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The 2026 tax reform in Nigeria is poised to alter how property owners generate income from their real estate. Whether you own property in Lagos, Abuja, or manage it from abroad, understanding these changes early can help you maximise your property profits, protect your income, and avoid costly mistakes.
Nigeria’s 2026 tax reform introduces rent relief, clearer capital gains rules, and VAT exemptions on residential property. Landlords who maintain proper records, use formal leases, and ensure bank payments can reduce risk and increase profits. Learn more about our real estate investment solutions to stay compliant.
Why the 2026 Tax Reform Matters for Property Owners
Many landlords focus only on collecting rent. Ignoring tax implications can quietly reduce your profits.
Under the new rules:
- Tenants can deduct 20% of their annual rent, capped at ₦500,000
- Residential rent remains VAT exempt, while commercial rent is charged 7.5% VAT
- Leases under ₦10 million per year are exempt from stamp duty
- Capital gains tax can reach 25% for individuals and 30% for companies
These changes make proper documentation essential. Formal leases, receipts, and bank payments now matter more than ever. They help attract serious tenants and protect your property income. For professional guidance, check our property advisory services.
How Lagos, Abuja, and Diaspora Owners Benefit
In Lagos, tenants now expect proper lease documents to claim rent relief, improving stability for landlords.
In Abuja, long-term leases are exempt from stamp duty, particularly in mid-income neighbourhoods.
Diaspora investors managing property from abroad also benefit. Nigeria taxes only Nigeria-sourced income, and proper documentation can prevent double taxation while maximising profits. Explore our diaspora investment options to learn more.
Steps Smart Investors Should Take Before 2026
- Review all lease agreements and ensure they are formalised
- Move tenants to bank payments only
- Track all expenses for tax deductions, including repairs and legal fees
- Consult a tax or property advisor early to plan for capital gains
By preparing early, property owners can turn the 2026 tax reform into a profit opportunity rather than a challenge. Learn more about our real estate services to stay ahead.
For official guidance on tax compliance, visit the Federal Inland Revenue Service (FIRS).
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