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The short answer
On the face of the Nigeria Tax Administration Act 2025, income tax on a non-resident landlord's Nigerian rent is administered by the Nigeria Revenue Service, not by the state where the property sits; state revenue services handle resident individuals. States still collect property charges such as Lagos Land Use Charge. Because practice under the new Act is still settling, confirm in writing which authority has your file before you pay.
Why the answer changed in 2026
Under the old Personal Income Tax Act, an individual's income tax went to the state where they were resident, and landlords abroad were often chased by the state where their property stood. The Nigeria Tax Administration Act 2025 (NTAA), in force since 1 January 2026, draws the line differently. Section 3(1) gives the Nigeria Revenue Service (NRS) exclusive responsibility for taxes on, among others, non-residents. Section 3(2) gives each state or FCT internal revenue service the tax on resident individuals, according to the First Schedule. Section 88 lets state services assess individuals, estates, trusts, communities and families.
For a non-resident landlord, then, the Act points to NRS. PwC's individual tax administration summary reflects the same split: state services collect tax on individuals, while the federal service handles FCT residents, certain military and police staff, and non-residents.
Are you really non-resident?
Before relying on the NRS route, check you are non-resident. The NTA tests include a permanent home available for your use in Nigeria and substantial economic or immediate family ties, not only the 183-day count. If the let property is your only Nigerian home and it is let out, it is not "available for your use"; a family house kept for you is different. If you are resident, the state where you live, not where the property is, is your authority. See how visits count towards residence.
What the state still collects
- Land Use Charge (Lagos) and property rates elsewhere. These are property charges, not income tax, and stay with the state or local government. Under the 2020 Lagos amendment, as reported by Nairametrics, residential property not occupied by the owner and commercial property were rated at 0.394%, against 0.0394% for owner-occupied homes, with an early-payment discount. A let flat is in the higher band. See paying Lagos Land Use Charge from abroad.
- Consent, registration and stamping fees on property transactions.
- PAYE if you employ a caretaker or gateman, which follows the employee's state.
Withholding tax from tenants
A company tenant deducts 10% withholding tax from rent and must give you a receipt. The deduction counts towards your tax; it does not replace filing unless it is a final tax for you, which official guidance does not confirm for non-resident individuals. See company tenants deducting WHT.
Worked example
Example only. Bisi, resident in Birmingham, owns a three-bedroom flat in Surulere let for ₦4,800,000 a year to a private individual who, in this example, deducts no tax. She is non-resident, so she files a return with NRS declaring ₦4,800,000 less allowable expenses. Separately she pays the Lagos Land Use Charge demand on the flat. In the UK she declares the same rent on her Self Assessment return and claims credit for the Nigerian income tax she paid.
Steps from abroad
- Write down why you are non-resident for the year.
- Get your Tax ID (linked to your NIN) and access to NRS Rev360.
- File by 31 March for the previous calendar year, declaring gross rent and expenses.
- Pay through the portal and keep the receipt.
- Pay the state's property charge separately.
- If a state demands income tax, reply in writing citing NTAA section 3 and ask for its basis.
For the full filing picture see filing a Nigerian return while abroad.
If you have been paying a state for years
Many landlords abroad have paid a state revenue service for years, often through a property manager. That history is not wasted: the receipts show tax paid for those years, which matters for any tax clearance certificate. For 2026 onwards, ask both the state service and NRS which of them holds your file under the new Act, and do not pay the same year twice. If you receive an assessment you think is wrong or from the wrong authority, NTAA section 41 requires a written objection within 30 days of service, stating what is disputed; the authority then has 90 days to respond. Keep copies of everything sent and received.
Instruct your property manager
Give your agent written instructions: collect withholding tax receipts from company tenants, forward every demand notice to you within days, and never pay a tax demand on your behalf without your approval and an official receipt. Our guide to managing tenants from abroad covers the rest of the agent relationship.
Where Pryme fits
Tenants and agents can pay rent into your naira account details on a Pryme multicurrency account, and you can pay tax and Land Use Charge from the same balance. Ask for receipts, and issue your tenants verifiable rent receipts through VerifyDoc.ai so both sides hold the same record.
Questions people ask
Do I pay Lagos income tax on rent if I live abroad?
Under the NTAA 2025, tax on non-residents is administered by the Nigeria Revenue Service. LIRS handles resident individuals. Lagos still collects Land Use Charge on the property.
Which tax office handles a non-resident landlord in Nigeria?
The Nigeria Revenue Service, according to section 3(1) of the Nigeria Tax Administration Act 2025.
What if a state IRS sends me a demand?
Ask in writing for the legal basis under the NTAA and keep the reply. Do not ignore it; respond within the objection period.
Is Land Use Charge the same as income tax?
No. It is a state property charge, payable whether or not you owe income tax.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual tax administration (reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual residence · accessed Oct 2026
- Nairametrics: 4 key points in the new Lagos 2020 Land Use Charge · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, withholding taxes · 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.