Interested in buying UK property from overseas? While investing in property is often seen as a worthy move, it can be daunting even for locals, so it makes sense that international buyers might be cautious when it comes to tying up their money in UK property.
Luckily, the knowledgeable team members at Mistoria Group are here to provide expert advice and support!
To help you discover whether this is the appropriate route for you, we take a look at how international investors can begin to make their way up the UK property investment ladder.
From what the ideal overseas property investor looks like, to the various benefits of buying UK property from overseas, we cover all these important areas below.
What is overseas property investment?
While there are many different types of overseas property investment, investing in overseas property simply refers to buying a property abroad.
Typically, this process involves more paperwork and additional processes than being a UK property investor purchasing a property there, but it can pay off – especially if you pick the right location!
What does an overseas property investor look like?
With the rise of air travel and the internet, overseas property investments are available to anyone with the funds, and internet access, required to take advantage of these opportunities.
It’s for this reason that an overseas property investor needn’t have a large portfolio, endless finances or years of experience operating in the sector.
Instead, investing in UK property from overseas can be a feasible option for many, including those wanting to put their pension or inheritance towards an overseas property.
How to get into property investment in the UK
To break into UK property investment as an overseas investor, there are several factors to consider.
This includes the extra paperwork, different rules and legalities, and even the exchange rates and taxes.
We explore some of these overseas property investment hurdles below to give you a taste of what you can expect when it comes to buying UK property from overseas.
Regardless of where you choose to buy a property, rest assured there’ll be plenty of paperwork! However, if you’re purchasing a UK property as an overseas investor, you can expect significantly more because there will be lots of local laws for overseas investors, and there may even be a language barrier.
If you’re not fluent in English or can’t speak the language of the area where the property you want to invest in (if you’re investing outside of the UK) is located, it’s well worth seeking outside support from a qualified translator or interpreter. To ensure the accuracy of these important interpreted documents, it’s wise to run them past a second interpreter, too.
Stamp Duty and Capital Gains Tax
Alongside having to undergo the standard, yet lengthy, due-diligence checks (that are required to identify the buyer’s source of funds for the property they want to purchase), the overseas buyer will also be subject to the same rates of Stamp Duty and Capital Gains Tax as UK residents.
While UK residents will pay tax based on their income, the overseas property investor will need to register for the Non-Resident Landlord Scheme. This ensures they’re taxed on the profits from these UK property investments, but that these profits are exempted from their taxed income in their resident country.
Alongside needing to open a UK bank account (or having an account with an overseas bank with a UK presence), the overseas investor will also be required to transfer funds to the UK in order to buy the property. To do this, they will need to work with a currency-exchange agent with cost-effective currency exchange rates.
Enlist the experts
Irrespective of whether you have several property investments under your belt or have never invested in a property before, investing in UK property overseas can be a tricky topic to navigate. This is why we always recommend reaching out to the experts first.
At Mistoria Group, we can provide informed advice on a wide range of property investment opportunities, so don’t hesitate to get in touch and find out more.
International property investment with Mistoria Group
With more than 100 years of combined hands-on experience in this industry, the knowledgeable team at Mistoria Group can help you to begin or grow your property investment portfolio.
To find out more about buying UK property from overseas and how to get into property investment in the UK, don’t hesitate to give us a call at 0800 500 3015.
Regardless of whether you want to simply speak to an experienced member of our team about your overseas property investment prospects, or find out more about how you can buy UK property from overseas, we’re here to assist.