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The short answer
If you are tax resident in South Africa, rent from a property in Nigeria is part of your worldwide income and goes on your SARS return in rand. Nigeria may tax it too: the treaty lets the country where the property sits tax the rent, a tenant or agent usually deducts 10% withholding tax, and SARS credits that Nigerian tax against the South African tax on the same rent, up to the South African amount.
Why the rent is taxable in both places
Article 6 of the South Africa-Nigeria double taxation agreement says income from immovable property, including letting, may be taxed in the state where the property is situated. So Nigeria has the first right to tax rent from a flat in Yaba or a duplex in Gwarinpa. South Africa taxes residents on worldwide income, so SARS also includes it, and then gives a credit for the Nigerian tax under Article 22, capped at the South African tax on that rent.
Being resident is the trigger. A Nigerian on a work visa can still be resident under the SARS tests; read the SARS residence test for Nigerians first if you are unsure.
What Nigeria takes
The NiDCOM-published NGEX diaspora guide (2026) says a Nigerian abroad with rental income from Nigerian property should file, that rent attracts 10% withholding tax deducted by the tenant or agent, and that returns are due by 31 March of the following year. PwC's Nigeria withholding tax summary (May 2026) also lists rent at 10%. Whether that 10% is the final Nigerian tax for a non-resident landlord is not stated on those pages, so ask a Nigerian adviser whether you must file and pay more.
Ask your tenant or agent for a withholding tax receipt or credit note each time they deduct. Without it, SARS has nothing to support your foreign tax credit.
Putting the rent on your SARS return
- Record each rent receipt in naira with its date, and the naira costs you paid.
- Convert to rand using a consistent, documented method; a registered tax practitioner can confirm which method SARS accepts for your case.
- Declare the net rental income on your return for the year in which it accrued.
- Claim the foreign tax credit for the Nigerian tax actually paid, with the receipts.
- Keep the lease, agent statements, receipts and bank statements with your tax records.
Which costs may be deducted is set by the Income Tax Act and SARS's guidance on rental income. Agent's commission, repairs and insurance are the costs landlords usually ask about; confirm what qualifies before you rely on it, and keep invoices either way.
Worked example (illustrative)
A flat lets for ₦3,600,000 a year. The agent deducts 10% withholding tax and charges a 10% management fee. Example rate: ₦80 to R1. Your marginal South African rate is assumed to be 31%, and the repair and fee deductions are assumed to be allowed.
| Item | Naira | Rand (example rate) |
|---|---|---|
| Gross rent | ₦3,600,000 | R45,000 |
| Withholding tax deducted (10%) | ₦360,000 | R4,500 |
| Agent's fee (10%) | ₦360,000 | R4,500 |
| Repairs | ₦480,000 | R6,000 |
| Net rental income for SARS (gross less fee and repairs) | ₦2,760,000 | R34,500 |
| South African tax at 31% | R10,695 | |
| Less credit for Nigerian withholding tax | R4,500 | |
| South African tax still due | R6,195 |
Note that the withholding tax is not deducted as an expense; it is credited against the tax. If your marginal rate is lower, the South African tax falls, and the credit can never exceed it.
Common gaps SARS may question
- Rent collected in cash by a relative with no receipts: the income is still yours, but you cannot prove the amount.
- Agent statements that net off fees and tax without showing them: ask for gross figures.
- Two years' rent paid in advance: confirm with a practitioner which tax year it falls in.
- A flat left empty part of the year: keep evidence of when it was let and when it was vacant.
- Costs paid by family on your behalf: keep proof that the money came from you.
None of these is unusual for diaspora landlords, and each is easier to fix at the time than at audit. A simple spreadsheet with one row per payment (date, tenant, naira amount, tax deducted, fee deducted, rand amount and method) kept through the year takes minutes each month and saves days at filing time.
Letting the flat properly in the first place
Clean records start with a clean tenancy. The Lagos State Tenancy Law 2011 limits rent in advance from a new tenant to one year outside the exempt areas (Apapa, Ikeja GRA, Ikoyi and Victoria Island) and makes a receipt obligatory for every payment. Have rent paid into an account in your own name rather than the agent's, so your records match what SARS sees.
Where Pryme fits
A Pryme naira account opened from South Africa gives you Nigerian account details for the tenant or agent to pay into, so each rent payment lands in your own name with a date (multicurrency account). Naira deposits are held by a licensed Nigerian microfinance bank. You can issue a verifiable receipt to the tenant with VerifyDoc.ai, which also gives you a matching record (verifiable receipts). For the Nigerian rules on landlords, see tax on rental income in Nigeria.
Questions people ask
Do I have to declare rent from my Lagos flat to SARS?
If you are SA tax resident, yes. Residents are taxed on worldwide income, so the rent goes on your return in rand, with a credit for Nigerian tax paid.
Is Nigerian rent withholding tax refunded by SARS?
No refund, but it is credited against the South African tax on the same rent, up to the South African amount. Keep the withholding tax receipt as proof.
What exchange rate do I use for rent received in naira?
Use a consistent, documented method and keep the records. Ask a registered tax practitioner which method SARS accepts for your situation.
My tenant pays the agent, not me. Is that a problem?
It makes your records harder to prove. Ask for rent to go into an account in your name and for agent statements showing each deduction.
Sources
- SARS: Agreement between South Africa and Nigeria for the avoidance of double taxation (GN 752, 22 Jul 2008) · accessed Oct 2026
- National Treasury and SARS: Budget 2026 Tax Guide (2026/27) · accessed Oct 2026
- NiDCOM/NGEX: Diaspora guide to Nigeria's tax reforms 2026 · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, withholding taxes (29 May 2026) · accessed Oct 2026
- Lagos State Tenancy Law No. 14 of 2011 · 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.