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The short answer
IVIE is the Italian tax on property held abroad by Italian tax residents. After the 2024 budget law the ordinary rate is 1.06% a year; for a property in Nigeria the base is the cost shown in the deed or purchase contracts, or the market value, and nothing is paid if the total due is €200 or less. Property taxes paid in Nigeria can be deducted, and a main home is generally exempt.
If you live in Italy and own a house, flat or plot in Nigeria, the Italian tax system treats it as a foreign property. It must be declared, and in most cases an annual tax, IVIE (imposta sul valore degli immobili situati all'estero), is due. The rules come from the Agenzia delle Entrate's return instructions and the budget law changes summarised below.
Who pays
IVIE is paid by Italian tax residents who own property abroad. If you are not resident in Italy for tax purposes, it does not apply. Tax residence is its own question; see when you become tax resident in Italy. Co-owners pay on their share, so a house owned 50:50 with a spouse in Nigeria who is not Italian resident is taxed in Italy only on your half.
Rate and base
FiscoeTASSE (9 Jan 2024) reports that art. 1, para. 91 of Law 213/2023 (the 2024 budget law) raised the ordinary IVIE rate from 0.76% to 1.06%. The base depends on where the property is:
| Where the property is | Base for IVIE |
|---|---|
| EU or EEA country with adequate information exchange | Cadastral value, or else purchase cost or market value |
| Other countries, including Nigeria | Cost shown in the deed of purchase or contracts, or else market value where the property is |
For most Nigerian property the practical base is the price in your deed of assignment or contract of sale, converted to euros. If there is no reliable purchase document, for instance family land, market value is used, and a written valuation helps.
Exemptions and the €200 rule
- Main home. Since 2016 IVIE does not apply to a property used as the main home (abitazione principale), except luxury categories equivalent to Italian A/1, A/8 and A/9, which pay 0.4% with a €200 deduction. If you live in Italy, a house in Nigeria is rarely your main home in this sense.
- Small amounts. IVIE is not paid if the total due is €200 or less. FiscoeTASSE notes that this check is made on the full amount, before applying your ownership share, the period held and deductions.
- Foreign property tax credit. A wealth-type property tax paid in Nigeria on the same property can be deducted. Whether a particular Nigerian charge qualifies, for example a state land use charge, is a point to confirm with your adviser; for Lagos, see the Lagos Land Use Charge.
Worked example (illustration only)
You and your spouse, both Italian tax residents, own a house in Abuja bought for the equivalent of €60,000, in equal shares, all year. Property tax paid in Nigeria is the equivalent of €100.
| Step | Amount |
|---|---|
| Base: purchase cost | €60,000 |
| IVIE at 1.06% | €636 |
| Above €200, so it is due | Yes |
| Less Nigerian property tax | €536 |
| Your 50% share | €268 |
If the house had cost the equivalent of €15,000, IVIE at 1.06% would be €159, under the €200 threshold, so nothing would be paid; it must still be declared.
Common mistakes
- Not declaring because nothing is due. Falling under the €200 threshold removes the payment, not the declaration.
- Using today's price instead of the deed. For Nigerian property the instructions point first to the cost in the purchase documents; market value is the fallback.
- Forgetting land. A bare plot bought for a future build is still property abroad.
- Ignoring part-year ownership. If you bought, sold or inherited during the year, the charge is generally proportioned to the period held; keep the dates of transfer.
- Losing the Nigerian receipts. Without evidence of the Nigerian property tax paid, the deduction is hard to support.
Converting the cost into euros
Nigerian deeds are in naira, and IVIE is calculated in euros. Use a consistent, documented conversion for the purchase price and keep a note of the rate and source you used; your commercialista may have a preferred method. Where the naira has moved a long way since you bought, the euro figure based on the original cost can be much lower than the property's value today, which is one reason the purchase documents matter.
Declaring and paying
IVIE is worked out in quadro RW of the Redditi PF return, which the Agenzia delle Entrate's instructions title "investimenti all'estero e/o attività estere di natura finanziaria - monitoraggio - IVIE/IVAFE". Those instructions also refer, in quadro RL, to unrented foreign property "per i quali è dovuta l'IVIE". If you let the house, the rent is a separate matter: see Italian tax on rent from a house in Nigeria. Keep the deed, the euro conversion you used and receipts for Nigerian property tax with your tax papers. This is information, not tax advice.
Where Pryme fits
If you pay Nigerian property charges from Italy, a Pryme account lets you hold naira for them and pay as a local transfer, with a verifiable receipt through Pryme receipts with VerifyDoc.ai for your records.
Questions people ask
What is the IVIE rate in 2026?
The ordinary rate is 1.06% a year, after the 2024 budget law raised it from 0.76%, as reported by FiscoeTASSE.
How is IVIE calculated on a house in Nigeria?
On the cost shown in the deed or purchase contracts, or the market value, times 1.06%, reduced by any Nigerian property tax paid and by your share of ownership.
Do I pay IVIE if the amount is small?
No, if the total due is €200 or less. The property must still be declared in quadro RW.
Is my family house in Nigeria exempt as a main home?
Only if it is your abitazione principale. For someone living in Italy, a house in Nigeria usually is not.
Sources
- FiscoeTASSE: Ritoccate le patrimoniali, aumentano Ivie e Ivafe (9 Jan 2024) · accessed Oct 2026
- Agenzia delle Entrate: Redditi PF 2024, Fascicolo 2 instructions (draft, tax year 2023) · 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.