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The short answer
When a company, government body or other corporate tenant pays rent on your Nigerian property, it may deduct 10% withholding tax and pay that to the tax authority; NiDCOM's diaspora guide says rent withholding applies regardless of where the landlord lives. The 10% is your tax, paid early, not money lost: ask for the withholding tax receipt or credit note, use it against your Nigerian tax on the rent, and enter it as foreign tax on your UK return.
You let a flat or office in Lagos or Port Harcourt to a company, invoice ₦6,000,000 for the year, and ₦5,400,000 arrives. The missing ₦600,000 is not the agent's commission or a bank charge. It is withholding tax (WHT), and handled properly it reduces tax you would owe anyway in Nigeria and counts as foreign tax in the UK.
Who deducts it, and why
NiDCOM's guide to the 2026 tax reforms for the diaspora says rent is subject to 10% WHT 'regardless of where you live', deducted by the tenant or agent. It does not say whether that deduction is the final tax for a non-resident landlord, and we could not confirm that from an official page. The rules on who must deduct come from the Withholding Tax Regulations 2024; Udo Udoma & Belo-Osagie's overview (July 2024) lists the deductors as including companies, government ministries, agencies and statutory bodies, and says individuals may not deduct. The status of those regulations under the Nigeria Tax Act was not confirmed on the pages we opened.
| Tenant | Likely to deduct WHT? |
|---|---|
| Limited company, bank, multinational | Yes, as a deductor under the 2024 Regulations |
| Government ministry or agency | Yes |
| Individual renting a home | The 2024 Regulations overview says individuals may not deduct |
If an individual tenant deducts tax, ask them to explain and to show the receipt for payment to the tax authority before you accept a short payment.
The receipt is the whole point
The same overview says the payer must issue a receipt showing the payee's tax ID, the gross amount and the tax deducted, that deductions are remitted to the federal authority by the 21st of the following month (or to a state by the 30th), and that the recipient can claim credit on the receipt even if the payer has not remitted the money. NiDCOM's guide says your NIN now serves as your tax ID. Without the receipt, you have a short payment and no evidence of tax paid on either side.
- Ask the tenant's finance team for the WHT receipt or credit note for each payment.
- Check that your name, tax ID (NIN), the gross rent and the amount deducted are correct.
- Match it to the payment that arrived in your account.
- File it with your Nigerian return; NiDCOM's guide says you must file if you have Nigerian rental income, by 31 March.
- Keep a copy for your UK return.
For chasing credit notes from Nigerian payers, see getting your withholding tax credit notes back. For the Nigerian side of letting from abroad, read Nigerian tax for non-resident landlords.
On your UK return
As a UK resident, you report the Nigerian rent on the SA106 foreign pages. HMRC's SA106 notes say to enter the income in pounds before foreign tax, enter the foreign tax separately, and mark the entry if you claim foreign tax credit relief; figures are converted at the exchange rate when the income arose. HS263 says the credit is the lower of the foreign tax paid and the UK tax on the same income.
Worked example (illustrative)
| Naira | Pounds at example £1 = ₦2,000 | |
|---|---|---|
| Gross annual rent | ₦6,000,000 | £3,000 |
| WHT deducted (10%) | ₦600,000 | £300 |
| Received | ₦5,400,000 | £2,700 |
Example: you report £3,000 of rent (gross), assuming no allowable expenses, and £300 of foreign tax. If you are a basic-rate taxpayer, UK tax on the rent is 20% of £3,000, or £600. Credit relief is the lower of £300 and £600, so £300, and you pay £300 more in the UK. Expenses such as agent fees and repairs would reduce the profit; see allowable costs on Nigerian rental. The SA106 notes also say that total property income of up to £1,000 a year (UK and overseas together) is tax-free and need not be reported.
If the deduction looks wrong
- Deducted at more than 10%: ask the tenant which rule they applied and request the receipt.
- No receipt after repeated requests: put the request in writing and keep it; the receipt is what allows the credit.
- Deducted from the agent's commission as well as the rent: ask the agent for a statement separating the two.
- Rent paid in advance for several years: confirm which year each receipt covers, as UK income is recorded when it arises.
Where Pryme fits
A Pryme account gives you local naira account details for tenants to pay into (multicurrency), and you can generate a verifiable rent receipt or statement with VerifyDoc.ai to send the tenant with your invoice. Naira deposits are held by a licensed Nigerian microfinance bank, regulated by the CBN and insured by the NDIC up to the applicable limit.
Questions people ask
Why did my tenant deduct 10% from the rent?
Corporate tenants and government bodies deduct withholding tax on rent and pay it to the tax authority. NiDCOM's guide gives 10% for rent, regardless of where the landlord lives.
Can I get the 10% WHT back?
It counts as tax paid. Use the receipt as a credit against your Nigerian tax on the rent, and as foreign tax on your UK return. Whether it is the final tax for a non-resident landlord was not confirmed on the official pages we opened.
Can an individual tenant deduct WHT from rent?
The 2024 Withholding Tax Regulations overview says individuals may not deduct. Ask for proof of remittance if one does.
How do I show Nigerian WHT on my UK tax return?
Enter the gross rent in pounds and the tax deducted as foreign tax on the SA106 pages, and claim foreign tax credit relief, limited to the UK tax on that rent.
Sources
- NiDCOM: NGEX Diaspora Guide to the Nigeria Tax Reforms 2026 (Jan 2026) · accessed Oct 2026
- Mondaq (Udo Udoma & Belo-Osagie): An overview of the Nigerian Withholding Tax Regulations of 2024 (11 Jul 2024) · accessed Oct 2026
- HMRC: SA106 Foreign notes 2026 · accessed Oct 2026
- HMRC HS263: Relief for foreign tax paid (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.