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The short answer
Have tenants pay rent in naira into a Nigerian bank account in your own name, not to a relative or agent's personal account, and issue a receipt for each payment. Convert and move it to the UK when you choose through a bank or regulated provider. Rent from Nigerian property is taxable in Nigeria and, if you are UK resident, normally reportable in the UK too, with credit for Nigerian tax under the 1987 UK-Nigeria treaty.
How rent is usually collected
Residential rent in Nigeria is commonly paid yearly or in larger advance sums, often in naira. A landlord abroad has three main options:
| Option | How it works | Watch out for |
|---|---|---|
| Tenant pays into your Nigerian account | Tenant transfers naira directly; you see the credit and issue a receipt | You need an account you can run fully from the UK |
| Estate agent or property manager collects | Agent collects, deducts fees, pays you | Get a written agreement; ask for statements and the tenant's receipts |
| Relative collects | Tenant pays a family member who passes it on | No legal trail in your name; disputes are hard to resolve |
Direct payment to your own account gives the clearest record. If an agent collects, insist the agent's client account, not a personal account, receives the rent. Our Nigeria library's guide to the Lagos Tenancy Law on rent advance and receipts explains the receipt and notice rules for Lagos property.
Steps to set up collection from the UK
- Keep or open a naira account in your own name that you can operate fully from abroad, with internet banking and an authenticator, not SMS to an old Nigerian number.
- Put the account details in the tenancy agreement, with the rent amount, due date and what happens if payment is late.
- Issue a dated receipt for every payment, stating the property, period covered and amount.
- If a company is the tenant, ask for the withholding tax credit note for any tax it deducts.
- Keep the tenancy agreement, receipts and statements together; your UK bank and both tax authorities may ask for them.
Moving the rent to the UK
Rent arrives in naira. You can leave it in Nigeria for local costs (repairs, service charges, family support) or convert and move it. Moving it out generally means buying pounds or dollars through your bank or a licensed bureau and sending through the bank. If you hold a domiciliary account, the CBN's 2026 Foreign Exchange Manual, as summarised by Mondaq, removed the Form A requirement for outward remittances by holders of self-funded domiciliary accounts and allows direct transfers of up to US$10,000 a day. Ask your bank how it applies those rules to your account. For the wider options, see moving naira savings out of Nigeria legally.
When a large sum lands, your UK bank may ask where it came from. The tenancy agreement, rent receipts and the Nigerian statement showing the rent coming in are the answer; see proving source of funds.
Tax in Nigeria
Rent from property in Nigeria is Nigerian-source income, so it is taxable in Nigeria even if you are not resident there. The NiDCOM-hosted diaspora tax guide (prepared by NGEX, dated December 2025) says non-residents are taxed only on Nigerian-source income and lists 10% withholding tax on rent. Mondaq's summary of the Nigeria Tax Act 2025 treats rent as taxable investment income. Where a company tenant deducts withholding tax, the deduction is normally a credit against the final bill; an individual landlord's liability is then assessed under the personal income tax bands. The Nigeria library covers tax on rental income in Nigeria in detail.
Tax in the UK
GOV.UK says that if you are UK resident you will normally pay tax on foreign income, and lists rental income on overseas property as an example, usually reported on a Self Assessment return. It also says you may be able to claim relief if you are taxed in more than one country, and that some people may be eligible for Foreign Income and Gains relief. Before 6 April 2025 different rules applied for some people.
The 1987 UK-Nigeria double taxation agreement, published on GOV.UK, allows rent from immovable property to be taxed where the property is (Article 6) and provides for credit for tax paid in the other country (Article 22). In practice, Nigerian tax paid on the rent can usually be credited against UK tax on the same income, up to the UK tax due. Keep the Nigerian tax receipts or credit notes.
A labelled example
Example only. A flat in Lagos lets for ₦3,000,000 a year. A company tenant deducts 10% withholding tax (₦300,000) and pays ₦2,700,000 into the landlord's account, with a credit note. The landlord lists the full ₦3,000,000 as gross rent in both countries' returns, claims the expenses each system allows, uses the ₦300,000 as a credit in Nigeria, and claims relief in the UK for the Nigerian tax finally paid.
Where Pryme fits
Tenants can pay naira into your Pryme account, which also holds GBP, so rent can stay in naira for local costs or be converted with Swap when you choose, with the rate and fee shown before you approve. You can generate a verifiable receipt for each rent payment (receipts and statements). Naira deposits are held by a licensed Nigerian microfinance bank; outside Nigeria, Pryme works through regulated partners. Open an account.
Questions people ask
How do I collect rent in Nigeria if I live in the UK?
Have tenants pay naira into a Nigerian account in your name, issue a receipt for each payment, and convert or move the money when you choose.
Do I pay UK tax on rent from my house in Nigeria?
If you are UK resident, GOV.UK says rental income on overseas property is normally taxable in the UK, usually through Self Assessment, with possible relief for Nigerian tax paid.
Do I pay tax in Nigeria on rent if I live abroad?
Yes. Rent from Nigerian property is Nigerian-source income, taxable in Nigeria even for non-residents; withholding tax may be deducted by company tenants.
Can my tenant pay rent directly into my UK account?
A tenant in Nigeria pays in naira; sending pounds abroad would need FX and an outward transfer on their side. Collecting in naira and converting yourself is usually simpler.
Sources
- NiDCOM / NGEX: Diaspora guide to Nigeria's tax reforms 2026 · accessed Oct 2026
- Mondaq (Adeola Oyinlade & Co): Personal income tax under the Nigeria Tax Act 2025 (5 Jan 2026) · accessed Oct 2026
- GOV.UK: Tax on foreign income (updated 1 Oct 2026) · accessed Oct 2026
- GOV.UK: 1987 UK-Nigeria double taxation agreement (updated 30 Sep 2026) · accessed Oct 2026
- Mondaq (Pavestones): Key regulatory update, the CBN Foreign Exchange Manual 2026 (24 Jun 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.