It can be a little confusing when it comes to identifying the tax charges involved in the process of securing your dream home, according to Lamudi.com, leading property portal in Nigeria.
The platform went ahead to prepare a guide to the extra costs property seekers should expect to pay when buying any kind of real estate.
There are three main types of taxes that are required to be paid by property tax owners.
Please note that not all of these tax charges apply to every state in Nigeria.
Property Registration Tax
Property registration tax are real estate taxes that you pay when registering your ownership title. This tax charge is based on your property’s worth at the time of purchase.
Personal Income Tax
Personal income tax is mandatory when you sell a property or when you receive rent from properties you own.
The percentage of tax you pay depends on the level of your income.
However there is a 5% to 20% flat rate for people who earn as much as one million Naira per month.
Land Use Charge
Land use charge is like a kind of rent paid by property owners in Lagos Nigeria annually.
This tax is more or less like rent you pay to the government for granting you your request to lease the land. Land use charges are calculated based on the value of the land.
How to register the property
According to Keisha Diamond, public relations manager, Lamudi Nigeria, “After you purchase a home, make sure you register it immediately so that you can officially transfer ownership to yourself”.
In order to do that, you will need to complete the following documents and send them to the land registry.
1. Two pictures of the property
2. Survey plan
3. Form C
4. Deed of assignment
Once this is done, the land registry will issue a document with a list of real estate taxes that you will need to pay.
Once your property tax is paid, a certificate of occupancy (c of O) will be given to you.
Some states have their own laws on real estate taxes so be sure to stay up to date on the current charges by talking to your trusted real estate agent.
So there it is; a guide on real estate taxes in Nigeria. Lamudi would like to advise you to pay your taxes because it helps in the development of your state and the country as a whole.
Launched in 2013, Lamudi is a global property portal focusing exclusively on emerging markets. The fast-growing platform is currently available in 32 countries in Asia, the Middle East, Africa and Latin America, with more than 800,000 real estate listings across its global network.
The leading real estate marketplace offers sellers, buyers, landlords and renters a secure and easy-to-use platform to find or list properties online.