Selling property abroad and bringing money to the UK
Once your property has been sold and the funds are ready to be transferred, there’s still one important step most sellers miss: getting the funds back to the UK.
When selling property abroad, the sale price might be fixed, but the final amount you receive in pounds isn’t. Whether you’re selling a holiday home or moving back to the UK, exchange rate movements and tax implications can make a noticeable difference to your proceeds before they reach home.
Here’s what you need to know about selling costs, planning the transfer and bringing your money to the UK.
- What to consider before selling property abroad
- Top tips for selling property abroad
- Costs to consider when selling property abroad
- How exchange rates can affect your property sale
- How to bring money from an overseas property sale to the UK
- UK tax when selling property abroad
- How much money can you transfer to the UK from abroad?
- Selling property in popular overseas markets
- Why trust Lumon
- What our customers are saying
What to consider before selling property abroad
Agreeing on a sales price is one thing, but what really matters is how much of it makes it back to your UK account in pound sterling.
So, before the property goes on the market, it pays to plan beyond the sale:
Price it for the local market: Look at recent local property sales to see what buyers are paying, and how long you’ll need to wait for an offer.
Seek local professionals: International property sales involve rules you don’t know, and mistakes can be expensive. A local estate agent can guide you through the sale, while an independent lawyer can flag any local legal requirements.
Get paperwork together early: Establish what the local authorities, solicitor, and bank need in advance to avoid costly delays.
Think about pounds, not just the sale price: Even a small currency movement can impact the sterling value of your proceeds. Think about the exchange before the sale is settled, rather than when the proceeds arrive.
Top tips for selling property abroad
Know your market
Property markets vary from one country to another. Look at recent local sales so your asking price reflects the market you’re selling in.
Prepare your property
Before over-spending on improvements, ask your local agent what buyers in the area expect. You may find that a few well-chosen fixes are more worthwhile than an expensive renovation.
Time your transfer
Exchange rates can change between putting your property on the market and bringing the proceeds home. Planning gives you more control over when your money is converted into pounds.
Costs to consider when selling property abroad
Selling property overseas comes with hidden costs you wouldn’t need to budget for in a UK sale, with each taking a share of your proceeds. Local rules determine many of these costs, while the cost of converting and moving your money between countries creates another layer of expense.
Estate Agent fees
What it covers: The agent’s commission for marketing the property, arranging viewings and managing the sale through to completion.
What to consider locally: How agents charge, and who pays, vary by country. They may be a percentage of the sales price or a fixed fee. Check these costs in advance, as they can range between 2-10% of the sale price.
Legal & notary fees
What it covers: Professional fees for the legal work needed to transfer ownership to the buyer.
What to consider locally: Costs differ by country because the seller’s legal responsibility varies. The legal professional required to complete a sale also varies; some countries require a notary, while others rely heavily on lawyers or solicitors.
Taxes & local charges
What it covers: Taxes triggered by the sale, plus any charges payable to local authorities.
What to consider locally: What you owe depends on the country’s tax rules and your own circumstances. How long you’ve owned the property, and the profit you make from it, can also affect the bill. UK tax may apply.
Currency costs
What it covers: The cost of converting your sale proceeds into pounds and getting them to your UK bank account.
What to consider locally: Exchange rates vary by currency and provider fees affect the final amount of pounds you receive. On a high-value sale, even a small exchange-rate movement can make a significant difference.
How exchange rates can affect your property sale
You can fix the price of your property, but you can’t fix what that price is worth in pounds when you convert the proceeds.
Exchange rates fluctuate constantly and can change while you’re waiting on contracts to be signed or the sale to complete. Even small changes to the rate can make a difference to the final amount you receive.
At Lumon, a currency specialist can help you plan your transfer and explore your options. These may include a Forward Contract, which fixes the exchange rate in advance, giving you greater certainty over how much you’ll receive when you transfer your sale proceeds.
Forward contracts involve risk and may not be suitable for all customers — they fix your rate but mean you won’t benefit if rates move in your favour later.
How to bring money from an overseas property sale to the UK
Trace the route your proceeds will take: Your funds may go to a lawyer’s client account, a notary, or a local bank before they reach the UK. Before completing the sale, confirm where the money will be paid and in which currency.
Prepare your paperwork before completion: A large payment arriving from overseas could attract more checks than an everyday transfer. Keep your sale documents handy, and ask your UK bank what documentation it will require before the funds arrive.
Choose how, and when, to convert: You don’t have to use the bank holding your proceeds or convert them into pounds immediately. Compare your transfer options so you factor in the exchange rate and any fees.
UK tax when selling property abroad
If you’re a UK tax resident, selling overseas property may leave you with property taxes to settle at home as well as abroad.
Capital Gains Tax (CGT):
If you make a profit on the property, you may have to pay Capital Gains Tax in the UK. Tax is generally worked out on the profit (your capital gain) rather than the full selling price. Some of the costs of buying and selling can be accounted for.
Reporting the sale to HMRC:
Selling abroad doesn’t keep the gain outside the UK tax system. You may need to report overseas property gains to HMRC, depending on your circumstances and the amount you’ve made.
Tax in the country of sale:
The country where the property is located may also tax the sale. The rules can be very different from those in the UK, including how gains are calculated and the tax rates that apply.
Avoiding double tax:
Paying tax abroad doesn’t necessarily mean paying twice on the same profit. You may be able to offset some or all of the tax paid overseas against your UK tax bill depending on your specific circumstances.
The information provided is for general information purposes and does not constitute legal, tax or other professional advice from Lumon, and it is not intended as a substitute for obtaining advice. It is recommended you seek professional advice from a financial advisor or any other professional.
How much money can you transfer to the UK from abroad?
There’s no general legal limit on how much money you can transfer to a UK bank account. So, if you’ve sold a €500,000 property, you can bring the full proceeds back to the UK.
What matters more with a large transfer is being able to show where the money came from. A large payment may trigger checks from your bank or transfer provider.
They may ask you to prove where the money came from, so for a property sale, have documents such as the sale contract and relevant bank statements ready.
Selling property in popular overseas markets
When selling property abroad, there are always local nuances to consider based on the country you’re selling from. At Lumon, we can help you access in-country bank accounts so you can send the proceeds back home without having to travel.
Selling property in Spain
If you’re selling up in Spain, the proceeds are usually paid by banker’s draft (known locally as a cheque bancario), which can lead to extra processing fees.
At Lumon, we can take care of this for you, saving you the fees and ensuring a smooth transfer.
Selling property in France
The legal process of selling in France can be particularly complex, leading to bureaucratic delays.
Lumon can provide local expertise at every step, helping you navigate notaire formalities and required paperwork so you can send proceeds home without a hitch.
Selling property in Portugal
Selling a property in Portugal can be a challenge, especially if you aren’t familiar with the Portuguese legal and tax systems.
With over 25 years of local expertise, Lumon works with trusted legal and financial contacts to keep your sale moving smoothly.
Why trust Lumon
Our team of currency specialists have the local market knowledge to help you navigate the process of buying a property abroad. With our international real estate expertise, we’re here to help make the process hassle-free.
Bank-beating exchange rates* and no transfer fees
Cared for over 70,000 customers since 2000
Rated “excellent” on Trustpilot
International property specialists
*Bank-beating exchange rates
Keep more of your money when transferring the proceeds from your property sale. Our bank-beating exchange rates can help you save on the exchange, so more of your money makes it home.
We keep your funds safe
Protecting your money is our highest priority. When working with Lumon, you can rest assured that your property sale proceeds are safeguarded by robust security measures.
Safeguarding means your funds are held in accounts separate from Lumon’s own money, protecting them in the event of our insolvency. It doesn’t protect against fraud or scams.
What our customers are saying
Lumon is an extremely professional organisation. I have used them twice during a property sale and recently for a euro-to-sterling exchange.
I would have no hesitation in recommending Lumon and their staff to anyone looking for a reliable and professional foreign exchange service.
Marie
Sold a property abroad.
Frequently asked questions about selling property abroad and bringing money to the UK
Do I have to declare an overseas property sale to HMRC?
If you’re a UK resident and make a taxable profit on the property sale, you’ll generally need to tell HMRC. Exactly what you report depends on your circumstances.
Do I pay tax in the UK if I sell property abroad?
Potentially. UK residents can be liable for Capital Gains Tax on profits from overseas property, even if the property itself is abroad.
How much money can you transfer to a UK bank account from abroad?
There’s no general legal limit. For a large transfer, though, your bank may ask where the money came from, so keep your property sale documents handy.
How much money can you receive from overseas without paying tax in the UK?
There’s no simple tax-free transfer limit. What matters is where the money came from and whether the underlying income or profit is taxable, rather than how much you transfer.
Is bringing money from an overseas property sale to the UK taxable?
If you’re selling property abroad and bringing money to the UK, the transfer itself doesn’t usually create the tax bill. If tax is due, it will generally relate to the profit you made on the property sale.
Do UK banks report large international transfers to HMRC?
There isn’t a set amount that automatically gets reported to HMRC. Banks do monitor unusual transactions and may ask for evidence of where a large payment came from.
Speak to us about your overseas property sale
You might know what your property has sold for, but until the money is converted, you won’t know exactly what you’ll receive in pounds. At Lumon, we connect you with a dedicated account manager who can help you plan your overseas property sale around exchange-rate movements. So you can have peace of mind from the moment you agree a sale through to the return of the proceeds to the UK.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Foreign exchange transactions involve risk. Currency movements and market volatility may affect costs, cash flow and financial outcomes.