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The short answer
If you are a US citizen or resident and give land in Nigeria to a brother or sister, you file Form 709 if the land's value exceeds the annual exclusion, US$19,000 for 2026; tax is rarely due because of the lifetime exclusion of US$15 million in 2026. In Nigeria, the Nigeria Tax Act 2025 treats a gift as a disposal at market value, so capital gains tax may arise, and the transfer of a statutory right of occupancy needs the Governor's consent.
The US side: a gift tax return, usually no tax
US gift tax applies to US citizens and residents on gifts of property wherever it is. The Form 709 instructions (2025) contrast this with nonresident non-citizens, who are taxed only on gifts of US real and tangible property. So a Lagos plot given by a Houston resident is inside the US rules.
- Annual exclusion: the IRS gift tax FAQ (July 2026) gives US$19,000 per recipient for 2025 and 2026. Gifts to one person within that amount need no return.
- Form 709: the instructions require a return if gifts to any one person (other than a spouse) exceed the exclusion in the year.
- Lifetime exclusion: the FAQ gives a 2026 basic exclusion of US$15,000,000. A gift above the annual exclusion uses part of it; tax is paid only once lifetime gifts exceed it.
- Who pays: the donor, generally, not your sibling.
- Deadline: 15 April of the following year, with an extension available alongside your income tax extension, per the instructions.
You will need a value in dollars. Get a written valuation from a registered Nigerian estate surveyor and valuer, and convert at a documented rate for the date of the gift.
No income tax for you on the US side
Giving land away is not a sale, so there is no capital gain on your US return. Your sibling, who is not a US person, is outside the US system for this purpose. If your sibling were a US resident, they would take over your basis under the gift rules in IRS Publication 551 (December 2025), which matters when they sell.
The Nigerian side: tax and consent
A Bloomberg Tax analysis of the Nigeria Tax Act 2025 (February 2026) reports that disposals by way of gift are treated as made at market value, that land and buildings in Nigeria are chargeable, and that an individual's gains are added to income and taxed at personal income tax rates, with no indexation. In plain terms, giving land to your brother may be taxed in Nigeria as if you had sold it at its current value, on the gain over your cost. The same analysis lists a one-time exemption for a principal private residence; a plot or rental house you do not live in will not usually fit it.
How a non-resident donor pays that tax, and to which authority, is not set out in the material we read. Ask a Nigerian chartered tax practitioner before the deed is signed.
Governor's consent
Section 22 of the Land Use Act says the holder of a statutory right of occupancy may not alienate it "by assignment, mortgage, transfer of possession, sublease or otherwise" without the Governor's consent first had, and section 26 makes a transaction in breach of the Act void. A deed of gift is an alienation, so for land held under a Certificate of Occupancy or statutory right, the state's consent and registration process applies, with its own fees. For land under a customary right, section 21 requires the consent of the Governor or the local government. Each state's lands bureau sets fees; we did not find official fee schedules for this article. See title checks in Lagos, Abuja and Port Harcourt.
A worked example
Example only. Values, rates and the gain are invented. Ada in Atlanta gives her brother Emeka a plot in Enugu in 2026. She bought it in 2018 for ₦3,000,000; a valuer puts it at ₦45,000,000 now.
| Question | Answer in this example |
|---|---|
| Value in dollars at an example ₦1,500 | US$30,000 |
| Above the US$19,000 annual exclusion? | Yes, by US$11,000 |
| US Form 709 due? | Yes, by 15 April 2027 |
| US gift tax payable? | No; US$11,000 of her lifetime exclusion is used |
| Nigerian gain (market value minus cost) | ₦42,000,000, subject to allowable costs |
| Nigerian consent | Needed for the deed of gift |
Check: 45,000,000 ÷ 1,500 = 30,000; 30,000 − 19,000 = 11,000; 45,000,000 − 3,000,000 = 42,000,000.
What to check first
- Get a valuation and keep your original purchase documents for the Nigerian cost figure.
- Confirm the title type and the state's consent process before drafting the deed.
- Ask a Nigerian tax practitioner how capital gains tax will be assessed and paid.
- Diary Form 709 for 15 April of the following year.
- If you are giving to several siblings, remember the annual exclusion is per person.
For gifts of cash rather than land, see gift tax rules for large sums sent to Nigeria.
Where Pryme fits
Consent fees, valuation and legal costs are paid in naira, often to several offices over months. A Pryme account lets you hold naira and pay Nigerian bank accounts from the US (Send), and keep receipts that can be verified through VerifyDoc.ai (receipts and statements), which helps when you later need to prove costs.
Questions people ask
Do I pay US gift tax if I give my brother land in Nigeria?
Usually not. You file Form 709 if the value exceeds US$19,000 (2026), and the excess uses part of your US$15 million lifetime exclusion.
Is gifting land a taxable event in Nigeria?
Under the Nigeria Tax Act 2025, published analysis says a gift is a disposal at market value, so capital gains tax may arise on the gain.
Do I need Governor's consent to gift land?
For a statutory right of occupancy, yes. The Land Use Act requires consent before any alienation, and a transfer without it is void.
Does my sibling in Nigeria file anything with the IRS?
No, not as a non-US person receiving a gift from you.
Sources
- IRS: Instructions for Form 709 (2025) · accessed Oct 2026
- IRS: Frequently asked questions on gift taxes (reviewed 23 Jul 2026) · accessed Oct 2026
- IRS Publication 551 (Rev. December 2025), Basis of assets · accessed Oct 2026
- Bloomberg Tax: New Nigeria tax law redefines capital gains tax for individuals (2 Feb 2026) · accessed Oct 2026
- PLAC: Land Use Act (Laws of the Federation of Nigeria) · 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.