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Nigeria: Taxes and Costs

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Rental income tax is low

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	10%	10%	10%
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INDIVIDUAL TAXATION

Non-residents are taxed only on income earned in Nigeria.

INCOME TAX

Non-resident individuals are generally subject to withholding taxes. Non-residents can only claim the personal allowance of NGN5,000 (US$34) plus 20% of earned income deduction. No other deductions are available to non-resident individuals.

RENTAL INCOME

Gross rental income earned from leasing out real property is taxed at a final withholding rate of 10%.

The tax rate may be reduced to 7.5% for countries where Nigeria has concluded a double taxation treaty.

CAPITAL GAINS TAX

Capital gains tax is levied at a rate of 10% on the gains realized from the disposal of real property. Property acquisition costs and incidental costs in transferring property ownership (i.e. stamp duty, professional costs, and advertising) are deductible from the market value of the property.

PROPERTY TAX

Land Use Tax

This is a unification of ground rents, tenement rents and neighborhood improvement rates, is imposed on real property, which is assessed by the respective state governments. For Lagos the rates are:

CORPORATE TAXATION

INCOME TAX

The corporate tax rate is 30% on net income. Expenses that are necessarily incurred in the production of income are deductible against gross income.

Education Tax

Since 1995, an education tax of 2% of assessable profits is imposed on all companies incorporated in Nigeria.

Nigeria - more data and information

• Guide to buying houses and registering property sales in Nigeria

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