Overseas landlords · updated October 2026
The Non-Resident Landlord scheme, explained for landlords in Asia
The Non-Resident Landlord scheme is how HMRC takes tax from your London rent when your usual home is outside the UK.
This guide explains who counts, how the deduction works, the deadlines your agent works to, and how to have your rent paid in full.
01 · The basics
What the Non-Resident Landlord scheme is
The Non-Resident Landlord (NRL) scheme is how HMRC collects UK tax on rent paid to landlords whose usual home is abroad.
It applies whether you live in Hong Kong, Singapore, Kuala Lumpur, Shanghai or anywhere else outside the UK.
Unless HMRC has approved you to receive rent gross, your letting agent must deduct basic-rate tax and pay it to HMRC every quarter.
If you have no agent, the duty can fall on your tenant instead (HMRC).
02 · Who counts
Are you a non-resident landlord?
HMRC looks at your “usual place of abode”, not your nationality or your passport.
For an individual, that normally means being outside the UK for more than six months, or expecting to be (PIM4810).
You can be UK tax resident and still be inside the scheme if your usual home is abroad.
- Companies count if their main office is outside the UK or they were incorporated abroad, unless they are UK tax resident.
- Trusts count only if all the trustees live abroad.
03 · The deduction
How the tax deduction works
Tax is taken at the basic rate, currently 20%, on your rent minus the deductible expenses your agent pays out of it.
From 6 April 2027 the basic rate on property income rises to 22%, and HMRC has said the NRL withholding rate will follow it (HMRC).
A letting agent must run the scheme whatever the rent; a tenant paying you directly must do so only if the rent is over £100 a week.
04 · Deadlines
The deadlines your agent works to
If you are not approved to receive rent gross, these are the steps your agent must follow (HMRC).
Ask any agent you are considering whether they already run the scheme for other overseas clients.
05 · Getting paid in full
How to receive your rent without tax deducted
You can apply to HMRC to have your rent paid gross, meaning in full.
You can apply online or by post; if you want a tax adviser to act for you, use the paper form (HMRC).
Approval usually takes effect from the first day of the quarter in which HMRC received your application.
HMRC does not publish a processing time, so apply as early as you can.
06 · Approval
When HMRC says yes
HMRC approves an application when one of four conditions is met (PIM4860).
It approves after an initial check, may check further later, and writes to you and to your agent or tenant.
07 · Still taxed
Approval is not a tax exemption
Being approved to receive rent gross only changes how the tax is collected.
HMRC deals with what you owe through Self Assessment, so most overseas landlords still file a UK tax return each year.
Making Tax Digital for Income Tax now applies to landlords whose qualifying income is over £50,000, falling to £30,000 in April 2027 and £20,000 in April 2028 (HMRC).
For non-UK residents, only UK property income counts towards those thresholds.
If your accountant is in Hong Kong, Singapore or Malaysia, check they also handle UK Self Assessment.
08 · 2026 rules
What else changed for overseas landlords
The NRL scheme sits alongside a lot of new rules for letting in England; the Renters’ Rights Act guide has the detail.
Read more on letting in Elephant & Castle, including Southwark licensing.
09 · Our part
How we run the scheme for you
When we let and manage your flat, we register with HMRC as your agent and run the scheme from the first month.
Once HMRC approves you, we pay your rent in full.
FAQ · non-resident landlord scheme
Questions, answered
What owners, buyers and parents abroad ask us first.
Sources · every fact on this page
Where the facts come from
General information, not tax or legal advice. Rules change, so check the official source or a qualified adviser before you act.