Namibia Capital Gains Tax Guide 2026

Overview — CGT in Namibia

Capital gains tax in Namibia was introduced with effect from 1 March 2004. Unlike many countries with a separate CGT rate, Namibia treats capital gains as ordinary income subject to a special inclusion rate. The gain is calculated as the proceeds on disposal less the base cost (acquisition cost plus allowable expenses). CGT applies primarily to the disposal of immovable property (land and buildings). Gains on other assets such as shares (unless held as trading stock or through a property company), personal use assets (motor vehicles, household goods), and collectibles are generally not subject to CGT. The tax is administered by NamRA under the Income Tax Act.

Inclusion Rates & Effective Tax

The effective CGT rate depends on the taxpayer type and the inclusion rate applied:

• Individuals — 80% of capital gain included in taxable income, taxed at marginal IIT rate (0–37%). Maximum effective rate: 29.6% (80% × 37%)
• Companies — 100% of capital gain included in taxable income, taxed at CIT rate (32%). Effective rate: 32%
• Trusts — 100% inclusion, taxed at trust rate

For an individual in the top bracket (37%), a capital gain of NAD 1,000,000 would result in a CGT liability of NAD 296,000 (NAD 1,000,000 × 80% × 37%). The inclusion rate system means CGT is integrated into the progressive income tax system rather than being a separate flat tax.

Principal Residence Exclusion

Individuals are entitled to an exclusion of up to NAD 2 million of capital gain on the disposal of their primary residence. To qualify, the property must have been used mainly as the individual's ordinary residence for at least 2 years before disposal. The exclusion covers the building and land up to 2 hectares. If the property is used partly for business, only the residential portion qualifies. The exclusion applies to each individual — a married couple owning jointly could potentially exclude up to NAD 4 million (NAD 2 million each). Any gain exceeding the exclusion threshold is included at 80% and taxed at marginal rates.

Base Cost & Allowable Expenditure

The base cost of an asset includes the acquisition cost and certain allowable expenditure incurred to acquire, maintain, or improve the asset. Allowable costs include:

• Purchase price or construction cost
• Transfer duty, legal fees, and registration costs on acquisition
• Capital improvements (not repairs and maintenance)
• Estate agent commissions and legal fees on disposal
• Valuation fees for CGT purposes

Time apportionment may be used to calculate the gain where the asset was acquired before the CGT effective date (1 March 2004). The value at that date can be used as the base cost if higher than actual cost.

FAQs

How do I calculate my chargeable gain?

The gain is the proceeds on disposal less the base cost (acquisition cost plus allowable improvement expenditure). Example: Buy land for NAD 500,000, sell for NAD 800,000, improvement costs of NAD 50,000, selling costs of NAD 30,000. Gain = 800,000 − 500,000 − 50,000 − 30,000 = NAD 220,000. For an individual: included gain = 220,000 × 80% = NAD 176,000, taxed at marginal rate.

Can I offset capital losses against capital gains?

Yes, capital losses on the disposal of assets subject to CGT may be offset against capital gains in the same year. Unrelieved capital losses may be carried forward indefinitely but cannot be offset against other income (e.g., salary or business profits).

What assets are exempt from CGT?

Personal use assets (motor vehicles, household goods), listed shares (unless held through a property company), collectibles below certain thresholds, and the first NAD 2 million gain on a principal residence.

Disclaimer

This guide provides general information about Namibian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Namibian tax advisor or the Namibia Revenue Agency for advice specific to your situation. InvestmentKit does not provide tax advice.