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The short answer
If you are tax resident in Italy, rent from a house in Nigeria is taxable in Italy as "redditi diversi" under art. 70 of the TUIR and is declared in rigo RL12 of Redditi PF. If Nigeria does not tax the rent, you declare the rent received less a flat 15%; if Nigeria does tax it, you declare the amount taxed there, and the Nigerian tax definitively paid can be credited under art. 165 TUIR. The property also goes in quadro RW and may owe IVIE at 1.06% a year.
Why Italy taxes rent from Lagos or Abuja
Italy taxes its residents on their worldwide income. Once you count as tax resident in Italy (see when you become tax resident in Italy), the rent your tenant in Nigeria pays you belongs on your Italian return, even if the money never leaves a Nigerian account. Italian law does not treat a foreign building like an Italian one. An Italian flat is taxed on its cadastral income (reddito fondiario), but a house abroad has no Italian cadastral value, so art. 70 of the Testo Unico delle Imposte sui Redditi (TUIR) moves its income into the category of "redditi diversi" (miscellaneous income under art. 67 TUIR).
That classification has a practical consequence. Fiscomania, citing Agenzia delle Entrate Circolare 26/E of 2011, notes that the flat-rate cedolare secca regime, which many landlords use for Italian lettings, is not available for rent from a foreign property. The rent is added to your other income and taxed at ordinary IRPEF rates, plus regional and municipal surcharges.
How the taxable amount is worked out
Art. 70, comma 2 TUIR sets two routes, depending on whether the country where the house sits taxes the rent.
| Situation in Nigeria | Amount you declare in Italy | Where |
|---|---|---|
| Rent not taxed in Nigeria | Rent received in the year, reduced by a flat 15% (so 85% of the rent) | Redditi PF, rigo RL12, column 2 |
| Rent taxed in Nigeria | The taxable amount as computed under Nigerian rules (rent less expenses allowed there, but not general personal allowances) | Redditi PF, rigo RL12, column 2 |
| House empty or used by family, taxed in Nigeria | No IRPEF; IVIE stands in its place | RL12 column 1 and quadro RW |
The "taxed abroad" route follows a 2010 ruling of the Lombardy regional directorate (Risoluzione 12155/2010), as summarised by Fiscomania: you take the figure that the foreign tax system actually taxed, net of expenses that system allows, but you do not deduct general allowances given to every foreign taxpayer. Where the foreign tax year differs from the Italian calendar year, you use the income of the foreign period that ends within the Italian year.
Is Nigerian rent "taxed in Nigeria"?
Usually it is. The NiDCOM diaspora guide to the 2025 tax reforms says rent on Nigerian property attracts 10% withholding tax, deducted by the tenant or agent, "regardless of where you live", and that a person with Nigerian rental income should file a Nigerian return by 31 March. The guide does not say whether that withholding is a final tax for a non-resident landlord, which matters for the credit described below. The Nigerian side is explained in Nigerian tax on rent from your Lagos property while abroad.
Credit for the Nigerian tax
To avoid paying full tax twice, art. 165 TUIR lets you set the Nigerian tax against your Italian IRPEF. Two limits apply. The tax must have been paid "a titolo definitivo", meaning it cannot be refunded, and the credit cannot exceed the share of Italian tax that corresponds to the foreign income. Italy and Nigeria do not have a general income tax treaty in force: the FIRS circular of May 2022 lists the Italian agreement as covering air and shipping only. So the credit comes from Italian domestic law, not a treaty. How to claim it on the return is covered in claiming Nigerian tax paid on your Italian return.
Worked example (illustrative figures only)
Suppose a Bergamo resident lets a Lagos flat and the year's rent converts to €6,000. The tenant withholds 10%, worth €600, and for this example we assume Nigeria taxes the gross rent and the withholding is final.
- Amount declared in Italy (taxed abroad route): €6,000
- Her total income including the rent: €35,000; Italian gross IRPEF on that total, for the example: €9,000
- Credit ceiling: €9,000 × 6,000 ÷ 35,000 = €1,542.86
- Nigerian tax paid, €600, is below the ceiling, so the full €600 is credited
- If the rent had not been taxed in Nigeria, she would instead declare €6,000 × 85% = €5,100 and claim no credit
Exchange rate choice, expenses and IRPEF bands change the real figures; the example only shows the order of the steps.
IVIE and quadro RW: the property itself
Separately from the rent, an Italian resident who owns property abroad reports it in quadro RW, the foreign assets monitoring section (art. 4 of D.L. 167/1990), and pays IVIE, the tax on the value of foreign property. According to Fiscomania (updated April 2026):
- IVIE is 1.06% a year of the purchase cost shown in the deed, or market value where higher.
- A reduced 0.40% rate with a €200 deduction applies to a foreign main home in categories equivalent to A/1, A/8 and A/9.
- IVIE is not due if the amount is €200 or less.
- Any Nigerian wealth tax on the same property can be deducted from IVIE; Nigerian land use charge is a separate question to check with an adviser.
As an example, a house bought for €40,000 would carry IVIE of €424 a year at 1.06%. More detail is in IVIE on Nigerian property and quadro RW for Nigerian assets.
What to check first
- Confirm you are Italian tax resident for the year; if not, none of this applies.
- Gather the tenancy agreement, rent receipts and the tenant's withholding tax credit notes or receipts.
- Decide which route applies: taxed in Nigeria (declare the Nigerian taxable amount) or not (declare 85%).
- Convert naira to euro consistently and keep the rates you used.
- File Redditi PF if your situation needs RL12; check with your CAF or commercialista whether a 730 can carry it.
- Report the house in quadro RW and work out IVIE.
Where Pryme fits
If the rent lands in naira, keeping it in a Pryme account keeps it in naira until you choose to convert with Swap, where the rate and fee are shown before you approve. Statements and verifiable receipts from VerifyDoc.ai give your adviser a clean record of what arrived and when. This is information, not tax advice.
Questions people ask
Do I pay tax in Italy on rent from my house in Nigeria?
Yes, if you are tax resident in Italy. The rent is miscellaneous income under art. 70 TUIR, declared in rigo RL12 of Redditi PF, and taxed at ordinary IRPEF rates.
Can I use cedolare secca on rent from Nigeria?
No. The flat-rate cedolare secca is for Italian lettings; rent from a foreign property is classed as redditi diversi, so it is taxed with your other income.
What if my tenant in Nigeria already deducts 10% tax?
Then the rent is taxed in Nigeria, you declare the Nigerian taxable amount in Italy, and you can claim a credit for the Nigerian tax that is definitively paid, up to the Italian tax on that income.
Do I pay IVIE on a house in Nigeria?
Usually yes: 1.06% a year of the purchase cost or market value, unless the amount is €200 or less. The house also goes in quadro RW.
Sources
- Fiscomania: Immobile estero, il regime di tassazione (published 19 Dec 2025, updated 13 Apr 2026) · accessed Oct 2026
- EC News: Il credito per le imposte pagate all'estero nella dichiarazione (e in sua mancanza) (22 Jun 2023) · accessed Oct 2026
- NiDCOM: NGEX Diaspora Guide to Nigeria's tax reforms (Jan 2026) · accessed Oct 2026
- FIRS Information Circular 2022/15 on claiming tax treaty benefits (11 May 2022, hosted by KPMG) · 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.