INTERNATIONAL BUYERS

Buying Property in the UK as a Non-Resident

If you're considering investing in UK property as a non-resident, there are several crucial factors to understand before proceeding. This guide outlines the key steps, legal requirements, and financial implications for international investors.

Overview

Non-residents can legally purchase property in the UK, either personally or through a limited company, each with specific tax implications. Understanding the UK property market, tax obligations, and legal processes is essential to ensure a smooth transaction. This guide provides an overview of these aspects and explains how expert services, such as those offered by Juszt Capital, can assist you throughout the process.

Can Non-Residents Buy Property in the UK?

Yes, non-residents are permitted to buy property in the UK. You can purchase property in your name or through a limited UK company. Each method has its own benefits and tax considerations, which depend on your individual circumstances and investment goals. Consulting with property investment experts can help you determine the best approach.

Stamp Duty Land Tax (SDLT) Rates for Foreign Buyers:​

Foreign investors in UK property are subject to Stamp Duty Land Tax (SDLT) similar to UK residents, with some additional surcharges:

• For Individuals:

  • Up to £250,000: 0%

  • £250,001 to £925,000: 5%

  • £925,001 to £1.5 million: 10%

  • Over £1.5 million: 12%

  • Plus an additional 2% surcharge for non-residents.

• For Companies:

  • Higher rates apply, with a 3% surcharge on properties over £500,000, capped at 15%.

*U.K. Gouvernement budgets may alter the above thresholds.​ Other costs include legal fees, survey fees, and mortgage-related expenses. Understanding all associated costs is crucial for determining the financial viability of your investment.

Visas: You do not need a visa to purchase property in the UK. However, if you plan to move to the UK or make substantial investments, you may need an Investor Visa.

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Setting Up a UK Company: Many international investors choose to buy property through a UK-based company to optimize their tax situation. Options include setting up a Limited Company or a Limited Liability Partnership. Each structure has different tax obligations and administrative requirements.

Property Types: There are no restrictions on the type of property non-residents can purchase. You can buy residential properties, commercial real estate, or mixed-use developments.

Financing Options for Overseas Buyers: Overseas buyers have several financing options when purchasing property in the UK:

1. Mortgages: Non-resident buyers can obtain mortgages from UK lenders. Higher interest rates and larger down payments (typically 25%–35%) may be required.

2. Cash Purchases: Buying property outright with cash can simplify the process and avoid the complexities of securing a mortgage.

3. Private Lenders and Specialist Brokers: Private lenders will offer more flexible terms than traditional banks, especially for non-residents. We have the best contacts for this vehicle of arrangement.

FAQs

• Do I need to be a UK resident to buy property? No, non-residents can buy property in the UK, but you’ll need a UK bank account.

• Does buying a property grant UK residency? No, property ownership does not confer residency. However, an Investor Visa could provide a path to residency.

• Is UK property a good investment? Yes, UK property can be a solid investment, particularly in areas with strong economic growth and rental demand.

• What taxes apply? Non-residents must pay SDLT and potentially other taxes like Capital Gains Tax (CGT) and Inheritance Tax (IHT).

Conclusion: Buying property in the UK is an exciting, and hugely rewarding process. It involves navigating some legal, financial, and tax aspects. With careful planning, the whole procession can be a smooth, and very simple process. We save our clients time & money. Juszt Capital will provide all the beautiful homes, manage the entire buying and moving in journey, mitigating any unnecessary time wasting.

You can then enjoy the fun part, choosing your home, planning your interiors and dressing the rooms. 

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