Author, Andrew Gibson
Last Updated on August 1st, 2024
As specialists in international money transfers, we have lots of clients who transfer money back to the UK from a property they have sold abroad.
Whether you’re selling overseas property and moving back to the UK, selling a holiday home, or have inherited a foreign property, there are important legal and financial considerations you should know about.
We have put together this guide to help save you time, money, and hassle.
What to consider when selling a property abroad
While the process of selling a property is not dissimilar to that of buying a property, the types of costs you will incur are very different.
One thing to remember is that the final sales price of the property will not be the same as the money you bring back to the UK.
Reasons for this include:
- Money transfer costs
- Fluctuations in exchange rates
- Estate agent fees
- Legal fees
These are worth thinking about during your overseas property sale.
Especially exchange rates, because timing is everything.
For a depth analysis of popular currency exchange rates and information on how to transfer from certain currencies back to GBP, we have the guidance for you:
What are the costs of selling a property abroad?
As with any property sale, in the UK or abroad, you will have to factor in similar costs such as:
- Legal fees & Estate Agent fees
For both, it will be important to find companies that have experience in overseas property sales.
Average Estate Agent fees (Popular Destinations)
| Country | Estate Agent Fees (% of sale price) |
| Spain | 5% |
| France | 5% |
| Ireland | 1.5% |
| Italy | 2.5% |
| USA | 5.5% |
| Canada | 3% |
| Australia | 2% |
More estate agent fee averages across the world can be found via The Advisory.
Legal Fees of a property sale abroad
The average legal fee for selling a property abroad can vary widely depending on where you are selling your property, the complexity of the sale, and specific services that may be required.
In some countries, solicitor fees will be a percentage of the sale price, like the estate agent fees showcased above.
There are some cases, in Spain and France, the seller is not obliged to pay the notary fees, but you will have other expenses like the many searches that need to be done.
These inspections include asbestos, electric and gas installations, termites, and so on.
The only other instance where, as a seller you are required to pay notary fees will be if the transaction falls through.
We highly recommend getting in contact with real estate attorneys within the local area of your property sale abroad to get a more accurate picture of what you can expect.
- Tax implications
We cover everything you need to know about UK & foreign tax implications involved in the sale of overseas property further down this guide!
There are also some additional costs you will face in moving your money back to the UK.
This is our area of expertise!
When is the right time to send my money back to the UK?
Because exchange rates are constantly fluctuating, it’s important to keep an eye on them during your overseas property sale.
Once the property has been sold and the costs that come with it have been paid, the timing of when you convert this money into Pound Sterling will affect how much you bring back to the UK.
Currencies get stronger or weaker by the second as trades occur all around the world.
It makes exchange rates difficult to predict.
But seeking the right advice and guidance from a money transfer specialist during this transaction can be crucial and beneficial.
Our expert team is always monitoring the currency market throughout the day.
We can alert you when it’s a good time to transfer your money or if the exchange rate moves in your favour.
Exchange rate charges
Banks typically charge high exchange rate costs.
These are usually in the range of 2-5% of the money you send.
The exchange rate costs can be a big factor when transferring large amounts back to the UK from a property sale abroad.
In almost all cases, the exchange rate cost will be much higher than the transfer fee cost.
At Key Currency, we can help and support you through your international money transfer to the UK and the proceeds from your overseas property sale.
We charge no fees and work with you to achieve a great exchange rate.
Avoiding extra money transfer costs
If you make an international bank transfer with your bank, you will be charged various fees for the transfer.
This can be confusing in terms of how much you will be charged, as banks don’t present this.
Unfortunately, you often find out after you’ve sent your money – too late by then!
Every bank will have different charges for international money transfers.
Euro transfers usually have a transfer fee of around €15 to €20 per transfer. This is usually higher for USD and other currency transfers.
However, this isn’t the only charge banks will place on a money transfer back to the UK or abroad.
Other bank fees when transferring money internationally with your bank include:
- Incoming fee – charge for receiving money abroad.
- Tracer fee – Charge for tracking the progress of your international money transfer.
When transferring your money back to the UK via your bank, you may also run into Banker’s Drafts, this is very common in countries like Spain.
We have further information regarding this in our selling Spanish property guide and tips!
Fortunately, at Key Currency, we allow the cashing of Banker’s Drafts for free and have no fees for international transfers to your UK bank account.
This allows you to bypass the above bank transfer fees when you need to transfer your proceeds from selling property abroad.
Transferring your money to the UK in 4 simple steps
When sending large amounts of money back to the UK, an international bank transfer is the cheapest way to do so.
This can be done by either your bank or a money transfer company.
Whether you use a bank or money transfer specialist, the steps include:
- Identification check
- Securing the best exchange rate
- Sending in your money
- Your money is converted to Pounds and sent
You can find further information regarding the above process and more in our send money to the UK guide.
Will I have to pay tax on my overseas property sale?
When selling a property abroad, there are tax implications in both the UK and in the country where you’re selling the property.
It is important for sellers who live in the UK to report the disposal of a property abroad to the HMRC.
This can be done when putting together your next tax return.
Many believe that they are only liable to pay tax in the country where the property resides, but this is not the case.
In some instances, double taxation on the property sale can happen with tax that occurs in the country where the property is and back in the UK.
There is a way around paying both taxation charges, however.
The UK has in place double taxation treaties with various countries including Spain and France. UK sellers of property abroad will be able to claim credits within the UK for the tax that has been paid abroad.
What is the UK tax on property sales abroad?
If you’re a UK resident and sell a property abroad for a profit, then you will have to pay CGT.
Capital Gains Tax only applies to the profit of ‘gain’ that you may have made when selling your overseas property.
If the property has not increased in value, you would still need to declare the disposal to the HMRC but CGT would not occur.
CGT is not applied to the whole amount that you have received from the property sale, only the gain.
All direct costs related to the sale can be deducted from the gain, such as real estate and legal fees.
If you have inherited a property abroad then in most cases, inheritance tax will be taxed on the estate in which the property is included straight away.
If you were to sell or dispose of the property later which saw a profit, you would still be liable to pay CGT.
Make sure to get further advice from an independent financial advisor.
They can support and go through all the taxes that may be associated with your overseas property disposal.
How much money can I transfer back to the UK?
There are no limits to transferring money back to the UK if you’re doing so through a currency broker or bank.
Money coming back to the UK is only restricted if brought back via cash. Where you would need to declare £10,000 or more.
If you’re selling a property abroad and choose to transfer through an international bank transfer, this won’t need to be a concern for you.
Who is Key Currency?
We are an independent currency exchange broker.
The exchange rates we offer to our customers are extremely competitive and we do not charge any fees for your transfer.
We specialise in helping clients who are transferring money back to the UK from overseas property sales.
Key Currency is authorised by the FCA and registered with the HMRC.
If you’d like to see some of customer reviews, you can do so by reading over 2,500 on Trustpilot where we have a 5-star rating.
We will be happy to help you with your money transfer back to the UK after a sale of a property abroad!
You can request a free quote today and our experienced team is ready to support you on all aspects of the process.
