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The short answer
A company tenant in Nigeria deducts 10% withholding tax (WHT) from the rent it pays you and remits it to the tax authority, under the Deduction of Tax at Source Regulations that took effect on 1 July 2024. It must give you a receipt showing the amount deducted, and that receipt lets you count the tax against what you owe on the rent, even if the tenant failed to remit it. Keep it: it is also the document a foreign tax office will want before giving you credit abroad.
How the deduction works
Nigeria's withholding tax regulations of 2024, effective 1 July 2024, require payers other than individuals to deduct tax at source from certain payments, rent included. PwC's withholding tax table lists rent, hire and lease at 10% for resident and non-resident recipients, corporate and non-corporate alike. So if a bank, an oil services firm or an embassy-linked company rents your flat in Lekki or your duplex in Wuse, expect it to pay you 90% and send 10% to the tax authority. Payers file and remit by the 21st of the following month.
A private individual renting your property is not required to deduct, so a family tenant normally pays the full rent.
Small company tenants
Mondaq's overview of the regulations notes an exemption for small companies with turnover under ₦25 million: they need not deduct where the recipient has a Tax ID and the transaction is ₦2 million or less in the month. A small business tenant paying modest monthly rent may therefore pay gross.
The receipt you should get
The payer, not the tax authority, issues the receipt. Under the regulations it shows:
- name, address and Tax ID of the payer and of you as recipient;
- the nature of the transaction (rent);
- the gross amount;
- the tax deducted;
- the month of the deduction.
Give your Tax ID to the tenant before the first payment, so the deduction is matched to you. Ask for a receipt every time rent is paid, not at the end of the lease. PwC also recommends that receipts carry the payment reference number of the remittance, which makes matching easier.
Using the credit in Nigeria
Withholding tax on rent is a payment on account: you declare the gross rent on your Nigerian return, compute the tax, then deduct what was withheld. The regulations say the recipient can claim the credit even if the payer did not remit the tax; a payer that issues receipts without remitting is itself liable, with interest and penalties.
Whether the 10% is a final tax for a non-resident individual landlord is not settled in the official sources we checked. PwC's summary describes withholding as final only for non-resident companies receiving technical, consultancy, professional or management fees, and says nothing about rent. Until NRS publishes guidance, treat it as a credit and file a return. See whether you must file in Nigeria and which office handles your rent.
Worked example
Example only. A company rents Kemi's Ikoyi flat for ₦12,000,000 a year, paid upfront.
| Item | Amount |
|---|---|
| Gross rent | ₦12,000,000 |
| WHT at 10% | ₦1,200,000 |
| Paid to Kemi | ₦10,800,000 |
| Nigerian tax on the rent (illustrative) | ₦1,500,000 |
| Less WHT credit | ₦1,200,000 |
| Balance to pay in Nigeria | ₦300,000 |
If her illustrative Nigerian tax had been ₦900,000 instead, the ₦1,200,000 withheld would exceed it by ₦300,000, a refund claim to pursue with the authority. Abroad, Kemi declares ₦12,000,000 gross rent, not ₦10,800,000, and claims credit for the Nigerian tax actually borne, supported by the receipts. See documents for a foreign tax credit.
If the tenant will not give a receipt
- Write to the tenant's finance team quoting the months and amounts deducted and ask for the receipts the regulations require.
- Check whether the deduction shows against your Tax ID on the tax portal.
- Keep your lease, bank credits and the correspondence; they show 10% was held back.
- Before renewing, put the receipt obligation and your Tax ID in the lease.
Common points of friction
Rent paid years in advance
Nigerian leases are often paid one or two years upfront. The tenant deducts on the payment, so the full 10% on two years' rent is withheld at once. Ask for the receipt at that point, and note on your own records which years the rent covers, because your tax office abroad may tax rent by the period it relates to rather than the date it was paid.
Service charge and other sums
If the tenant pays you service charge, a caution deposit or reimbursements together with the rent, ask the tenant to show them separately on the payment advice. A deposit you must later return is not rent, and a clear split avoids tax being withheld on money that is not your income.
No Tax ID
PwC notes that recipients without a Tax ID can face twice the normal rate on some payments, though it describes that rule as not applying to passive income such as rent. Either way, a deduction recorded without your Tax ID is hard to claim, so register before the lease starts; see records to keep.
Where Pryme fits
Company tenants can pay rent to your naira account details on a Pryme multicurrency account, so the net rent lands with a clear reference you can match to each WHT receipt. When you issue the tenant a receipt for the gross rent, a verifiable receipt through VerifyDoc.ai means both sides hold a record anyone can check. If you later move the money abroad, see repatriating rent.
Questions people ask
How much withholding tax is deducted from rent in Nigeria?
10% for rent, hire and lease, according to PwC's summary of the 2024 regulations, whether the landlord is resident or non-resident.
Does my individual tenant have to deduct WHT?
No. The 2024 regulations require payers other than individuals to deduct, so a private individual tenant normally pays the full rent.
Can I claim the WHT if the company did not remit it?
Yes. The regulations let the recipient claim the credit even where the payer failed to remit; the payer is then liable.
Is WHT on rent a final tax for landlords abroad?
Official sources do not confirm that. Treat it as a credit, file a Nigerian return and use the receipts.
Sources
- Mondaq: An overview of the Nigerian withholding tax regulations of 2024 · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, withholding taxes (reviewed 29 May 2026) · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction of Tax at Source Regulations 2024 · 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.