A buyer from abroad pays the same stamp duty bands as a UK resident plus a surcharge, and has to report and pay tax on a later sale quickly. This guide sets out the costs and taxes, the difference between freehold and leasehold, how a purchase goes, and what a purchase does and does not mean for residence.
Reviewed 5 November 2026
In short
- Stamp duty land tax (SDLT) is paid by the buyer at completion. From 1 April 2025 the standard rates on a home in England are 0% up to £125,000, 2% up to £250,000, 5% up to £925,000, 10% up to £1.5 million and 12% above that.
- A buyer who is not UK resident pays 2 percentage points more in every band. A buyer who will own another residential property pays a further 5 points in every band, and the two surcharges add up.
- For a non-resident individual buying at £1.2 million, SDLT is £87,750 if it will be their only home and £147,750 if it is an additional home.
- An individual counts as non-UK resident for this purpose if they were not in the UK for at least 183 days in the 12 months before the purchase. The statute is the authority, so confirm your own position with a solicitor.
- A non-resident who later sells UK residential property must report the sale and pay any tax due within 60 days of completion, even when no tax is due.
- Owning a home does not by itself give a right to live in the UK. The Tier 1 (Investor) visa has been closed to new applicants since 17 February 2022, and most visitors who do not need a visa now need an electronic travel authorisation.
Freehold and leasehold
A freehold owner holds the property and its land outright, with no time limit. A leasehold owner holds a long lease from the freeholder, usually for many decades or centuries, and pays service charges and, on older leases, a ground rent. Houses are usually sold freehold; flats are usually sold leasehold, and the length of the lease matters for value and for mortgage lenders.
In the developments shown here the developer’s factsheet states it: at London Square Wandsworth Common the apartments are sold on leases of 999 years from 1 January 2024, and the townhouses and The Residences are sold freehold.
The Leasehold and Freehold Reform Act 2024 became law on 24 May 2024, and its provisions have been brought into force in stages. Ask your solicitor which of them apply to the home you are buying.
Who can buy
We found no rule that bars an individual from another country from buying a home in England. The rules concern tax, identity and source-of-funds checks, and, for a company, registration. Your solicitor confirms the position for you before you reserve.
If an overseas entity such as a foreign company buys, it must first register with Companies House on the Register of Overseas Entities. Individuals are not required to register. The rule also reaches overseas entities that bought land on or after 1 January 1999 in England and Wales, and the penalties for failing to comply include fines, imprisonment and limits on dealing with the property.
Stamp duty land tax
The buyer pays SDLT on the price of a home in England, normally at completion. The standard bands from 1 April 2025 apply to the part of the price inside each band: 0% on the first £125,000, 2% on £125,001 to £250,000, 5% on £250,001 to £925,000, 10% on £925,001 to £1.5 million and 12% above £1.5 million. The Budget of 2026 made no change to these bands.
A non-UK resident pays 2 percentage points more in every band: 2%, 4%, 7%, 12% and 14%. A buyer who will own more than one residential property pays 5 points more in every band, and the non-resident surcharge is added on top, so the rates become 7%, 9%, 12%, 17% and 19%.
Examples for a non-resident individual in England, rates from 1 April 2025. A home bought as the only home: at £1,000,000 SDLT is £63,750; at £1,200,000 it is £87,750; at £1,500,000 it is £123,750. A home bought as an additional home: at £1,000,000 SDLT is £113,750; at £1,200,000 it is £147,750; at £1,500,000 it is £198,750. For comparison, a UK resident buying the only home pays £43,750, £63,750 and £93,750 on the same prices.
The government’s guidance says an individual is non-UK resident for this purpose if they were not in the UK for at least 183 days during the 12 months before the purchase. If one of several joint buyers is non-resident, all are treated as non-resident, and a married couple or civil partners are both treated as UK resident if one of them is. The HMRC manual and the statute word the test with a longer window, so your solicitor should confirm the date and the test for your case.
Buying through a company
Companies and similar bodies that buy a residential property costing more than £500,000 pay a single SDLT rate of 17%, and reliefs exist for some businesses, for example a property rental business. A company that owns a home worth more than £500,000 may also owe the Annual Tax on Enveloped Dwellings; for April 2026 to March 2027 it is £4,600 for a home worth £500,001 to £1 million and £9,450 for £1,000,001 to £2 million, with higher charges above that.
Because the choice between buying in your own name and through a company changes the tax, take advice from a tax adviser in the UK before you decide.
Taxes while you own
Council Tax is paid to the local council every year. The government has announced a High Value Council Tax Surcharge on homes in England worth £2 million or more from April 2028, in addition to Council Tax; the details were still being set at the date of review.
If you let the home while you live abroad, the Non-Resident Landlords scheme applies: the letting agent, or a tenant who pays more than £100 a week, deducts tax at the basic rate of 20% from the rent after allowable expenses and pays it to HMRC, and sends HMRC an annual return by 5 July. Section 21 no-fault evictions have been abolished for private tenancies since 1 May 2026 under the Renters’ Rights Act.
A non-resident who sells UK residential property must report the sale to HMRC and pay any Capital Gains Tax within 60 days of completion, even if no tax is due. The government’s rates page gives 18% and 24% for residential gains of individuals from 6 April 2026, and your adviser confirms how they apply to you.
Inheritance tax can reach UK property. Since 6 April 2025 the test is long-term residence in the UK, defined as ten of the previous twenty tax years, rather than domicile, and UK residential property held through an overseas company has been within inheritance tax since 6 April 2017. Take advice on it before you buy.
Visits and residence
The government’s visa pages do not link the purchase of a home to a right to live in the UK. The Tier 1 (Investor) route was closed to new applicants on 17 February 2022, and the current business route, the Innovator Founder visa, is based on an endorsed business idea, not on property.
Most visitors who do not need a visa need an electronic travel authorisation (ETA) before they travel. It has been enforced since 25 February 2026 for visitors of 85 nationalities and costs £20 from 8 April 2026. British and Irish citizens do not need one. A standard visitor may stay for up to six months.
How a purchase usually goes
- Choose the home, sign a reservation agreement and pay the reservation fee. London Square, the developer of the homes shown here, asks buyers to be ready to fund the purchase and to appoint an independent solicitor.
- Your solicitor checks the title or the lease, the charges and the contract, and carries out the identity and source-of-funds checks the law requires of every buyer.
- Exchange contracts. On London Square’s page the period from reservation to exchange is 42 days, including a 14-day cooling-off period, and exchange makes the purchase legally binding. Before exchange you agree how the deposit and the rest of the funds will be paid.
- Complete the purchase: your solicitor sends the funds to the developer’s solicitor after the developer serves a notice to complete, and the keys are handed over. SDLT is paid through your solicitor, who confirms the exact timing.
- The ownership is registered at HM Land Registry in your name. If you will let the home, set up the Non-Resident Landlords scheme.
Official and primary sources
- GOV.UK: Stamp Duty Land Tax, residential property rates
- GOV.UK: Rates of Stamp Duty Land Tax for non-UK residents
- GOV.UK: Stamp Duty Land Tax, buying an additional residential property
- GOV.UK: Budget 2026, overview of tax legislation and rates, Annex A
- GOV.UK: Stamp Duty Land Tax for corporate bodies
- GOV.UK: Annual Tax on Enveloped Dwellings, the basics
- GOV.UK: High Value Council Tax Surcharge
- GOV.UK: Capital Gains Tax for non-residents, UK residential property
- GOV.UK: Paying tax on rent to landlords abroad
- GOV.UK: Inheritance Tax if you are a long-term UK resident
- GOV.UK: Register an overseas entity
- GOV.UK: Tier 1 (Investor) visa
- GOV.UK: Electronic Travel Authorisation (ETA)
- GOV.UK: Standard Visitor visa
- London Square: the buying journey (developer’s own page)
- GOV.UK: Leasehold reforms become law (24 May 2024)
- GOV.UK: When will the Renters’ Rights Act come into force
This page is general information, not legal, tax or immigration advice. Rates, thresholds and rules are set by the UK government and change, and this page covers England only (Scotland, Wales and Northern Ireland have their own rules). As at the date of review, confirm with HM Revenue & Customs, GOV.UK, a solicitor or conveyancer in England and a tax adviser before you decide.