Properties by Wiltinnet

Namibia - Foreign ownership

Compiled on 26 February 2008 without prejudice of rights, conditions
and law’s with respect to ownership changing from time to time

Namibia – Agriculture land : Foreign ownership

Questions are frequently asked about buying, ownership and residency of Agriculture land (“Farm” property) in Namibia.
(“Ownership”, “usage” and “residency” are different concepts for the goal of this)

The definition of “farm” is varied and mainly means land, no matter how small, situated outside municipal area, even land “stands” in un-proclaimed towns – and there are quite a few in Namibia.

Answers on enquiries don’t exist in general, seeing that each person’s enquiries have its own merits. The general ones are found in the applicable legislation, although Greek to the standard person.

In the initial stage it should be mentioned that the whole concern is pulled out of proportion.

The golden rule is: “Follow the procedures as described by law and stay out of trouble”. Most negative, sometimes controversial happenings, originate in the fact that residents of Namibia agriculture land offer (Farm property and / or related-) for sale without following the prescribed procedures.

If the seller, therefore the buyer, lands in trouble, the blame is placed upon the involved property agent (on behalf of the seller), ór the Government.

The Namibian Government holds the first right to purchase farm property and when that right does not want to be exercised; permission can be given to sell to anybody else, except foreigners.

It is possible for a non-Namibian citizen to own and utilize agriculture land, even to prove ownership. To live on the land is a matter on its own.
Each of the last mentioned has its own legislation to follow

Except for the law on agriculture land, people must first attend to legal citizenship, if the purpose of purchasing is for residential use.

It in one thing to own agriculture land but another to become a resident or even to occupy the property. Whether you mention South Africans or any other foreigner, the same rule applies. We specifically mention South Africans because there are old “Suidwesters” which doesn’t want to accept the fact that Namibia is a land on its own now. Such people roam upon double citizenship in South Africa.

The author hereof is no law practitioner, but, being an estate agent it is expected of him to know the legal requirements of land ownership, alternatively to have a good knowledge thereof to assist both the seller and the buyer or refers them to experts.
Once again, it is no easy task to supply answers to all question, seeing that every person has his own circumstances and needs

The most important aspect is that no foreigner should directly or indirectly own agricultural land without government approval, alternatively, may not own the controlling share.

For example, should a Closed Corporation or Company be the owner of agriculture land, must the majority shareholding belong to a Namibian citizen.

Last mentioned is miss used, and the government knows about it but is powerless.
The “powerlessness” of the government is being strengthened by the law of immigration control.
Therefore, should a foreigner, for which ever reason, receive or own 100% ownership, with title- or any other proof, they still have to answer to the question of “legal residence”.

Before loopholes in the law were filled, foreigners obtained agriculture land as their lawful property, with title proof and more.
If that person wanted to visit his/her property, even for just a week or two for hunting purposes, the question arises of whether such a person entered and is roaming the country legally.

To answer the last enquiry received:

Yes, it is possible for a South African to own interest in agriculture land, with title deed in the hand, with respect to shareholding in a Company or member of a Closed Company.
Thus can be 100% ownership or 49% with a Namibian citizen owning the remaining 51%.
Last mentioned can be hidden by means of additional contract / agreement.
Utilization lies, once again in legal residency, whether as visitor (3 months), or per application thereof, temporarily (12 months), or permanent.

As above mentioned, each person has individual needs.
Before foreigners may buy agriculture land, the motive must be laid out completely to a trustworthy estate agent of law practitioner.

The procedure to owning agriculture land and residential rights is unfortunately a lengthy, sometimes frustrating procedure and can be expensive, the reason for application and motive depending.