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The short answer
If you are an Australian tax resident when you sell a house in Nigeria, the sale is generally a CGT event in Australia, and the gain is worked out in Australian dollars: the ATO says foreign currency amounts in the cost base are converted at the exchange rate at the time of each transaction. Nigeria may tax the same gain under the Nigeria Tax Act 2025. From 1 July 2027 the 50% CGT discount is replaced by cost base indexation for gains accruing from that date.
Selling a family house in Lagos, Enugu or Abuja while living in Australia raises two tax questions: what Nigeria charges, and what the ATO charges. They are calculated differently, in different currencies, and the answer in Australian dollars can surprise you, in either direction.
How the ATO calculates the gain
Your capital gain is what you receive (capital proceeds) less your cost base. The ATO lists five elements of the cost base:
- money paid for the asset;
- incidental costs of buying or selling, such as legal, valuation, stamp duty and borrowing costs;
- costs of owning it, such as rates, land taxes, repairs and insurance, but only if not deductible;
- capital costs to increase or preserve its value;
- capital costs of preserving or defending your title.
Where any of these were paid in naira, the ATO says to "use the exchange rate at the time of the relevant transaction or event". The purchase price converts at the rate on the purchase date, each later cost at its own date, and the sale price at the sale date. Capital losses can reduce capital gains, and a net capital loss can be carried forward.
Worked example: a big naira gain, no AUD gain
Example only, with illustrative exchange rates, not actual historic ones.
| Item | Naira | Example rate | AUD |
|---|---|---|---|
| Purchase price (2015) | ₦20,000,000 | ₦140 per A$1 | A$142,857 |
| Legal and survey fees (2015) | ₦1,000,000 | ₦140 per A$1 | A$7,143 |
| Cost base | ₦21,000,000 | A$150,000 | |
| Sale price (2026) | ₦150,000,000 | ₦1,000 per A$1 | A$150,000 |
| Gain | ₦129,000,000 | A$0 |
In naira the house gained ₦129m. In Australian dollars, at these example rates, it gained nothing, because the naira fell as fast as the price rose. The reverse can happen too. Nigeria, however, looks at the naira figures.
The 2027 CGT reform
The ATO says the first stage of the reform announced in the May 2026 Budget is law. For resident individuals, the 50% CGT discount is replaced by indexation of the cost base for inflation, for gains accruing on or after 1 July 2027, on assets held more than 12 months, with a minimum 30% tax on certain net capital gains. Assets held on 1 July 2027 are treated as sold and reacquired at market value on that date, so gains before then are taxed under current rules. Assets bought and sold entirely before 1 July 2027 are unaffected, and the main residence exemption is unchanged. The ATO says it will update its page as further stages pass, so check it before you sell.
If you hold a Nigerian house past 1 July 2027, a market valuation as at that date may matter. Ask a valuer in Nigeria now how they would document it.
What Nigeria may charge
Under the Nigeria Tax Act 2025, as summarised by Bloomberg Tax in February 2026, individuals' chargeable gains are added to total income and taxed at personal income tax rates (the first ₦800,000 tax-free, top rate 25%). Allowable deductions include acquisition cost, enhancement and incidental costs such as legal and valuation fees; there is no indexation; and a principal private residence exemption can be used once. Non-residents are taxed on income and gains derived from Nigeria and file with the Nigeria Revenue Service, according to Nolands. Australia is not on Nigeria's list of tax treaties in force.
Relief for Nigerian tax paid
The ATO has a foreign income tax offset for foreign tax paid on amounts also taxed in Australia. We could not open its current rules page for this article, so read the ATO guidance and our article on the foreign income tax offset for Nigerian tax before relying on it, and keep the Nigerian assessment and payment receipts.
Which date counts as the sale?
The date you use decides the exchange rate, which matters when the naira is moving fast. Check the ATO's guidance on CGT events to see whether your sale is timed from the contract or from settlement, record both dates, and note the exchange rate on each as well as the rate on the day you actually convert the proceeds.
Records to keep
- Purchase agreement, deed, receipts, and the dates paid.
- Receipts for legal, survey, consent, stamp duty and improvement costs.
- Sale agreement and the date of the sale contract.
- Exchange rates you used for each date and their source.
- Nigerian tax assessment and payment evidence.
Where Pryme fits
A Pryme Personal account, opened from Australia, can receive sale proceeds in naira and lets you convert with Swap, which shows the rate and fee before you approve; that record helps document the AUD value on the day. Verifiable statements from VerifyDoc.ai can support your file. See also declaring Nigerian investment gains to the ATO.
Questions people ask
Do I pay Australian CGT on property in Nigeria?
If you are an Australian tax resident when you sell, the sale is generally a CGT event in Australia, worked out in Australian dollars.
What exchange rate do I use for CGT?
The ATO says to use the exchange rate at the time of each relevant transaction or event: purchase, each cost and the sale.
Is the 50% CGT discount ending?
For resident individuals it is replaced by cost base indexation for gains accruing from 1 July 2027. Gains before then follow current rules.
Does Nigeria tax my house sale if I live in Australia?
Non-residents are taxed on gains derived from Nigeria. Under the Nigeria Tax Act 2025 individuals' gains are taxed at personal income tax rates.
Sources
- ATO: Cost base of assets (updated 29 Jun 2026) · accessed Oct 2026
- ATO: Calculating your CGT (updated 21 Jun 2026) · accessed Oct 2026
- ATO: Capital gains tax reform (published 13 Oct 2026) · accessed Oct 2026
- Bloomberg Tax: New Nigeria tax law redefines capital gains tax for individuals (2 Feb 2026) · accessed Oct 2026
- Mondaq (Nolands): Taxation of non-resident individuals in Nigeria (30 Sep 2026) · accessed Oct 2026
- FIRS Information Circular 2022/15 on claiming tax treaty benefits (11 May 2022) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.