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The short answer
As a Canadian resident you report the gain on a Lagos house in Canadian dollars: proceeds at the exchange rate on the sale date, less your cost at the rate when you acquired it (or its fair market value on the day you became resident). Nigeria can also tax the gain under its own law, and Canada then gives a foreign tax credit for the Nigerian tax, capped at the Canadian tax on that gain.
Two countries, two different gains
Selling property in Nigeria from Toronto or Edmonton means two tax systems look at the same sale. Canada taxes its residents on worldwide income, including gains. Nigeria taxes gains on assets located in Nigeria wherever the owner lives; PwC's summary of the 2026 reforms notes that under the Nigeria Tax Act gains are taxable where the asset is located in Nigeria. The Canada-Nigeria tax agreement, in force since 16 November 1999, lets each country tax capital gains under its own law (Article 13(1)) and requires Canada to deduct Nigerian tax on Nigerian-source income from Canadian tax (Article 23).
The catch for most Nigerians in Canada is that the two gains are measured differently, and the naira's fall can make them look nothing alike.
How Canada measures the gain
The CRA's capital gains guide, T4037, says that for foreign property you convert the proceeds at the exchange rate at the time of sale, the adjusted cost base at the rate when you acquired the property, and selling costs at the rate when you paid them. Selling costs include commissions, legal fees and surveyors' fees. Generally one-half of the gain is taxable (the guide describes the inclusion rate as generally 1/2).
If you owned the house before you became resident, your Canadian cost is not what you paid. The CRA's newcomers page says you are treated as having sold and immediately reacquired certain property at its fair market value on the date you became resident. That value, in Canadian dollars at the rate on that date, becomes your cost. See your cost base for Nigerian property owned before Canada.
Which exchange rate
The Bank of Canada's daily table covers 24 currencies and does not include the naira. The CRA's reporting-currency folio (S5-F4-C1) allows another rate source, naming Bloomberg, Thomson Reuters and OANDA, if it is widely available, verifiable, independent and used consistently. Write down the source and the rate for each date.
How Nigeria measures the gain
Nigeria works in naira from your original naira cost, with no adjustment for the date you moved to Canada. Since 1 January 2026, PwC's summary says, individuals' chargeable gains are taxed at the personal income tax rates of 0% to 25%: 0% on the first ₦800,000, then 15%, 18%, 21% and 23% bands, and 25% above ₦50 million. PwC also notes a principal private residence exemption covering the house and up to one acre, available once in a lifetime. Which authority collects the tax from a non-resident seller, and how it is filed, we could not confirm on an official page, so ask a Nigerian tax practitioner before completion. Our Nigeria library explains the rules: Capital gains tax in Nigeria after the Nigeria Tax Act 2025.
Worked example (illustration only, example exchange rates)
Ada bought a Lekki house in 2016 for ₦40 million. When she became resident in Canada in 2020 it was worth ₦80 million, and at an example rate of ₦300 to CAD 1 that is CAD 266,667. She sells in 2026 for ₦300 million, paying ₦15 million in agency and legal fees, at an example rate of ₦1,000 to CAD 1.
| Canada (CAD) | Nigeria (naira) | |
|---|---|---|
| Proceeds | 300,000 | 300,000,000 |
| Selling costs | 15,000 | 15,000,000 |
| Cost used | 266,667 (value on arrival) | 40,000,000 (original cost) |
| Gain | 18,333 | 245,000,000 |
| Taxable part | 9,167 (one-half) | 245,000,000 at PIT bands |
If the ₦245 million gain were taxed on its own through the bands, the Nigerian tax would be ₦59.18 million (₦330,000 + ₦1.62 million + ₦2.73 million + ₦5.75 million on the lower bands, plus ₦48.75 million at 25% on the ₦195 million above ₦50 million), about CAD 59,180 at the example rate. Canada's tax on a CAD 9,167 taxable gain is far smaller. Because the credit is capped at the Canadian tax on that income, most of the Nigerian tax would not be offset, and the CRA folio says unused non-business foreign tax credits are not carried over. Whether Nigeria adds the gain to other income before applying the bands is one point we could not confirm.
If the house was your home
Two exemptions may help. In Nigeria, the principal private residence exemption may apply if this was your home. In Canada, the CRA's principal residence folio (S1-F3-C2) says a property outside Canada can qualify depending on the facts, and that the exemption formula counts only years you were resident in Canada. Only one property per family unit per year can be designated. See can a house in Nigeria be your principal residence.
What to check first
- Your Canadian cost: purchase price and rate, or value and rate on the day you became resident.
- Receipts for commissions, legal fees and survey costs, with dates.
- Whether the Nigerian principal private residence exemption applies.
- Who files and pays the Nigerian tax, and get the receipt: the CRA folio says you need evidence of foreign tax paid to claim the credit.
- Form T1135 for the year, if it was rental or investment property costing over $100,000.
Where Pryme fits
Sale proceeds paid in naira can land in a Pryme account's Nigerian account details, opened from Canada. You choose when to convert with Swap, which shows the rate and the fee before you approve, and the dated conversion record helps when you work out your Canadian figures. See multicurrency accounts.
Questions people ask
Do I pay Canadian tax on selling a house in Nigeria?
Yes, if you are resident in Canada when you sell. The gain is worked out in Canadian dollars and generally one-half is taxable.
Will I pay tax twice on my Lagos house sale?
Nigeria can tax the gain too. Canada gives a foreign tax credit for Nigerian tax, capped at the Canadian tax on that gain, so you may still pay more overall than either country alone would charge.
What cost do I use if I owned the house before moving to Canada?
Its fair market value on the day you became resident, converted to Canadian dollars at that day's rate, according to the CRA's newcomers guidance.
What exchange rate does the CRA accept for naira?
The Bank of Canada does not publish a naira rate. The CRA accepts another widely available, independent source such as OANDA if you use it consistently.
Sources
- CRA: T4037 Capital Gains (modified 11 Feb 2026) · accessed Oct 2026
- CRA: Completing your return for newcomers (modified 17 Sep 2026) · accessed Oct 2026
- CRA: Income Tax Folio S5-F4-C1, Income tax reporting currency (updated 27 Jun 2024) · accessed Oct 2026
- Global Affairs Canada Treaty Law database: Canada-Nigeria tax agreement text (signed 4 Aug 1992) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, significant developments (reviewed 29 May 2026) · accessed Oct 2026
- CRA: Income Tax Folio S5-F2-C1, Foreign Tax Credit (modified 31 Mar 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.