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The short answer
A company renting your Nigerian house will expect a written lease in its own name, the right to house named staff, clear repair and service-charge terms, and an invoice to pay against. It will usually pay by bank transfer after deducting 10% withholding tax on rent and should give you a credit note for it. In Lagos outside the exempt areas, the Tenancy Law caps advance rent from a new tenant at one year.
Letting to a company rather than an individual appeals to many owners in the US: one counterparty, a finance team that pays on invoice, and tenants (often staff on postings) who tend to look after a property. The trade-off is that companies negotiate harder on paper. Their legal and procurement teams will send their own lease template, and the terms in it decide how easy the tenancy is to manage from abroad.
What the law sets in Lagos
The Lagos State Tenancy Law 2011 applies to all premises in the state, residential and business, except those in Apapa, Ikeja GRA, Ikoyi and Victoria Island, which it exempts (the Governor may exempt other areas). Lekki is not on the exempt list in the 2011 text. Where it applies, the main rules a landlord letting to a company needs to know are:
- A tenancy can be written or oral, but for a company it will always be written.
- A landlord may not demand, and a tenant may not offer, more than one year's rent in advance from a new tenant; breaking this is an offence for both sides.
- A receipt is required for every rent payment, stating the date, names and addresses, the premises, the amount and the period.
- Security deposits and service charges need separate receipts, and the landlord must give a written account of service charges at least every six months.
- Subject to the lease, the landlord insures the building and keeps external and common parts in repair; the tenant handles internal repair and needs written consent for alterations.
Outside Lagos, each state has its own tenancy or rent-control law, and the details (advance-rent limits, notice periods) differ. Have the lease checked against the law of the state where the house is.
Terms corporate tenants usually ask for
| Term | What the company wants | What to watch from the US |
|---|---|---|
| Tenant name | The company, with named occupants | Get the company's RC number and check it on the CAC public search |
| Use | Residential use by staff and families | Limit to residential use and named occupants |
| Assignment | Right to assign or sublet to group companies | Allow group companies only, with written notice to you |
| Break clause | Early exit if the employee leaves | Ask for a notice period and a break fee or no refund of rent already paid |
| Repairs | Fast response on generators, water, air conditioning | Name a local agent with authority and a response time |
| Inventory | Signed inventory and condition report | Photos and video kept with the lease |
| Rent review | Fixed rent for the term | Agree a review method at renewal |
How the rent is paid
Companies pay against an invoice by bank transfer to the account named in the lease, usually annually or for the full term allowed. Corporate tenants deduct withholding tax on rent: the NiDCOM-hosted diaspora tax guide (current as of December 2025) states rent withholding at 10%, deducted by the tenant or agent, regardless of where the landlord lives. The tenant then remits that tax and should give you a withholding tax credit note.
The finance team will usually ask for your tax identifier to process the deduction properly. Our guide on a Nigerian tax ID for a US-based landlord covers getting one, and claiming withholding tax on rent explains what to do with the credit notes.
The US side
If you are a US citizen or resident, the rent is part of your worldwide income and goes on your US return in dollars. Nigerian income tax you pay on it, including tax withheld, may qualify for the US foreign tax credit, which generally covers foreign income taxes; the IRS notes that the amount withheld is not automatically the amount that qualifies. Keep the lease, invoices, receipts and credit notes together for each tax year. Our guide on paying US tax on Nigerian rental income goes through the return.
What to check first
- The company's CAC record and the person signing for it.
- Whether the property is in an area the Lagos Tenancy Law exempts.
- Advance rent within the legal limit where the law applies.
- Withholding tax deduction and credit note process agreed in writing.
- A local agent named in the lease with written authority.
Where Pryme fits
A Pryme Personal Account opened from the US gives you naira account details in your own name that a corporate tenant can pay to, alongside your dollars (multicurrency account). You can issue a verifiable receipt for each rent payment through our partner VerifyDoc.ai, which a finance team can check is genuine and unaltered (receipts). Naira deposits are held by a licensed Nigerian microfinance bank.
Questions people ask
Can a company pay more than one year's rent in advance in Lagos?
Not from a new tenant where the Lagos Tenancy Law 2011 applies; the limit is one year and both sides commit an offence by breaking it. Apapa, Ikeja GRA, Ikoyi and Victoria Island are exempt from the law.
Why did my corporate tenant pay less than the agreed rent?
Most likely it deducted withholding tax on rent, stated at 10% in the NiDCOM-hosted diaspora tax guide. Ask for the withholding tax credit note as proof.
Do I need a Nigerian tax ID to rent to a company?
Finance teams usually ask for one to process withholding tax. The NiDCOM guide says your NIN serves as your tax ID; check with the tenant what they need.
Can the company let its staff live in my house?
That is normally the point of a corporate lease. Name the permitted occupants or class of occupants, and require your consent for anyone else.
Sources
- Lagos State Tenancy Law 2011 (Law No. 14 of 2011, Gazette 26 Aug 2011) · accessed Oct 2026
- NiDCOM / NGEX: Diaspora Guide to Nigeria's 2026 Tax Reforms (as of Dec 2025) · accessed Oct 2026
- IRS: Foreign Tax Credit (updated 9 Jul 2026) · accessed Oct 2026
- Legit.ng: How to verify a CAC certificate online (11 Sep 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.