Taxation of Real Estate Transactions in Ogun State.


Real estate transactions play a pivotal role in the economic growth and development of Ogun State, Nigeria. Whether it’s buying, selling, or leasing properties, each transaction has specific tax implications that both buyers and sellers must understand and comply with. The Ogun State tax system imposes various taxes on real estate transactions to generate revenue and support public services and infrastructure development. In this article, we will explore the taxation aspects related to real estate transactions in Ogun State and provide insights for taxpayers and investors.

1. Stamp Duties:

Stamp duties are an essential component of real estate transactions in Ogun State. They are imposed on various documents, including agreements, conveyances, leases, and other legal instruments. The rate of stamp duties varies depending on the nature of the transaction and the value of the property involved.

For example, the stamp duty on conveyances is typically a percentage of the property’s sale price. It is the responsibility of the buyer to pay the stamp duty on the deed of transfer, while the seller may be responsible for stamping the purchase agreement.

2. Capital Gains Tax (CGT):

Capital Gains Tax (CGT) is applicable to real estate transactions involving the transfer of capital assets, such as land and buildings. It is imposed on the gains made from the disposal of these assets. The capital gain is calculated as the difference between the sale price and the original cost of acquisition or valuation of the property.

Individuals and corporations involved in real estate transactions may be liable to pay CGT, which is typically at a specified percentage of the capital gain. However, exemptions may apply in certain circumstances, such as the sale of a principal private residence by an individual.

3. Value Added Tax (VAT):

Value Added Tax (VAT) is levied on the supply of goods and services, including real estate transactions. In Ogun State, VAT is applicable to the fees and commissions charged by real estate agents or brokers for facilitating property transactions.

Both buyers and sellers may be affected by VAT on real estate services, depending on the contractual arrangements and terms of the transaction.

4. Withholding Tax (WHT):

Withholding Tax (WHT) is an advance tax deducted at source from certain payments, including rent on real estate properties. Landlords and property owners must withhold a specified percentage of the rent and remit it to the Ogun State Internal Revenue Service (OGIRS) on behalf of the tenant.

WHT is an essential compliance requirement, and failure to remit the tax could attract penalties and interest.

5. Property Tax:

Ogun State imposes property tax on real estate owners. The tax is levied annually based on the assessed value of the property. Property tax rates and assessment methodologies may vary depending on the local government area where the property is located.


Real estate transactions in Ogun State are subject to various taxes, including stamp duties, capital gains tax, value-added tax, withholding tax, and property tax. Understanding these tax implications is crucial for both buyers and sellers to ensure compliance and avoid potential penalties.

Engaging the services of a reputable accounting firm or tax advisor can provide valuable insights and guidance on the tax aspects of real estate transactions in Ogun State. By staying informed about the applicable tax laws and regulations, taxpayers can navigate real estate transactions efficiently and contribute to the state’s revenue generation efforts while supporting its economic progress and development.

For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, You can also reach us via WhatsApp at +2348038460036.