Property Taxes and Closing Costs for Diaspora Buyers in Nigeria (2026)

The price a seller quotes is rarely the price a diaspora buyer actually pays in Nigeria. Perfection charges, legal fees, and agency add a meaningful layer on top, and 2026 brought two big changes: a new capital gains regime and a sharp rise in official land values in Lagos. This guide breaks down every cost so you can budget accurately before you commit. Bektu publishes it as a transparency resource, not a sales pitch.

How much does it cost to buy property in Nigeria beyond the price?

Expect total closing costs of roughly 10 to 15 percent of the purchase price in Lagos. Of that, about 4 to 8 percent goes to government perfection charges like Governor's Consent, stamp duty, and registration, and the rest covers legal fees, due diligence, and agency. The exact figure depends on the state and the official assessed value of the land.

What is the Governor's Consent fee?

The Governor's Consent fee in Lagos is assessed at 1.5 percent of the property's official value. It pays for the consent required under Section 22 of the Land Use Act before a registered title can be transferred to you. Without paying it and obtaining consent, your purchase is not perfected.

How much is stamp duty on a property purchase?

Stamp duty in Lagos is charged at 2 percent of the assessed value, while most other states charge around 1.5 percent. Stamp duty is a federal charge collected on the instrument that transfers the property, such as the Deed of Assignment. It is one of the unavoidable perfection costs.

What is the registration fee?

The registration fee is charged at about 0.5 percent of the assessed value to record your deed at the state Lands Registry. Registration is what puts your transaction on the public record and completes the perfection of your title. An unregistered deed gives you far weaker protection.

What are legal and agency fees?

Legal fees typically run around 5 percent and agency fees around 5 percent of the purchase price, though both are negotiable. The legal fee covers your lawyer's title search, drafting, and perfection work, which is essential for a remote diaspora purchase. Agency fees compensate the broker who introduced the property.

What is the 2026 Blue Book and how did it change costs?

The Blue Book is Lagos State's 2026 Fair Market Value and Governor's Consent charges schedule, which took effect on 1 May 2026. It raised the official values used to calculate perfection fees, with increases reported as high as 300 percent in prime areas such as Lekki, Ikoyi, and Banana Island. Since consent and stamp duty are charged on these official values, the cash cost of perfecting a prime property has risen sharply.

Do I pay capital gains tax when I sell?

From 1 January 2026, capital gains on property are no longer taxed at the old flat 10 percent rate. The Nigeria Tax Act 2025 introduced progressive rates linked to your income band, reaching up to 25 percent for individuals and 30 percent for companies. Because gains are added on top of your other income, a large gain can push you into a higher band than your salary alone would.

Is my family home exempt from capital gains tax?

Yes, a principal private residence is exempt from capital gains tax under the new rules. The exemption covers your main home and up to one acre of adjoining land when you sell it. This means the tax mainly affects investment and second properties rather than the home you actually live in.

What annual property taxes apply?

In Lagos, the main annual property tax is the Land Use Charge, which consolidates ground rent, tenement rate, and neighbourhood charges into a single bill based on the assessed value of the property. Other states levy tenement rates through their local governments. These are recurring obligations separate from the one-off purchase costs.

Do I pay tax on rental income?

Yes, rental income is taxable, and tenants who are companies are generally required to deduct withholding tax of 10 percent on rent and remit it to the tax authority. The withheld amount is credited against your final income tax liability. Non-resident landlords should keep clear records because the income is assessable in Nigeria.

Is VAT charged on residential property?

Residential land and buildings are not subject to VAT on sale or lease, so you do not add 7.5 percent VAT to the price of a home. VAT can still apply to related services such as agency or professional fees. This is a useful distinction when you compare quotes that bundle services into the price.

What is a realistic total cost example for a diaspora buyer?

On a 100 million naira Lagos property, a typical buyer might pay about 1.5 million in Governor's Consent, 2 million in stamp duty, 0.5 million in registration, 5 million in legal fees, and 5 million in agency, for roughly 14 million in extra costs. That puts the all-in cost near 114 million, or about 14 percent above the headline price. Building this into your budget from the start avoids the common shock of discovering the real cost after committing.