Real estate investment in Great Britain
Foreigners can buy, lease and sell real estate without restrictions in the UK.
Statistics confirm the liquidity of investments: every quarter, residential real estate prices grow by an average of 1.3%. Five years ago, an apartment of 100 m² cost an average of €342,000, and today it is sold for €431,000.
€4,310
Average price per 1 m²
of housing in the UK
of housing in the UK
1,3%
Average price per 1 m²
increase per quarter
increase per quarter
0,05—13,05%
Buyers’ related expenses,
of the transaction amount
of the transaction amount
How the residential property price index is growing in United Kingdom
Cost of a 3-bedroom apartment in the UK
€20 million
Penthouse in London
€5 million
Apartment in London
€500,000
Apartment in a major city
such as Manchester
What do investors buy?
The most expensive properties are in London and the surrounding counties — Surrey and Sussex.
Apartments
- penthouses
- duplexes
- apartments
Houses
- townhouses
- mansions
- historic estates
UK residence permit or citizenship by real estate investment
Obtaining a UK residence permit or citizenship is not connected with purchasing real estate.
A residence permit obliges the holder to live in the country for at least 183 days a year and not leave the UK for more than 90 days. British residents can’t visit other countries visa-free.
After six years of living in the UK, an investor can apply for citizenship.
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Taxes and associated costs
Taxes
Owners pay a municipal property tax. The municipality sets the tax amount depending on the cadastral property value. In London, for example, the rate depends on the district.
€5,300 Approximate annual costs for
maintenance of an apartment
maintenance of an apartment
Communal payments
Property owners pay an income tax of 20% on their rental income.
Utilities. Water, electricity, and gas are paid for by meters. Housing is often heated with gas fireplaces or boilers. Some apartments have a wood-burning fireplace.
If an apartment owner has a long-term leasehold right, they pay additional rent to the land owner. The contract determines the fee amount. The approximate range is between €20 and €700 per year.
The building maintenance fee, which includes the elevator, cleaning, repairs, and concierge, depends on the building.
Internet, TV, and telephone connection costs €30 to €53 per month, depending on the tariff and locality.
Electricity, gas, water, heating, and garbage collection |
€80—350per month |
Building maintenanceCleaning, repairs, and concierge |
€400—5,000per month |
A seller of real estate in the UK pays a capital gains tax of 18% to 28% on the difference between the sale and purchase prices. The tax rate depends on the amount of capital gain.
The following are exempt from paying the tax:
- non-residents — those who live in the UK for less than 183 days a year;
- residents who have sold their primary residence.
If the owner sells the property through an agency, they pay a commission of 2% to 4% of the sale price.
Capital gains taxPaid on the difference between the sale and purchase prices |
18—28% |
Agency feeDepends on the real estate agency, |
2.35—4.11% |
Frequently asked questions
Can foreigners buy property in the UK?
Yes, foreigners with or without a residence permit can purchase real estate in the UK. There are no restrictions.
How much does a house cost in Great Britain?
Property prices in the UK are growing by an average of 1б3% every quarter. The average housing cost is €4,310 per 1 m².
Can I live in the UK if I buy a property?
You can buy property as a foreigner, but it won’t give you a residential permit. Obtaining a UK residence permit or citizenship is not connected with purchasing real estate.
UK expats can obtain a residence permit for investment in the economy
from £2,000,000, or about €2,350,000. These cannot be investments in real estate or in companies whose activities are related to investments in real estate.
Does the UK have real estate taxes?
Property owners in the UK pay a municipal property tax depending on the cadastral property value.
A seller of real estate in the UK pays a capital gains tax of 18%—28% on the difference between the sale and purchase prices. There are exemptions for:
- non-residents who live in the UK for less than 183 days a year;
- residents who have sold their primary residence.
