Nigeria: Taxes and Costs

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Rental income tax is high

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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Income Tax

Non-residents are taxed only on income earned in Nigeria. Gross rental income earned from leasing out real property is taxed at a final withholding rate of 10%.

Corporate Route

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. However, rental income is withheld at a tax rate of 10%.

Education Tax

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

Property Tax

Land Use Tax 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:

Capital Gains Tax

Capital Gains tax is levied at a rate of 10% on the gains realized from the disposal of real property. Certain expenses are deductible from the market value of the property such as stamp duty, lawyer’s fee, advertising, etc.

Nigeria - more data and information

• Guide to buying houses and registering property sales in Nigeria

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