By Matti Olaitan
From January 2026, Nigeria’s sweeping 2025 Tax Reform Acts come into force, reshaping the financial landscape for businesses and investors. For property investors, these reforms create a once-in-a-generation opportunity and firms like Jemras Homes are positioned to help you capture every advantage.
The centrepiece of the reforms, the updated Nigeria Tax Act, reduces certain sector taxes from a crushing 60% to just 10%, immediately improving profitability for compliant real estate firms. Alongside this, the Economic Development Tax Incentive (EDTI) introduces a 5% tax credit on capital expenditure. For investors, this means projects such as affordable housing or mixed-use developments can generate up to 10% higher annual returns on investment (ROI) when structured correctly.
Small and mid-sized property firms also stand to benefit. Enterprises with annual turnover between ₦50 million and ₦100 million are now fully exempt from Companies Income Tax (30%) and Capital Gains Tax (CGT). In practice, this makes activities such as property flips or rental income tax-free, provided deals fall within qualifying thresholds an unprecedented break for agile players in the market.
Beyond direct exemptions, the reforms allow deductions on mortgage interest and enable input VAT recovery, both of which significantly reduce financing and operational costs. These provisions translate into stronger cash flow and higher reinvestment capacity for developers and investors.
When compared to traditional savings where 10% withholding tax and roughly 30% inflation erode value real estate under the new regime becomes a powerful hedge. For example, an investor realizing ₦10 million in gains can enjoy these entirely CGT-free, so long as they align with the exemptions. For those pursuing long-term holds, the reforms further magnify compounding benefits, making property ownership more lucrative than ever.
Compliance has also been simplified. The reforms replace multiple overlapping charges with a straightforward 4% Development Levy, cutting 20–30% in administrative costs and freeing firms to focus on growth instead of red tape.
However, opportunities come with new complexities, such as potential taxation on foreign-held assets or cross-border transactions. This is where Jemras Real Estate’s expertise becomes critical. By combining legal tax planning, property market insight, and hands-on investment strategies, Jemras ensures clients maximize every incentive while avoiding costly pitfalls.
From workforce housing developments to strategic commercial property acquisitions, Jemras helps investors convert tax savings into tangible wealth. Our tailored advisory turns you not just into a participant but into a market leader in Nigeria’s booming real estate sector.
👉 Partner with Jemras Homes today to transform tax savings into long-term property profits. Your financial future starts with smart choices in 2026.