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
Buying property in Lagos as a foreigner comes with extra costs that can catch you off guard if you don't plan ahead.
We constantly update this blog post to reflect the latest taxes, fees, and hidden costs you should expect when purchasing residential real estate in Lagos in 2026.
This guide breaks down everything from stamp duty and legal fees to the often-overlooked title perfection costs that are unique to Nigerian property transactions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Lagos.
Overall, how much extra should I budget on top of the purchase price in Lagos in 2026?
How much are total buyer closing costs in Lagos in 2026?
As of early 2026, the total buyer closing costs in Lagos typically range from 8% to 15% of the purchase price, which means on a 100 million naira property (around $60,000 USD or 55,000 EUR), you should expect to pay an extra 8 to 15 million naira ($4,800 to $9,000 USD or 4,400 to 8,250 EUR) to close the deal safely.
If you keep expenses to the bare minimum with a very clean title and tight fee negotiations, you might get away with as little as 5% to 8% extra, which translates to roughly 5 to 8 million naira ($3,000 to $4,800 USD or 2,750 to 4,400 EUR) on a 100 million naira Lagos property.
On the other hand, if you're dealing with complex title issues or need extensive legal work, you should realistically plan for 15% to 20% extra, meaning up to 20 million naira ($12,000 USD or 11,000 EUR) on that same 100 million naira property in Lagos.
The main factors that push your Lagos closing costs to the high end include the title type (whether it's already a clean Certificate of Occupancy or requires Governor's Consent), whether you're buying from a developer or a private seller, and how much legal back-and-forth is needed to resolve encumbrances or missing documents.
What's the usual total % of fees and taxes over the purchase price in Lagos?
The usual total percentage of fees and taxes when buying property in Lagos in 2026 sits around 10% to 15% of the property price, making it one of the more expensive markets in West Africa for transaction costs.
Most standard Lagos property transactions fall within a realistic range of 8% to 15%, depending on how smooth the paperwork process goes and which professionals you hire.
Of that total percentage in Lagos, roughly 4% to 8% goes toward government-related transfer and perfection costs like stamp duty, registration, and Governor's Consent fees, while the remaining 2% to 7% covers professional services including lawyers, due diligence, and administrative work.
By the way, you will find much more detailed data in our property pack covering the real estate market in Lagos.
What costs are always mandatory when buying in Lagos in 2026?
As of early 2026, the mandatory costs when buying property in Lagos include legal fees for a conveyancing lawyer, due diligence searches at the land registry, deed stamping through official stamp duty channels, registration and filing costs, and typically the Governor's Consent process which is required under Nigerian law for most statutory land transfers.
While not legally required, highly recommended optional costs in Lagos include an independent property valuation report, survey verification with beacon confirmation to prevent boundary disputes, a professional snag inspection for new builds, and tax advisor review if you plan to rent the property out or purchase through a company structure.
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What taxes do I pay when buying a property in Lagos in 2026?
What is the property transfer tax rate in Lagos in 2026?
As of early 2026, Lagos does not have a single "property transfer tax" rate, but instead buyers face a bundle of charges including Governor's Consent fees, stamp duty, and registration fees that together typically add 4% to 8% to the purchase price.
There is no official foreigner surcharge or extra transfer tax rate for foreign buyers in Lagos, though foreigners often pay more in practice because of additional documentation requirements, certified true copies, notarization, and embassy legalization workflows.
VAT on residential property purchases in Lagos is not a universal buyer closing cost, but it can appear in developer or new-build transactions where it may be bundled into the commercial pricing structure.
Stamp duty in Lagos is paid when your deed or instrument is being stamped as part of completing the transaction, and it is administered through official channels like the Federal Inland Revenue Service portal with rates determined by the Lagos State Internal Revenue Service schedule.
Are there tax exemptions or reduced rates for first-time buyers in Lagos?
In early 2026, there are no established first-time buyer discounts or tax exemptions in Lagos like you might find in the UK or other countries, so you should not assume any automatic savings on stamp duty or transfer costs.
If you buy property through a company in Lagos instead of as an individual, the stamp duty process and compliance requirements change, with corporate documentation, Know Your Customer checks, and potentially higher legal and accounting costs involved.
There can be a tax difference between new-build and resale properties in Lagos, with new-build purchases from developers sometimes including bundled admin fees or VAT-like pricing structures, while resale transactions focus more on title perfection and history verification.
Since Lagos does not currently offer first-time buyer exemptions, the best way to reduce costs is by choosing properties with already-clean titles, negotiating fee responsibilities with the seller, and keeping your legal process efficient.
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.
Which professional fees will I pay as a buyer in Lagos in 2026?
How much does a notary or conveyancing lawyer cost in Lagos in 2026?
As of early 2026, conveyancing lawyer fees in Lagos typically range from 2% to 5% of the purchase price, meaning on a 100 million naira property you should budget 2 to 5 million naira ($1,200 to $3,000 USD or 1,100 to 2,750 EUR) for legal services.
Lawyer fees in Lagos are usually charged as a percentage of the property price rather than a flat rate, though the final amount is negotiable and can vary based on deal complexity and the lawyer's experience level.
Translation or interpreter services for foreign buyers in Lagos typically cost between 50,000 to 250,000 naira ($30 to $150 USD or 28 to 138 EUR) depending on the language, document length, and whether you need certified translations.
A tax advisor in Lagos is not mandatory but smart if you plan to rent the property or buy through a company, with typical costs ranging from 200,000 to 1 million naira ($120 to $600 USD or 110 to 550 EUR) depending on complexity.
We have a whole part dedicated to these topics in our our real estate pack about Lagos.
What's the typical real estate agent fee in Lagos in 2026?
As of early 2026, real estate agent fees in Lagos commonly sit around 5% of the purchase price, which means on a 100 million naira property you might pay 5 million naira ($3,000 USD or 2,750 EUR) in agency commissions.
In Lagos, buyers often end up paying something to agents even if the seller also pays, because transactions frequently involve the seller's agent, the buyer's sourcing agent, and sometimes introducers who all expect compensation.
The realistic range for agent fees in Lagos runs from about 3% to 10% of the property price, depending on the property segment, how many intermediaries are involved, and your negotiating leverage.
How much do legal checks cost (title, liens, permits) in Lagos?
Legal checks including title searches, liens verification, and permits review in Lagos typically cost between 100,000 to 500,000 naira ($60 to $300 USD or 55 to 275 EUR), depending on how many searches are needed and how many agencies are involved in verifying the property's history.
Property valuation fees in Lagos generally range from 150,000 to 500,000 naira ($90 to $300 USD or 83 to 275 EUR) for a typical residential property, with costs varying based on property size, location, and the valuer's qualifications.
The most critical legal check you should never skip in Lagos is the title search and Governor's Consent verification, because many Lagos properties have complex ownership histories, disputed boundaries, or incomplete perfection that can lead to serious problems after purchase.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Lagos.
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What hidden or surprise costs should I watch for in Lagos right now?
What are the most common unexpected fees buyers discover in Lagos?
The most common unexpected fees buyers discover in Lagos include multiple title perfection line-items beyond just stamp duty (like consent fees, registration charges, chart fees, and admin costs), survey or beacon revalidation expenses when boundaries are unclear, informal processing pressure from intermediaries, and upfront developer service charges in gated estates like Lekki, Ikoyi, or Victoria Island.
Yes, you could inherit unpaid property taxes in Lagos, especially the Land Use Charge which is an official recurring Lagos State levy that previous owners may have failed to pay, so you should always verify payment history before closing.
Scams with fake listings and fake fees are a known risk in Lagos, including fake allocation letters, fake agents demanding never-ending inspection fees, and fraudulent sellers, so you should always work with a verified lawyer and conduct thorough due diligence before paying any money.
Fees usually not disclosed upfront in Lagos include consent and perfection sub-fees, estate levies or deed of covenant requirements in gated communities, utility connection charges, and infrastructure contribution demands from developers or estate management.
In our property pack covering the property buying process in Lagos, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Lagos?
If you buy a property with an existing tenant in Lagos, you may face extra costs including legal review of the tenancy agreement, potential deposit or rent disputes to settle, negotiation fees for vacant possession, and handover costs for keys, inventory, and minor repairs, which together could add 50,000 to 300,000 naira ($30 to $180 USD or 28 to 165 EUR) or more.
When you purchase a tenanted property in Lagos, you typically inherit the existing tenancy agreement and must honor its terms until it expires, including respecting the tenant's right to remain and maintaining the property according to the lease.
Terminating an existing lease immediately after purchase in Lagos is generally not possible unless the lease has expired or contains specific break clauses, so you should factor the remaining lease term into your buying decision.
A sitting tenant in Lagos can affect property value in both directions: it may reduce the price because some buyers want vacant possession, but it can also strengthen your negotiating position if you're an investor seeking immediate rental income.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Lagos.
We have made this infographic to give you a quick and clear snapshot of the property market in Nigeria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Lagos?
Which closing costs are negotiable in Lagos right now?
The closing costs that are negotiable in Lagos include agent fees, some legal fees, who pays for specific searches and due diligence, minor administrative charges, and the transaction timeline which indirectly affects your costs.
Costs that are fixed by law or regulation in Lagos and cannot be negotiated include stamp duty rates, core government filing charges at the land registry, and mandatory documentation steps required for title perfection.
On negotiable fees in Lagos, buyers can realistically achieve a discount of 10% to 30% on items like agent commissions and professional services, especially if you're paying cash, moving quickly, or dealing with a seller who needs to close urgently.
Can I ask the seller to cover some closing costs in Lagos?
In Lagos, there is a moderate likelihood that sellers will agree to cover some closing costs, particularly if the property has title weaknesses, has been on the market for a long time, or if you're offering a quick cash transaction.
The specific closing costs sellers in Lagos are most commonly willing to cover include certain title perfection charges, outstanding Land Use Charge arrears, and sometimes a portion of legal or survey fees, especially if their property has complications they want to move quickly.
Sellers in Lagos are more likely to accept covering closing costs when the market favors buyers, when their property has been listed for an extended period, when there are title issues they need resolved, or when you offer a fast, hassle-free cash purchase.
Is price bargaining common in Lagos in 2026?
As of early 2026, price bargaining is very common and expected in Lagos real estate transactions, with most sellers anticipating negotiation and pricing their properties accordingly.
Buyers in Lagos typically negotiate between 5% to 15% below the asking price, which on a 100 million naira property means potential savings of 5 to 15 million naira ($3,000 to $9,000 USD or 2,750 to 8,250 EUR), depending on the property segment, seller motivation, and how long the property has been on the market.
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What monthly, quarterly or annual costs will I pay as an owner in Lagos?
What's the realistic monthly owner budget in Lagos right now?
The realistic monthly owner budget for a residential property in Lagos in 2026 ranges from about 50,000 to 300,000 naira ($30 to $180 USD or 28 to 165 EUR) depending on your property type and location, excluding any mortgage payments.
The main recurring expense categories in Lagos include estate service charges covering security and shared facilities, generator fuel and maintenance for power backup, water supply costs, general maintenance and repairs, and insurance if you choose to have it.
Monthly owner costs in Lagos can range from as low as 50,000 naira ($30 USD or 28 EUR) for a basic standalone house in an unserviced area, to over 500,000 naira ($300 USD or 275 EUR) for a premium serviced apartment in high-end estates like Banana Island or Eko Atlantic.
The monthly cost that varies the most in Lagos is estate service charges, because serviced estates in areas like Lekki Phase 1 or Victoria Island can charge substantial fees for 24/7 security, power supply, road maintenance, and shared amenities that simply don't exist in less developed neighborhoods.
You can see how this budget affect your gross and rental yields in Lagos here.
What is the annual property tax amount in Lagos in 2026?
As of early 2026, the main annual property tax in Lagos is the Land Use Charge, which typically ranges from about 0.05% to 0.5% of your property's assessed value annually, meaning a 100 million naira property might owe between 50,000 to 500,000 naira ($30 to $300 USD or 28 to 275 EUR) per year.
The realistic range for annual Land Use Charge in Lagos varies significantly, with modest properties in less prime areas paying as little as 20,000 to 50,000 naira ($12 to $30 USD or 11 to 28 EUR), while premium properties in Ikoyi or Victoria Island can face charges of 500,000 naira ($300 USD or 275 EUR) or more.
The Land Use Charge in Lagos is calculated based on a formula that considers the neighborhood rate, the assessed land value, the building depreciation allowance, and the property's overall size and use category.
Some exemptions or reductions for Land Use Charge in Lagos may be available for certain property types or owner categories, but these are not consistently applied, so you should not assume automatic relief and should check your specific situation with the Lagos State tax office.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Nigeria. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Lagos in 2026?
What tax rate applies to rental income in Lagos in 2026?
As of early 2026, rental income in Lagos is subject to Nigerian personal income tax, which follows a progressive rate structure that can reach up to 24% for higher income brackets, meaning you should plan for a meaningful portion of your rental profit going to tax and compliance costs.
Landlords in Lagos can typically deduct expenses from rental income taxes, including costs for repairs, agent fees, maintenance, insurance, and property management, though proper documentation and receipts are essential for claiming these deductions.
After accounting for allowable deductions, the realistic effective tax rate for typical Lagos landlords tends to fall in the 10% to 20% range on net rental income, depending on your total income level and how well you document your expenses.
Foreign property owners in Lagos are generally subject to the same income tax rates as residents on Nigerian-sourced rental income, though they may face additional compliance requirements and should consider potential tax treaty implications with their home country.
Do I pay tax on short-term rentals in Lagos in 2026?
As of early 2026, short-term rental income in Lagos is taxable just like long-term rental income, and depending on your operation's scale and structure, you may also face additional compliance requirements similar to hospitality businesses.
Short-term rental income in Lagos is not officially taxed at a different rate than long-term rentals, but the higher operational costs, more frequent turnover, and potential tourism-related obligations can make your effective tax and compliance burden heavier.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Lagos.
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If I sell later, what taxes and fees will I pay in Lagos in 2026?
What's the total cost of selling as a % of price in Lagos in 2026?
As of early 2026, the total cost of selling a property in Lagos typically ranges from 5% to 12% of the sale price, covering all the expenses you'll face from listing to closing.
The realistic low-to-high percentage range for total selling costs in Lagos spans from about 5% for a straightforward sale to 12% or more when dealing with complex transactions, difficult title histories, or premium agent services.
The specific cost categories that make up total Lagos selling expenses include agent commission (often 5%), legal fees for transfer documentation, capital gains tax on any profit, and miscellaneous administrative charges for perfecting the transfer to the buyer.
The single largest contributor to selling expenses in Lagos is usually the real estate agent commission, which commonly takes around 5% of the sale price, though this fee is negotiable depending on the property value and your relationship with the agent.
What capital gains tax applies when selling in Lagos in 2026?
As of early 2026, the capital gains tax rate when selling property in Lagos is 10% of the chargeable gain, which is the profit you make calculated as the sale price minus your original purchase price and allowable costs.
Exemptions to capital gains tax in Nigeria may apply in certain situations, though primary residence relief and holding period exemptions are not as clearly established as in some other countries, so you should consult a tax advisor for your specific circumstances.
Foreigners selling property in Lagos do not face an official additional capital gains tax surcharge, but they often encounter higher compliance costs, more scrutiny from buyers and banks, and extra legal work that increases their overall transaction expenses.
The capital gain in Lagos is generally calculated as the sale price minus your original purchase price, with potential adjustments for documented improvement costs, though inflation indexing is not a standard feature of Nigerian capital gains tax calculations.
We made this infographic to show you how property prices in Nigeria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Lagos, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Lagos State Land Use Charge Portal | Official Lagos State government platform for property charges. | We confirmed Land Use Charge exists as a consolidated Lagos property levy. We used it as the baseline reference for annual ownership costs in Lagos. |
| Federal Inland Revenue Service Stamp Duty Portal | Official federal portal for stamp duty payment in Nigeria. | We confirmed stamp duty payments are routed through official channels. We used it to verify that stamp duty is a real, formal cost in Lagos transactions. |
| Lagos State Internal Revenue Service Stamp Duty Schedule | Direct LIRS government document listing stamp duty rates. | We anchored the fact that Lagos has a formal stamp duty rate schedule. We used it to support stamp duty as a predictable, budgetable cost line. |
| Nigeria Land Use Act 1978 | Primary legislation underpinning land ownership across Nigeria. | We confirmed Governor's Consent is a legal requirement for land transfers. We used it to explain why title perfection costs exist in Lagos. |
| KPMG Nigeria Capital Gains Tax Clarification | Top-tier global tax firm providing technical Nigeria tax guidance. | We confirmed the 10% CGT framework and how gains are calculated. We used it as a benchmark for resale tax expectations in Lagos. |
| Nigerian Bar Association Remuneration Order 2023 | Official NBA guidance on lawyer fee structures in Nigeria. | We used it as a credibility anchor for legal fee ranges. We justified why legal fees in Lagos can be percentage-based and vary by deal size. |
| Lagos State Property Tax System Portal | Official Lagos State government portal for managing LUC billing. | We validated that LUC is actively administered via a state portal. We used it to support that owners should plan an annual Lagos-specific charge. |
| Lagos State Land Use Charge Calculator Documentation | Transparent methodology showing how LUC is computed across Lagos. | We verified that LUC varies by location and building parameters. We used it to justify giving ranges rather than single fixed numbers. |
| Pulse Nigeria FIRS Reporting | Major national media outlet relaying official FIRS guidance. | We used it as supporting context that stamp duty rates have been publicly clarified. We treated it as secondary confirmation rather than primary source. |
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