On June 26, 2025, President Bola Ahmed Tinubu signed the Nigeria Tax Act (NTA) 2025 into law. It marks the most significant overhaul of Nigeria’s tax system in over three decades. The Act commenced on January 1, 2026, and it is now fully in force. This law changes the rules of the game in Abuja. This law changes the rules of the game. It affects anyone planning to buy, sell, rent, develop, or invest in property in Abuja. Importantly, some changes work strongly in your favour. Others, however, require careful planning. What Is the Nigeria Tax Act 2025? The NTA 2025 is a single, unified tax code that replaces nearly a dozen legacy statutes that earlier governed how Nigerians were taxed. The old framework was fragmented and contradictory. It created what tax experts describe as “compliance fatigue,” particularly in the property and construction sectors. The NTA 2025 consolidates all of the following into one modern law:   Companies Income Tax Act (CITA) Personal Income Tax Act (PITA) Capital Gains Tax Act (CGTA) Value Added Tax Act Stamp Duties Act Petroleum Profits Tax Act It was enacted alongside three companion Acts that together form the entire reform package: Act Purpose Nigeria Tax Act (NTA) 2025 Core tax rates, reliefs, and property provisions Nigeria Tax Administration Act (NTAA) 2025 Unified compliance, assessment, and enforcement rules Nigeria Revenue Service Act (NRSA) 2025 Replaces FIRS with a digitally-enabled revenue agency Joint Revenue Board Act (JRBA) 2025 Coordinates federal, state, and local tax authorities The result: for the first time in Nigeria’s fiscal history, each tax affecting property operates under one cohesive legal framework. This framework unifies all relevant tax laws. These taxes include rental income, property sales, stamp duties, capital gains, and VAT. 6 Key Changes That Directly Affect Property in Abuja Before diving deep, here is your quick-reference summary: # Change What It Means for You 1 Rent Relief Deduct up to 20% of annual rental value, max ₦500k via tax authority.  2 VAT Exemption Zero VAT on residential property sales, land, and rent 3 Stamp Duty Clarity 0.78% or 3% on leases; fully exempt under ₦10M 4 Capital Gains Tax Your personal home is EXEMPT; 30% for companies 5 Mortgage Deduction Deduct loan interest up to ₦8M on owner-occupied homes 6 Luxury Property Levy 1.5% annual levy on prime Maitama and Asokoro properties 1. Rent Relief — What Tenants Can Claim Right Now How the Rent Relief Works Under Section 30(2)(vi) of the NTA 2025, tenants have a new benefit. They can now deduct a portion of their annual rent from their taxable income. This replaces part of the old Consolidated Relief Allowance (CRA) system. The formula is simple: deduct 20% of your annual rent, up to a maximum of ₦500,000. Annual Rent Paid 20% of Rent Actual Deduction Estimated Tax Saving ₦500,000 ₦100,000 ₦100,000 ₦14,000 – ₦33,000 ₦1,000,000 ₦200,000 ₦200,000 ₦28,000 – ₦60,000 ₦2,500,000 ₦500,000 ₦500,000 (capped) ₦70,000 – ₦125,000 ₦5,000,000 ₦1,000,000 ₦500,000 (capped) ₦70,000 – ₦125,000 ₦10,000,000 ₦2,000,000 ₦500,000 (capped) ₦70,000 – ₦125,000 The Important Limitation Housing experts noted the ₦500,000 cap is insufficient for professionals renting in high-cost areas. Tax analysts emphasize this issue in locations like Asokoro, Maitama, or Wuse 2. In these areas, annual rents frequently exceed ₦5 million. For those tenants, the deduction does not scale with actual accommodation costs. You get the same relief as someone paying ₦2.5M per year. For tenants in more affordable areas like Kuje, Gwarinpa, or Kubwa, the relief is proportionally meaningful. In these areas, 3-bedroom apartments rent for ₦600,000 to ₦2,000,000 per year. How to Claim It Declare your rent payment at your annual personal income tax filing. You will need:   Bank transfer records or rent receipts A signed tenancy agreement showing the amount paid Your Tax Identification Number (TIN) Otuochi Note: If you are presently renting and planning to buy, transitioning to property ownership has implications. You will no longer have rent relief. This change leads to benefits like mortgage interest deductions. These deductions scale far more favourably. Check Section 5 below for details. Alternatively, explore our ECO CASA Estate Kuje and ECO CASA Estate Asokoro 2 pages. They supply information for current pricing and payment plans. 2. VAT on Property — The Exemptions That Save You Millions What Is Now Completely VAT-Free The NTA 2025 definitively exempts residential real estate from Nigeria’s 7.5% VAT. The law is unambiguous. The sale of land or any building is exempt from VAT. This includes any interest in land or a building. This resolves years of legal ambiguity that earlier led to disputes between landlords, developers, and the tax authority. The next transactions are zero VAT under NTA 2025: Transaction VAT Status Sale of residential property EXEMPT Sale of bare land / land title EXEMPT Residential rent (monthly or annual) EXEMPT Commercial rent EXEMPT Supply of eligible building materials (under conditions) EXEMPT What Remains Taxable at 7.5% The VAT exemption covers the property itself — not the professional services that surround it. Service VAT Rate Estate agent / agency commissions 7.5% Property valuation fees 7.5% Legal conveyancing / solicitor charges 7.5% Facility management fees 7.5% Architectural and design fees 7.5% Construction contracts and renovation 7.5% Commercial Property Is Different It is important to note that VAT still applies to commercial properties. Landlords and developers must charge 7.5% VAT on the rent, lease, or sale of:   Office spaces and warehouses Retail malls and shops Short-term apartments and hotels operated as a business If you own or plan to develop a mixed-use project in Abuja, you must keep precise accounting records. These projects include residential units joined with commercial ground-floor shops. You need to separate the exempt residential part from the taxable commercial part. Real-World Saving on a ₦40M Abuja Property Under the old regime, VAT uncertainty on a ₦40M property can add up to ₦3,000,000 to your deal costs. Under NTA 2025, the property itself attracts zero VAT. This indicates a direct saving of up to ₦3M. This saving can go