Selling property abroad and bringing money to UK guide

Selling property abroad and bringing money to the UK: a simple step-by-step overview

When you are selling property abroad and bringing money into UK bank accounts, a clear plan helps. Here is how the process usually works if you live in the UK.

• 1. Decide your timing and sales strategy
  Check the local housing market, recent prices and seasonal demand. A holiday flat on the Spanish coast, for example, might attract more buyers in spring and early summer than in November.
• 2. Appoint local professionals
  Choose a trusted estate agent and an independent lawyer in the country where the property is based. They handle the listing, viewings, offers, contracts and checks on ownership, debts and local taxes.
• 3. Agree the sale and sign contracts
  When you accept an offer, you usually sign a preliminary contract and pay or receive a deposit. Your lawyer should explain any local rules and any selling overseas property tax implications UK residents need to be aware of.
• 4. Complete the sale and receive funds
  On completion, the buyer pays the balance to you or into your lawyer’s client account. At this point, you decide how and when to convert the money and move it to your UK account.
• 5. Plan the transfer and FX strategy
  Compare options for transferring overseas property sale proceeds to UK bank accounts. Look at the exchange rate you get, the fees, how fast the money arrives and any limits. For larger amounts, you might want to lock in an exchange rate or split the transfer into stages.
• 6. Record the sale for UK tax
  Keep copies of your contracts, completion statements, proof of what you originally paid and proof of your transfer to the UK. You will need these when you work out any UK tax on foreign property sale and when reporting foreign property sale to HMRC.

Table of contents

• How UK tax treats a foreign property sale
• CGT basics on selling overseas property
• Key selling overseas property tax implications UK sellers often miss
• How to transfer overseas property sale proceeds to the UK safely and cost effectively
• Main ways to transfer your money
• Staying safe and keeping costs down
• Reporting your foreign property sale to HMRC and staying compliant with UK rules
• Practical planning tips for selling a property abroad and managing exchange rates and fees
• Common mistakes when selling property overseas and bringing money into the UK – and how to avoid them
• Selling property abroad and bringing money to the UK: tax rules and practical considerations
• UK tax on foreign income and gains when selling property abroad and bringing money to the UK

How UK tax treats a foreign property sale

If you’re selling property abroad and moving the money into a UK account, the main thing to know is that UK tax on foreign property sale usually depends on whether you’re UK tax resident, not where the property is located.

If you’re UK resident, you’re normally taxed on your worldwide gains. So if you’re selling a property abroad, any profit is likely to fall under UK Capital Gains Tax (CGT), even if the sale proceeds stay in an overseas bank account. Bringing the money into the UK later doesn’t usually create extra tax on its own – the key tax point is the date you complete the sale.

CGT basics on selling overseas property

• Taxable gain: broadly, the sale price minus what you paid for the property, plus certain buying, selling and improvement costs.
• Rates: for residential property, gains are generally taxed at 18% or 28%, depending on your income level.
• Annual allowance: you get a tax‑free CGT allowance each tax year, and only gains above this are taxed.
• Foreign tax: if you’ve paid tax on the sale overseas, the UK usually offers foreign tax credit relief so you’re not taxed twice, subject to HMRC limits and rules.

Key selling overseas property tax implications UK sellers often miss

• Exchange rates matter: HMRC expects you to convert all figures into pounds using the correct exchange rate on the relevant dates. Currency movements between buying and selling can increase or reduce your UK gain.
• Main home relief may differ: a property treated as your main home abroad won’t automatically qualify for full UK private residence relief – UK rules decide how much relief, if any, you get.
• Joint owners: couples and other joint owners need to work out each person’s share of the gain for UK tax, even if all the sale proceeds end up in just one bank account.
• Timing: the tax year when you complete the sale (not when you later move the funds to the UK) decides when you must report and pay any CGT.

As you plan selling property abroad and bringing money to UK, keeping these selling overseas property tax implications UK residents face in mind can help you manage your bill and avoid last‑minute surprises.

How to transfer overseas property sale proceeds to the UK safely and cost effectively

When you sell a property abroad and move the money to a UK bank account, how you transfer the funds can make a big difference to what arrives in pounds. Once the sale has completed and you have paid any local taxes, it is all about bringing your sale proceeds back to the UK safely, quickly and at a fair exchange rate.

Main ways to transfer your money

• Bank-to-bank international transfer
  Easy to arrange with your existing bank, but usually the most expensive option. Many high-street banks add a mark-up to the exchange rate and charge international payment fees. You might also face receiving fees when the money lands in your UK account.
• Specialist online money transfer service
  Often lower fees and more competitive exchange rates than UK banks, plus fast delivery and clear tracking. This can work well if you want to split a large amount into a few transfers rather than sending everything in one go.
• Escrow or solicitor’s client account
  In some countries, your lawyer or notary can receive the sale proceeds into an escrow or client account and then send the funds on to your UK bank. This can add a layer of protection, especially if you are selling in a country you do not know well. Always check their fees, what exchange rate they will use and how long the transfer will take.

Staying safe and keeping costs down

• Only use regulated providers and double-check all bank details before you send a large amount. In the UK, look for firms authorised by the Financial Conduct Authority (FCA).
• Compare the total cost of each option-fees plus the exchange rate-not just the advertised transfer fee.
• If you are moving a large sum, ask about locking in an exchange rate on the day you agree the transfer so that you are not caught out by sudden currency swings.

Reporting your foreign property sale to HMRC and staying compliant with UK rules

If you sell a property abroad and move the money into a UK bank account, staying on the right side of HMRC matters just as much as getting a fair exchange rate. Reporting your foreign property sale to HMRC is mainly about timing, using the right forms and keeping clear records.

When and how to report

• Self Assessment tax return – you usually report the gain on the foreign property on the capital gains pages for the tax year in which you exchanged contracts, not when the money reaches your UK account.
• 30/60‑day UK property rules – these rules normally apply to UK residential property, not homes overseas. If you live outside the UK or have recently moved, check whether any non‑resident rules could affect you.
• No gain, no tax? – even if you think there is no UK tax to pay on your foreign property sale, it is safer to show the figures. That way HMRC can see how you worked out the gain and why no tax is due.

Records HMRC expect you to keep

• The foreign sale contract, completion statement and any local tax bills or notary fees.
• Proof of the original purchase price, legal costs and any improvement or renovation costs.
• The exchange rates you used when converting each figure to sterling, plus where you got those rates from (for example, Bank of England or your bank).

Clear paperwork makes it easier to answer HMRC questions later and reduces the risk of unexpected tax bills years after you have transferred your overseas sale proceeds to the UK.

Practical planning tips for selling a property abroad and managing exchange rates and fees

When you’re selling a property abroad and bringing the money back to the UK, a bit of planning can save you a lot in charges and poor exchange rates. This is especially important if the sale is funding a UK home purchase, school fees or a lump‑sum investment.

Start with your timeline

• Work backwards from your key dates-UK completion, mortgage redemption, school fee deadlines and any tax dates.
• Decide how much you need in pounds on each date, and how much can arrive later.
• Keep some funds in the local currency if you still have bills, service charges or taxes to settle overseas.

Plan your currency approach

• Split the total into a few transfers instead of moving everything on one day-this can smooth out rate swings.
• If the rate is already in your favour, look at fixing it in advance with scheduled transfers.
• Hold back a small emergency buffer (for example 5-10%) for last‑minute costs or unexpected rate moves.

Watch fees and hidden costs

• Check every fee at both ends-overseas bank transfer charges, UK receiving fees and any intermediary bank costs on the route.
• Compare the real, all‑in rate (the interbank rate plus any mark‑up), not just “no fee” promises.
• Avoid extra currency hops-for example, try not to convert from euros to dollars and then to pounds if you can send directly to GBP.

Keep HM Revenue & Customs (HMRC) in mind

• Ring‑fence the money you may need for any UK tax that could arise from selling a property abroad.
• Keep clear records of sale proceeds, transfer dates, exchange rates and charges so you can report the foreign property sale to HMRC if you need to later.

Common mistakes when selling property overseas and bringing money into the UK – and how to avoid them

When you’re selling property abroad and moving the money into a UK bank account, small oversights can cost you hundreds or even thousands of pounds. Here are some of the most common pitfalls-and simple ways to avoid them.

• Leaving everything until exchange
  Many sellers only think about how to bring their sale proceeds back to the UK once the buyer is ready to exchange. By then, you have to accept whatever rate and fees you’re given. Start looking at your transfer options and timing as soon as you put the property on the market, so you can move when the rate looks good.
• Ignoring local sale costs
  If you forget about local agent commissions, notary fees or municipal taxes, you can end up with far less in your UK account than you expected. Ask your overseas lawyer or agent for a detailed completion statement early in the process so you know the true net amount you’ll be transferring.
• Relying on your overseas bank by default
  Letting your foreign bank “just send it in sterling” is usually the most expensive option-there are often high fees hidden in a poor exchange rate. As we mentioned earlier, look at specialist money transfer services that let you choose when to lock in a rate and how you want to move your money.
• Forgetting UK tax and reporting
  Many UK sellers assume that if the property is overseas, the tax position is only dealt with locally. In reality, you may still need to report the sale to HM Revenue & Customs (HMRC), and in some cases pay UK Capital Gains Tax. Keep a simple folder with your contracts, completion statements and bank records so reporting to HMRC later is straightforward. If you’re unsure, speak to a UK tax adviser before you complete.
• Sending money in random chunks
  Making lots of unplanned transfers can lead to extra checks, delays and higher overall fees. Where you can, plan 1-2 well‑timed transfers, backed up with clear documents from the sale. It keeps costs lower and makes it easier to show where your money has come from if a UK bank asks.

Selling property abroad and bringing money to the UK: tax rules and practical considerations

If you live in the UK and sell a property overseas, you usually pay UK Capital Gains Tax (CGT) on any profit, even if the sale is abroad and the money stays there for a while. The key is to understand how UK rules work alongside local tax in the country where the property is based.

In most cases, you report the gain in the UK in sterling, using the relevant exchange rates on the purchase and sale dates. If you have already paid tax on the gain overseas, you might be able to claim double taxation relief-this gives you credit for foreign tax against your UK CGT bill. If the overseas tax rate is lower than the UK rate, you may still have some UK CGT to pay on the margin.

Your domicile status and the way you are taxed in the UK can also make a big difference. For non-domiciled UK residents who claim the remittance basis, UK tax can depend on whether and when you bring the sale proceeds to the UK. In some situations, Private Residence Relief (PRR) may reduce or remove the gain if the overseas property has been your main home, but the conditions are strict and need careful checking.

The full article from UK Property Accountants looks at these rules in more detail, including how timing, exchange rates and your personal circumstances affect the final UK tax position. It focuses on helping you understand the tax framework, rather than recommending particular banks or money transfer services.

UK tax on foreign income and gains when selling property abroad and bringing money to the UK

This helpful guide from the Low Incomes Tax Reform Group explains how you, as a UK resident, are taxed on foreign income and gains. That includes profit from selling property overseas and what happens when you later move the money to the UK.

The guide confirms that, in general, if you are UK resident you are taxed on your worldwide income and gains. It also walks through how the remittance basis works, what is changing from April 2025, and when bringing money from abroad into the UK can create an extra tax charge.

If you are thinking about selling a property abroad and moving the sale proceeds to a UK bank account, this is essential background reading so you can understand the possible tax implications before you transfer the money.