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The short answer
If you are tax resident in Italy and sell Nigerian shares through a Nigerian broker, the gain is subject to a 26% substitute tax, declared yourself in quadro RT of the Redditi PF return. Net losses can be set against gains for up to four following years, but only if declared in the year they arise. Nigeria's 2025 tax law also taxes some share gains, with an exemption for disposals with proceeds under ₦150m and gains under ₦10m.
If you bought shares on the Nigerian Exchange (NGX) before or after moving to Italy, selling them creates a capital gain or loss. Italy will want its share once you are resident there, and Nigeria may also have a claim.
How Italy taxes the gain
A commercialista's guide published by Fiscomania (27 Jan 2026) explains that gains on foreign financial assets held through a non-resident broker fall under the declarative regime: you calculate the gain and declare it in quadro RT of the Redditi PF return, with a 26% substitute tax. A Nigerian stockbroker is a non-resident broker for this purpose, so no Italian intermediary withholds anything.
Losses
The same guide says a net capital loss can be deducted from capital gains in later tax years, "ma non oltre il quarto", that is for up to four years. The loss must be declared in the year it arises, or you lose the right to carry it forward. If your Nigerian shares have fallen in euro terms, declaring the loss can be worth more than it looks.
Worked example
Example only, round figures in naira. You bought shares for ₦5,000,000 and sell them for ₦7,000,000. Broker fees on the purchase were ₦60,000 and on the sale ₦85,000.
- Gain before costs: ₦2,000,000.
- Gain after costs (if your adviser confirms costs are deductible in your case): ₦7,000,000 − ₦5,000,000 − ₦60,000 − ₦85,000 = ₦1,855,000.
- Italian substitute tax at 26%: ₦482,300, declared in euros.
The return is in euros. If the naira fell between purchase and sale, the euro values may show a smaller gain or even a loss. Ask your commercialista which exchange rates and dates the rules require; the Fiscomania guide does not cover the conversion method.
What Nigeria taxes
Nigeria's Tax Act 2025 changed capital gains for individuals. Bloomberg Tax (2 Feb 2026) reports that the flat 10% rate ended and gains are now added to income and taxed at personal income tax rates, top rate 25%. A Mondaq review of the Act says section 34(1)(a) exempts a share disposal where total proceeds are less than ₦150 million and the gain is less than ₦10 million, and offers rollover relief where proceeds are reinvested.
How these rules apply to non-residents, and whether the exemption thresholds work the same way for them, was not settled in the sources we read. Our article on non-resident CGT on Nigerian shares follows this. Italy and Nigeria's treaty covers air and shipping only, per a 2022 Nigerian tax circular, so it gives no treaty relief on share gains.
Reporting while you hold
- Report the shares in quadro RW each year you hold them.
- Pay IVAFE at 0.2% a year on their value (0.4% for assets in non-cooperative states), per Fiscomania.
- Declare dividends separately; see how Italy taxes Nigerian dividends.
- Not filing RW risks penalties of 3% to 15% of the undeclared value.
Records your adviser will ask for
- Contract notes for every purchase and sale, showing price, quantity, date and fees.
- CSCS statements showing the holding before and after the sale.
- Records of bonus shares and rights issues, because they change your cost per share.
- Proof of the euro values used, such as bank statements for the conversions.
- Any Nigerian tax paid on the disposal, with receipts.
Shares bought before you moved to Italy
If you bought the shares while living in Nigeria and moved to Italy later, the purchase price is still your starting point under the general rule, but how the cost is valued for someone who becomes resident with existing holdings is a question to settle with your commercialista before you sell. The same applies if you inherited the shares; inherited holdings need transmission to your name first, covered in inherited Nigerian shares.
Steps when you sell
- Get your CSCS statement and the original contract notes for each purchase.
- Instruct your broker to sell and keep the sale contract note.
- Record the euro value of purchase and sale with your adviser's chosen rates.
- Declare the gain or loss in quadro RT for the year of sale.
- Check whether a Nigerian return is needed for the disposal.
- Decide whether to keep proceeds in naira or bring them to Italy; see moving share proceeds abroad.
Where Pryme fits
Sale proceeds paid to a Pryme naira account can stay in naira or be converted to euros with Swap when you choose, with the rate and fee shown before you approve. A verifiable statement from receipts gives your adviser a record of what arrived.
Questions people ask
Do I pay Italian tax on selling Nigerian shares?
Yes, if you are Italian tax resident. Gains through a foreign broker are declared in quadro RT with a 26% substitute tax.
Can I offset losses on Nigerian shares in Italy?
Yes. Net losses can be set against gains for up to four following years, but only if declared in the year they arise.
Does Nigeria tax my share gains if I live in Italy?
Possibly. The 2025 Act taxes share gains at income tax rates, with an exemption for proceeds under ₦150m and gains under ₦10m. How it applies to non-residents is not settled in the sources we read.
Does the Italy–Nigeria treaty help with capital gains?
No. Nigeria lists it as covering air and shipping only.
Sources
- Fiscomania: Investimenti finanziari esteri, tassazione e obblighi dichiarativi (F. Migliorini, 27 Jan 2026) · accessed Oct 2026
- Bloomberg Tax: New Nigeria tax law redefines capital gains tax for individuals (2 Feb 2026) · accessed Oct 2026
- Mondaq: Changes in chargeable gains under the Nigerian Taxation Act (2026) · accessed Oct 2026
- FIRS Information Circular 2022/15 on claiming tax treaty benefits (11 May 2022, hosted by KPMG) · 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.