BUYING PROPERTY IN NAMIBIA – EVERYTHING YOU NEED TO KNOW

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Namibia offers tremendous investment potential for South African property buyers. With its stable economy, tax-friendly policies, and promising developments, Namibia is an attractive market for real estate investments. Notably, Walvis Bay, with its burgeoning economic growth, is a key location for investors seeking lucrative property opportunities, such as those offered at The Dunes Estate.

Here’s a comprehensive guide to help you navigate the process of investing in Namibian property.

Namibian Residency and Visa Options

Namibia offers various visa and residency options to attract investors and skilled professionals. These include travel, work, residence, and investment visas. More details are available on here.

  • Permanent Residency: If you wish to reside in Namibia permanently, you must meet certain conditions, including living in the country for 10 years under a valid work permit, or you can apply as a:
  • Retiree: Who are 60 years and above and have the financial means to live in Namibia independently. Read more here
  • Business investor: A Business Investment Visa/Permit allows foreign investors to establish and work in their own business in Namibia, contributing to the local economy while complying with immigration regulations. Read more here.
  • The Desert Visa Programme: The NIPDB is working on a program to attract high-net-worth individuals through individual residency applications. Read more about it here.
  • Digital Nomad Visa: The Namibia Digital Nomad Visa offers a unique opportunity for remote workers. The visa allows a six-month stay in Namibia for just USD 124. Note that it is non-renewable, and applicants must wait 12 months before reapplying. Read more about this here

Step 1: Why Invest in Namibia?

Namibia offers many benefits to investors:

  • Stable Economy and Politics: Ensures a secure environment for long-term investments.
  • Tax Benefits: No capital gains, inheritance, or estate taxes, which makes Namibia a tax-friendly destination for investors.
  • Proximity to South Africa: The cultural and economic ties between Namibia and South Africa make cross-border investment easier.
  • Booming Property Market: With property prices having risen by 1,258% since 1990, Namibia’s real estate market shows tremendous potential for capital growth.

Step 2: Choose the Ideal Location

While Namibia has several thriving cities, Walvis Bay is particularly appealing because of:

  • Harbour Expansion: The port is a key economic asset and a focal point for trade in Southern Africa. Cementing its role as Southern Africa’s logistics hub
  • Energy Sector Growth: Oil, gas, and solar energy developments driving new opportunities.
  • Tourism and Lifestyle Appeal: Walvis Bay’s unique desert-ocean setting is a growing tourist attraction, driving both demand for residential and rental properties.

You can read more about what exactly the future holds for Walvis bay here

Step 3: Explore Developments Like The Dunes Estate

The Dunes Estate in Walvis Bay is an ideal investment opportunity:

  • Prime Location: Located close to Dunes Mall and the Walvis Bay Harbour, which are major employment hubs.
  • Affordable Housing Focus: Aiming to address Namibia’s housing shortage with affordable housing units for sale
  • Strong Investment Potential: High rental demand and strong growth potential make it an attractive investment.
  • Flexible Rental Options:
    • Airbnb Allowed: Short-term rentals are permitted, providing more flexibility for investors.
    • Turnkey Solutions: We offer a hassle-free service to help investors secure tenants and manage rentals.

Step 4: Begin the Homeownership Process

The Dunes Estate will be developed in phases, with the first units scheduled for completion by mid-2025. The phased approach ensures that investors can monitor progress and plan accordingly.

  • The Namibian Dollar is closely tied to the South African Rand, ensuring a favorable exchange rate for South African investors.
  • The current home loan interest rate in Namibia is 10.75%.

Step 5: How to Purchase Property in Namibia

5.1 Signing the Offer to Purchase (OTP)

  • Sign OTP with In-Country Attorneys: The OTP must be signed by an in-country notary. This process varies based on the payment method (cash or loan).
    • For Cash Purchases: The buyer signs the OTP with a notary, who authenticates and apostilles the document before sending it back to Namibian attorneys.
    • For Home Loan Purchases: The OTP is signed with a notary, then sent to Namibian attorneys, who submit it to the bank for loan processing. The loan-approved OTP is then authenticated.
  • Obtain Financing (if applicable): If you’re financing the property, you’ll need to obtain approval from a local bank in Namibia. South African banks do not finance properties outside of South Africa.
  • Sign Loan Documents: These are signed with an in-country notary.
  • Apostille/Authentication: All signed documents will be apostilled or authenticated by a notary and sent to Namibian transfer attorneys.
  • FIA and Source of Funds Documentation: The transfer process will not begin until the Financial Intelligence Act (FIA) and Source of Funds documentation have been submitted.

5.2 Securing a Bond

Non-resident buyers can obtain financing from institutions like Bank Windhoek, FNB Namibia, Standard Bank Namibia, or Nedbank Namibia.

  • Deposit: Typically, 20% of the property value.
  • Required Documents: Passport, marriage certificate (if applicable), antenuptial contract, six months’ bank statements, and employment contract.

Step 6: Finalize Legal and Transfer Processes

  • Namibian transfer attorneys (ESI) will handle the registration of the Deed of Transfer.
  • Once the documents are authenticated and all approvals are in place, the process will be complete.

Step 7: Consider the Costs

For South African buyers, the following costs apply:

  • Notary Fees: Approx R8,042.25 (including VAT and disbursements).
  • Deposit: 20% of the property value for financed purchases.

Step 8: Walvis Bay’s Growth Potential

Investing in Walvis Bay offers:

  • Logistics Growth: The expansion of the harbour is enhancing its economic importance.
  • Energy and Oil Sector Growth: Ongoing energy projects continue to attract global investment.
  • Tourism Demand: Walvis Bay’s desert-ocean charm drives short-term rental income opportunities.

Step 9: Work With Professionals

To streamline your investment process:

  • In-Country Notary: Tonkin Clasey ensures compliance with Namibian legal requirements.
  • Dunes Representative: ESI assists with the entire purchase process.
  • Namibian Attorneys: ESI will handle the transfer documentation.

Step 10: Enjoy the Rewards

Investing in Namibia offers numerous benefits:

  • Rental Income: Strong demand ensures steady returns.
  • Capital Growth: The property market continues to appreciate, offering long-term gains.
  • Tax Advantages: Enjoy the benefits of Namibia’s favorable tax system.
  • Unique Lifestyle: Experience Namibia’s stunning landscapes and rich culture.

Get Started Today

Take advantage of Namibia’s thriving property market and developments like The Dunes Estate. With Airbnb flexibility, turnkey rental solutions, and mid-2025 occupancy, now is the ideal time to invest. Contact our expert team today to begin your investment journey!