Foreign Ownership in UK Property.
The United Kingdom maintains an open market for international investors. There are no restrictions on foreign nationals purchasing property, whether you are buying as an individual, a company, or a trust.
Legal Rights & Structures
Ownership Freedom
- No Visa Required: You do not need UK citizenship or residency to buy.
- Freehold & Leasehold: You have the same legal rights as a UK citizen.
- Asset Types: You may purchase New Builds, Residential, or Commercial assets.
Holding Structures
- Individual Name: The simplest route for personal use.
- Corporate Entity: Buying via a UK or Overseas Company (SPV).
- Trusts: For complex estate planning (requires expert tax advice).
⚠️ Important for Companies: Since 2022, any overseas entity buying UK property must register with Companies House under the Register of Overseas Entities (ROE) to declare beneficial owners. This is a mandatory compliance step.
Tax Implications (2025/26)
While ownership is open, the UK tax system differentiates between residents and non-residents. Below is an overview of the key levies.
| Tax Type | Applicability | Key Rate / Threshold |
|---|---|---|
| SDLT (Stamp Duty) | All Buyers | Standard tiered rates (0% – 12%) |
| Non-Resident Surcharge | Foreign Buyers | +2% on top of all SDLT rates |
| Additional Dwelling | Second Home Owners | +5% surcharge (if you own property globally) |
| ATED | Companies (Enveloped) | Annual tax if property value > £500,000 |
| Capital Gains (CGT) | On Sale (Profit) | 18% / 24% on residential gains (subject to allowance) |
Compliance & Due Diligence
The UK has strict Anti-Money Laundering (AML) laws. As a foreign buyer, you must be prepared to provide robust documentation before solicitors can accept funds.
- Proof of Identity: Passport and certified proof of address.
- Source of Funds: Bank statements showing the accumulation of capital.
- Source of Wealth: Evidence of how the money was generated (e.g., business dividends, inheritance, salary).
Banking & Mortgages
International buyers can access UK mortgages, often with LTVs up to 65-75%. However, high-street lenders may have restrictions.
We recommend working with a specialist International Mortgage Broker to navigate foreign income assessments and secure the best rates.
Frequently Asked Questions
Can I buy UK property without visiting?
Yes. Approximately 60% of our international transactions happen remotely. We provide virtual viewings, 3D tours, and coordinate with your solicitor via Power of Attorney.
Does buying property grant me a visa?
No. Owning UK property does not automatically grant residency or a visa. However, it can be part of a broader investment portfolio for those exploring Innovator or Business visas.
What is the “Exchange of Contracts”?
This is the legally binding moment. You pay a 10% deposit, and the completion date is set. If you withdraw after this point, you lose your deposit.
Expert Guidance.
Navigating cross-border transactions requires local expertise. Contact us to discuss your search criteria or to be introduced to our trusted network of solicitors and tax specialists.
