Property Tax Lagos Nigeria – Free Real Estate Tax Tips
Property tax Lagos Nigeria - Real estate tax or property tax is demanded by the Lagos state government from real estate investors. And this is not peculiar to Lagos state alone.
| Real estate is a revenue generating investment for individuals and companies involved in real estate investing. Since investors make profit from their investment, it makes perfect sense for the government to require them to pay real estate tax.
The government requires residential real estate owners and commercial property landlords to pay to the government account real estate tax referred to as tenement rate. |
Officials of the ministry of finance will usually serve the home owner a notice to pay up within a time frame or face the wrath of the law.
Ordinarily, as a law abiding citizen, you are expected to visit the ministry of finance, request information on the property tax you are required to pay for your category of building, and then pay promptly. That way, you save yourself embarrassment.
The government also requires another kind of real estate tax referred to as withholding tax.
The withholding tax is ten percent of the total rent paid to the landlord by a corporate tenant. Ideally, the corporate tenant should deduct ten percent of the rent at the time of payment to the landlord and pay this to the government.
However, it does not work that way in Lagos Nigeria because Lagos landlords refuse to allow their return on their property to be dipped by ten percent.
| Consequently, in phrasing the
lease agreement,
the
real estate attorney
to the landlord inserts a phrase that states that the rent paid is "net of all taxes". This means that all taxes due on the property, whether residential or commercial real estate, is to be borne by the tenants occupying the building whether individual or corporate tenant.
This situation also applies to the property tax discussed earlier . . . the tenement rate. |
Some have said that the hard-line posture of landlords is a violation of tenant rights. But landlords say it is inherent landlord right to set the value of his property and tenant right to decide to accept or not to accept.
With the rapid population growth in Lagos Nigeria and the housing challenge, tenants have very limited choices. You either take the house or leave it.
You can be sure that as you're leaving complaining, another potential tenant is excitedly paying for the same apartment and signing above the dotted like that he is willing to pay all rates accruing to the house.
Keep this in mind as you rent any property in Lagos.
You, and other tenants in your building, are the ones to pay the real estate tax demanded by the government as well as other taxes or levies imposed by other sources like the community association and utility companies.
So, prepare!
Back To Home Page From Property Tax Lagos Nigeria Subscribe To The Real Estate Guide newsletter for Investment Tips
|
Vacancy For Distributors |
|
Create A Website |
Real Estate Guide Magazine
Subscribe to the Real Estate Guide Magazine. Get FREE real estate investing tips.
Simply Fill the form below.
Follow us on Facebook & Twitter:
