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The short answer
From 1 January 2026, a gain on Nigerian property sold by an individual is taxed at personal income tax rates of 0% to 25%, not the old flat 10%. The gain is the sale price minus what the property cost, improvement spending and costs of buying and selling such as legal, valuation and agency fees and stamp duty, with no allowance for inflation. A non-resident is taxed on gains derived from Nigeria, which includes Nigerian land and buildings, and the Nigeria Revenue Service handles non-residents.
A plot bought in 2012 and a house finished in 2018 can show a very large naira gain in 2026, much of it inflation. Under the Nigeria Tax Act 2025 (NTA) that whole nominal gain is the starting point, so it pays to know what can be deducted and what can be proved before you agree a price.
How the gain is taxed now
Bloomberg Tax's February 2026 analysis of the NTA sets out the individual rules:
- The flat 10% capital gains tax for individuals has ended; gains are added to income and taxed at personal income tax rates, with the first ₦800,000 of total income at 0% and a top rate of 25%.
- Gain = proceeds minus acquisition cost, enhancement (improvement) capital spending and incidental costs such as legal, valuation, brokerage and advertising fees and stamp duty.
- There is no indexation for inflation.
- A principal private residence is exempt once, including land of up to one acre.
For non-residents, a Mondaq article by Helen Ijewere of Nolands (30 September 2026) quotes section 17(1) of the NTA: income, profits or gains of a non-resident accruing in or derived from Nigeria are chargeable, and the NRS has exclusive responsibility for taxing non-residents, who file by 31 March of the following year.
Points the sources disagree on
- Losses. Bloomberg Tax says capital losses are not deductible against other gains; other commentary we saw takes a different view. Do not rely on a loss without advice.
- Gifts. Bloomberg Tax treats a gift as a disposal at market value; a January 2026 Mondaq analysis lists gifts (other than inheritance) among exempt gains. If you are giving property to family rather than selling, get this confirmed.
- The zero band. Whether a non-resident with no other Nigerian income gets the ₦800,000 zero-rate slice against a gain was not stated on the pages we read.
Worked example (illustration only)
Emeka, living in Toronto, bought land in Abuja for ₦8,000,000 and spent ₦32,000,000 building on it, with receipts. He sells in 2026 for ₦90,000,000, paying ₦3,000,000 in legal and agency fees. Gain: ₦90m − ₦8m − ₦32m − ₦3m = ₦47,000,000. If the personal bands apply to the gain alone:
| Slice | Rate | Tax |
|---|---|---|
| First ₦800,000 | 0% | ₦0 |
| Next ₦2,200,000 | 15% | ₦330,000 |
| Next ₦9,000,000 | 18% | ₦1,620,000 |
| Next ₦13,000,000 | 21% | ₦2,730,000 |
| Remaining ₦22,000,000 | 23% | ₦5,060,000 |
| Total on ₦47,000,000 | ₦9,740,000 |
Without the ₦32m building receipts, the gain would be ₦79m and the tax far higher. Receipts are worth money.
Inherited property
Bloomberg Tax says receiving an inheritance is not a chargeable disposal and heirs take the asset at its market value at the date of death. If you inherited a family house and sell later, your cost is that value, so a valuation at the time of death protects you. See inheriting from Nigeria and our guide to valuing Nigerian property from abroad.
Documents to gather
- Title documents: C of O, registered deed of assignment, Governor's consent, survey plan.
- Your original purchase agreement and payment evidence, to prove acquisition cost.
- Receipts, contracts and bank transfers for building and improvement work.
- Invoices for legal, valuation and agency fees on purchase and sale.
- Stamp duty receipts. The NTA's Ninth Schedule lists agreements for the sale of real property among instruments chargeable to stamp duty, according to a June 2026 federal treasury circular.
- If you sign from abroad, a power of attorney. A LawPavilion guide says one executed outside Nigeria must be witnessed by a notary public, judge or magistrate, and stamped and registered to be relied on.
The full selling process, step by step, is in selling Nigerian property from abroad.
Tax where you live
Your home country will usually tax the same gain if you are resident there, and credit the Nigerian tax. Each has quirks. GOV.UK notes that the UK real-time capital gains tax service cannot be used to claim foreign tax credit relief for overseas property, so a UK resident reports through Self Assessment instead. Countries that convert the cost at the rate when you bought and the proceeds at the rate when you sold can show a much smaller gain in their currency than in naira where the naira has fallen against that currency; check your tax office's conversion rule.
Where Pryme fits
Sale proceeds paid into a Pryme account stay in naira until you choose to convert with Swap, which shows the rate and fee before you approve, so you can time conversion separately from the sale. This is information, not tax advice; for a sale of this size, use a Nigerian tax adviser and a property lawyer.
Questions people ask
Do I pay capital gains tax selling my house in Nigeria if I live abroad?
Usually yes. Gains on Nigerian property are derived from Nigeria and chargeable for non-residents, at personal income tax rates from 2026. The one-time principal private residence exemption may apply if it was your main home.
What is the CGT rate on property in Nigeria in 2026?
For individuals there is no single rate now: the gain is taxed at personal income tax rates from 0% to 25%. Companies pay 30%.
Can I deduct building costs from the gain?
Yes, as enhancement expenditure, if you can prove it. Keep contracts, receipts and transfer records.
Is inherited property taxed when I receive it?
Receiving it is not a chargeable disposal, per Bloomberg Tax; when you sell, your cost is the market value at the date of death.
Sources
- 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
- Mondaq (Adeola Oyinlade & Co): Understanding personal income tax under the Nigerian Tax Act 2025 (5 Jan 2026) · accessed Oct 2026
- MSME Africa: FG stops 1% stamp duty deduction on contractor payments under NTA 2025 (24 Jun 2026) · accessed Oct 2026
- LawPavilion: Power of attorney in Nigeria, the law, the power and the practice · accessed Oct 2026
- GOV.UK: Report and pay Capital Gains Tax, other gains · 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.