2 July 2026
Is a Shortlet Legal in Lagos? Regulation, LASRERA, Tax & Licensing for Hosts (2026)
A plain-English guide to shortlet regulation and tax in Lagos for 2026: the 5% consumption tax, FIRS VAT, LASRERA registration for managers, landlord and planning consent, and how to keep records that survive a tax query.
"Is a shortlet even legal in Lagos?" is a fair question, because the rules are scattered across state and federal bodies and half of what hosts repeat to each other is wrong. Short answer: shortlets are legal, but they are regulated and taxed, and the specifics depend on your structure and your building. This guide lays out what actually applies — without pretending to be legal advice you should still confirm with a professional.
Nookpal does not provide legal or tax advice. This is a plain-English orientation; confirm your obligations with a qualified Nigerian tax professional or lawyer.
There is no single national shortlet law
The first thing to understand is that Nigeria has no one national shortlet statute or registry. Rules are state-by-state, layered with a couple of federal taxes. So "is it legal" really means "what does Lagos require, what does the federal government require, and what does my landlord or estate allow." Get those three right and you are operating cleanly.
The taxes that actually apply in Lagos
| Charge | Who levies it | What it is |
|---|---|---|
| Hotel Occupancy & Restaurant Consumption (HORC) tax | Lagos State (via LIRS) | 5% on short-stay accommodation charges, including apartments let short-term |
| VAT | Federal (FIRS) | 7.5% on hotel/short-stay accommodation |
| Personal income tax | State (LIRS for Lagos residents) | On your income as an individual host — a state matter, not FIRS |
| Company income tax (if incorporated) | Federal (FIRS) | Applies if you run the business through a limited company |
A well-known wrinkle: the 5% state consumption tax and the 7.5% federal VAT on the same accommodation have been the subject of a long-running double-taxation dispute between states and the federal government. The position has shifted through the courts over the years, so treat the interaction as unsettled and confirm the current stance with a professional rather than assuming. A common myth to drop: individual hosts do not pay their personal income tax to FIRS — for a Lagos-resident individual, that is a state (LIRS) obligation.
LASRERA: registration for managers and agents
If you manage property for a fee — including running shortlets on behalf of owners, or acting as an agent — Lagos expects you to register with LASRERA, the Lagos State Real Estate Regulatory Authority. Registration is renewed annually, and agency fees are capped (commonly cited at 10% — confirm the current cap). Note the correct name: it is LASRERA, not LASAA. LASAA is the state signage and advertising agency and has nothing to do with shortlets except if you put up external signage.
Landlord and planning consent
- Landlord/estate consent. Running a shortlet on a leased unit without written landlord permission risks eviction, and many Lekki and Ikoyi estates restrict or ban shortlets through their homeowners' associations. Confirm in writing before you operate.
- Change of use / planning. Using a residential unit as a short-let can, strictly, require planning approval for change of use. Enforcement varies, but it is worth knowing the exposure exists, particularly for whole-building operations.
Keep records that survive a tax query
Whatever your exact obligations, the practical defence is the same: clean, per-booking, per-unit records in naira that you can hand to an accountant or a tax officer without reconstructing them from memory. That means every booking's room charge, the 5% consumption tax where it applies, expenses booked against the right unit, and a clear separation between your host revenue and any agent-facing price.
This is exactly what per-unit reporting is for. Nookpal keeps NGN-native records per booking and per unit, so when a query comes you export clean numbers instead of scrambling. It also keeps host base price and agent price separate — which matters because recording an agent's inflated quote as your revenue overstates your tax base, as we explain in the profit-per-unit guide.
FAQ
- Is running a shortlet legal in Lagos?
- Yes, shortlets are legal in Lagos, but they are regulated and taxed. You need to satisfy state requirements (the 5% consumption tax and, for managers and agents, LASRERA registration), federal tax obligations, and your landlord's or estate's consent. There is no single national shortlet law — rules are state-by-state layered with federal taxes.
- What taxes do shortlet hosts pay in Lagos?
- A 5% Hotel Occupancy and Restaurant Consumption tax levied by Lagos State through LIRS on the accommodation charge, plus 7.5% federal VAT on short-stay accommodation. As an individual host you also owe personal income tax, which for a Lagos resident is a state (LIRS) matter, not FIRS. If you operate through a company, company income tax applies federally. Confirm specifics with a tax professional.
- Do I need to register with LASRERA to run a shortlet?
- If you manage property for a fee — running shortlets on behalf of owners or acting as an agent — Lagos expects you to register with LASRERA, the Lagos State Real Estate Regulatory Authority, renewed annually, with agency fees commonly cited as capped at 10% (confirm the current figure). Note it is LASRERA, not LASAA; LASAA governs signage and advertising, not shortlets.
- Is there really double taxation on shortlets in Nigeria?
- The 5% state consumption tax and 7.5% federal VAT applying to the same accommodation have been the subject of a long-running dispute between states and the federal government, and the legal position has shifted through the courts. Treat the interaction as unsettled and confirm the current stance with a qualified professional rather than assuming one cancels the other.
- What records should I keep for a Lagos shortlet?
- Keep clean, per-booking, per-unit records in naira: each booking's room charge, the consumption tax where it applies, expenses booked against the correct unit, and a clear separation between your host revenue and any agent-facing price. Well-kept NGN records let you respond to a tax query by exporting numbers rather than rebuilding them under pressure.
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