Who pays Stamp Duty on Lease Agreements in Namibia?

A guide by your trusted Estate Agency

In Namibia, stamp duty is often overlooked until it causes a delay in enforcement, a dispute between landlord and tenant, or a financial penalty. At YellowSquare Properties, we aim to clarify what the Stamp Duties Act 15 of 1993, as amended, really says — and how it applies to lease agreements in practice.

What is Stamp Duty?

Stamp duty is a form of tax payable on certain legal documents, including lease agreements. It serves to register and validate the transaction in the eyes of the law. This duty is either paid using adhesive revenue stamps or paid directly at NAMRA.

Who is legally responsible to pay the Stamp Duty?

According to Section 7(1)(f) of the Stamp Duties Act:

“...in the case of a lease or agreement of lease in respect of immovable property, the lessor is liable to pay the stamp duty.”

This means that:

  • By default, the landlord (lessor) is liable.
  • However, Section 15 of the Act permits parties to agree between themselves how liability will be shared:

“...nothing in this section shall prohibit any agreement between parties as to the distribution between themselves of liability to pay the amount which is payable as duty.”

In practice: Most lease agreements shift the liability to the tenant by contractual agreement — and this is legally valid.

When the Tenant agrees to pay Stamp Duty

If the tenant signs a lease agreement that explicitly states that they are responsible for stamp duty, they are contractually bound to do so. If they later refuse:

  • They are in breach of contract.
  • The landlord may enforce remedies, including cancellation or legal action.
  • In some cases if the contract allows it the unpaid stamp duty may be deducted from the tenant’s deposit.

If the tenant refuses to pay and the landlord declines to absorb the cost, then:
“No agreement has been reached, and the tenant should rather seek another property.”

What happens if a Lease Agreement is not stamped?

This is a critical clarification:

  • An unstamped lease is not invalid or illegal.
  • However, under Section 12 of the Act:

“No instrument required to be stamped shall be made available for any purpose whatsoever… including being given in evidence in court...” unless it is duly stamped.

So what does this mean?

  • The contract is still valid and legally binding between the parties.
  • BUT it cannot be used in court until it is properly stamped, potentially delaying eviction proceedings or any other enforcement.
  • Penalties and interest may also apply if not rectified in time.

When must the Lease Agreement be stamped?

Under Section 8(1)(b):

  • The lease must be stamped within 21 days of signing.

If late:

  • Penalties apply (per Section 9), up to double or triple the unpaid duty, capped at N$2,000, plus an optional further penalty of up to N$4,000.

Who affixes and cancels the Stamps?

Under Section 10 of the Stamp Duties Act:

Revenue stamps must be affixed to the lease agreement and cancelled (defaced) by initialling and dating them.

This may be done by:

  • The landlord (lessor).
  • Any party to the contract, including the tenant (or the estate agent, if they are named in and sign the contract).
  • An authorized revenue officer at NAMRA.
  • The manager of any bank.

In practice, the owner or their estate agent normally takes on this task for practicality and to ensure compliance.

Where to get Revenue Stamps

You can obtain revenue stamps from:

  • NamPost branches, or
  • NAMRA offices, where the document may also be officially stamped.

How much Stamp Duty is payable?

As per Schedule 1, Item 10 (for every N$1 000 or part thereof):

Lease Duration

Stamp Duty Rate

where such period does not exceed 5 years

N$5.00 per N$1,000 of total rent

where such period exceeds 5 years but not 10 years

N$8.00 per N$1,000 of total rent

where such period exceeds 10 years but not 20 years

N$10.00 per N$1,000 of total rent

where such period exceeds 20 years

N$15.00 per N$1,000 of total rent

Basic Calculation Examples

Example 1: Lease for 2 years at N$6,000/month

  • Total Rent = N$6,000 × 24 = N$144,000
  • Stamp Duty = N$5 × (144,000 ÷ 1,000) = N$720

Example 2: Lease for 6 years at N$5,000/month

  • Total Rent = N$5,000 × 72 = N$360,000
  • Stamp Duty = N$8 × (360,000 ÷ 1,000) = N$2,880

Renewals or Extensions over 5 Years

Section 22(4) provides that:

If a lease is continued, renewed or extended such that the total period now exceeds 5 years, then the higher duty rate becomes payable on the entire original amount. This is very important and overlooked by most estate agents and Landlords and can cause the owner to become liable for penalties.

Any prior stamp duty paid is credited, and the responsible party (example tenant as per agreement) pays the top-up.

Example:

  • Initial lease: 3 years at N$6,000/month = N$216,000
  • Paid stamp duty: N$5 × 216 = N$1,080
  • Lease extended to 6 years → new total rent = N$432,000
  • New duty: N$8 × 432 = N$3,456
  • Top-up payable: N$3,456 − N$1,080 = N$2,376

Conclusion: Know before you sign

  • The landlord is liable under the law, but contracts can shift the cost to the tenant.
  • If the tenant agrees to pay and signs, they are legally obligated.
  • If no agreement is reached, the tenant needs to look for other accommodation.
  • Stamp duty must be paid within 21 days and stamped/cancelled properly.
  • Lease agreements exceeding 5 years (including through cumulative renewals) must have their stamp duty recalculated at the higher rate and backdated to the original lease date.
  • An unstamped lease is still valid, but unenforceable in court until stamped.
  • If stamp duty is not paid or not correctly topped up, the landlord remains liable for the duty and may incur penalties and interest.

Lease Agreement Copies & Stamp Duty Responsibility

  • Under the Act, the landlord is ultimately responsible for ensuring that the lease agreement is duly stamped; therefore, the original stamped lease should be kept safely by the landlord, or held by the estate agent on the landlord’s behalf, as proof of compliance and for safekeeping.
  • If another party requires a copy, a certified copy can be made and stamped with N$1.00 duty.
  • Certified copies are valid for general use, but the original is required in court unless legally exempted.

Need help navigating Leases and Stamp Duty?

At YellowSquare Properties, we offer more than just listings, we provide legally sound, up-to-date lease agreements that comply with the Stamp Duties Act and other legal requirements.

Our services include:

  • Tenant sourcing and screening to help you find reliable, responsible tenants.
  • Guidance on stamp duty compliance, including who is responsible for payment and how it is applied.
  • Clear, practical advice for both landlords and tenants on their legal duties under lease agreements.
  • Regular review and updating of lease agreements to reflect changes in legislation and best practices.

Whether you're leasing out your property or renting a new home, we ensure the process is compliant, transparent, and tailored to protect your interests.

Contact Dickson Swanepoel - 085 588 6222 at YellowSquare Properties today for professional assistance with your next lease.