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The short answer
If you are tax resident in the UK, US, Canada or Ireland, rent from Nigerian property is normally declared on your tax return there, converted into the local currency, with allowable expenses deducted under that country's rules. Nigerian tax on the same rent, such as the 10% a company tenant withholds, is then relieved: by credit in the UK, by foreign tax credit in the US, and by deduction in Ireland, which has no treaty with Nigeria.
Many diaspora landlords treat Nigerian rent as a family matter: a sibling collects it, part pays for repairs, part goes to parents. Tax offices abroad see it differently. Residents of most countries are taxed on worldwide income, and rent from Nigeria is part of it whether or not the money ever leaves Nigeria.
Start on the Nigerian side
Nigeria taxes the rent first, because the property is there. In practice, the Nigerian tax you can show often comes from withholding: the 2024 withholding regulations set a 10% rate on rent, and the duty to deduct falls on payers other than individuals. A company or government tenant should withhold and give you a receipt; a private individual tenant normally will not. How Nigerian rent is taxed in full is covered in our guide to tax on rental income in Nigeria, and the corporate-tenant rules in withholding tax on rent.
United Kingdom
GOV.UK says UK residents normally pay UK tax on foreign income, including overseas rent, usually through Self Assessment. The Foreign pages (SA106) are where Nigerian rent goes. HMRC's 2026 notes say:
- Use country code "NGA" for Nigeria.
- Rents go in box 14, expenses in box 17, and foreign tax paid in box 28. Tick the foreign tax credit relief column where you claim credit.
- Convert using the exchange rate at the time the income arose.
- UK and overseas property income count together for the £1,000 property allowance; if you claim the allowance you cannot also deduct expenses.
United States
Foreign rental property is reported on Schedule E like US property. IRS Publication 527 sets the depreciation rules: the alternative depreciation system table uses 30 years for residential rental property placed in service after 2017, land is not depreciable, and legal, recording and survey costs form part of the basis. With no US–Nigeria treaty, Nigerian tax on the rent is relieved through the foreign tax credit; see relief without a treaty.
Canada
CRA guide T4036 covers rental income. Owners report rental income or loss, co-owners report their share, and deductible costs include property taxes, repairs, insurance, interest and fees paid to agents for collecting rent or finding tenants. Records must be kept for six years. For the separate question of foreign property reporting forms, see reporting foreign accounts and assets, and for credit for Nigerian tax, our foreign tax credit documents guide.
Ireland
Revenue taxes net foreign rent, meaning the rent you expect to receive less allowable expenses, on Form 11 or Form 12. A foreign rental loss can be set only against other foreign rental profits, not Irish ones. Ireland is not on Nigeria's treaty list, and Revenue's guidance for income from a country with no treaty deducts the foreign tax from the foreign rent rather than crediting it.
Worked example (illustration only)
Tola, UK resident, lets a Lekki flat to a company for ₦6,000,000 a year. The company withholds 10%, ₦600,000, and pays ₦5,400,000. Tola spends ₦900,000 on repairs and agent fees. On the SA106 she declares the gross ₦6,000,000 converted to pounds, deducts the ₦900,000 of expenses, enters the ₦600,000 Nigerian tax as foreign tax paid and claims credit relief. Net rent in naira: ₦5,100,000. If her UK tax on that profit is higher than the Nigerian tax, she pays the difference; if lower, the credit is capped at the UK tax.
Family arrangements, co-owners and losses
Three situations cause most of the questions diaspora landlords send us.
- Rent spent in Nigeria. If a relative collects the rent and spends part on your parents, the whole rent is still yours for tax. What they spend is a gift or support from you, not an expense of the property, unless it was a genuine repair or management cost.
- Property shared with siblings. CRA's guide says co-owners report their own share of the income or loss. The same logic generally applies elsewhere: each owner declares their share where they live, so agree the split in writing.
- Years with a loss. A year of heavy repairs can produce a loss. Ireland lets a foreign rental loss be used only against other foreign rental profits. In the UK, the SA106 notes describe how property losses are carried forward. Keep the invoices that create the loss; they are the first thing an inspector asks for.
If you missed Nigerian rent in earlier years, correct it before your tax office raises it; each country has its own route for amending past returns, and the sooner it is done the fewer years of interest build up.
What to keep each year
- Tenancy agreement and rent receipts, or the agent's statement.
- Withholding tax receipts from corporate tenants.
- Invoices for repairs, agent fees and service charges.
- Bank statements showing the rent landing, in naira.
- The exchange rate source you used for each conversion.
Sending only the net amount you receive abroad is a common error. Declare the gross rent and claim expenses and tax separately.
Where Pryme fits
Rent paid into a Pryme account stays in naira until you convert it with Swap. You can generate a statement, including a verifiable one through VerifyDoc.ai (receipts and statements), as a clean record of rent received. This is information, not tax advice.
Questions people ask
Do I need to declare rent from my house in Nigeria in the UK?
Usually yes, if you are UK resident. It goes on the SA106 Foreign pages, with any Nigerian tax entered for credit relief.
My tenant in Nigeria pays my sister. Do I still declare it?
Yes. It is your income if the property is yours, wherever the money is paid.
Can I deduct repairs on my Nigerian property abroad?
Generally, under your home country's rules for rental expenses; keep invoices. In the UK you cannot claim expenses if you use the £1,000 property allowance.
Which exchange rate do I use?
HMRC's notes say the rate at the time the income arose. Other countries have their own rules; record your source.
Sources
- GOV.UK: Tax on foreign income · accessed Oct 2026
- HMRC: SA106 Foreign notes 2026 · accessed Oct 2026
- IRS Publication 527: Residential rental property (2025) · accessed Oct 2026
- CRA T4036: Rental income · accessed Oct 2026
- Revenue: Calculate taxable foreign rental income · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 · 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.