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The short answer
Three sets of rules apply at once: your status (employee or contractor) under your contract and Nigerian law, tax residence in Nigeria and in the country you live in, and that country's own rules on working there and on employer payroll. Under the Nigeria Tax Act, PwC's summary says you remain Nigerian tax-resident if any one test applies, including a permanent home or immediate family ties in Nigeria, so moving abroad does not automatically end Nigerian tax.
Start with status: employee or contractor
Many Nigerians who relocate keep working for their Nigerian employer, either on the same employment contract or as a contractor invoicing from abroad. The choice changes almost everything that follows.
| Stay an employee | Become a contractor | |
|---|---|---|
| Who handles tax | Employer runs payroll (PAYE) if Nigerian tax applies | You invoice and handle your own tax; the employer may deduct withholding tax |
| Pension and benefits | Employer pension contributions and HMO may continue | Usually stop; you arrange your own |
| Labour protections | Notice, leave and other employment terms continue | Only what the contract says |
| Host country | May treat a foreign employer's staff differently from the self-employed | You usually register as self-employed where you live |
Changing from employee to contractor should be done with a new written contract, not just by changing how you are paid. If you become a contractor, the guides on withholding tax on your invoices and invoice currency apply.
Tax residence in Nigeria
PwC's summary of the Nigeria Tax Act's residence rules, reviewed on 29 May 2026, says an individual is resident in Nigeria if any one of these applies:
- Domiciled in Nigeria.
- A permanent home available for domestic use in Nigeria.
- A place of habitual abode in Nigeria.
- At least 183 days in Nigeria in any 12-month period, including temporary absences.
- Substantial economic or immediate family ties in Nigeria.
- Serving as a Nigerian diplomat abroad.
You are non-resident only if none applies. A worker who moves abroad but keeps a family home in Lagos, or whose spouse and children stay in Nigeria, may still be resident under these tests, even with fewer than 183 days there. A diaspora tax guide on the NiDCOM site frames the test mainly as 183 days and says services performed outside Nigeria are not taxable unless you are tax-resident; the wider PwC list shows why that 'unless' matters.
Tax residence where you live
Your new country has its own test. In the UK, for example, HMRC's Statutory Residence Test makes you automatically resident if you spend 183 days or more there in a tax year, among other tests. If both countries treat you as resident, a tax treaty can settle it. The Canada-Nigeria agreement's tie-breaker looks at permanent home, then centre of vital interests, then habitual abode, then nationality. The UK-Nigeria convention's employment article (Article 15) taxes salary in the country of residence unless the work is done in the other country. Where there is no treaty, as with the US, you may be taxed in both and rely on foreign tax credits. See tax resident in two countries: the tie-breaker.
Payroll and the host country
A Nigerian employer with no office in your new country may have no payroll obligations there. HMRC's PAYE Manual says an employer must have a UK presence, such as a branch or representative office, to be required to operate UK PAYE, and that an employee working from a private home does not by itself create that presence. HMRC's direct payment scheme then lets employees of a foreign employer with no UK presence pay their own income tax and National Insurance to HMRC. Other countries have their own versions; check your tax authority's guidance on working for a foreign employer.
Agree in writing with your employer which country you will work from and for how long. A sudden move discovered later can leave the employer with payroll or registration duties it did not plan for, and leave you with an arrangement it may end.
Right to work
Your visa or residence permit decides whether you may work at all, and for whom. Some permits tie you to a sponsoring employer in that country; others allow any work. Working remotely for a Nigerian employer on a permit that does not allow it can put your status at risk. Read your permit conditions, or ask an immigration adviser, before you start.
Worked example (illustration only)
Tolu moves to Manchester on a Skilled Worker visa with a UK employer, but keeps a part-time remote role with her Lagos employer, paid ₦600,000 a month. Her spouse and children remain in Lagos and the family home is there. Under the PwC list, family ties and a permanent home may keep her Nigerian-resident, so the Lagos employer keeps running PAYE. In the UK she is resident under the 183-day test, so she reports the Nigerian salary too, and the treaty tie-breaker and foreign tax credit decide where tax finally falls. She also checks whether her visa allows the second job.
Where Pryme fits
A Pryme Personal account, opened from any country, holds NGN alongside USD, GBP and EUR, so a naira salary can arrive by local transfer and stay in naira until you choose to convert with Swap. If you become a contractor, a Business account keeps client receipts separate. For the payroll question in detail, see whether a Nigerian employer deducts PAYE if you work abroad.
Questions people ask
Can I keep my Nigerian job and work from abroad?
Many people do, but check your contract, your tax residence in both countries and whether your visa allows the work.
Am I still a Nigerian tax resident if I move abroad?
Possibly. PwC's summary of the Nigeria Tax Act lists tests such as a permanent home or immediate family ties in Nigeria, any one of which makes you resident.
Should I switch from employee to contractor when I relocate?
It changes tax, pension and protections. Do it only with a new written contract and advice on both countries' rules.
Does my Nigerian employer have to register for payroll in my new country?
Often not if it has no presence there. In the UK, HMRC says a home worker alone does not create a UK presence.
Sources
- PwC Worldwide Tax Summaries: Nigeria, individual residence (reviewed 29 May 2026) · accessed Oct 2026
- NGEX Diaspora Guide to Nigeria's Tax Reforms 2026 (NiDCOM) · accessed Oct 2026
- HMRC RDR3: Statutory Residence Test guidance · accessed Oct 2026
- HMRC PAYE Manual PAYE81610: employer presence · accessed Oct 2026
- HMRC PAYE Manual PAYE20100: direct payment scheme · accessed Oct 2026
- Canada-Nigeria tax agreement (treaty text) · accessed Oct 2026
- UK-Nigeria Double Taxation Convention (GOV.UK) · 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.