Choosing to invest your hard-earned money can be a smart decision, but it’s important to know how to maximize your savings, especially if you’re in Namibia. One of the ways you can do that, is by taking advantage of Namibian tax-free interest rates on your savings. But how much are they and which accounts allow you to enjoy this perk? Here’s what you need to know about tax-free interest rates in Namibia.

The Basics of Namibia’s Tax-Free Interest Rates

In Namibia, there are certain types of interest that is exempt from income tax. These include: 

Interest accrued on savings accounts. Interest paid on fixed deposits with a term of one year or less (i.e. the deposit matures in less than 12 months) and with an interest rate below the applicable rate set by the Central Bank of Namibia; Deposit bearing certificates issued by commercial banks; Short-term loans made by commercial banks; and Government securities.

How to Maximize Your Savings With Namibia’s Tax-Free Interest Rates

In Namibia, interest is not taxable if the following conditions are met: 

1. The savings account is held with a bank in Namibia; and 

2. You do not withdraw any of your money from the account for at least six months.

The Bottom Line – Is Namibia’s Tax-Free Interest Rate Worth It?

If you are living and working in Namibia, then the answer is yes. If you’re not, it becomes a little more complicated. For people who live and work in Namibia, savings accounts offer a tax-free interest rate of 30%. This means that any money saved is worth 30% more than what you could get at another bank.