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The short answer
Most Lagos tenants pay rent in naira, often a year in advance, so the usual route is to collect it into a naira account in Nigeria, decide how much to keep there for upkeep, and convert and transfer the rest to Canada. As a Canadian tax resident you report the rent on your Canadian return in Canadian dollars, and you need receipts, statements and conversion records for six years.
How Lagos rent usually arrives
Residential rent in Lagos is commonly paid yearly or for longer periods up front, rather than monthly. For a landlord in Toronto or Calgary that means one large naira payment, sometimes routed through an agent or caretaker, and then months with nothing coming in. The money route has to cope with that lump, and with any service charge or maintenance you pay from it.
The tenancy rules themselves (rent in advance, receipts, notice) are covered in the Nigeria library's guide to the Lagos Tenancy Law. This article is about the money once it is paid.
Your options for holding and moving the rent
| Option | Good for | Watch |
|---|---|---|
| Keep it in naira in Nigeria | Repairs, service charge, land use charge, family costs at home | Value in Canadian dollars falls if the naira weakens |
| Convert all of it soon after receipt | Landlords who need the money in Canada | You take whatever rate applies on that day |
| Convert in stages | Spreading rate risk over the year | More transfers can mean more fees; keep a log of each one |
| Hold US dollars in Nigeria, then move | Those with a domiciliary account | Two steps and two sets of costs |
Whichever you choose, ask the tenant or agent to pay directly into an account in your own name, not a caretaker's personal account. It keeps the record clean and makes the source of funds obvious if your Canadian bank asks about a transfer later.
If an agent or caretaker collects for you
Many landlords abroad rely on an estate agent or a relative to find tenants and collect rent. If so, agree in writing what the agent deducts (commission, repairs, service charge), when the balance reaches you, and that every deduction comes with an invoice. Ask for a monthly or yearly statement. Without it you cannot show the CRA what your gross rent and expenses were, and you cannot check whether the net figure reaching your account is right.
Withholding tax on rent
PwC's Nigeria withholding tax summary (reviewed May 2026) lists rent at 10% for both resident and non-resident recipients. Withholding is typically deducted where the tenant is a company or other body obliged to deduct it; a private individual tenant may pay you the full rent. If tax is deducted, ask for the receipt or credit note, because it is your evidence of Nigerian tax paid.
Worked example (illustrative figures only)
- Annual rent: ₦6,000,000, paid by a company tenant.
- Withholding at 10%: ₦600,000. Net received: ₦5,400,000.
- You keep ₦1,000,000 in Nigeria for upkeep and convert ₦4,400,000.
- At an example rate of ₦1,100 to CAD 1, that converts to CAD 4,000.00.
- For your Canadian return, the gross rent of ₦6,000,000 is converted, not just the part you moved: CAD 5,454.55 at the same example rate.
The Canadian reporting side
The CRA's guide for Canadian residents abroad explains that residents report world income, so rent from a Lagos flat goes on your Canadian return whether or not the money ever leaves Nigeria. Rental income and expenses are reported on Form T776; our walkthrough of T776 for Lagos rent covers which expenses you can claim.
Foreign amounts are converted to Canadian dollars. CRA Folio S5-F4-C1 points to the Bank of Canada rate, and where none exists (the Bank publishes no naira rate) allows another widely available, independent rate used consistently. Where Nigerian withholding was deducted, the CRA's foreign tax credit Folio explains how a credit may be claimed, limited to the lesser of the foreign tax and the Canadian tax on that income.
One more form: the CRA's T1135 guidance says rental real estate held mainly for profit is specified foreign property. If the total cost of your specified foreign property is more than $100,000 at any time in the year, you file Form T1135. Our T1135 piece explains how land and buildings count. This is information, not tax advice.
Record-keeping that holds up
The CRA says records should generally be kept for six years from the end of the tax year they relate to. For a Lagos rental, that file should include:
- The tenancy agreement and every rent receipt you issue.
- Bank statements showing each rent payment received in Nigeria.
- Withholding tax receipts or credit notes from company tenants.
- Invoices for repairs, agency fees and service charge.
- A conversion log: date, naira amount, rate used and its source.
- Transfer confirmations showing what reached Canada.
Receipts that can be checked by a third party carry more weight with an accountant, a bank or a tax authority than a handwritten note.
Where Pryme fits
A Pryme Personal Account gives you naira account details a tenant can pay into while you are in Canada, and the naira can stay put or be swapped to Canadian dollars when you choose, with rate and fee shown before you approve. Through the partnership with VerifyDoc.ai you can issue a verifiable receipt for each rent payment, and your Personal Assistant can remind you when renewals fall due. See the multicurrency account and the Personal Assistant.
Questions people ask
Can my Lagos tenant pay rent into my Canadian bank account?
A tenant paying in naira will usually pay into a Nigerian account. You then convert and transfer it yourself. Paying into an account in your own name keeps the record clear.
Do I declare Lagos rent to the CRA if I leave it in Nigeria?
Yes, if you are a Canadian tax resident. Residents report world income whether or not the money is moved to Canada. It is reported on Form T776.
Is withholding tax deducted from rent paid to a landlord abroad?
PwC's summary lists 10% withholding on rent for resident and non-resident recipients where the payer must deduct it, typically a company tenant. Keep the receipts as evidence of tax paid.
How long should I keep records of my Nigerian rental?
The CRA generally expects records for six years from the end of the tax year they relate to, including receipts, statements and the exchange rates you used.
Sources
- PwC Worldwide Tax Summaries: Nigeria, withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- CRA guide T4131, Canadian Residents Abroad (Rev. 12, copy hosted by CCH) · accessed Oct 2026
- CRA Income Tax Folio S5-F4-C1: Income tax reporting currency (updated 27 Jun 2024) · accessed Oct 2026
- CRA Income Tax Folio S5-F2-C1: Foreign tax credit (modified 31 Mar 2026) · accessed Oct 2026
- CRA: Questions and answers about Form T1135 (modified 19 Oct 2026) · accessed Oct 2026
- CRA: Where to keep your records, how long to keep them (modified 3 Aug 2026) · 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.