Do UK citizens pay taxes on US property?

Yes, UK citizens do pay taxes on US property. In this guide, we've outlined the tax implications for UK citizens, including how the UK-US tax treaty helps prevent double taxation on income from your US property.

Are there tax implications for UK citizens selling property in the US?

Yes, there are tax implications for UK citizens selling property in the US. If you are not residing in the US on a visa or if the property is not your primary residence, FIRPTA (Foreign Investment in Real Property Tax Act) will apply when selling property in the US. We've covered FIRPTA in detail in this guide.

Does buying property in the US give you residency?

Unfortunately, buying property in the US does not qualify an individual for residency. However, the EB-5 visa program offers a pathway to a green card through real estate investment, provided certain criteria are met.

How long can you stay in the US if you own property?

The UK is part of the US Visa Waiver Program , which allows UK citizens to enter the United States for business or tourism for stays of up to 90 days without a visa.

Real Estate

Foreign Homebuying

Can a…

Updated on October 17, 2024

Can a UK Citizen Buy a House in the US? [2024]

UK citizens can buy property in the US without legal restrictions or residency status. This guide covers the requirements and step-by-step process for purchasing a house in the US as a UK citizen.

Written by Michele Lawrie

Licensed Realtor®

Reviewed by Amresh Singh

Founder & CEO of HomeAbroad

Can a UK Citizen Buy a House in the US? [2024]

Making informed real estate decisions starts with having the right knowledge. At HomeAbroad, we offer US mortgage products for foreign nationals & investors and have a network of 500+ expert HomeAbroad real estate agents to provide the expertise you need. Our content is written by licensed mortgage experts and seasoned real estate agents who share insights from their experience, helping thousands like you. Our strict editorial process ensures you receive reliable and accurate information.

Key Takeaways:

➡️ UK citizens living in the US don't need a green card to get a mortgage and purchase real estate in the US. 

➡️ UK investors don’t need a US visa to buy US property. 

➡️ HomeAbroad Loans offers tailored mortgage programs that allow UK citizens with no US credit history to qualify for a mortgage. 

➡️ The US-UK tax treaty prevents double taxation, ensuring that income from US rental or investment properties is not taxed in the UK.

For decades, buying property in the USA has been a strategic move for foreign nationals, including UK citizens. In fact, the UK is one of the top 10 countries buying real estate in the US. Why?

The American real estate market offers unique opportunities, whether you’re seeking a primary residence, vacation home, or investment property.

HomeAbroad Loans specializes in helping non-resident British buyers navigate the US property purchase process.

We provide tailored financing options even without a US credit history or social security number. Our expert real estate agents and mortgage officers guide you through every step, from understanding down payments and property taxes to securing the best mortgage rates.

Whether you’re investing in Florida, New York, or another prime location, we ensure a smooth buying process with minimal hurdles.

HomeAbroad Loans helps you manage tax implications, set up a bank account, and understand property values. Let us support your journey to owning a piece of America with confidence and ease.

Are UK Citizens Buying Property in the US?

Yes, UK citizens are making their mark in the US real estate market, and the trend is only growing stronger. In 2024 alone, foreign buyers snapped up 54,300 existing homes across the US, with UK citizens proudly standing among the top 10 foreign investors.

UK citizens were among the top 10 foreign buyers of US real estate in 2024, accounting for 4% of foreign buyer purchases.

They accounted for 4% of all foreign property purchases, highlighting their significant interest and confidence in the US market.

This growing trend underscores that more UK citizens are seeing the immense potential of US real estate—whether it’s for investment, a vacation home, or a permanent residence.

Why are UK Citizens Buying a House in the US?

Investing in US real estate offers numerous advantages for UK citizens. From high rental yields and property appreciation to favorable tax conditions and affordability, the US property market provides compelling opportunities for growth and return on investment.

Here are some key reasons why UK citizens are investing in US properties:

Reason 1: High Rental Yields

The US housing market offers impressive rental yields, averaging around 8%, which is substantially higher than the UK’s average rental yield of 5.6%. This means UK investors can expect a higher rental income in the US compared to a UK property.

Reason 2: Higher Property Appreciation

On average, US properties appreciate at an annual rate of 4.8%. In contrast, the UK market has seen a more modest average annual appreciation rate of just 1.7%. This consistent value growth in the US makes it an attractive long-term investment.

Reason 3: No Restrictions or Additional Taxes

Unlike some other countries, the US imposes no additional restrictions or taxes on UK citizens purchasing property, streamlining the investment process. This freedom allows for easier entry into the market without unexpected financial barriers.

Reason 4: More Affordable Property Prices Compared to Global Metro Cities

US property prices are generally more affordable than those in major global metropolitan areas, offering better value for money.

For instance, the home price per square meter in London is approximately $10,806, compared to $7,520 in San Francisco, $4,760 in Los Angeles, and $3,810 in New York. [Source: NAR 2024 Report]

This significant price difference allows UK buyers to invest in prime locations at a fraction of the cost.

Reason 5: No Stamp Duty

One of the most appealing aspects for UK buyers is that the US does not impose stamp duty on property purchases, unlike the UK. This absence of stamp duty significantly reduces upfront costs, making property investment in the US even more attractive.

Here are the reasons why you should invest in US real estate in brief:

Factor	US Real Estate	UK Real Estate
Average Rental Yields	8%	5.6%
Annual Property Appreciation	4.8%	1.7%
Home Price per Square Meter	$7,520 (San Francisco) $4,760 (Los Angeles) $3,810 (New York)	$10,806 (London)
Stamp Duty	None	5% – 12%, if property purchase price exceeds £250,000.
Restrictions/Additional Taxes	None	Additional taxes and restrictions apply

With the numerous advantages that the US real estate market offers, it’s clear why UK citizens are increasingly drawn to invest across the pond. But how can you, as a UK citizen, take the next steps toward purchasing property in the US? Let’s look at the process.

How to Buy a House in the US as a UK Citizen

The process of buying a property in the US is similar to that of the UK, making it easier for you to understand and go through it.

We have explained all these steps in-depth in our “How Can Foreigners Buy Property in the US?” guide and in this detailed video:

Need help understanding the process? HomeAbroad is democratizing US real estate for everyone, offering end-to-end support for buying US properties.

Start your US real estate journey today! Find an agent in your area and get started!

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With your ideal location chosen and a trusted real estate agent by your side, the next crucial step is securing the right financing. But can UK citizens actually get a mortgage in the US?

Let’s explore the options available to you.

Can UK Citizens Get a Mortgage in the US?

Yes, UK citizens can get a mortgage in the US to buy a primary residence, vacation home, or investment property.

HomeAbroad Loans offers tailored US mortgages for foreign nationals, including UK citizens, without a US credit history.

If you have a good US credit score, you can access any conventional mortgage available to US citizens.

If you want to get a mortgage as a UK citizen, HomeAbroad Loans can streamline the process with our experienced mortgage officers who understand the unique situations of UK citizens and help secure the best loan terms.

See How We Helped Sam Smith, a UK Investor, Buy His Florida Rental Property with a DSCR Loan

To illustrate how UK citizens can successfully obtain a mortgage in the US, let’s take a look at a real-life case study of one of our clients. Meet Sam Smith, a UK investor who qualified for a DSCR loan without a US credit history to purchase his $500,000 rental property in Sarasota, Florida. This case study demonstrates how HomeAbroad Loans navigated Sam through the process and secured favorable terms tailored to his needs.

Read the full case study here: UK Investor DSCR Loan Case Study

UK investor purchased this single-family rental property in Sarasota, Florida, with a DSCR loan from HomeAbroad. — Source: Stellar MLS,MLS#: A4609782

Explore our “US Mortgages for UK Citizens” guide to discover your mortgage options and eligibility based on your credit history and different goals, whether you’re buying a primary residence or an investment property.

Now, let us see what the tax implications are for UK citizens buying US real estate.

Tax Implications for British Citizens Buying US Real Estate

UK citizens buying US real estate do not face additional taxes. You’ll pay the same taxes at the same rates as US citizens. If you are not on a US visa and don’t have an SSN, you’ll need an ITIN (Individual Taxpayer Identification Number) to file your taxes.

Tax/ Property Type	Primary Residence	Investment Property
Property Tax	Yes	Yes
Income Tax	No	Yes

Additional Tax Considerations:

US-UK Tax Treaty: Under the US-UK tax treaty, you can receive a tax credit for taxes paid in the US to avoid double taxation. This credit can be claimed when filing taxes in the UK on your US property income.
Tax Deductions: UK citizens can deduct mortgage interest payments on both personal and investment properties in the US. For investment properties, additional deductions are available for property depreciation, as well as expenses related to repairs, improvements, and maintenance.
FIRPTA: FIRPTA (Foreign Investment in Real Property Tax Act) applies when non-US residents sell US real estate. This US tax law requires foreign persons selling US real estate to withhold 15% of the sale price for tax purposes. This withholding is intended to ensure that the IRS collects taxes on gains from the sale.

FIRPTA’s purpose is to make sure that the US government can collect taxes on the sale of US real estate by foreign investors. However, FIRPTA does not always apply, especially when you reinvest the proceeds from selling a property into another similar property. This process is known as a 1031 Exchange.
1031 Exchange: A 1031 Exchange allows you to defer paying capital gains taxes on the sale of an investment property if you reinvest the proceeds into another “like-kind” property of equal or greater value. This strategy is widely used by real estate investors to grow their portfolios while deferring taxes, making it a powerful tool for wealth accumulation.

This is all you need to know. Now, it’s time to begin your journey.

Buy your US Real Estate with HomeAbroad:

Buying property in the US is almost as straightforward as in the UK, and with HomeAbroad, it’s even simpler. We offer a comprehensive one-stop solution for foreign nationals, including tailored mortgages, expert real estate agents, and advanced technology to streamline the process.

Whether you’re a newcomer, an expat, or an investor, our AI-powered platform connects you with the right agents and mortgage officers, ensuring a smooth property purchase. Plus, we offer services like LLC establishment and property management for investors.

Start your US real estate journey with HomeAbroad today.

Pre-qualify for a US mortgage as an international buyer.
No US credit history needed.

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Frequently Asked Questions:

Do UK citizens pay taxes on US property?

Yes, UK citizens do pay taxes on US property. In this guide, we’ve outlined the tax implications for UK citizens, including how the UK-US tax treaty helps prevent double taxation on income from your US property.
Are there tax implications for UK citizens selling property in the US?

Yes, there are tax implications for UK citizens selling property in the US. If you are not residing in the US on a visa or if the property is not your primary residence, FIRPTA (Foreign Investment in Real Property Tax Act) will apply when selling property in the US. We’ve covered FIRPTA in detail in this guide.
Does buying property in the US give you residency?

Unfortunately, buying property in the US does not qualify an individual for residency. However, the EB-5 visa program offers a pathway to a green card through real estate investment, provided certain criteria are met.
How long can you stay in the US if you own property?

The UK is part of the US Visa Waiver Program, which allows UK citizens to enter the United States for business or tourism for stays of up to 90 days without a visa.

About the author:

Michele Lawrie, a seasoned real estate professional licensed in New York and Florida, serves as the Chief Real Estate Officer at HomeAbroad. With over 15 years of experience and specialized certifications from the NAR (National Association of Realtors), Michele is a trusted expert for foreign nationals buying US real estate.