Can foreign nationals buy property in the UK?
Yes. There are no restrictions on overseas buyers purchasing property in the UK. You can own property in your own name, jointly, or through a company, regardless of residency or nationality.
Do I need a visa or residency to buy property in the UK?
No. You do not need a visa or residency to buy property. However, owning a property does not grant the right to live in the UK — you must have the appropriate visa to reside long-term.
What taxes do I pay when buying UK property as a foreign investor?
The main upfront tax is Stamp Duty Land Tax (SDLT). Overseas buyers must also pay a 2% non-resident surcharge on top of standard rates. SDLT is calculated on a sliding scale depending on property value.
Do I have to pay Capital Gains Tax (CGT) if I sell my UK property?
Yes. Since 2015, non-UK residents must pay Capital Gains Tax on the sale of UK property. The rate is typically 18% or 28%, depending on your income level.
Is Inheritance Tax (IHT) payable on UK property owned by foreigners?
Yes. UK Inheritance Tax applies to UK property, regardless of where you live. The standard rate is 40% on estates above £325,000. Many overseas investors use structuring (such as companies or trusts) for estate planning.
Do I need to pay Income Tax on rental income?
Yes. If you rent out your UK property, you must declare your rental income to HMRC. Non-UK residents usually pay 20% basic rate tax, though expenses and allowances can reduce your liability.
Can I get a mortgage as a foreign investor?
Yes. Many banks and specialist lenders offer mortgages to overseas buyers. Lenders may require a larger deposit (typically 25–40%) and additional documentation to verify income or assets.
What is the process of buying a property in the UK?
The main steps are:
Making an offer.
Instructing a solicitor to conduct checks (title, planning, legal compliance).
Exchanging contracts after due diligence.
Completing and transferring ownership.
This typically takes 8–12 weeks.
Should I buy in my personal name or through a company (SPV)?
This depends on your tax position and long-term goals. High-value investors often use a company for efficiency, while personal ownership may be simpler for one or two properties. Specialist tax advice is strongly recommended.
Which UK locations are most attractive for foreign investors?
London is world-renowned for stability and prestige. However, regional cities such as Manchester, Birmingham, and Liverpool offer higher rental yields and strong growth. The right location depends on whether your focus is lifestyle, rental income, or capital appreciation.
What ongoing costs should I expect?
Typical costs include council tax, service charges (for apartments), ground rent (for leasehold properties), insurance, and maintenance. If renting out, you’ll also pay income tax and potentially management fees.
Why should I use Meridien Luxe as my estate agent?
At Meridien Luxe, we specialise in guiding international clients through the UK property market. With expertise in property law, tax awareness, and exclusive access to prime listings, we ensure your purchase is secure, efficient, and tailored to your goals. Our discreet, high-end service provides peace of mind from start to finish.
