Nigeria’s New 2026 Tax Law For Real Estate Investors And Homeowners

The Nigerian real estate market has never been forgiving, and 2026 is set to test investors and homeowners even more. The new tax law will affect property values, rental income, and capital gains in ways that could catch the unprepared off guard. Ignoring it isn’t an option.

Across Nigeria, property owners face rising compliance costs, new levies, and tighter reporting requirements. Renters can expect shifts in pricing that will ripple across neighborhoods. For investors, miscalculating the impact could mean losing millions of naira to avoidable taxes or missed deductions.

At ATEOS Homes, we understand the severity of the situation. We’re breaking down the key changes, showing how they affect homeowners, investors, and renters, and exploring the concrete steps you must take now to protect your assets before 2026 arrives.

Overview Of The New Tax Law

The Nigeria Tax Act (NTA) 2025, which comes into force on 1 January 2026, is a full consolidation and overhaul of Nigeria’s tax framework. It merges and replaces older tax laws, including the previous Capital Gains Tax Act, Stamp Duties Act, VAT Act, and sections of personal and corporate income tax.

Here’s a breakdown of the key provisions affecting real estate, along with what they mean in practice:

Capital Gains Tax (CGT)

Gains from the disposal of property are now taxed under progressive Personal Income Tax (PIT) rates for individuals (0–25 %) and corporate tax rates for companies (30 %). This means that selling property is no longer a simple transaction. If you make a profit, you’ll pay tax according to your income bracket or company tax rate.

For example, if an individual sells an apartment in Enugu for ₦50 million and originally bought it for ₦30 million, the ₦20 million gain could now be subject to PIT at the applicable rate, potentially far higher than the previous flat 10 %.

Rental Income And Withholding Tax

If you earn rent, you now have to report it as taxable income. Landlords can deduct some eligible expenses, and tenants who pay rent through official channels can get up to ₦500,000 in rent relief each year.

Stamp Duty And Documentation

All chargeable instruments—sale agreements, leases, deeds, mortgages—must be properly stamped. Meaning that any property transaction or contract now requires official validation. Unstamped documents may not be enforceable in court.

VAT And Professional Services

Sale of land is exempt from VAT; however, professional fees related to real estate remain VATable. Essentially, buying land itself doesn’t attract VAT, but hiring agents, lawyers, or valuers does. For example, commission paid to a real estate agent or lawyer for facilitating a transaction will include VAT, which must be accounted for in your costs.

Mortgage And Housing Finance Incentives

Interest on loans for owner-occupied residential construction may be deductible under certain conditions, meaning that financing your home through a bank or mortgage now has potential tax benefits, encouraging formal home development.

Every decision, from buying, selling, renting, or leasing, now has a direct tax consequence. Next, we break down how these changes translate into real-world impacts for property owners and investors.

Impact On Property Owners, Investors, Homebuyers, And Renters

The new tax law reshapes how every stakeholder in the real estate ecosystem must operate. For property owners and investors, both local and diasporan, the biggest shift is the direct link between compliance and profitability. Since capital gains are now taxed using PIT or corporate tax rates, it means the old habit of informal documentation is no longer harmless. 

Without proper records of purchase costs, renovations, or improvements, you risk paying more tax than necessary on a sale. It especially affects investors who flip properties or developers who hold large portfolios, every transaction now demands airtight paperwork and defensible cost tracking.

Rental income also becomes a more sensitive area. Landlords must declare rental earnings, factor VAT on professional services, and prepare for stricter scrutiny on deductions. Those who operate informally, like collecting rent in cash, skipping receipts, or delaying tenancy agreements, will find it increasingly difficult to defend their income positions. 

As compliance rises, many landlords may adjust rental prices to accommodate additional obligations, affecting overall rental yields and tenant affordability.

For renters and homebuyers, the impact shows up differently. Formal leases, rent receipts, and structured payment records are now essential. Tenants who stay within the formal system can benefit from the new rent relief, which allows them to deduct up to ₦500,000 from their taxable income annually. Meanwhile, homebuyers relying on mortgage financing may benefit from interest deductions, but only if the property is properly documented and owner-occupied.

We see one clear trend, the new tax environment rewards transparency. Those who operate formally will gain financial advantages; those who don’t will face higher costs and greater risk.

Strategic Actions To Mitigate Risks And Maximize Returns

At ATEOS Homes, we see the 2026 tax shift as a defining moment. Therefore, here are the priority moves we recommend:

1. Structure Your Portfolio for Tax Efficiency: The new law gives small companies with turnover under ₦50 million major tax advantages. If you manage a lean portfolio, consider formalizing it under a small-company structure to reduce CGT and corporate tax exposure.
   
   
   

2. Model Your Exits Using After-Tax Cashflows: With CGT now tied to PIT and corporate tax rates, your real returns depend on accurate gain calculations. Before selling or developing, run after-tax projections using acquisition cost and documented improvements. This prevents profit overestimation and protects your margins.
   
   
   

3. Stamp Every Document, No Exceptions: Sales, leases, deed transfers, mortgages, all must be stamped to be legally defensible. Proper stamping doesn’t just prevent penalties; it increases buyer and tenant confidence and keeps your assets enforceable in court.
   
   
   

4. Shift Toward Stable Housing Segments: Mid-income and affordable housing markets may outperform luxury segments as compliance costs rise. Investors and developers who pivot early will benefit from stronger occupancy and predictable rental cash flow.
   
   
   

5. Use Formal Financing to Maximize Deductions: Mortgage and development loan interest remains deductible when properly documented. Working with regulated lenders strengthens your tax position and stabilizes long-term cashflow.

In all of these, your best shot is working with stakeholders well-versed in the real estate industry. With us, you’re guaranteed quality in all associated dealings.

Stay Informed And Ahead

2026 is in less than a month, and the new tax law will touch every property you own, rent, or plan to buy. It’s in your best interest to audit your holdings, formalize every lease, and document all improvements and transactions. At ATEOS Homes, we guide you through these actions. Acting now will save you the impending trouble.