If you’re considering buying land in Nigeria, it’s important to be familiar with the costs associated with the process. There are a number of fees and taxes that you may be required to pay, both before and after the purchase, and it’s important to budget accordingly. Here are some of the costs you should be aware of when buying land in Nigeria:
- Legal Fees: One of the most significant costs associated with buying land in Nigeria is the legal fees. These fees cover the cost of hiring a lawyer to review and prepare the necessary legal documents, such as the Deed of Assignment and the Certificate of Occupancy. The fees can vary depending on the complexity of the transaction and the experience of the lawyer, but you should expect to pay several thousand Naira at a minimum.
- Survey and Valuation Fees: Another cost associated with buying land in Nigeria is the survey and valuation fees. These fees cover the cost of hiring a surveyor to prepare a survey plan, as well as the cost of having the property valued by a professional valuer. The fees can vary depending on the location and size of the property, but you should expect to pay several hundred thousand Naira at a minimum.
- Transfer Tax: When you purchase land in Nigeria, you will be required to pay a transfer tax to the government. The transfer tax is typically 3% of the purchase price of the property, and it must be paid before the property can be transferred to your name.
- Stamp Duty: In addition to the transfer tax, you will also be required to pay a stamp duty on the purchase price of the property. The stamp duty is typically 1.5% of the purchase price, and it must be paid within 30 days of the transfer of ownership.
- Land Use Charge: After you have purchased the property, you will be required to pay an annual Land Use Charge to the government. This is a tax on the use of the land, and it can vary depending on the location and size of the property.
In conclusion, buying land in Nigeria can be a complex and expensive process, and it’s important to be aware of the costs involved. By budgeting for legal fees, survey and valuation fees, transfer tax, stamp duty, and land use charge, you can ensure that you’re prepared for the financial obligations associated with owning property in the country. It’s also important to work with a reputable real estate agent or lawyer who can help guide you through the process and ensure that everything is in order.