Authored by the expert who managed and guided the team behind the Nigeria Property Pack
Everything you need to know before buying real estate is included in our Nigeria Property Pack
If you are a foreigner looking to buy residential property in Nigeria in 2026, you need to understand the various costs, taxes, and fees that will add to your purchase price.
Nigeria's property market comes with unique requirements, including Governor's Consent fees, stamp duties, and state-specific charges that can significantly impact your total budget.
We constantly update this blog post to reflect the latest changes in Nigerian tax laws and property transaction requirements, including the new Nigeria Tax Act 2025 which took effect on January 1, 2026.
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 Nigeria.
Overall, how much extra should I budget on top of the purchase price in Nigeria in 2026?
How much are total buyer closing costs in Nigeria in 2026?
As of early 2026, the typical total buyer closing costs in Nigeria range from about 8% to 15% of the purchase price, which translates to roughly 4 million to 7.5 million naira (approximately 2,800 to 5,300 USD or 2,600 to 4,900 EUR) on a 50 million naira property.
The minimum extra budget possible for closing costs in Nigeria when keeping expenses to the bare legal minimum is around 4%, or approximately 2 million naira (about 1,400 USD or 1,300 EUR) on a 50 million naira property, but this assumes a perfectly clean title and no complications.
The maximum extra budget buyers should realistically plan for closing costs in Nigeria is around 15%, or approximately 7.5 million naira (about 5,300 USD or 4,900 EUR) on a 50 million naira property, especially if you encounter title issues, outstanding charges, or need extensive legal work.
The main factors that determine whether your closing costs fall at the low end or high end in Nigeria include the state where you are buying (Lagos is typically more expensive than Abuja), the complexity of the title history, whether there are any outstanding land charges or levies attached to the property, and how much professional support you require for due diligence and documentation.
What's the usual total % of fees and taxes over the purchase price in Nigeria?
The usual total percentage of fees and taxes over the purchase price in Nigeria in 2026 is around 8% for a typical residential transaction, though this can vary significantly by state and property type.
The realistic low-to-high percentage range that covers most standard property transactions in Nigeria is 6% to 12%, with Lagos transactions typically landing at the higher end due to additional state-level fees and more rigorous perfection requirements.
Of that total percentage, roughly 3.5% to 5% typically goes to government taxes and mandatory fees (stamp duty, Governor's Consent, and registration), while the remaining 2% to 5% covers professional service fees such as legal representation, due diligence, valuation, and potential agent costs.
By the way, you will find much more detailed data in our property pack covering the real estate market in Nigeria.
What costs are always mandatory when buying in Nigeria in 2026?
As of early 2026, the mandatory costs when buying property in Nigeria include stamp duty on the transfer deed (around 1.5% of assessed market value), Governor's Consent fee (around 1.5% in Lagos), registration fee (around 0.5%), and basic document preparation for the deed of assignment and related forms.
The optional but highly recommended costs for buyers in Nigeria include independent legal due diligence (to verify title, check for liens, and confirm seller capacity), a professional property valuation (especially if you are financing or want a price sanity check), survey verification or boundary confirmation, and translation services if you are a foreign buyer unfamiliar with local documentation.
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What taxes do I pay when buying a property in Nigeria in 2026?
What is the property transfer tax rate in Nigeria in 2026?
As of early 2026, Nigeria does not have a single flat "property transfer tax" rate, but the combined transfer tax stack for buyers typically totals around 3.5% in Lagos, consisting of stamp duty (around 1.5%), Governor's Consent fee (around 1.5%), and registration fee (around 0.5%).
There are usually no extra transfer taxes specifically for foreigners buying property in Nigeria, as the same statutory rates apply regardless of nationality, though foreigners may face additional documentation and verification requirements that add to their professional service costs.
Buyers generally do not pay VAT on the transfer of interest in land itself for residential property purchases in Nigeria, as land transfers are exempt from VAT under the Finance Act changes, but you may still pay VAT on professional services like legal fees or agency commissions.
Stamp duty in Nigeria is typically paid at or around the time of registration of the transfer deed, and it is calculated as a percentage of the assessed market value of the property, with penalties applying if documents are not stamped within the required timeframe.
Are there tax exemptions or reduced rates for first-time buyers in Nigeria?
As of early 2026, Nigeria does not have a broad nationwide first-time buyer tax exemption or reduced rate for property transfers, so your main opportunities to reduce costs come through negotiation, structuring, or occasional state-level administrative reliefs.
If you buy property through a company instead of as an individual in Nigeria, the stamp duty administration may differ (with FIRS as the competent authority for company instruments), and you may face higher stamp duty rates in some states (1.5% for corporates versus 0.5% for individuals in Lagos), plus additional company setup and maintenance costs.
There is generally no significant tax difference between buying a new-build property versus a resale property in Nigeria, as the same transfer stack (stamp duty, consent, registration) applies, though developer contracts may bundle additional VAT-able services into the purchase price.
Since there is no standard first-time buyer relief in Nigeria, there are no specific documentation requirements to qualify, but buyers should always confirm current state-level policies with a local professional as rules can change.
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 Nigeria in 2026?
How much does a notary or conveyancing lawyer cost in Nigeria in 2026?
As of early 2026, legal fees for a conveyancing lawyer in Nigeria typically range from 0.5% to 1.5% of the purchase price for a straightforward transaction, which translates to roughly 250,000 to 750,000 naira (approximately 175 to 530 USD or 160 to 490 EUR) on a 50 million naira property.
Lawyer fees in Nigeria are usually charged as a percentage of the property price rather than a flat rate, though some lawyers may quote fixed fees for simpler transactions or minimum charges for lower-value properties.
Translation or interpreter services for foreign buyers in Nigeria typically cost between 50,000 and 300,000 naira (approximately 35 to 210 USD or 32 to 195 EUR) depending on the number of documents and whether certified translations are required.
Foreign buyers in Nigeria may benefit from engaging a tax advisor, especially if they plan to rent out the property or have cross-border income considerations, and this typically costs between 150,000 and 1,000,000 naira (approximately 105 to 700 USD or 97 to 650 EUR) depending on complexity.
We have a whole part dedicated to these topics in our our real estate pack about Nigeria.
What's the typical real estate agent fee in Nigeria in 2026?
As of early 2026, the typical real estate agent fee for property sales in Nigeria ranges from 5% to 10% of the purchase price, which translates to roughly 2.5 million to 5 million naira (approximately 1,750 to 3,500 USD or 1,630 to 3,260 EUR) on a 50 million naira property.
In Nigeria, the buyer typically pays the agent fee after paying the seller, though this is negotiable, and in some cases the seller pays their own listing agent while the buyer pays a separate finder or sourcing fee.
The realistic low-to-high range for agent fees in Nigeria is 0% to 10%, with 5% being the standard in Lagos and Abuja for sales, though you may negotiate lower rates for high-value properties or pay nothing if you deal directly with the property owner.
How much do legal checks cost (title, liens, permits) in Nigeria?
Legal checks including title search, liens verification, and permits review in Nigeria typically cost between 50,000 and 300,000 naira (approximately 35 to 210 USD or 32 to 195 EUR) when itemized separately, though these are often bundled into the lawyer's overall fee.
The property valuation fee in Nigeria typically ranges from 0.25% to 1.0% of the property value, which translates to roughly 125,000 to 500,000 naira (approximately 88 to 350 USD or 81 to 325 EUR) on a 50 million naira property, with minimum fees applying to lower-value properties.
The most critical legal check that should never be skipped in Nigeria is the title verification and seller capacity confirmation, as fake titles and unauthorized sellers are common risks that can result in total loss of your investment.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Nigeria.
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What hidden or surprise costs should I watch for in Nigeria right now?
What are the most common unexpected fees buyers discover in Nigeria?
The most common unexpected fees buyers discover in Nigeria include outstanding land charges or levies that must be cleared before registration, additional consent fees if the property was sold within a restricted period under the Certificate of Occupancy, and penalties for late document stamping or registration.
Yes, there are unpaid property taxes or debts a buyer could inherit when purchasing in Nigeria, particularly outstanding Land Use Charges in Lagos or other state-level levies that remain attached to the property record and must be cleared before you can complete registration.
Unfortunately, buyers do get scammed with fake listings and fake fees in Nigeria quite frequently, which is why independent title verification, seller capacity checks, and working with registered estate surveyors and valuers (through NIESV) are essential safeguards.
The fees usually not disclosed upfront by sellers or agents in Nigeria include old unpaid land charges, file reconstruction costs if records are missing at the land registry, and extra notarization or power-of-attorney costs that foreign buyers often require.
In our property pack covering the property buying process in Nigeria, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Nigeria?
If the property has a tenant in Nigeria, extra costs can include legal fees to review or renegotiate the tenancy agreement, potential settlement payments to encourage the tenant to vacate, and time costs while you wait for vacant possession, which could range from 100,000 to 500,000 naira (approximately 70 to 350 USD or 65 to 325 EUR) or more depending on the situation.
When purchasing a tenanted property in Nigeria, the buyer typically inherits the existing tenancy agreement and must honor its terms until expiration, including respecting the tenant's right to occupy and continuing to collect rent under the existing arrangement.
It is generally not possible to terminate an existing lease immediately after purchase in Nigeria, as the buyer steps into the landlord's shoes and must wait until the lease expires or negotiate an early termination with the tenant, which may require compensation.
A sitting tenant in Nigeria can affect the property's market value or negotiating position in both directions: it may reduce the price if the buyer wants vacant possession quickly, but it can also be attractive to investors who want immediate rental income from day one.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Nigeria.
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 Nigeria?
Which closing costs are negotiable in Nigeria right now?
The closing costs that are negotiable in Nigeria include legal fees (you can negotiate the scope and whether it is a percentage or fixed amount), buyer-side agent or finder fees, who pays for valuation, and who clears any outstanding land charges attached to the property.
The closing costs that are fixed by law or regulation and cannot be negotiated in Nigeria include the stamp duty rate (around 1.5%), Governor's Consent fee rate (around 1.5% in Lagos), and registration fee rate (around 0.5%), though the assessed property value used to calculate these can sometimes be disputed.
The typical discount or reduction buyers can realistically achieve on negotiable fees in Nigeria ranges from 10% to 30% depending on the service, with legal fees being the most commonly negotiated item, especially for straightforward transactions or repeat clients.
Can I ask the seller to cover some closing costs in Nigeria?
The likelihood that a seller will agree to cover some closing costs in Nigeria is moderate and depends heavily on market conditions and the seller's motivation, with motivated sellers being more willing to negotiate than those who are not in a hurry.
The specific closing costs sellers are most commonly willing to cover in Nigeria include clearing any outstanding land charges or levies attached to the property, providing a clean title with all documentation in order, and sometimes contributing to legal or documentation costs as part of the negotiated price.
Sellers in Nigeria are more likely to accept covering closing costs when the property has been on the market for a long time, when there are title issues that need resolution, when the buyer is paying cash, or when the general market is slow with more supply than demand.
Is price bargaining common in Nigeria in 2026?
As of early 2026, price bargaining is very common in Nigeria, and buyers routinely negotiate below the asking price, especially when due diligence reveals issues with the title, documentation, or property condition.
Buyers in Nigeria typically negotiate 5% to 15% below the asking price, which translates to roughly 2.5 million to 7.5 million naira (approximately 1,750 to 5,300 USD or 1,630 to 4,900 EUR) on a 50 million naira property, with larger discounts possible when documentation is weak or the seller is motivated.
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What monthly, quarterly or annual costs will I pay as an owner in Nigeria?
What's the realistic monthly owner budget in Nigeria right now?
The realistic monthly owner budget in Nigeria ranges from about 50,000 to 800,000 naira (approximately 35 to 560 USD or 32 to 520 EUR) depending on whether you own a standalone house or an apartment in a serviced estate.
The main recurring expense categories that make up this monthly budget in Nigeria include security contributions, generator or diesel costs for power backup, water supply, waste disposal, estate service charges (if applicable), and routine maintenance or repairs.
The realistic low-to-high range for monthly owner costs in Nigeria is 50,000 to 250,000 naira (approximately 35 to 175 USD or 32 to 163 EUR) for a self-managed standalone house, and 150,000 to 800,000 naira (approximately 105 to 560 USD or 97 to 520 EUR) for an apartment in a serviced or gated estate in premium areas like Lekki, Ikoyi, or Maitama.
The monthly cost that tends to vary the most in Nigeria is generator fuel or diesel, because electricity supply is unreliable and your power backup costs depend heavily on how much you run your generator and current fuel prices.
You can see how this budget affect your gross and rental yields in Nigeria here.
What is the annual property tax amount in Nigeria in 2026?
As of early 2026, there is no single national annual property tax in Nigeria, but states like Lagos charge a Land Use Charge that typically ranges from 0.05% to 0.5% of the property's assessed value per year, which translates to roughly 25,000 to 250,000 naira (approximately 18 to 175 USD or 16 to 163 EUR) for a 50 million naira property.
The realistic low-to-high range for annual property taxes in Nigeria depends heavily on the state and property classification, with owner-occupied residential properties in Lagos typically paying 0.05% to 0.15% of assessed value, while investment or non-owner-occupied properties can pay 0.2% to 1.0% or more.
Property tax in Lagos is calculated using a formula-based Land Use Charge system that considers factors like property location, size, use category (residential, commercial, or industrial), and whether it is owner-occupied, rather than a simple flat rate applied uniformly.
There are some exemptions and reductions available in Nigeria, including lower rates for owner-occupied residential properties and occasional administrative relief windows that states may offer, but these vary by state and change over time.
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 Nigeria in 2026?
What tax rate applies to rental income in Nigeria in 2026?
As of early 2026, rental income in Nigeria is taxed under personal income tax at progressive rates up to 24% for individuals, based on your total taxable income bands.
Yes, landlords in Nigeria can deduct certain expenses from rental income before calculating tax, including property maintenance costs, management fees, insurance, and other allowable expenses, though documentation requirements apply.
The realistic effective tax rate range after deductions for typical landlords in Nigeria is around 10% to 20%, depending on how much you can legitimately deduct and your overall income level.
Foreign property owners in Nigeria may face different treatment, including withholding tax on rent at 10% for non-residents (compared to 5% for residents), which is typically deducted at source and can be credited against final tax liability.
Do I pay tax on short-term rentals in Nigeria in 2026?
As of early 2026, short-term rental income in Nigeria is taxable under personal income tax just like long-term rental income, and the earnings feed into your overall taxable income position.
Short-term rental income is generally taxed the same way as long-term rental income in Nigeria at the individual level, but depending on how you operate (through platforms, with services, or as a business), you may face additional compliance requirements such as VAT registration if your services exceed certain thresholds.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Nigeria.
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If I sell later, what taxes and fees will I pay in Nigeria in 2026?
What's the total cost of selling as a % of price in Nigeria in 2026?
As of early 2026, the total cost of selling property in Nigeria typically ranges from 3% to 10% of the sale price, depending primarily on agent commission arrangements and whether you have any gains subject to capital gains tax.
The realistic low-to-high percentage range for total selling costs in Nigeria is 3% to 15%, with the low end applying to direct sales with minimal agent involvement and the high end applying to sales with full agent services and significant capital gains.
The specific cost categories that typically make up total selling costs in Nigeria include real estate agent commission (0% to 10%), capital gains tax on any profit (10% of gains), legal fees for documentation (0.5% to 1%), and any outstanding charges that must be cleared for clean transfer.
The single largest contributor to selling expenses in Nigeria is usually the real estate agent commission, which can reach 5% to 10% of the sale price, making it larger than capital gains tax in many cases unless you have a very significant profit.
What capital gains tax applies when selling in Nigeria in 2026?
As of early 2026, the capital gains tax rate that applies when selling property in Nigeria is 10% of the chargeable gain, which is the profit you make on the sale rather than the total sale price.
There are limited exemptions to capital gains tax in Nigeria for individuals selling residential property, though certain group reorganizations and specific circumstances may qualify for relief, so you should consult a tax professional for your specific situation.
Foreigners do not generally pay a higher capital gains tax rate when selling property in Nigeria, as the same 10% rate applies regardless of nationality, though non-residents should ensure proper compliance with filing and remittance requirements.
The capital gain in Nigeria is calculated as the sale price minus the original purchase price, with adjustments potentially allowed for documented improvement costs and certain transaction expenses, though the exact rules should be confirmed with a tax advisor.
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 Nigeria, 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 Name | Why It's Authoritative | How We Used It |
|---|---|---|
| DLA Piper REALWORLD Nigeria | It's a global law firm's country guide with practice-level detail on Nigerian property transactions. | We used it as the backbone for statutory buyer-side charges like stamp duty, consent, and registration fees. We also relied on it for understanding who typically pays what and the due diligence process. |
| PwC Stamp Duties Guide Nigeria | It's a Big 4 firm's structured reference guide on Nigeria's stamp duty framework. | We used it to explain what stamp duty is, timing requirements, and penalty concepts. We also referenced it for the NGN 50 stamp duty on qualifying transfers. |
| FIRS Capital Gains Tax Circular (via KPMG) | It's the federal tax authority's official guidance on how CGT is applied. | We used it to confirm the 10% CGT rate and clarify that tax is on gains, not sale price. We also used it for practical filing and compliance context. |
| PwC Tax Summaries Nigeria | It's a regularly updated quick reference for Nigerian tax bands and rates. | We used it to anchor rental income taxation under personal income tax. We also used it to keep explanations simple and quantitative for amateur readers. |
| PwC Withholding Regulations 2024 | It's a Big 4 summary of federal withholding tax regulations with clear rate tables. | We used it to quantify WHT rates on rent for residents and non-residents. We also explained that WHT is typically an advance credit rather than an extra tax. |
| PwC FIRS VAT Circular | It's PwC's published copy of VAT guidance focused on Finance Act changes. | We used it to support the point that land transfers are VAT-exempt. We also added the caveat that services and attached items can be treated differently. |
| PwC Lagos Land Use Charge | It's a widely cited explainer for how Lagos calculates annual property charges. | We used it to give a concrete example of annual property tax-like charges in Nigeria. We also used it for realistic budgeting on ownership costs. |
| EY Nigeria Tax Act 2025 Highlights | It's a Big 4 firm's summary of the consolidated tax reform legislation. | We used it to frame early 2026 as a transition period with updated rules. We also referenced it for stamp duty exemptions on small property transactions. |
| NIESV Professional Charges Scale | It's from Nigeria's core professional body for estate surveying and valuation. | We used it to justify valuation fee budgeting as a real professionalized cost. We also referenced it to support the idea that fees scale with property value. |
| Estate Intel Governor's Consent Guide | It's a detailed breakdown of Lagos Governor's Consent requirements and fees. | We used it to explain the fee structure for consent processing. We also referenced it for the aggregate 3% breakdown in Lagos. |
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