The Namibian government has introduced significant amendments to the Transfer Duty Act 14 of 1993 (“Transfer Duty Act”), and the Stamp Duties Act 15 of 1993 (“Stamp Duties Act”), which have now been gazetted. These amendments impact property transactions and the rates at which transfer duty and stamp duty are charged.
Key Changes from the Transfer Duty Amendment Act, 2024:
1. Exemption Threshold Increased & Revised Transfer duty rates
The exemption threshold for transfer duty has been increased from N$600,000 to N$1,100,000. Natural persons acquiring property valued at or below N$1,100,000 are now fully exempt from transfer duty.
The revised transfer duty rates are as follows:
| Value | Transfer Duty Rate |
| N$ 0 – N$ 1 100 000 | Nil |
| N$ 1 100 000 – N$ 1 580 000 | 1 % of amount above N% 1 100 000 |
| N$ 1 580 000 – N$ 3 150 000 | N$ 4 800 + 5% |
| N$ 3 150 000 – N$ 12 100 000 | N$ 83 300 + 8% |
| N$ 12 100 000 + | N$ 799 000 + 11% |
2. Introduction of new Definitions
The definition of “property” has been broadened to include “a share in a company, member’s interest in a close corporation or a trust, that owns residential property. “a share in a company, a member’s interest in a close corporation, or an interest in a trust” that owns residential property. This means that the sale of shares in a company or a member’s interest in a close corporation, where the entity owns residential property, will now attract transfer duty, a requirement that did not previously apply.
This means that the sale of shares in a company or the sale of member’s interest in a close corporation which owns residential property will be subject to transfer duties which previously was not that case.
Furthermore, the amendment introduces a detailed definition of “residential property,” which now encompasses any dwelling house, holiday home, apartment, or similar abode. It also includes land zoned for residential use within Namibia. However, the definition expressly excludes structures such as apartment complexes, hotels, guesthouses, or similar buildings with five or more units, provided these units are rented to five or more “connected persons,” as defined in the Income Tax Act.
Key Amendments to the Stamp Duties Act
1. Electronic Stamping
The definition of “stamp” has been expanded to include electronic stamps, allowing for the payment of stamp duties to be made via a mark “embossed or impressed per electronic means”.
2. Increased Exemption Threshold for Property Purchases by Natural Persons
Natural persons are now exempt from paying stamp duty on the acquisition of immovable property valued at up to N$1,100,000. This represents an increase from the previous threshold of N$600,000, providing greater relief for property buyers.
For property purchases exceeding N$1,100,000, the new stamp duty rate is N$10 for every N$1,000 (or part thereof) of the value that exceeds N$1,100,000.
These changes will come into effect on 1 October 2024.
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