Considering selling a property you own abroad? Many choose this path when returning to the UK or after inheriting an overseas home. If you’re thinking of selling a holiday getaway or permanently moving back to the UK, we can help you manage your money effectively. Moneycorp offers competitive exchange rates and lower fees for those wanting to transfer their funds back to the UK.
The process of selling property overseas shares similarities with buying abroad. Employing a local estate agent simplifies matters considerably, as they will arrange viewings while you manage things from the UK. They can also advise on the property’s market value and provide relevant local market insights. It’s wise to select an agent experienced in selling to both local and international buyers. To enhance your property’s appeal, ensure it’s thoroughly cleaned and any necessary repairs are completed, creating a more attractive environment for potential buyers and increasing its value.
When receiving funds from an overseas property sale, unless selling to another UK expat, you’ll likely price your property in the local currency. This necessitates careful consideration of currency conversion costs and the impact of fluctuating foreign exchange rates. For instance, selling a French property for €520,000 with an initial EUR/GBP rate of 0.89 would yield £462,800. However, a two-week delay and a rate drop to 0.86 would reduce the final amount to £447,200, a significant loss. To mitigate such risks when transferring money to the UK, Moneycorp offers forward contracts, allowing you to secure a favorable exchange rate in advance and protect your proceeds.
As a UK resident selling overseas property, you will be liable for Capital Gains Tax (CGT). The rate is 28% on taxable gains exceeding the basic rate limit, and 18% for gains within that band. Generally, CGT is not applicable if the foreign property was your primary residence throughout your ownership. Additionally, you may be subject to tax in the country where the property is sold. Consulting a legal professional to understand your tax obligations in both countries before initiating the sale is highly recommended. Once the sale is complete, repatriating your funds efficiently becomes key. While high street banks are an option, currency specialists like Moneycorp often provide substantial savings through competitive exchange rates and lower transfer fees via an international payments account. Furthermore, forward contracts can lock in favorable rates for up to two years, and expert guidance on the currency market can help you maximize your returns. Remember to factor in additional costs such as estate agent fees (ranging from under 1% to 3.5% +VAT) and solicitor or conveyancer fees for handling the legal aspects. Ultimately, understanding currency costs, legal fees, and taxes alongside the property’s headline price is crucial for determining the final amount you receive. Partnering with Moneycorp can leverage strong relationships with counterparty banks, ensuring you receive excellent value when selling your property abroad.
