Investing in UK property from abroad? You’re not alone. From Hong Kong to Dubai, Singapore to South Africa, international investors are increasingly using UK limited companies — known as Special Purpose Vehicles (SPVs) — to structure their buy-to-let portfolios.
But let’s be honest — it’s not as simple as clicking “register company” online. As an international investor, you’ve got a few more hoops to jump through. This guide breaks it all down: what an SPV actually is, why it matters for you, and how to navigate the UK company formation process without setting foot on British soil.
Why SPVs Work Well for Overseas Investors
Here’s what makes SPVs particularly attractive if you’re not based in the UK:
Tax Flexibility
SPVs are subject to UK corporation tax, which is currently 25%. This is often more favourable than personal tax rates on rental income — especially for higher earners abroad who’d otherwise be taxed under the Non-Resident Landlord Scheme.
Plus, you can claim deductible expenses like mortgage interest, letting agent fees, and repair costs.
Asset Protection
You’re ring-fencing the investment. If something goes wrong, the SPV’s liability is separate from your personal assets.
Shared Ownership Made Simple
Whether you’re investing with friends or family, shareholding in a company is far easier to manage than joint property deeds — especially across borders.
Exit Planning
When it’s time to sell or pass the property on, shares in the company can be transferred rather than selling the asset itself. This can open up some strategic tax planning opportunities.
Setting Up a Property SPV from Outside the UK
Here’s where things get specific to international investors.
Company Formation
You’ll need to register your company with Companies House. The key is using the right SIC code — most lenders require “68209: Other letting and operating of own or leased real estate”.
While you can technically register it yourself, many non-UK residents prefer to use a professional who offers property spv limited company formation services tailored to international clients. Why? Because of the next points…
UK Registered Office & Director Requirements
You don’t need to live in the UK to be a director or shareholder. However, the company does need a UK registered address. Many formation agents offer a registered office service to meet this requirement.
Some banks and lenders also prefer having a UK-resident director, although this isn’t a legal requirement. A nominee director arrangement is sometimes used here — but get legal advice before going down that route.
Opening a UK Bank Account
This can be the trickiest bit for non-residents. Traditional high street banks often require in-person ID checks, which isn’t ideal if you’re 6,000 miles away.
Your options? Go with a UK formation agent who can help open a business account with digital banks like Wise, Revolut or Tide. These fintech platforms are increasingly used by international property investors and usually accept passport verification via video.
Tax Registration
Once the company is formed, it needs to register for Corporation Tax. If the SPV is receiving rental income, it must also register under the Non-Resident Landlord Scheme to avoid agents or tenants withholding 20% tax at source.
This is a common tripwire for international investors — many forget, then have to deal with messy tax reclaim forms later. An accountant who understands international setups will handle this for you.
Don’t Forget the Admin
Running a UK company means you’ll need to file:
· Annual accounts (even if the company doesn’t make a profit)
· Corporation tax returns
· Confirmation statements
· VAT returns (if you cross the threshold or register voluntarily)
Luckily, if you’ve partnered with an adviser who helped you set up property spv limited company formation, they can usually handle these filings too.
Conclusion
Setting up a UK SPV from overseas isn’t difficult — but it’s not quite plug-and-play either. The real key? Work with professionals who understand the needs of international investors. They’ll help you avoid UK-specific pitfalls, stay compliant with Companies House and HMRC, and structure your property investment efficiently.
Whether you’re building a family portfolio in London or planning your first buy-to-let in Manchester, an SPV can be a smart, strategic way to enter the UK market with clarity and control.
