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The short answer
Most landlords abroad have tenants or an agent pay rent into a Nigerian naira account, then decide whether to spend it in Nigeria or convert it. The NGEX diaspora guide says rent carries 10% withholding tax deducted by the tenant or agent, and that you must file in Nigeria if you have Nigerian rental income. If you are an Australian tax resident, the ATO says rental income from overseas real estate must also be declared.
Collecting the rent
Lagos rent is often paid a year or more in advance, which makes each payment large and each mistake expensive. The usual set-up from Australia:
- A naira account in your name in Nigeria for the rent. Keep it separate from personal spending so the records are clean.
- A written tenancy agreement that states the rent, the period, the account details and who deducts withholding tax.
- If you use an agent or caretaker, a written mandate stating their fee, what they may collect and when they must pay it over.
- A receipt for every payment, issued in your name.
For the tenancy rules themselves (advance rent, receipts, notice), see the Lagos Tenancy Law guide.
Nigerian tax on the rent
The NGEX diaspora guide to the 2026 tax reforms, published through NiDCOM, says non-residents are taxed in Nigeria only on Nigerian-source income, and rent from Lagos property is Nigerian-source. It says rent carries 10% withholding tax "regardless of where you live", deducted by the tenant or agent, and that you must file a return if you have Nigerian rental income, with personal income tax returns due by 31 March. The guide does not say whether the withholding is your final tax, so ask a Nigerian tax adviser. Records it lists: rental agreements and foreign tax receipts.
Worked example (illustrative): annual rent of ₦6,000,000. If the tenant deducts 10% withholding tax, ₦600,000 is remitted to the tax authority and you receive ₦5,400,000. If your agent then takes an example 10% of the gross rent as fees, that is a further ₦600,000, leaving ₦4,800,000. Keep the withholding tax receipt: it is your evidence of Nigerian tax paid.
Australian tax on the same rent
The ATO says Australian tax residents must declare foreign income, and lists rental income from real estate. If you paid tax in Nigeria, you may be able to claim a foreign income tax offset, but the ATO says the offset will not always equal the tax you paid and you need records proving it was paid. Every amount must be converted to Australian dollars, using rates at the time or an average rate.
Temporary residents are in a different position: the ATO says most foreign income of temporary residents is not taxed in Australia. Check your status with the ATO's residency pages and our guide to declaring Nigerian rent to the ATO. This is information, not tax advice.
Hold the naira or convert it?
| Hold in naira if | Convert if |
|---|---|
| You have naira costs coming: repairs, service charge, family, school fees | You need the money in Australia and have no Nigerian costs |
| You plan to reinvest in Nigeria | You want to reduce exposure to the naira |
| The rent will fund a Nigerian goal | You can show the bank a clear source for the conversion |
Converting naira rent into foreign currency for transfer abroad is not automatic: there is no general allowance that lets someone living abroad buy dollars with locally earned naira. Ask your bank what it will accept, and read converting naira savings to AUD before you plan on it.
If you use an agent or caretaker
Distance is where rental income goes wrong. A few controls help:
- Rent paid by the tenant straight into your account, not in cash to the agent.
- A copy of every receipt sent to you the day it is issued.
- A yearly statement from the agent listing rent collected, tax deducted, fees and repairs, with invoices.
- Repairs above an agreed amount approved by you in writing first.
- A written power of attorney only if you need someone to sign for you, limited to what they must do.
If rent is late or short
Check the tenancy agreement first: it sets the rent, the period and the notice the tenant is owed. Ask for the withholding tax receipt if the payment is lower than expected, since the shortfall may be tax deducted rather than unpaid rent. Disputes over possession follow the Lagos Tenancy Law and its notice rules, which usually need a Lagos lawyer acting for you.
Records worth keeping
- The tenancy agreement and any renewal.
- Each rent receipt and bank credit.
- Withholding tax receipts from the tenant or agent.
- Agent invoices and repair costs.
- The exchange rate you used for each amount on your Australian return.
Where Pryme fits
A Pryme Personal account gives you a naira account number for rent, held by a licensed Nigerian microfinance bank, that you run from Australia. You can issue tenants a regular or a verifiable receipt through VerifyDoc.ai, which anyone can check is genuine and unaltered. If the rent is for a naira goal at home, Savings Boxes hold it in naira with rates shown in the app. Outside Nigeria, Pryme works through regulated partners; see multicurrency.
Questions people ask
Do I pay tax in Nigeria on Lagos rent if I live in Australia?
The NGEX diaspora guide says yes: rent from Nigerian property is Nigerian-source income, carries 10% withholding tax deducted by the tenant or agent, and you must file if you have Nigerian rental income.
Do I declare Nigerian rent to the ATO?
If you are an Australian tax resident, the ATO says rental income from foreign real estate must be declared, converted to Australian dollars. Temporary residents are treated differently.
Can I claim credit in Australia for Nigerian tax on my rent?
You may be able to claim a foreign income tax offset with proof the tax was paid, though the ATO says it will not always equal the tax paid.
Should I convert my Lagos rent to AUD?
Only if you need it in Australia. Converting locally earned naira into foreign currency for transfer abroad is not automatic, so ask your bank first.
Sources
- NGEX / NiDCOM: Diaspora guide to Nigeria's 2026 tax reforms (Jan 2026) · accessed Oct 2026
- ATO: Australian resident for tax purposes - foreign and worldwide income (last updated 15 Jun 2026) · accessed Oct 2026
- ATO: Foreign and temporary resident income (last updated 8 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.