Buying and owning property in Lagos (Nigeria) as a foreigner

Authored by the expert who managed and guided the team behind the Nigeria Property Pack

Yes, the analysis of Lagos' property market is included in our pack

Who is the author of this content?

THE AFRICANVESTOR

A team specialized in real estate investing in African countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Lagos. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The AfricanVestor, we explore the Nigerian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lagos, Abuja, and Port Harcourt. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy and own property in Lagos, or are there restrictions compared to Nigerian citizens?

Foreigners can legally purchase property in Lagos, but they acquire leasehold rights rather than freehold ownership.

The Land Use Act governs all property transactions in Nigeria, requiring foreigners to obtain long-term leases typically lasting 25 years. This applies to both residential and commercial properties across Lagos State. Nigerian citizens follow the same legal framework, with the key difference being that foreigners cannot hold customary land rights in rural areas.

All property transactions, regardless of buyer nationality, require Governor's Consent from Lagos State government. This mandatory approval process ensures proper documentation and prevents fraudulent sales. The consent fee is approximately 1.5% of the property value in Lagos State.

Foreign buyers face identical legal procedures as Nigerian citizens when purchasing property. The main restriction involves land ownership structure—foreigners cannot acquire permanent freehold titles but can renew leasehold agreements upon expiration.

It's something we develop in our Nigeria property pack.

What residency or visa status is required for a foreigner to purchase or hold property in Nigeria?

No specific residency status or long-term visa is required for foreigners to purchase property in Nigeria.

Tourist visas and business visas provide sufficient legal status to buy property in Lagos. However, obtaining a resident permit or investment visa can simplify the process, especially for buyers planning to live in Nigeria long-term. These visas offer easier access to banking services and local documentation requirements.

Property ownership does not confer residency rights or citizenship in Nigeria. Foreign buyers must maintain valid visa status through separate immigration channels regardless of their property investments. The Nigerian government does not offer investor visas specifically tied to real estate purchases.

Some banks prefer working with foreigners who hold resident permits when processing large transactions. Investment visas can also facilitate opening local bank accounts, which streamlines property purchase payments and ongoing management.

Do you need to be physically present in Lagos to complete a property purchase, or can it be done remotely?

Property purchases in Lagos can be completed entirely remotely through Power of Attorney arrangements with local legal representatives.

Many foreign buyers successfully purchase Lagos properties without visiting Nigeria by engaging qualified local lawyers. The Power of Attorney document must be properly notarized in the buyer's home country and authenticated by the Nigerian embassy or consulate. This legal instrument authorizes the local representative to sign documents, make payments, and complete all transaction steps.

Virtual property inspections, video tours, and remote due diligence have become standard practice. Professional property management companies and real estate agents provide detailed documentation, photographs, and virtual walkthroughs. Independent surveyors can conduct property inspections and provide reports directly to foreign buyers.

All required documents can be reviewed and signed remotely, including purchase agreements, title transfers, and registration paperwork. Bank transfers for property payments are processed internationally, with proper documentation for foreign exchange compliance. The entire process typically takes 3-6 months when handled by experienced legal representatives.

What are the exact steps involved in buying property as a foreigner, and which documents are required at each stage?

Step	Action Required	Documents Needed
1. Property Search	Identify suitable property through agents/platforms	Valid passport, proof of funds
2. Due Diligence	Title search, land registry verification	Certificate of Occupancy, survey plans
3. Legal Representation	Engage qualified Nigerian lawyer	Power of Attorney (if remote)
4. Purchase Agreement	Execute Deed of Assignment	Sales agreement, deposit payment proof
5. Governor's Consent	Submit application with required fees	Consent application, tax clearance
6. Final Payment	Complete balance payment	Bank transfer confirmations
7. Registration	Register with Lagos Land Registry	Deed of Assignment, consent certificate

Is it mandatory to hire a lawyer for property transactions, and what role do they typically play?

While not legally mandatory, hiring a qualified lawyer is strongly recommended and considered essential for safe property transactions in Lagos.

Lawyers conduct comprehensive due diligence including title verification, checking for encumbrances, and confirming the seller's legitimate ownership. They verify Certificate of Occupancy authenticity, search for any government acquisition plans, and ensure the property has no pending legal disputes. This process protects buyers from common fraudulent schemes and forged documentation.

Legal representatives handle all documentation preparation including purchase agreements, Deed of Assignment, and Governor's Consent applications. They coordinate with the Lagos State Land Registry and ensure proper filing procedures. Lawyers also manage escrow arrangements and oversee secure payment transfers to minimize financial risks.

Professional legal fees typically range around 5% of the property purchase price in Lagos. This investment provides crucial protection against title defects, fraud, and regulatory compliance issues that could result in total financial loss.

It's something we develop in our Nigeria property pack.

What are the taxes, fees, and additional costs that apply to foreigners when buying and later reselling property?

Foreign buyers face the same tax rates as Nigerian citizens, with total purchase costs typically adding 12-20% to the property price.

Purchase costs include real estate agent fees (5-10% of property price), legal fees (approximately 5%), stamp duty (1-1.5%), and registration fees (0.5-2%). Governor's Consent costs about 1.5% of property value in Lagos State. Survey fees range from ₦50,000 to ₦17 million depending on property location and size.

Ongoing costs include annual Land Use Charge of approximately 0.394% of property value in Lagos State. This property tax is payable yearly regardless of occupancy status. Property management fees for rental properties typically cost 10-15% of rental income.

Resale involves capital gains tax of 10% on profits plus agent commissions of 5-10%. Proper documentation of original purchase price and improvement costs helps minimize tax obligations. All taxes apply equally to foreign and domestic property owners.

Are mortgages available to foreigners in Nigeria, and if so, what interest rates, terms, and conditions usually apply?

Mortgage financing for foreigners in Nigeria is extremely limited, with most banks requiring resident status or local company registration.

Available mortgage terms for qualified foreigners include interest rates of 15-25% annually, loan-to-value ratios typically capped at 60-70%, and repayment periods of 5-15 years. These conditions reflect Nigeria's high-interest rate environment and banks' risk assessment of foreign borrowers. Down payments of 30-40% are standard requirements.

Foreign buyers with Nigerian resident permits or established local businesses have better access to mortgage products. Some international banks operating in Nigeria may offer more favorable terms to their existing customers. However, most foreign property purchases in Lagos are completed through cash transactions.

Alternative financing options include developer payment plans, where buyers pay in installments during construction phases. Some luxury developments offer structured payment arrangements extending over 12-24 months without traditional mortgage requirements.

Which areas of Lagos are most popular among foreigners for living, investing, or renting out, and why?

Ikoyi and Victoria Island remain the most sought-after locations for foreign residents and investors due to their premium infrastructure and expatriate communities.

1. **Ikoyi**: Nigeria's most expensive residential area, featuring luxury apartments, diplomatic residences, and high-end amenities. Popular among senior executives and diplomats.2. **Victoria Island**: Commercial and residential hub with modern office buildings, shopping centers, and upscale housing. Attracts multinational company employees.3. **Lekki Phase 1**: Rapidly developing area popular with young professionals, offering good rental yields and modern infrastructure including the Lekki-Ikoyi Link Bridge.4. **Eko Atlantic City**: New waterfront development designed as Africa's Manhattan, attracting international businesses and luxury residential projects.5. **Banana Island**: Ultra-luxury enclave in Ikoyi, featuring waterfront properties and exclusive amenities for high-net-worth individuals.

These areas offer reliable electricity, good road networks, proximity to international schools, and established expatriate communities. Security levels are generally higher compared to other Lagos neighborhoods, making them preferred choices for foreign families.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Nigeria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Where in Lagos currently offers the best prospects for rental yields, tourism-driven demand, or long-term capital appreciation?

Lekki Phase 1 and Victoria Island currently offer the strongest rental yields of 8-12% annually, driven by consistent demand from corporate tenants and expatriates.

Tourism-driven short-term rental demand is concentrated in Victoria Island and Lekki, where international business travelers prefer furnished apartments near commercial districts. These areas benefit from proximity to Murtala Muhammed International Airport and major business centers. Airbnb and short-let operators report occupancy rates of 70-85% in premium locations.

Long-term capital appreciation prospects are strongest in emerging areas like Epe, Ibeju-Lekki, and Ajah due to major infrastructure developments. The Lekki Free Trade Zone, Dangote Refinery, and new Lekki Airport are driving property values upward. These areas show potential for 15-25% annual capital growth over the next 5-10 years.

Established premium areas like Ikoyi continue appreciating at 8-12% annually, offering more stable but lower growth rates. The combination of limited land availability and ongoing gentrification supports steady price increases in these mature markets.

It's something we develop in our Nigeria property pack.

What are the latest property prices across Lagos neighborhoods and other major Nigerian cities, broken down by region and property type?

Location	2-3 Bedroom Apartment	4-5 Bedroom House
Ikoyi	$400,000 - $1,500,000+	$1,200,000 - $5,000,000+
Victoria Island	$300,000 - $900,000	$900,000 - $3,000,000
Lekki Phase 1	$200,000 - $500,000	$500,000 - $1,200,000
Yaba/Surulere	$110,000 - $250,000	$350,000 - $650,000
Mainland Suburbs	$60,000 - $180,000	$200,000 - $500,000
Abuja (Prime Areas)	$180,000 - $800,000	$250,000 - $2,000,000
Port Harcourt	$85,000 - $400,000	$100,000 - $900,000

What common mistakes or pitfalls do foreigners face when buying property in Lagos, and how can they be avoided?

The most costly mistake involves purchasing properties without proper title verification or Governor's Consent, leading to complete financial loss.

1. **Inadequate Due Diligence**: Buying without verifying Certificate of Occupancy authenticity or checking for encumbrances. Always engage qualified lawyers for comprehensive title searches.2. **Fraudulent Documentation**: Accepting fake C of O documents or forged ownership papers. Verify all documents directly with Lagos State Land Registry.3. **Family/Communal Land Disputes**: Purchasing properties with unresolved inheritance or community ownership conflicts. Investigate land history thoroughly before commitment.4. **Skipping Legal Representation**: Attempting to save costs by avoiding professional legal services. This often results in losses far exceeding legal fees.5. **Untraceable Payments**: Making cash payments or transfers without proper documentation. Use official banking channels with complete transaction records for fund repatriation purposes.

Prevention strategies include engaging experienced local lawyers, conducting independent property surveys, verifying seller credentials through multiple sources, and maintaining detailed payment documentation. Never rush transactions or bypass proper legal procedures regardless of pressure from sellers or agents.

What are the fiscal implications of owning property as a foreigner, including rental income taxation and rules for repatriating profits abroad?

Foreign property owners face 10% withholding tax on rental income and 10% capital gains tax on property sale profits, with profits repatriable through official banking channels.

Rental income tax is deducted at source by tenants or property management companies and remitted quarterly to the Federal Inland Revenue Service. Property owners must file annual tax returns declaring all rental income. Expenses like property management fees, maintenance costs, and depreciation can be offset against rental income for tax calculation purposes.

Capital gains tax applies when selling properties, calculated on the difference between purchase price and sale price. Improvement costs and transaction fees can be deducted from gains to reduce tax liability. Documentation of original purchase price and all property-related expenses is crucial for accurate tax computation.

Profit repatriation requires proper documentation of fund inflow when originally purchasing the property. Banks require evidence that purchase funds entered Nigeria through official channels. Repatriation applications must include property sale documentation, tax payment certificates, and original fund inflow evidence. The Central Bank of Nigeria processes legitimate repatriation requests within established foreign exchange regulations.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. The African Vestor - Nigeria Real Estate for Foreigners
2. Vala Homes - Foreigner Property Ownership Lagos
3. The African Vestor - Invest Nigeria Real Estate
4. Trusted Advisors Law - Real Estate Acquisition by Foreigners
5. Propsult - Property Ownership for Foreigners Nigeria
6. The African Vestor - Foreigners Own Land Nigeria
7. Mondaq - Procedure for Buying Property Lagos Nigeria
8. African Land - Property Ownership Rules Foreigners Nigeria