Real estate taxes can therefore be considered a good thing when looked at from that perspective.
Well, there are essentially three types of taxes:
1. The property registration tax
2. The personal income tax and
The property registration tax are those real estate taxes that are required to be paid when registering your ownership title with the Lagos state government.
This property taxes are based on assessment of your property's worth as at the time of the purchase.
To do that, you will be required to submit the following documents to the land registry.
1. Deed of assignment
3. Survey plan and
4. 2 pictures of the property
After the initial processing to confirm that all is right, the land registry will issue a document showing the real estate taxes you are to pay and the grand total of all the taxes put together.
What is the value of this property taxes as a percentage of the value of the property?
It's location dependent but usually varies between 15-20 percent of the property value.
With this property tax paid, the authorities will proceed with processing your certificate of occupancy (c of O).
Note that even if you buy a property that already has a c of o, the registration process will produce for you a c of o in your own name.
The Personal income tax comes into play when you sell a property or when you receive rent from rental properties you own.
These are earnings and you will rightly be expected to pay taxes on these earnings.
What is the applicable tax in terms of percentage of income earned?
In Lagos state Nigeria, the percentage tax you pay is dependent on the level of income you earn.
It starts form 5% all the way to a flat rate of 20% for people who earn as much as 1 million Naira per month.
The land use charge is like a ground rent paid annually by property owners in Lagos Nigeria.
As the name implies, this tax is more or less like a tenement rate you pay to the government for granting you your request to lease the land (government owns all land by law).
So, what is the value of the land use charge?
It is calculated as a percentage of the assessed value of the land.
Please visit the land use charge page for specific details about the land use charge value and applicable penalties when you fail or neglect to pay this property tax.
So, there you have it . . . the applicable real estate taxes in Lagos Nigeria.
Pay your tax promptly.
It is your tax that the government uses to provide the societal benefits we all enjoy.
Hopefully, the more people who pay property taxes, the more development we will see in Lagos as more funds become available to the government.
It is the law. And the law will catch up with you if you do not.
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