{"id":6491,"date":"2024-09-17T09:53:26","date_gmt":"2024-09-17T08:53:26","guid":{"rendered":"https:\/\/novarickhomes.com\/?p=6491"},"modified":"2024-09-17T09:53:26","modified_gmt":"2024-09-17T08:53:26","slug":"real-estate-property-tax-in-nigeria","status":"publish","type":"post","link":"https:\/\/novarickhomes.com\/real-estate-property-tax-in-nigeria\/","title":{"rendered":"Real Estate Property Tax in Nigeria."},"content":{"rendered":"

For economic functionality, tax is a common source of revenue for governments worldwide. Nigeria’s fiscal system including tax payment plays a significant role in funding and managing the economic development and infrastructures.<\/span><\/p>\n

Property tax in Nigeria started during the colonial era to fund public services and infrastructural developments. In this blog post, we discussed property tax payment in Nigeria and how it affects you as a property owner.<\/span><\/p>\n

What is Real Estate Property Tax?<\/span><\/h5>\n

This referred to fees levied on property owners, remitted to the recognized authority based on the value of their property. It is an important source of revenue generation to the federal, state and local government of the country.<\/span><\/p>\n

Nigeria property tax in federal capital territory<\/span><\/a> payable annually is <\/span>0.3% for recreational property, 0.4% for residential property, 0.6% for commercial property and 0.7% for others<\/span>.<\/span>\u00a0<\/span><\/p>\n

Types of Property Tax in Nigeria<\/span><\/h5>\n
    \n
  1. Capital Gains Tax:<\/b> This refers to tax levied on the profit made from the sale of a property. Its payment rate varies depending on the property type and location.<\/span><\/li>\n
  2. Stamp Duty:<\/b> This tax is payable on the transfer of property ownership from one party to another. The amount payable depends on the value of the property transferred.<\/span><\/li>\n
  3. Rent Tax:<\/b> This tax is levied on rental income generated from a property calculated based on the percentage of property rental fee.\u00a0<\/span><\/li>\n
  4. Development Levy:<\/b> This tax is imposed on property owners to fund infrastructure development in the area based on the property’s assessed value.<\/span><\/li>\n<\/ol>\n
    Factors Determining Property Tax<\/span><\/h5>\n

    There<\/span> are various factors that determine the tax payable by property owners, they include:<\/span><\/p>\n