Selling property abroad and bringing money to the UK

Looking to sell a property overseas? Perhaps it’s a holiday home you no longer use, or an investment property that has appreciated in value since you bought it.

If you’re getting ready to put your property on the market, it’s important to think about how you’ll handle the funds when the sale is complete. This will be a large sum of money, and it needs to be transferred back to the UK without too much being lost to exchange rates - or the taxman.

You also need to understand the tax implications of selling property abroad and bringing money back to the UK.

We’ll also cover transfer methods, such as using a Wise account as a way to securely, quickly and cost-effectively send large sums between countries. It’s not a bank account but offers some similar features, and your money is safeguarded.

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Table of contents

Key things to consider when selling property abroad The impact of exchange rate fluctuations It’s important to factor in fees You may have to pay Capital Gains Tax (CGT) back in the UK UK tax on profits from overseas property sales Ways to bring money from a property sale back to the UK - your options Bank transfer Online money transfer What’s the process of transferring money between countries? How much cash am I allowed to bring into the UK?

Key things to consider when selling property abroad

There are a few crucial factors to consider when selling property abroad:

The impact of exchange rate fluctuations

You’ll be setting the price for your property in the local currency, but how much you’ll actually receive when converting it to GBP will all depend on exchange rates on the day of completion.

What if there’s a delay and the date is pushed back a couple of weeks? The rate may be quite different, which may mean you receive less for the sale than you expected.

There are some ways you can mitigate the risk of exchange rate fluctuations, such as with forward contracts. These let you ‘lock in’ an exchange rate for a set period, so you can manage the transactions related to your property sale without being impacted by changes in rates.

It’s important to factor in fees

Property sales - and particularly those taking place abroad - can be fraught with hidden costs. There are often fees and charges you hadn’t planned for, and these will all come out of the final amount you receive.

This is why it’s crucial to do as much research as possible before putting your property up for sale. Look out for costs such as:

• Estate agent fees
• Legal/conveyancing fees
• Notary and registry fees
• Local taxes, such as income tax and capital gains tax.

There may also be country-specific costs to pay. For example, when selling property in Spain, you’ll have to pay the plusvalía tax - this is a land value tax applied to the increase of the value of the urban land the property sits on, with rates varying by municipality.¹

You may have to pay Capital Gains Tax (CGT) back in the UK

It isn’t just overseas taxes you may be liable for when you sell a property abroad. If you’re a UK resident and you sell property overseas, you may also have to pay Capital Gains Tax (CGT) on any profits you make on the purchase.

We’ll look at this in more detail next.

UK tax on profits from overseas property sales

If you’re a UK tax resident at the time you sell your overseas property, you may be liable for Capital Gains Tax (CGT) in the UK.²

This is a tax on the profits of disposing of (selling) assets. It’s usually worked out by calculating the difference between what you paid for the property and what you sold it for. So if it’s appreciated in value over the years, or your renovation work has boosted its sale price, you can expect to make a profit and be taxed on it.

The rate depends if you’re a basic rate or higher rate income taxpayer. CGT for residential property sales is:³

• 18% for basic rate taxpayers
• 24% for higher rate taxpayers.

It's important to note that this rate is only applied to the profit from the sale, not the total amount you receive from the buyer. That said, it can still be a hefty bill to pay.

There are different rules if you live abroad and are a tax resident in a different country.

And there’s also the issue of double taxation - where you’re taxed in two jurisdictions, the country you’re selling a property in and the UK. If the UK has a double taxation treaty with the country, you may be able to apply for tax relief to resolve this issue.

Tax can be really complicated, especially when it involves transactions in more than one country. It’s strongly recommended to get professional tax advice before selling your property, so you’ll know exactly what the tax implications will be (and can budget for it accordingly).

Ways to bring money from a property sale back to the UK - your options

Now, let’s turn to more practical matters - how will you actually get the funds from your overseas property sale back to the UK?

There are a couple of ways to set up an international transfer for a large sum. You can use banks, or you can use an online international money transfer specialist.

Bank transfer

To sell a property abroad, you might need to set up a local bank account in the country. This will enable you to pay the relevant fees, and to receive the proceeds of the sale. However, you can also use an international bank account to do this.

Then, you’d set up a transfer between your overseas bank account and your UK bank account. It’s safe and secure, although it may not be the quickest. There may also be verification steps and checks involved, as you’re sending such a large amount.

But the main drawback to this option is the cost. You’re likely to pay high transfer fees, with potential additional costs from the corresponding/receiving banks involved in SWIFT payments.

You’ll also be at the mercy of whatever exchange rate the banks use to convert currency, which could include a mark-up or margin. This could mean a substantial loss considering the size of the sum being converted.

Online money transfer

The other option is to use an international money transfer specialist company like Wise. This gives you more control of exchange rates, as well as more transparency on fees, and your money is safeguarded.

With Wise, you can get local account details in 8+ currencies so that you can directly receive the funds from the sale in the local currency. Depending on the currency, this may even be fee-free.

Or if the buyer’s solicitor (or local rules) insist on you having a bank account in the country, you can set up a local transfer between the bank account and your Wise account - again, in the same currency, without the need for currency conversion.

When you’re ready, you can simply convert the money to GBP within your Wise account - this lets you hold and convert between 40+ currencies all in one place.

You’ll benefit from mid-market exchange rates (without a markup or margin) and can even set up an exchange rate alert to find the perfect time to do the conversion. Wise even has a dedicated team for large amount transfers, so you’ll have support every step of the way.

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What’s the process of transferring money between countries?

When your property is sold and you’re ready to send money back to the UK, you’ll need to know how to go about it.

The first thing is to gather the right details. If you’re sending a bank transfer back to your account in the UK, you’ll need:

• The full name and address on the account
• The account number and sort code, plus the International Bank Account Number (IBAN) - you can find this on a statement, in online banking or ask your bank
• The bank’s SWIFT or BIC code - you can find it here.

You may also need to have ID documents to hand to verify your identity, as you’re sending such a large amount.

With all these details, you can set up the transfer. You may be able to do it via online banking, or you can visit a branch.

How much cash am I allowed to bring into the UK?

It’s unlikely that you’ll be carrying the proceeds of your overseas property sale around in cash - for security reasons, if nothing else. But you may have a small amount of it in cash, withdrawn from a bank or ATM while you’re abroad.

In this case, it’s useful to know the rules around bringing cash into and out of the UK.

UK customs regulations state that you can bring up to £10,000 into the UK from another country without having to make a customs declaration. If you’re travelling with more than this, you’ll need to tell the authorities using the official customs declaration process.⁴

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After reading this, you should have a better idea of what to expect when selling property abroad and bringing money to the UK.

It's best to be prepared, researching potential fees and taxes as well as getting professional advice before putting your property up for sale.

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Sources used:

1. Balcells Group - The Plusvalia Property Tax in Spain
2. GOV.UK - Tax when you sell property
3. GOV.UK - Capital Gains Tax: what you pay it on, rates and allowances
4. GOV.UK - Take cash in and out of the UK

Sources last checked on date: 04-Jun-2025