Is it possible to receive payment of the purchase price offshore, when selling immovable property in Namibia?
Sometimes a seller of immovable property, who has a foreign bank account, let’s say, in Germany, would like to be paid the purchase price offshore, i.e. into that German bank account, instead of the purchaser bringing the money into Namibia to pay the seller.
Sections 6 and 7 of the Namibian Exchange Control Regulations, 1961, in essence, provide that the purchase price must be paid to and received in Namibia. The proceeds of the sale have to be received in the Republic within 30 days of becoming so entitled. Furthermore, should the purchaser wish to sell the property later on in the future, he will not be able to repatriate the funds to Germany, because he would have no proof of him initially having brought the money into Namibia in the first place.
Section 6 focuses on the declaration of foreign currency acquired by residents. It ensures that the Bank of Namibia is aware of all foreign currency coming into the country, which helps track and control its flow.
Section 7 is broader, requiring residents to declare all foreign assets, not just currency. This includes things like bank accounts, investments, and other assets held abroad. It ensures the Bank of Namibia is aware of the extent of Namibian residents’ holdings of foreign assets. These regulations help the Bank of Namibia monitor the flow of foreign exchange and ensure compliance with exchange control rules. If a seller wishes to be paid his purchase price offshore, he will have to apply for the required consent from the Bank of Namibia.
Do you have questions about purchasing land in Namibia as a foreign national or would you like advice? Contact us!
Disclaimer of liability: Please note that the above information is not intended as legal advice. This article is for information purposes only and neither Etzold-Duvenhage nor its employees shall be liable for any direct or indirect loss arising from reliance on the contents of this article. This article is limited to matters of current Namibian law. In the event that the contents of this document are relevant to a reader, we advise the reader to contact their lawyer for legal advice