Namibia Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Estate Duty

Namibia imposes estate duty on the worldwide assets of deceased persons who were resident in Namibia at the time of death. Non-residents are subject to estate duty only on Namibian property. Estate duty is governed by the Estate Duty Act, 1955 (Act 45 of 1955) as amended. The duty is levied on the net estate (gross assets less allowable deductions and abatements) at a flat rate of 20%. The first NAD 1,000,000 of the net estate is exempt from duty. A surviving spouse is entitled to a substantial abatement of NAD 25,000,000, meaning most estates passing to a surviving spouse will incur no estate duty.

Estate Duty Rate — 20%

Estate duty is calculated at 20% on the dutiable amount of the estate. The dutiable amount is determined as follows:

• Gross estate (worldwide assets at market value at date of death)
• Less: Allowable deductions (funeral expenses, debts, administration costs, bequests to public benefit organisations)
• Less: General abatement of NAD 1,000,000
• Less: Spousal abatement of up to NAD 25,000,000 (for assets passing to a surviving spouse)
• Less: Children's abatements (NAD 100,000 per child up to NAD 600,000 total, for minor children)
• Equals: Dutiable amount, taxed at 20%

The estate duty return must be filed with NamRA within 12 months of the date of death. Late filing attracts penalties and interest.

Donations (Gift Tax)

Lifetime donations (gifts) made by a resident individual are subject to donations tax at a flat rate of 20% on the value of the gift. Key rules:

• Annual exemption — the first NAD 100,000 of donations per year is exempt from donations tax
• Spousal donations — donations between spouses are exempt
• Public benefit organisations — donations to approved charities are exempt
• Donations within 3 years before death — included in the estate for estate duty purposes
• Donor liability — donations tax is payable by the donor (the person making the gift)

Donations tax is declared and paid to NamRA by the donor. The return is due at the same time as the donor's annual income tax return. Failure to declare donations can result in penalties and interest.

Wills & Probate

Having a valid will is the most effective way to ensure assets pass according to the deceased's wishes. A will must be in writing, signed by the testator in the presence of two witnesses who are not beneficiaries. The will should appoint an executor to administer the estate. Probate is the legal process of recognising the will and granting the executor authority to distribute assets. The process involves applying to the Master of the High Court with the will, death certificate, and inventory of assets. Executor fees are typically 3.5% of the gross estate value. The probate process can take 6–18 months in Namibia. Foreign nationals with assets in Namibia should have a separate Namibian will covering their Namibian assets.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, CGT applies on the gain (selling price minus the deceased's original base cost — no step-up in basis). The principal residence exclusion of up to NAD 2 million may apply if you occupy the property as your main home.

Is there a way to avoid estate duty?

Estate duty can be minimised through proper estate planning including the use of the spousal abatement, lifetime donations within the annual exemption, and trusts. Professional advice is recommended for significant estates.

Does Namibia recognise foreign wills?

Foreign wills may be recognised in Namibia but must go through the probate process in Namibia to be effective for Namibian assets. It is generally advisable to execute a separate Namibian will for assets located in Namibia.

Disclaimer

This guide provides general information about Namibian inheritance and gift tax for the 2026 tax year. Succession law is complex. Always consult with a qualified Namibian lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.