register companies and manage taxes without living full-time in Zanzibar. While payments, taxation, and business registration will follow alternative systems, civil and criminal law will remain under existing regulations.

Backed by presidential approval in November 2024, the project targets globally mobile tech workers rather than traditional residents. Digital residents would pay a 5% income tax, on-site residents 15%, while companies receive a 10-year tax holiday with no capital gains or wealth taxes.

About 100 digital residents and 30 businesses have already registered. The project reflects Zanzibar’s push to diversify beyond tourism using blockchain innovation.


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