Expat Property Investment: Should I Buy UK Property in My Personal Name or in a Limited Company As A British Expat?

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If you’re a British expat considering investing in UK property, you’ve probably asked yourself this question: Should I buy in my personal name or set up a limited company? It’s one of the biggest decisions you’ll make when structuring your investment, and—like Marmite—opinions are split.

The truth? There’s no one-size-fits-all answer. It depends on your financial situation, tax position, and long-term investment goals. So, in this post, we’ll break down the pros and cons of each approach, helping you make an informed decision.

Buying UK Property as a British Expat – Personal Name vs Ltd Company

Buying in Your Personal Name

Traditionally, most landlords bought property in their personal names. It was simple, straightforward, and didn’t require the admin of running a company. But then along came Section 24 of the Finance Act 2015, which changed everything. This legislation gradually removed the ability for landlords to deduct mortgage interest from rental income before paying tax, making it less tax-efficient (and thus less profitable) to own rental properties in your personal name.

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The Benefits of Buying in Your Personal Name

✅ Lower Mortgage Rates – Lenders generally offer better rates for personal buy-to-let mortgages than for Ltd company mortgages. This means you might pay less in interest over time.

✅ Simpler Process – No need to set up a company, file annual accounts, or worry about extra paperwork. You just buy the property, file your Self Assessment, and that’s it. Note: We set up the Ltd company for all of our clients to take this hassle away.

✅ Lower Upfront Costs – There are no company setup fees, no extra legal costs, and often lower arrangement fees for mortgages. Note: We pay the company formation fees for our clients.

The Drawbacks of Buying in Your Personal Name

❌ Higher Taxes if You’re a Higher-Rate Taxpayer – If you fall into the 40% or 45% income tax bracket, you’ll pay tax on rental income at those rates.

❌ HMRC don't see your interest payments as a cost - You can’t deduct mortgage interest to from your monthly revenue, so on paper you make a bigger profit than you do in reality. This can eat into your profits significantly.

❌ Inheritance Tax Issues – When you pass away, the property is counted as part of your estate, meaning your heirs could face a hefty 40% Inheritance Tax bill.

❌ Less Flexibility for Growth – If you plan to build a large portfolio, buying in your personal name might not be the best option for long-term tax efficiency.

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Buying Through a Limited Company (Ltd)

In recent years, more landlords—especially expats—have been buying UK property through limited companies. Why? Mostly for tax efficiency and long-term investment growth.

The Benefits of Buying Through an Ltd Company

✅ Tax Efficiency – Instead of paying 40-45% tax on rental profits, you pay Corporation Tax (currently 25%, but it could change). Plus, you can deduct mortgage interest before tax which means you get taxed on your real profit and not some paper profit.

✅ Better for Portfolio Growth – If you’re planning to own multiple properties, a company structure can be more tax-efficient over time. You can also reinvest profits without being taxed personally.

✅ Easier to Manage Inheritance Tax – Properties owned in a company can be passed down via shares, allowing for better estate planning and potential tax savings.

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So, Which Is Better for British Expats Investing in UK Property?

If You Plan to Own Just One or Two Properties

Buying in your personal name is likely the best option if you’re only looking to own one or two UK investment properties. The lower mortgage rates and simpler setup outweigh the tax benefits of a limited company in this case.

If You’re Building a Portfolio

If you’re thinking long-term and plan to build a UK property portfolio, an Ltd company makes more sense. The tax efficiencies, ability to deduct mortgage interest, and better inheritance planning make it the more strategic choice.

If You’re a Higher-Rate Taxpayer

If you earn above £50,270 (or £125,140 if you’re really smashing it) in the UK, then buying in an Ltd company is likely the better route to minimise your tax liability. The ability to deduct mortgage interest alone can make a huge difference.

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Final Thoughts: What’s the Right Move for You?

Deciding whether to buy in your personal name or through an Ltd company is one of the most important choices you’ll make as an expat property investor. If you’re buying just one property and want to keep things simple, buying in your personal name might be fine. But if you’re planning to build a portfolio, save on taxes, and maximise profits, an Ltd company is often the smarter choice.

Still not sure what’s best for you? That’s where we come in.

At Expat Property Investments, we specialise in helping British expats invest in UK property the right way—without the stress, guesswork, or endless admin. Book a free 30-minute consultation call with us today, and we’ll help you figure out the best strategy based on your personal circumstances.

Click here to schedule your call and take the first step toward hassle-free UK property investment.