Buying commercial property abroad, UK guide

UK businesses buy commercial property abroad for different reasons. Some want a base in a new market. Others want control over their premises instead of paying rent.

Owning property overseas can make sense, but the rules change from country to country. You may face foreign ownership restrictions, local taxes, and a legal system that works very differently from the UK. Sending large payments across borders adds another layer. This guide walks through what to check before you commit, from legal and tax issues to the buying process itself.

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Why buying commercial property overseas differs from residential property

Commercial and residential property work differently everywhere, but those differences get bigger when you're buying abroad.

• Lease length is the first obvious split. UK commercial leases averaged 3.7 years in 2024,¹ though you'll still find traditional 10 or 15-year agreements for industrial properties. Residential tenants rarely commit for more than a year or two in most countries, but the gap varies. Some markets expect 5-year commercial minimums, while residential stays flexible.

• Foreign ownership rules hit commercial and residential buyers considerably differently, too. For example, Thailand allows foreigners to buy residential condos outright as long as 51% of the building stays Thai-owned.² Commercial property, on the other hand, is trickier. You'll typically need a Thai majority shareholder in your company or accept a 30-year leasehold.

Whether you're buying commercial or residential property abroad, a crucial consideration is the cost of sending large sums internationally. Most banks use a markup to the exchange rate which often is around 2-5% of the total amount sent, which adds up significantly for large purchases such as property. This also excludes other hidden costs you might run into such as intermediary bank delivery fees.

With Wise Business, you'll always send money at the mid-market exchange rate and you'll get a discounted fee when sending large volumes.

Please see the terms of use and product availability for your region or visit Wise Business fees and pricing for the most up to date pricing and fee information.

What are the legal considerations for buying commercial property abroad?

Every country has different rules about foreign property ownership. Some make it easy. Others don't let you buy at all.

Foreign ownership restrictions

Foreign ownership rules are not the same everywhere. In some countries, you can buy commercial property in your own name and in others, you cannot hold the land directly at all.

In Indonesia, for instance, foreign nationals cannot own freehold land. Commercial property is typically held through a locally registered foreign investment company, known as a PT PMA.³ Long-term leasehold structures are also common so using informal nominee arrangements to get around the rules carries legal risk. By comparison, countries such as France and Spain generally allow foreign buyers to purchase commercial property outright under the same framework that applies to local owners.

Investment visas

Some countries offer residency if you invest a minimum amount in property. In certain cases, commercial property qualifies. Minimum thresholds vary and can change over time. These schemes do not override foreign ownership rules. If a country restricts who can buy commercial property, qualifying for a visa does not remove that restriction.

Title verification

UK Land Registry searches are straightforward. In Panama, you'll need Public Registry searches to check for unpaid property taxes that may be transferred to you. Brazil uses multiple local registries, so your lawyer checks several to find hidden debts or conflicting claims. Title insurance protects you in the US if ownership disputes surface later. However, it's rare in Europe, so thorough checks are your only protection.

Zoning and permits

Zoning determines what you can do with the property. For instance, you can’t use a retail space as a warehouse, and office buildings might not get approval for manufacturing. Changing zoning takes months and often fails.

Also, hotels require a tourism licence, restaurants require health permits, and industrial sites require environmental clearances - your UK licences don't transfer. France restricts exterior changes in heritage zones. Germany requires environmental assessments for industrial properties, and contamination from previous owners becomes your problem.

What are the tax considerations for buying commercial property abroad?

You'll owe tax in at least two countries when you own commercial property overseas. The UK wants its share of your worldwide income and gains, and the country where you buy the property will also tax you.

UK tax obligations

If you’re a UK tax resident, the UK still taxes profits from overseas commercial property. If you buy in your own name, rental profit is taxed as Income Tax. If a UK limited company owns the property, the profit is taxed under Corporate Tax rules. Either way, you work out the profit after allowable expenses.

When you sell, the UK also taxes the gain. Individuals may pay Capital Gains Tax and get the annual £3,000 allowance.⁴ Companies don’t pay Capital Gains Tax, but they do pay Corporation Tax on chargeable gains.⁵

If you’ve already paid tax in the country where the property is, you can usually claim relief in the UK under a double taxation agreement so you’re not taxed twice on the same income or gain.

Foreign tax obligations

The property's location determines what taxes apply locally. Rental income gets taxed where the property sits. Rental income is usually taxed in the country where the property is located. Rates depend on your residency status and local rules. You may also face ongoing property taxes or municipal charges.

Annual property taxes work differently from UK business rates. Many countries charge annual property taxes based on cadastral or assessed value.

Transfer taxes vary by country and sometimes by region. In Germany, for example, rates differ between federal states. Build these into your purchase budget.

Staying compliant

Owning property abroad usually means dealing with two tax systems, not one. The UK taxes your worldwide income, and if you complete a Self Assessment return, the deadline is 31 January each year.⁶ The country where the property is located will have its own filing dates and rules.

Keep clear records of rental income, expenses and any tax paid overseas. You’ll need that evidence if you want to claim relief in the UK. If the numbers start to get complicated, it’s worth speaking to an accountant who understands both systems.

The contents of this article is for informational purposes only and does not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation and verification from a qualified financial and legal advisor.

How to buy commercial property abroad: step-by-step

The process looks familiar at first, from research, hiring professionals, arranging finance, and completing the purchase. However, every step takes longer and involves navigating unfamiliar legal systems.

Research the market and ownership rules

Start by understanding what you're allowed to buy. Some countries let foreigners own commercial property outright, whilst others require you to set up a local company or find a domestic partner. These restrictions affect your entire purchase structure, so check them before you start looking at properties.

Research the local market too. What do similar buildings cost? How long do they stay on the market? Local commercial property websites and brokers can tell you whether the area you're targeting has strong demand or oversupply.

Hire local specialists

You'll want a property lawyer who practices locally to verify ownership, check for hidden debts, and handle transaction paperwork. A commercial property broker finds listings, negotiates, and spots problems you'd miss. And, they’ll deal with country-specific registry systems and local tax records that may not be obvious to a foreign buyer. In some countries, property records sit across multiple registries, and unpaid local taxes can transfer with the property.

You'll also need an accountant who understands both UK tax and the local system. Double taxation treaties exist, but they don't automatically prevent you from being taxed twice. A professional needs to calculate where you'll pay what, how to structure the purchase to minimise liability, and which reliefs you can claim.

In countries where English isn't the business language, local legal, property and accountant specialists become essential.

Arrange overseas commercial property financing

Getting a loan for commercial property abroad isn’t always straightforward. Many lenders prefer borrowers who already operate in that country. If you’re based in the UK, you may be asked for a larger deposit or stronger security than a local buyer. Some UK banks with international branches can sometimes support overseas purchases, but that depends on the country and your financial position. In practice, many buyers end up using funds raised against UK assets instead of borrowing locally.

It’s worth speaking to lenders early. Terms can vary widely, and what’s available in one country may not exist in another.

Transfer funds and manage currency risk

Exchange rates determine your actual cost. If the pound weakens between agreeing on the price and sending money, you'll end up paying more. Even small exchange rate movements can change the sterling cost of a large overseas purchase. Banks also often build margins into the exchange rate they offer, increasing the overall cost of the transfer.

Wise Business transfers funds at the mid-market exchange rate with transparent fees. For large transfers over £100,000, you get dedicated support from currency specialists who can help you lock in rates with forward contracts, protecting you from changes while you complete the purchase. And, for any transfers over £20,000 you’ll receive a volume discount.

You can hold funds in over 40+ currencies too, which helps if you're collecting rent abroad. Keep it in EUR, USD or the payment currency until you're ready to convert.

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Complete due diligence and close

Your lawyer verifies ownership and checks for charges, which takes longer abroad because record systems vary. Some countries have digital registries, others use paper records at multiple offices. For industrial properties, arrange environmental assessments to avoid liability from contamination left by previous owners.

The closing process differs by country. Some use notaries, others require both parties to appear at a government office. Your lawyer should handle this, though you might need to travel or arrange a power of attorney.

Tips for buying commercial property abroad

Buying commercial property in a foreign country becomes much more predictable when you focus on the fundamentals. Most issues come from gaps in planning rather than the property itself.

Below are some tips to keep in mind before you commit:

• Check foreign ownership restrictions early: some countries require a local company or partner for an international business property purchase. Confirm what structure is legally allowed before paying deposits or legal fees.
• Price in all taxes and transaction costs: commercial property tax implications abroad often include transfer taxes, registration fees, and ongoing local property taxes. Add advisory fees in both jurisdictions so your numbers reflect the true cost.
• Make international due diligence thorough and independent: verify title, zoning, tenant agreements, and any outstanding liabilities. In foreign commercial real estate investment, small legal oversights can become expensive problems.
• Plan your overseas commercial property financing in advance: local banks may require higher deposits, and timelines can be longer than in the UK. Agree on funding terms before signing binding contracts.
• Set up your payment route early: high-value transfers for commercial real estate purchases often involve verification checks and strict completion deadlines. Wise Business can help you send large international payments with transparent fees, helping reduce unnecessary bank charges and administrative delays when moving funds across borders.
• Keep working capital separate: Do not commit all available funds to the purchase. Local tax bills, compliance costs, or repairs can arise soon after completion.

Save on international fees with Wise Business when buying commercial property abroad

When buying commercial property in a foreign country, the payment itself is often the most time-sensitive part of the deal. You’re moving a large sum in another currency, usually against a fixed completion date. Clarity on fees and timing matters.

Wise Business lets UK businesses send high-value international payments with transparent pricing and no hidden bank mark-ups. You can hold 40+ currencies in one account, which helps if you’re receiving rent or making ongoing payments abroad. You can also get local account details in 8+ currencies, so you can receive international payments like a local business without opening foreign bank accounts.

Fees are low and transparent, with discounts for sending large amounts. The more you send, the more you save. What’s more, you’re guaranteed the mid-market exchange rate on all currency conversions, which could save you a considerable sum on large transfers compared to using a bank.

With Wise Business, large transfers are protected by sophisticated security and anti-fraud measures, with your money safeguarded.

More about Wise Business features:

• No monthly fees
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• Make your money work harder, with Wise Interest (capital at risk, growth not guaranteed)

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*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

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FAQs

What is the average transfer tax or stamp duty when buying commercial property abroad?

There isn’t a global average. Transfer taxes are set locally and vary by country, and sometimes by region within the same country.

For example, Germany charges between 3.5% and 6.5%, depending on the federal state.⁷ The key point is to get a local adviser to calculate the exact figure based on your purchase price and structure before you sign anything.

How does a Golden Visa relate to commercial property investment?

In some countries, investing in property can form part of a residency application. In others, it cannot. The rules depend entirely on the country and the specific visa route.

A residency visa does not automatically change property ownership laws. If a country restricts who can own commercial property, those restrictions still apply.

Investment-based visa schemes also change over time. Thresholds, qualifying assets and eligibility criteria can all be updated. If residency is part of your plan, check the current immigration rules before structuring the purchase around it.

What is the most critical step in foreign commercial real estate due diligence?

Confirming a clear title and permitted use. You need to know you legally own the property and that you’re allowed to use it for your intended business activity.

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Sources:

1. State of Leasing – Commercial Real Estate – Re-lease
2. Thailand Property – Rumavi
3. Buying freehold property in Indonesia – Prestige Property
4. Capital Gains Tax – GOV.UK
5. Capital Gains Tax for business – GOV.UK
6. Self Assessment tax returns – GOV.UK
7. Buying real estate in Germany – Winheller

Sources last checked: 18-Feb-2026