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The short answer
A UK resident is normally taxed on income from everywhere, including Nigerian rent and interest, while a non-resident pays UK tax only on UK income. Nigeria taxes its own residents on worldwide income and non-residents on Nigerian-source income. The UK-Nigeria double taxation agreement, in force since 27 December 1987, decides who taxes what and gives a credit in one country for tax paid in the other.
How the UK decides you are resident
GOV.UK's guidance (updated 1 October 2026) says UK residence usually depends on how many days you spend in the UK in the tax year, which runs from 6 April to 5 April. You are resident if you meet an automatic UK test or the sufficient ties test, and no automatic overseas test.
- Automatic UK test: 183 or more days in the UK in the tax year.
- Sufficient ties test: a smaller number of days plus ties such as work or family in the UK.
- Automatic overseas tests: usually non-resident if fewer than 16 days in the UK (46 days if you were not resident in the three previous tax years), or if you work abroad full-time and spend few enough days in the UK.
GOV.UK states that residents normally pay UK tax on all their income, from the UK or abroad, and that non-residents pay only on UK income. Special rules for people who are new arrivals or not UK-domiciled sit on separate GOV.UK pages; check them if you moved recently.
How Nigeria decides you are resident
Nigeria's tests changed with the Nigeria Tax Act 2025. You are resident if any one applies: domicile, a permanent home available to you, a habitual abode, 183 days in Nigeria in any 12-month period, substantial economic or immediate family ties, or service as a Nigerian diplomat (PwC Worldwide Tax Summaries, reviewed 29 May 2026). You are non-resident only if none applies. Our guide to the 183-day rule explains each test.
So a nurse who moved to Leeds but kept a home in Ibadan where her husband and children live could be resident in both countries.
What the treaty does for individuals
The UK-Nigeria agreement was signed in London on 9 June 1987, entered into force on 27 December 1987, and has effect in Nigeria from 1 January 1988 and in the UK for income tax from 6 April 1988 (GOV.UK). The parts individuals use most:
| Article | What it says | Example |
|---|---|---|
| 4(2) Residence tie-breaker | Dual residents are treated as resident where they have a permanent home, then centre of vital interests, then habitual abode, then nationality | Home in Leeds only: UK resident for treaty purposes |
| 6 Immovable property | Rent may be taxed in the country where the property is | Lekki flat rent: Nigeria may tax it |
| 10-12 Dividends, interest, royalties | Source-country tax capped at 12.5% for interest and royalties; 15% for most dividends (12.5% for companies with 10%+ voting power) | Nigerian bank interest |
| 15 Employment | Pay taxed where the work is done, with a 183-day exception for short stays | Working in London: UK taxes the salary |
| 18 Pensions | Private pensions taxable only in the country they come from; government pensions in the paying country | A Nigerian private pension |
| 22 Relief | Each country gives credit for the other's tax on income sourced there | UK credit for Nigerian tax on rent |
Worked example
Example only. Emeka, UK resident, earns rent of ₦2,400,000 a year from a Port Harcourt flat let to a company. The tenant deducts 10% withholding tax, ₦240,000, and pays ₦2,160,000. Emeka reports the full ₦2,400,000 (converted to sterling) on his UK return and claims credit for the ₦240,000 Nigerian tax, up to the UK tax due on that income. Without the treaty credit, the same rent would face both taxes in full.
The 10% figure in the example is the withholding rate on rent under Nigeria's 2024 withholding regulations, per PwC Nigeria's summary. Where the tenant is an individual who does not deduct, you may need to settle the Nigerian tax yourself through a return.
Nigerian-source income the UK will still see
- Rent from Nigerian property: taxable in Nigeria and reportable in the UK if you are UK resident. See rental income while abroad.
- Interest on Nigerian savings: banks deduct withholding tax; the UK may tax the interest with credit.
- Dividends on Nigerian shares: withholding tax at source; reportable in the UK.
- Gifts from family in Nigeria are not income in either system in the ordinary case.
Our existing explainer on the UK-Nigeria double tax treaty covers businesses and companies.
What to check first
- Work out your UK status for each tax year using the GOV.UK tests.
- Check whether any Nigerian test still applies to you.
- List each Nigerian income source and the tax deducted at source.
- Keep Nigerian credit notes and receipts for foreign tax credit claims.
- Use an adviser if you are resident in both countries.
Where Pryme fits
A Pryme account holds GBP and NGN side by side with local details for each, so UK salary and Nigerian rent need not be mixed. Swap shows the rate and fee before you approve a conversion, and a verifiable VerifyDoc.ai statement supports a foreign tax credit claim.
Questions people ask
Do I pay tax in Nigeria if I live in the UK?
Only on Nigerian-source income if you are non-resident in Nigeria, such as rent from Nigerian property. If a Nigerian residence test still applies, Nigeria may tax more.
Is there a UK-Nigeria tax treaty?
Yes. It was signed on 9 June 1987 and has been in force since 27 December 1987.
Will I be taxed twice on rent from my Lagos house?
Nigeria may tax the rent; the UK taxes it if you are UK resident but gives credit for Nigerian tax paid, up to the UK tax on that income.
How many days can I spend in the UK and stay non-resident?
Under the automatic overseas tests, fewer than 16 days, or 46 if you were not resident in the previous three tax years. Other situations need the full tests.
Sources
- GOV.UK: Tax on foreign income - UK residence and tax (updated 1 Oct 2026) · accessed Oct 2026
- GOV.UK: 1987 UK-Nigeria Double Taxation Agreement (in force) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, Individual - Residence (reviewed 29 May 2026) · 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.