Nigeria Removes VAT on Land, Buildings, and Rent to Ease Housing Costs and Boost Investment

• The Nigeria Tax Act 2025 removes VAT on land, buildings, and both residential and commercial rent, effective January 2026.
• Buyers of land and completed buildings, as well as tenants, will no longer pay VAT on these transactions.
• Contractors can recover VAT paid on construction materials and services, reducing building costs.
• The law does not introduce a 25% tax on building materials, bank balances, or business expenses, contrary to rumors.
• Additional benefits include tax-deductible mortgage interest, deductible landlord expenses, and rent relief for tenants up to ₦500,000 or 20% of annual rent.

Source: nigeriainfo.fm

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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