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The short answer
If you are tax resident in South Africa, SARS taxes your worldwide capital gains, including a gain on a house in Nigeria; for 2026/27 the annual exclusion is R50,000 and the maximum effective CGT rate for individuals is 18% (Budget 2026 Tax Guide). Nigeria may also tax the gain because the property is there, and under Article 22 of the South Africa-Nigeria tax treaty SARS deducts the Nigerian tax from the South African tax on that gain, up to the South African tax on it.
Who taxes the gain
Two countries have a claim. Article 13(1) of the South Africa-Nigeria agreement (in force 5 July 2008, applying from 1 January 2009) says gains from alienating immovable property may be taxed in the state where the property is situated, so Nigeria may tax the sale of a house in Enugu or a flat in Lekki. South Africa taxes its residents on worldwide income, and the Budget 2026 Tax Guide states that foreign taxes on foreign-sourced income are generally credited against South African tax.
The treaty does not stop South Africa taxing you; it stops you paying twice in full. Article 22 says Nigerian tax paid by a South African resident on income taxable in Nigeria is deducted from the South African tax, but the deduction cannot exceed the South African tax attributable to that income.
The South African side
Whether you are resident for SARS purposes is the first question, and it is a question of fact under SARS's residence tests; our guide to the SARS residence test for Nigerians covers it. If you are resident when you sell, the gain goes on your return for that year.
- Annual exclusion (individuals, 2026/27)
- R50,000 of net gains or losses
- Annual exclusion in the year of death
- R440,000
- Primary residence exclusion
- R3,000,000 of gain, for the home you live in
- Maximum effective rate, individuals
- 18%
The primary residence exclusion is for the residence you ordinarily live in; a house in Nigeria that family occupies while you live in Pretoria is unlikely to qualify, but confirm the facts with a registered tax practitioner. The gain is calculated in rand; SARS has specific rules on translating foreign-currency costs and proceeds, and your practitioner should apply them rather than a single rate of the day.
The Nigerian side
Under the Nigeria Tax Act 2025, chargeable gains are no longer taxed at a flat 10%; PwC's Nigeria summary (reviewed May 2026) says they are included in total income and taxed at the individual rates of 0% to 25%. Income and gains of a non-resident that are derived from Nigeria are chargeable (section 17(1), as summarised by Nolands on Mondaq, September 2026), and non-residents file with the Nigeria Revenue Service. Whether a non-resident gets the benefit of the zero band on a gain is not settled on the pages we read; ask a Nigerian tax adviser before you sign the sale agreement.
Keep evidence of what you paid, your improvements and the legal fees on purchase and sale, in both currencies. For the Nigerian rules in more depth, read capital gains tax in Nigeria after the Nigeria Tax Act 2025.
Worked example (illustrative)
Assume a house is sold and the net gain, correctly converted to rand, is R600,000, and you have no other gains that year.
| Step | Amount |
|---|---|
| Net gain in rand | R600,000 |
| Less annual exclusion | R50,000 |
| Gain after exclusion | R550,000 |
| South African tax at the maximum effective 18% | R99,000 |
| Nigerian tax paid on the gain (assumed, converted) | R70,000 |
| South African tax still due after the Article 22 credit | R29,000 |
Here the Nigerian tax is lower than the South African tax, so the credit is the full R70,000. Had the Nigerian tax been R120,000, the credit would stop at R99,000 and nothing more would be due in South Africa, but the extra R21,000 would not be refunded. The 18% is a ceiling; at a lower marginal rate the South African tax is less.
Records that decide the numbers
The size of the gain depends on what you can prove. A house bought fifteen years ago for cash, with no receipt, a builder paid in instalments and a family member who handled the paperwork is hard to document, and an undocumented cost cannot be deducted. Gather what you can before you list the property:
- The purchase agreement or deed, and the receipt or bank transfer for the price.
- Invoices and payment records for building work and improvements (not routine repairs).
- Legal, survey, consent and registration fees on purchase, with receipts.
- Agent's commission and legal fees on the sale.
- The Nigerian tax assessment and payment receipt for the gain.
If you inherited the property or received it as a gift, the base cost rules differ and your practitioner will need the date and value at which you acquired it.
If you are leaving South Africa
Timing can change who taxes the gain. Selling after you have ceased South African tax residence is not the same as selling while resident, and ceasing residence has tax consequences of its own. Read ceasing SA tax residence when moving back to Nigeria and take advice before you choose a sale date.
Steps when you sell
- Confirm your SARS residence status for the year of sale.
- Get a Nigerian adviser's estimate of the Nigerian tax before signing.
- Pay the Nigerian tax and keep the official receipt; SARS will want proof for the credit.
- Report the disposal and claim the foreign tax credit on your SARS return.
- Bring the proceeds back through your bank and keep the bank's confirmation.
Where Pryme fits
A Pryme naira account, opened from South Africa, can receive sale proceeds in Nigeria and hold them in naira until you decide to convert; Swap shows the rate and the fee before you approve (Swap). A verifiable statement from VerifyDoc.ai can support your records of the receipt (verifiable statements).
Questions people ask
Do I pay CGT in South Africa on a house I sell in Nigeria?
If you are SA tax resident when you sell, yes: residents are taxed on worldwide gains. The R50,000 annual exclusion applies and the maximum effective rate for individuals is 18% in 2026/27.
Can Nigeria also tax the gain?
Yes. The treaty lets the country where the property sits tax the gain. South Africa then credits the Nigerian tax, up to the South African tax on that gain.
Does the R3 million primary residence exclusion cover my house in Nigeria?
Only if it is your primary residence, the home you ordinarily live in. A house family uses while you live in South Africa is unlikely to qualify; check the facts with a tax practitioner.
What rate does Nigeria charge on capital gains now?
Under the Nigeria Tax Act 2025, PwC says individuals' chargeable gains are included in total income and taxed at 0% to 25%, not the old flat 10%.
Sources
- National Treasury and SARS: Budget 2026 Tax Guide (2026/27) · accessed Oct 2026
- SARS: Agreement between South Africa and Nigeria for the avoidance of double taxation (GN 752, 22 Jul 2008) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual income determination (29 May 2026) · accessed Oct 2026
- Mondaq (Nolands): Taxation of non-resident individuals in Nigeria (30 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.