Filing Taxes as an Expat in Nigeria

11 min read
Filing Taxes as an Expat in Nigeria
Nigeria Tax Guide

Navigating taxes as an expat can feel complicated, maybe even overwhelming especially if it’s your first time. If you’re a Nigerian living abroad or a foreigner now calling Nigeria home, dealing with taxes probably wasn’t the first thing you imagined you’d have to worry about. But, here we are. Filing Taxes as an Expat in Nigeria, perhaps surprisingly, is not as obscure or daunting as it sounds once you get familiar with the basics.

Let’s slow down and talk through what really matters. No jargon, no sudden expert talk. Just what you need to know plus a few things it’s probably safest not to ignore in plain English.

Overview: Expatriate Taxation in Nigeria

So, who even counts as an expat for Nigerian tax purposes? There are actually two types. The first is a non-Nigerian living or earning income in Nigeria. The second is a Nigerian living overseas, still earning from home, or, say, renting out property in Lagos. If that’s you, hello, this matters.

Nigeria’s tax system is, I think, pretty similar to many countries, at least in the broad sense. Personal income taxes, company taxes, and VAT, you know, the basics. But for 2025, there are some recent tweaks (keep an eye on FIRS updates). For instance, digital filing is more streamlined now, and some of the tax bands have shifted a bit.

Residency and domicile decide how much of your global income Nigeria wants a look at. If Nigeria is your home base or you’re hanging around here more than half the year, you’ll likely count as a tax resident. And, yes, the taxman will be interested in just about all your earnings, not just what’s local.

Do Expats Need to File Taxes in Nigeria?

Short answer: quite possibly, yes. Here’s why.

Tax residency is defined mainly by time spent in Nigeria the classic “183-day rule.” If you’re physically present in Nigeria for at least 183 days in a year (think: six months, give or take), you’re a resident, even if you don’t have, let’s say, a long-term lease. If your “center of vital interests” (family, business, or home) is in Nigeria, that counts too.

Now, there’s a difference between being a resident expat and a non-resident. If you’re a resident, your worldwide income is taxable in Nigeria salary, investments, pensions, whatever. But if you’re non-resident? Then only income sourced from Nigeria (like a rental property in Abuja) is on the hook.

What about Nigerians overseas? If you earn income in Nigeria, you’ll usually still need to file something back home. Sort of annoying, but that’s how the law sees it. Oh, and never assume your home bank isn’t eventually going to report your earnings. That’s just reality now.

Nigerian Income Tax System: What Expats Must Know

Understanding income tax in Nigeria gets easier after the first round of forms. The rates for 2025 break down like this:

  • The Personal Income Tax rates range from 7% to 24%, applied in bands. The more you earn, the higher your rate. (Check the FIRS rates for the exact brackets each year.)
  • Both employers and employees have tax obligations. Generally, your employer (if you have one) should deduct your tax before you see your money. This is the PAYE (Pay As You Earn) system.

For a deeper look at who pays personal income tax, including expats, see Who Pays Personal Income Tax in Nigeria?.

Employment and Payroll Taxes

For most expats working for a company in Nigeria, payroll taxes are automatic (well, they’re supposed to be). Taxes come straight out of your paycheck under PAYE, and you’ll likely see contributions to social security as well, specifically the National Housing Fund and National Health Insurance.

There are also benefits, allowances, and housing. Not all are taxed equally. Housing allowances, for example, may be partly exempt depending on your contract though strict rules apply.

For employers and employees looking to better understand PAYE obligations, refer to Payroll and Employee Tax in Nigeria: 2025 Guide.

Self-Employed and Business Owners

If you’re freelancing, consulting, or running your own thing, you’re expected to do your own filings and remit taxes without anyone holding your hand. Honestly, it’s easier (or harder) depending on how organized you are. You’ll pay based on net profit after business expenses, but the calculations can get tricky. Most expat entrepreneurs I’ve met get an accountant if only so they sleep better at night.

Nigerian Property Tax for Expats

Own property in Nigeria? You’ll pay property tax (sometimes called “land use charge” in Lagos), and if you rent it out, rental income is taxable too. The rules? Well, they change somewhat by state, so check local info (start with the LIRS site for Lagos).

Tax Filing Process for Expats in Nigeria

The process is, I think, much less dramatic if you know the steps:

  • Gather essential documentation: passport, tax ID (TIN), evidence of income, rental contracts, dividend statements, bank interest everything with a number on it.
  • Fill out the right forms. The main one is the Form A for individuals. Your employer’s HR department might help, or you’re on your own for self-employment.
  • Submit before the deadline. For most individuals, it’s March 31st.
  • Penalties for late filing? Unfortunately, yes. It’s a flat N50,000 (roughly $50 at current rates), plus extra if you drag it out longer.

Important:
2025 Filing Deadline for Expats: 31st March
File early to avoid last-minute gremlins.

Filing is easier now, you can use the FIRS e-filing portal and even pay online. For peace of mind, or complicated cases, honestly, hiring a tax advisor familiar with expat tax is worth considering (find registered pros here).

For a step-by-step breakdown, read How to File Taxes in Nigeria: Step-by-Step Guide to Tax Filing and Payment Procedures.

Double Taxation & International Tax Agreements

A real worry for many is getting taxed twice on the same money. Nigeria has Double Taxation Agreements (DTAs) with several countries, including the UK, France, South Africa, and a few others (though not, at the time of writing, the US, which makes things tricky).

Here’s what helps:

  • DTAs may reduce or even eliminate Nigerian taxes on certain foreign-sourced income if you’re already taxed at home.
  • Foreign tax credits: In practical terms, you may get to offset Nigerian taxes with what you paid abroad.
  • Americans, by the way, can’t use Nigeria’s DTA but may claim a Foreign Earned Income Exclusion via the IRS (if you qualify, see IRS FEIE).

Example:
An American working in Lagos pays Nigerian income tax. They may offset part of this against their US tax. A UK expat might be fully tax-free on their Nigerian employment income back home, depending on the UK Nigeria DTA details.

Common Tax Reliefs and Deductions for Expats

Nigeria allows some deductions and reliefs. They’re not always obvious in the forms, but they’re there:

  • Pension contributions (up to 8% of salary) are tax-deductible.
  • National Health Insurance, housing fund, and some life insurance premiums may qualify for relief.
  • Personal allowance: This is a flat percentage of annual income (usually 20%, check the rates).
  • Family reliefs are possible but limited, children, dependents, spouse reliefs (if the spouse isn’t already filing taxes).

Not every expat is eligible for every deduction. If in doubt, claim what you’re sure about, and maybe check with a professional for the rest.

Key Considerations and Challenges for Nigerian Expats

A few things people often miss or, perhaps, just don’t want to think about:

  • Compliance: If you move between Nigeria and another country each year, you might have to file in both places, depending on your circumstances.
  • Foreign assets: Have bank accounts or property abroad? Nigeria now wants this reported if you’re tax resident here, thanks to international agreements (think FATCA and the Common Reporting Standard).
  • US expats: Get familiar with FATCA and FBAR. Ignoring them is, I think, a genuinely bad idea (see the IRS guide).
  • Pitfalls: Late filing, missing tax credits, or failing to disclose foreign accounts. If you think it can’t be traced, well… technology keeps getting better.

If you ever need to address back taxes or compliance issues, see Filing Back Taxes & Dealing with Tax Non-Compliance in Nigeria: Step-by-Step Guide.

Frequently Asked Questions on Expat Taxes in Nigeria

Who is required to file as an expat?
Anyone earning income sourced from Nigeria, whether Nigerian or not, must file if they cross the residency threshold or receive Nigeria-sourced funds.

What income is taxable?
Employment, rental, investment, business income from Nigeria. For residents, worldwide income generally applies.

What happens if you don’t file?
You’ll get fined, potentially heavily. Continued non-compliance may lead to legal trouble or, worst case, travel issues if you return.

Can you file online from abroad?
Yes. The FIRS e-filing portal works from anywhere with internet access.

For more tips and updates, visit the regularly updated Nigerian Tax Insights | MyTax Blog.

Where to Get Help Filing Expat Taxes in Nigeria

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