Investment property: United Kingdom

Updated 6 October 2026

Foreigners buy property in the United Kingdom without citizenship restrictions: flats in London, suburban houses, student lets in university towns.

But purchase taxes for foreigners are noticeably higher, and letting rules in England have been stricter since 1 May 2026. Below are the rules for England and Northern Ireland; Scotland and Wales have their own purchase taxes, and Scotland is covered on the property in Scotland page.

Purchase tax on homes in England and Northern Ireland

Rates from 1 April 2025. Dollar amounts are converted at the European Central Bank rate of 5 October 2026, about $1.32 per pound, and rounded up.

How a purchase works

1. An offer through the agent and choice of a conveyancing solicitor.
2. The solicitor's checks: title, encumbrances, local authority searches, lease terms for flats.
3. Exchange of contracts and a deposit, usually 10%: from this point the deal is binding.
4. Completion, payment of the balance and the purchase tax within 14 days.
5. Registration of title at the Land Registry.

Usually two to four months pass from an accepted offer to completion. Flats in England are often sold on long leases, so we check the lease length and service charges especially carefully.

Buying through a foreign company

• A foreign entity owning property in the UK must register in the register of overseas entities and disclose its beneficial owners.
• Companies pay the 5% surcharge, and a 17% rate applies when buying an expensive home not used commercially.
• An annual tax applies to expensive homes held by a company.

Letting from 2026

Since 1 May 2026 the Renters' Rights Act applies in England: no-fault eviction has been abolished, all tenancies have become open-ended, and the owner can recover the home only on statutory grounds. A non-resident landlord pays UK tax on rental income, and the agent or tenant withholds tax unless the owner is registered under the non-resident landlord scheme.

Selling

A non-resident pays UK capital gains tax on selling a home and files a special return within 60 days of completion, even if there is no gain.

Risks to know about

• High purchase taxes for foreigners: up to 7% of surcharges on top of the base rate.
• Exchange of contracts makes the deal binding; withdrawing afterwards costs the deposit.
• The new letting rules reduce the owner's flexibility.
• Buying a home does not give residence: the investor visa closed in 2022.

What we do

Murblz specialists select a property for your goal, calculate the purchase tax with surcharges, work with a UK conveyancing solicitor, choose the ownership structure, register a foreign company in the register if it is buying, and help with taxes on letting and sale. If you let the home, we bring in a local manager and accountant so that taxes and landlord requirements are met on time. We fix the estimate in writing.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes

FAQ