NRL1 Form and UK Rental Income: Letting Your UK Property from Argentina
How to receive UK rental income as a non-resident landlord in Argentina: the NRL1 form, gross vs net payment, tax obligations and letting agent requirements.
Thomas SinclairWriter and editor · London
When you leave the UK and rent out your property, the Non-Resident Landlords Scheme automatically kicks in. Your letting agent is required by HMRC to withhold 20% of the gross rent and pay it directly to HMRC on your behalf. This withholding is a blunt instrument — it does not account for your actual expenses, mortgage interest, or personal allowance.
The fix is form NRL1 (Non-Resident Landlords Scheme. Application to receive UK rental income without deduction of UK tax). Filing it tells HMRC you want to receive rent gross and handle your own tax affairs through Self Assessment.
For related context, see Property Management in Argentina for UK Landlords: Managing a Rental from Abroad.
Why you want gross payment
If your UK property generates £1,500/month in rent and your letting agent withholds 20%, you receive £1,200 and HMRC holds £300. Over a year, that is £3,600 withheld. money you cannot access until your Self Assessment is processed (often 6-12 months later).
Meanwhile, you have expenses: mortgage interest, agent fees, maintenance, insurance, ground rent, service charges. These reduce your taxable profit significantly. Many non-resident landlords with mortgages owe little or no actual tax after expenses are deducted. But under the withholding scheme, they pay 20% upfront on gross rent.
With NRL1 approval, you receive £1,500/month gross and settle any tax owed through Self Assessment. which for many expats with mortgage-interest costs is substantially less than 20%.
How to apply
Download form NRL1 from gov.uk (or complete it online). Submit to:
HM Revenue & Customs
Charities, Savings & International 1
BX9 1AU
The form asks for:
- Your National Insurance number
- UK property address
- Letting agent name and address
- Your overseas address (Argentine address is fine)
- Estimated rental income and expenses
Processing takes 4-6 weeks. Once approved, HMRC notifies your letting agent, who then stops withholding. The approval is ongoing — you do not need to reapply each year.
Your ongoing obligations
Gross payment approval does not mean you are exempt from UK tax on rental income. You must:
1. Register for Self Assessment if you have not already (SA1 form)
2. File an annual tax return declaring rental income and expenses
3. Pay any tax owed by 31 January following the tax year
4. Claim allowable expenses: mortgage interest (restricted to basic rate credit), letting agent fees, maintenance, insurance, accountant fees, ground rent, service charges
UK rental profit is taxed at your marginal UK rate. As a non-resident, you lose the UK personal allowance (£12,570) unless you are a British citizen or national of a qualifying country. British citizens retain the personal allowance regardless of residence.
Argentine tax
If you are an Argentine fiscal resident (183+ days), you must also declare worldwide income to AFIP. UK rental income is foreign-source income subject to Argentine personal income tax.
The UK-Argentina Double Taxation Agreement provides relief: you credit UK tax paid against Argentine tax owed on the same income. In practice, this means:
- UK tax on rental profit is paid first
- Argentine tax is calculated on the same income
- UK tax paid is deducted from the Argentine liability
- Net Argentine tax: usually zero or very small
This prevents double taxation but requires accurate record-keeping in both countries.
Practical British expat considerations
Mortgage interest. Since April 2020, mortgage interest is no longer deductible as an expense for individual landlords. Instead, you receive a basic rate tax reduction (20% of mortgage interest costs). This affects your Self Assessment calculation but not the NRL1 gross payment approval.
Letting agent management. Your letting agent handles tenant management, rent collection, and basic maintenance while you are in Argentina. Agent fees (typically 8-15% of rent) are an allowable expense. Choose an agent experienced with non-resident landlords.
Currency considerations. You receive rent in GBP. Convert to ARS via Wise or Revolut as needed. Keep the GBP in your UK bank for UK expenses (mortgage, insurance, tax) and convert only what you need for Argentine living expenses.
Selling later. If you sell the property, UK CGT applies. see our Capital Gains Tax guide. PRR and lettings relief interact with the NRL scheme.
Not tax advice. Landlord taxation is complex, especially cross-border. A UK chartered accountant with international experience is essential for any property generating meaningful income.
Worth reading next
Frequently Asked Questions
What happens if I do not file NRL1?
Your letting agent withholds 20% of gross rent and pays it to HMRC. You can reclaim the overpayment via Self Assessment, but it takes 6-12 months to get the money back.
How long does NRL1 approval take?
4-6 weeks from submission. Once approved, your letting agent stops withholding and you receive rent gross. The approval is ongoing — no annual reapplication needed.
Do I still need to file UK tax returns on rental income?
Yes. NRL1 approval means gross payment, not tax exemption. You file Self Assessment annually declaring rental income and expenses. Tax is due by 31 January.
Does Argentina tax my UK rental income too?
Yes, if you are an Argentine fiscal resident. But the DTA gives credit for UK tax paid, preventing double taxation. Net Argentine tax is usually zero or very small.
Sources & Official Links
Professional legal resources
This guide covers the general picture. For case-specific advice — especially on complex visa categories, tax obligations, or time-sensitive filings — these resources from Lucero Legal go deeper.
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