Rich South Africans are buying homes in one of the safest countries in Africa

Ranked as the fourth safest country in Africa by Altezza Travel, Namibia is seeing a net positive migration of high-net-worth individuals (HNWIs) who are looking for security and investment benefits.

Altezza Travel, a Tanzania-based destination management company, compiled the safety rankings using a range of global studies and statistical data, combined with public perceptions of personal safety. 

The results were announced in January by Namibia’s Ministry of Environment, Forestry and Tourism.

“Namibia has long been one of the most politically stable countries, with generally good infrastructure, and the tourism industry is well-developed,” said ministry spokesperson Romeo Muyunda. 

“This ranking points out our peaceful nature as Namibians, but also highlights that our collective effort to ensure peace and stability prevails is being recognised.”

According to Altezza Travel’s report, only Mauritius, Ghana, and Zambia ranked higher in terms of safety.  Muyunda praised the Namibian people and the country’s security services for maintaining law and order. 

“Safety is an important factor in the travel and tourism sectors. This ranking gives Namibia more recognition around the globe and will steer more recommendations by travellers to visit the country,” he said. 

“We believe Namibia, a young democracy with a population of just over three million, has a competitive advantage.”

This sense of security, combined with Namibia’s investor-friendly policies, has helped fuel rising interest from wealthy South Africans. 

Lance Lawson, a Business Development Consultant at Sovereign Group, said Namibia is gaining attention for its economic progress and welcoming foreign investment approach.

“Their political and economic stability, coupled with their relative affordability and proximity, makes the country highly attractive to South African HNWIs looking to invest in sub-Saharan Africa,” Lawson said. 

He added that Namibia’s legal and tax structures make it especially appealing for those seeking long-term wealth protection and residency options.

What South Africans are paying

Namibia imposes no estate duty and has no capital gains tax on private sales, while its trust laws provide various tax advantages for holding assets, particularly for non-agricultural properties. 

The Namibian Income Tax Act is also favourable to trusts, and foreign investors can benefit from the Namibian Foreign Investment Act, which guarantees equal treatment with local investors. 

Those with a Certificate of Status Investment are eligible to repatriate their capital and can access a simplified employment permit process.

Further incentives exist for manufacturers operating in export processing zones, which benefit from exemptions on corporate income tax, import duties, and VAT on imported machinery and raw materials.

Real estate is also a popular route into the country, particularly among retirees and families seeking greater geographic flexibility. 

Maria Esterhuysen, licensee for Seeff Namibia, said that coastal towns like Swakopmund are in high demand. 

“Namibia is a popular holiday destination, and more people are considering retiring here,” she said. “Property prices are similar to South Africa, and the currencies offer similar value.”

Residential property prices typically range from N$800,000 (R800,000) to N$2.5 million (R2.5 million), with luxury homes selling for up to N$8 million (R8 million) or more. 

Esterhuysen added that proceeds from property sales can be freely repatriated, making the country even more attractive to foreign investors.

Namibia also offers specific pathways to residency for wealthy individuals. A Retired Persons permit is available for those over 60 with a permanent income from abroad.

Additionally, permanent residency is an option for individuals with a net worth of at least N$4 million (R4 million), of which at least N$2 million (R2 million) must be invested in Namibian property, with the balance held in a local bank account.

According to the Africa Wealth Report, African wealth is projected to surge by 65% over the next decade, and Namibia is expected to be one of the continent’s top contributors.

The report forecasts that Namibia’s millionaire population will grow by 85% by 2033, second only to Mauritius.

Namibia

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/property/833704/rich-south-africans-are-buying-homes-in-one-of-the-safest-countries-in-africa/