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Does MTD apply to foreign rental income?
Last verified 23 October 2026
Yes, if you are UK tax resident. HMRC counts both UK and foreign property income, plus self-employment income, towards your qualifying income. For example, a UK resident who rents out a flat in France adds that rent to the total.
If you are not UK tax resident, foreign property income does not count towards qualifying income. Only your UK property income and the self-employment income on your UK return count.
For Income Tax, rent from property outside the UK is taxed as a separate overseas property business. The profits are worked out in much the same way as for a UK property business, but the two are kept apart, and a loss on one cannot be set against profits on the other. Once you are in Making Tax Digital, you send quarterly updates for each property business you have.
Check that your software supports foreign property before you sign up. HMRC's software finder asks about your income sources and shows products that cover them.
Read next
Sources
- GOV.UK: Work out your qualifying income for Making Tax Digital for Income Tax
- GOV.UK: PIM4702: Rent from property outside the UK: Income Tax
- GOV.UK: Use Making Tax Digital for Income Tax: Using Making Tax Digital for Income Tax for the first time