Buying UK property as an overseas investor: personally or through a company?

For many overseas investors a UK limited company is the better route for buy-to-let, but the tax costs at the start are higher and the lender list is shorter. Buying personally is simpler and can suit a single property. The right answer depends on how many properties you plan to hold, their value and where you pay tax, so take tax advice before you choose.

What changes when a company buys?

Stamp duty, mainly. Companies pay the higher rates on every residential purchase, currently 5% above the standard bands, even on their first property. If the company is controlled by non-UK residents, the 2% non-resident surcharge can apply as well.

On a £600,000 flat let to tenants, the standard rates come to £20,000. Add 5% and 2% of the full price and the company pays £62,000, assuming it qualifies for relief from the 17% rate below.

Above £500,000, two more rules come into play. A 17% flat rate can apply to companies buying expensive homes, and the Annual Tax on Enveloped Dwellings may be due each year. Both have reliefs for qualifying letting businesses, but they have to be claimed.

What is ATED, and will I pay it?

It’s an annual charge on UK homes worth more than £500,000 held by a company. For 2026/27 it starts at £4,600 a year for a property worth up to £1 million and £9,450 for one worth up to £2 million. Most properties let commercially to unconnected tenants qualify for relief, but the company still files a return each year, and relief can be lost for any period a connected person lives there.

How is rental income taxed for overseas landlords?

Under the Non-Resident Landlord Scheme, your letting agent, or your tenant if there’s no agent and the rent is over £100 a week, deducts basic rate tax from the rent and pays it to HMRC. You can apply to receive rent gross, on form NRL1 as an individual or NRL2 as a company, and settle tax through your return instead. Approval doesn’t make the income tax-free.

Which mortgages are available?

Several specialist lenders offer limited company buy-to-let to overseas directors and shareholders. Expect a deposit of 25% or more, a rental stress test and personal guarantees from the directors. Lenders will want to see who owns the company, and some prefer a UK special purpose vehicle set up only to hold property.

Buying personally widens the choice of lender, though non-resident buy-to-let is still a specialist market.

How do we help?

We’ll work alongside your tax adviser to match the structure to lenders that accept it, then handle the application. See our property investor mortgages and buy-to-let pages, or book a call by video or phone through contact us.

Frequently asked questions

This article is general information, not tax advice. The Financial Conduct Authority does not regulate tax advice or most buy-to-let mortgages for limited companies. Changes in the exchange rate may increase the sterling equivalent of your debt. Your property may be repossessed if you do not keep up repayments on your mortgage.