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Can foreigners buy property in the UK?

Learn about purchasing property in the UK from abroad, from legal requirements to tax implications and the buying process.

With its strong, stable housing market, the United Kingdom has been a good place to buy property for a long time. Whether you're looking for a family home, a holiday retreat or an investment property, the country’s high rental demand, robust legal protections and long-term capital growth potential makes it an attractive destination for buyers worldwide. 


So, if you’ve been wondering if foreigners can buy property in the UK, the answer is a resounding “yes”. In this article, we’ll answer some common questions about purchasing residential and commercial property in the UK, including a brief overview of the buying process. 


Read our full guide to buying property in the UK from abroad here. 


Can foreigners buy properties in the UK? 

Absolutely: the UK welcomes foreign investors and individuals interested in purchasing property. Unlike some countries, there are no restrictions on foreign ownership of residential or commercial real estate in the UK. Overseas investors and people planning to relocate to the country have the same rights to buy property as UK residents. 


Why buy a property in the UK? 

Property in the UK has broad appeal, both for people buying homes and for investors. Its strong property market delivers reliably good returns when selling investment property after a fixed period.


Meanwhile, ongoing demand for rental homes and apartments in major cities like Manchester, Birmingham and London makes the UK an ideal choice for landlords. 


The United Kingdom also delivers from a legal perspective. Both residents and non-residents are protected by robust property ownership laws designed to ensure clear ownership rights, prevent disputes and provide legal security for buyers and investors. 


Beyond financial reasons, the UK’s diverse culture, world-class education system and strategic links to Europe and America makes it a haven for people from all over the world. Whether you're looking for a second home, an investment property or a place to settle, you’ll find your niche here. 


Do you need a visa to buy property in the UK? 

You don’t need a specific type of visa to visit the UK with the intent to buy property. If you’re a UK citizen or British National living abroad, you can use your passport to enter the country and purchase a property. If you're not a UK citizen or British National, you can view or buy property while in the country on a tourist visa or electronic travel authorisation (ETA). 


Do you automatically gain residence after buying a home in the UK? 

It’s important to note that owning a property in the UK won’t give you an automatic right to remain in the country. However, owning property may strengthen your case if you apply for a visa or residency in the future, particularly if you plan to contribute to the UK economy or have long-term intentions to settle.  


If you plan to stay for an extended period and don’t have residency or citizenship, you’ll need to apply for the appropriate visa – for example a Tier 1 Investor or Skilled Worker visa. 


What documents do you need to buy property in the UK? 

You’ll need a range of documents to purchase property in the UK – and you may need to provide several parties with the same documents. This especially applies if you intent to mortgage the property. 


The list of documents needed will depend on your unique situation, but the following items are a good start: 


  1. Proof of identity: A valid passport or government-issued identification card or driving licence. 

  2. Proof of address: A recent utility bill or bank statement. 

  3. Proof of funds: Documents showing the source of your funds, like bank statements, or proof of savings or sale proceeds from another property. 

  4. Mortgage approval (if applicable): A decision in principle from a lender if you're financing the purchase. 

  5. Tax identification number (TIN): Especially if you’re subject to overseas tax regulations. 

  6. Anti-money laundering compliance documents: Additional documents to verify your financial legitimacy. 

 

Can you be a UK landlord if you live overseas? 

Yes, you can become a landlord in the UK while living abroad. In fact, many overseas investors purchase rental properties to generate income. However, as a non-resident landlord, you’ll need to comply with certain tax laws, including: 


  • Registering with HMRC under the Non-Resident Landlord Scheme. 

  • Paying income tax on your rental earnings. 

  • Considering property management to handle tenant-related matters. 


Some overseas landlords may initially be liable for income tax payments in the UK as well as at home. Thankfully, tax treaties and rules exist to protect individuals from double taxation.  


It’s a good idea to seek advice from a tax professional before buying rental property in the UK to understand your tax obligations, including stamp duty, income tax on rental earnings and potential capital gains tax when selling. We’ll touch on those items below, too. 


Can overseas residents use property management companies in the UK? 

Property management can be challenging – especially from a distance. Navigating taxes, time zones and tenant's rights can feel complicated and overwhelming for landlords, particularly those living overseas. 


That’s where property management companies come in. They’re widely used by resident and non-resident landlords to handle the day-to-day responsibilities of property ownership, assisting with tenant sourcing, rent collection, maintenance and legal compliance. Working with a property management company can protect your investment, particularly if you don't visit the UK very much. 


Fees vary and some firms offer a bespoke service, so it’s worth obtaining quotes from several property management companies before proceeding.  


Stamp duty, capital gains and other UK property ownership tax implications 

When buying property in the UK, you’ll encounter various taxes, including: 


  1. Stamp Duty Land Tax (SDLT): Paid on property purchases in England and Northern Ireland. Rates vary based on the property’s value and whether it’s your primary residence. 

  2. Land and Buildings Transaction Tax (LBTT): Applies to properties in Scotland. 

  3. Land Transaction Tax (LTT): For properties in Wales. 

  4. Capital Gains Tax (CGT): Payable when you sell a property for a profit. Non-residents are subject to CGT on UK properties. 

  5. Income Tax: If you’re earning rental income, you’ll need to declare it and may be liable for income tax in the UK as well as in your home country. However, various rules and treaties exist to protect landlords from double taxation. 


We recommend consulting a tax advisor or accountant familiar with UK property laws, who can help you understand your obligations and minimise your tax liability. 


How to buy a property in the UK in six steps 

Here’s a brief overview of the property-buying process in the UK. Your own experience may vary, so please use the points below as a general guide: 


  1. Set your budget: Determine how much you’re willing to spend and account for additional costs like taxes, legal fees, and potential renovations. 

  2. Choose the right location: Research areas based on your goals, whether it’s rental income, lifestyle, or long-term appreciation. 

  3. Appoint a solicitor or conveyancer: A legal professional will handle the paperwork, conduct property searches, and ensure the transaction is compliant with UK laws. 

  4. Secure financing (if needed): If you require a mortgage, find a lender experienced with overseas buyers. Be prepared for higher deposit requirements, typically 25-30%. 

  5. Make an offer and conduct surveys: Once you find a property, submit an offer. After acceptance, arrange for an independent survey to assess its condition. 

  6. Complete the purchase: Exchange contracts, pay the deposit, and finalize the deal. Your solicitor will register the property with the Land Registry and ensure all legal steps are complete. 


Need more information? You can read a full guide to buying property in the UK here.  


Working with the right payment partner 

Transferring large sums of money internationally can be daunting, especially with fluctuating exchange rates and potential fees. Choosing the right payment partner can save you significant sums and ensure a smooth transaction. 


Some overseas buyers transfer funds for property transactions via their existing bank accounts, but this can be expensive and slow. Many overseas banks don’t provide multi-currency accounts, either, making rent collection a challenge. 


Instead, consider using a fintech or FX company that offers competitive exchange rates and low fees. Some providers, like Interpolitan, specialise in helping overseas buyers with multi-currency accounts, escrow services and personalised support. Later, you can also use your Interpolitan account to receive and transfer rental payments. 


Want to learn more about Interpolitan Money’s escrow services and multi-currency accounts? Get in touch today and tell us about your goals. We can’t wait to help you succeed. 

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