UK: serving expat and cross-border buyers

Agencies in England meet more buyers who do not fit the standard picture: one citizenship, a second country of residence and money held in a third. This briefing sets out what an agent should establish about such a buyer, and what the rules ask of the agent. It concentrates on England. Scotland and Wales have their own land taxes and procedures, and Northern Ireland shares some English rules, so check those before you advise a buyer there. It is written for agencies and developers.

Who can buy

Law-firm summaries are consistent on the basic point: there is no legal restriction on foreign nationals buying residential property in England, freehold or leasehold, in their own name, and a buyer does not need to be UK resident or hold a visa (see this overview from Osbornes). What changes with an overseas buyer is the amount of checking, the tax position and, for company buyers, a separate register. A buyer who is registered as the owner at the Land Registry becomes visible there, with the price paid; some buyers who value privacy ask about confidentiality, off-market sales and non-disclosure agreements (see Kingsley Napley). Do not promise confidentiality you cannot deliver.

Your own duties as an estate agent

Estate agents are covered by the Money Laundering Regulations 2017 and supervised for this purpose by HM Revenue and Customs. Trade summaries say an agency must register with HMRC for supervision before carrying out regulated activity, that registration is free but mandatory, and that the rules apply to sales and lettings where the agent acts as an intermediary (see this explainer from Rex).

The checks cover both sides of the deal. Trade-press summaries of HMRC guidance say that buyer checks should start as soon as possible and, ideally, before an offer is accepted, and that seller checks should be completed before terms of business are agreed and before the property is marketed (see the HKA summary). We could not open the HMRC page itself, so read the current guidance and ask your supervisor if you are unsure about timing.

What to collect

Treat the file as something a regulator might read later. For each buyer, collect:

• a valid passport or national ID, checked against a reliable independent source, and proof of address
• the buyer's residence status and citizenship, written down at the first conversation
• for a company or trust: the certificate of incorporation, the people who own or control it, and who has authority to act
• the identity of anyone acting for the buyer, and proof of their authority
• a record that screening for politically exposed persons and sanctions was done, with the date

Sources describe enhanced checks for politically exposed persons, buyers from higher-risk jurisdictions, complex ownership structures and unusual behaviour. Records are kept for five years from the end of the business relationship, and a genuine suspicion has to be reported to the National Crime Agency in a suspicious activity report (see the Rex explainer above).

Source of funds: what a useful file looks like

A balance on a statement does not show where money came from. The file should show the route. Typical evidence:

• salary or business income: payslips, tax returns or company accounts, plus the bank statements where the income arrived
• proceeds of selling another property: the sale contract and the statement showing the receipt
• inheritance or gift: the will, probate or gift document
• a loan: the loan agreement
• savings built over years: statements covering a long period

For higher-value or unusual cases, the explainer above also mentions the source of wealth behind the funds. Check that the account holder is the buyer. If a third party will pay, ask why and document the relationship. Treat large cash, sudden transfers from unrelated parties and reluctance to explain as red flags.

Company buyers: the register of overseas entities

An overseas company that wants to buy, sell or transfer property in the United Kingdom has to register on the Register of Overseas Entities at Companies House and give details of its registrable beneficial owners or managing officers. Summaries say the information must be verified by a UK-regulated agent and that an update statement is due every year (see the government's collection of guidance). An overseas entity that is not registered is restricted from registering title. As the estate agent, ask early whether the buyer is a company, and do not move to an offer until the buyer's solicitor confirms the entity is registered.

Sanctions screening, done by the book

Screen the buyer, any beneficial owner and any third-party payer against the UK sanctions list and any other list your adviser requires. The Office of Financial Sanctions Implementation published an assessment of the property sector in April 2025 that says it is almost certain property firms have underreported suspected breaches (see the OFSI assessment). Since 14 May 2025 letting agents must report to OFSI when they know or have reasonable cause to suspect that a person is a designated person (see Propertymark). We could not confirm whether the same reporting duty applies to a sales-only agency, so ask your compliance adviser which category you fall into.

Keep a dated record of every check. If a red flag appears, stop, take advice and report as the rules require. Do not tip the client off, and never advise anyone on how to avoid a check or how to restructure to get around one.

Russian-speaking buyers are one example. Nationality is not a reason to refuse the file and it is not a reason to skip checks. What matters is the person: whether they or their business are designated, who owns the buying entity, and where the money came from.

A short checklist for your team

• ask for citizenship and residence status at the first call, and write them down
• verify identity and address, and screen for sanctions and politically exposed persons, before an offer is accepted where you can
• build the source-of-funds file before money moves
• ask whether the buyer is a company, and check the overseas entities register position with the solicitor
• keep records for five years and know who files suspicious activity reports in your agency
• keep one person responsible for compliance, even in a small agency

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.