Short answer: yes, if you rent out property in Nigeria you owe Nigerian tax on that rent, wherever you live. Under the Nigeria Tax Act 2025, in force since 1 January 2026, non-residents are taxed only on income from Nigeria, and rent from a Nigerian property is Nigerian income. Corporate tenants and agents deduct 10% withholding tax from rent, and landlords with Nigerian rental income should have a Tax ID and file an annual return by 31 March.
The 2025 tax reforms replaced several older laws, and a lot of diaspora landlords are unsure what has changed. This guide covers what applies to you if you live abroad and earn rent at home. It is general information, not tax advice; rules and official guidance are still being clarified, so confirm your position with the Nigeria Revenue Service (NRS) or a tax adviser.
Are you resident or non-resident for tax?
The Nigeria Tax Act sets out when an individual is resident. The main test is time: spending 183 days or more in Nigeria in a 12-month period generally makes you resident. Residents are taxed on worldwide income, with relief under double tax agreements. Non-residents are taxed only on income from Nigeria.
For most Nigerians living abroad this means your salary, pension and other income earned overseas are not taxed in Nigeria, but your Nigerian rent is.
Who collects the tax?
The Nigeria Tax Administration Act 2025 gives the NRS (formerly FIRS) responsibility for taxing non-resident persons who earn income from Nigeria. Residents’ personal income tax is still administered by the state where they live. If you are unsure which applies to you, settle it before you file.
Withholding tax on rent
When your tenant is a company or your rent is collected by an agent, they are expected to deduct withholding tax of 10% from the rent and pay it to the tax authority. On rent of ₦2,400,000 a year, that is ₦240,000.
Ask your tenant or agent for the withholding tax receipt every time. It is your proof of tax paid, you can use it against your Nigerian tax bill, and many countries let you claim it as a foreign tax credit on your tax return abroad.
Whether withholding tax on rent is a final tax for non-residents, or whether you must also file and pay any balance, is a point to confirm with the NRS or your adviser, because official guidance has not been entirely clear.
The new personal income tax bands
Where your rental income is assessed under the personal income tax rates, the bands under the Nigeria Tax Act 2025 are:
| Taxable income per year | Rate |
|---|---|
| First ₦800,000 | 0% |
| Next ₦2,200,000 | 15% |
| Next ₦9,000,000 | 18% |
| Next ₦13,000,000 | 21% |
| Next ₦25,000,000 | 23% |
| Above ₦50,000,000 | 25% |
Allowable expenses, such as repairs and agent fees, reduce taxable rental income. Keep receipts.
What to do now: a checklist
- Get a Tax ID. Individuals can use their National Identification Number (NIN) as their Tax ID; register or confirm it through the NRS online portal.
- Keep records of rent received, tenancy agreements, agent statements and expenses for each property.
- Collect withholding tax receipts from corporate tenants and agents.
- File your annual return by 31 March for the previous year’s rental income, or confirm with the NRS that you do not need to.
- Tell your adviser abroad about your Nigerian rent and any Nigerian tax paid, so you can claim credit and avoid paying twice.
Questions landlords ask
Do I pay Nigerian tax on my salary abroad?
Not if you are non-resident. Non-residents are taxed only on income from Nigeria, such as rent from a Nigerian property.
My tenant is an individual, not a company. Is there still tax?
Yes. Withholding tax is a collection method, not the tax itself. If no tax is deducted at source, you are still liable on the rental income and should declare it.
Will I be taxed twice?
Possibly, unless you claim relief. Many countries give a credit for Nigerian tax paid on Nigerian income, and Nigeria has double tax agreements with several countries, including the United Kingdom and Canada. Keep your withholding tax receipts.
Want this set up for you?
We register your Tax ID, organise your rental records and withholding tax receipts, and get your filing in place, working with a qualified tax practitioner where needed.
Sources: Nigeria Tax Act 2025 and Nigeria Tax Administration Act 2025; Nigerians in Diaspora Commission guide to the 2026 tax reforms. Checked October 2026.