introduction
More UAE investors are choosing to buy UK real estate through limited companies. Learn how this strategy can maximise your returns and provide long-term tax efficiency. The number of UK properties held within limited companies has doubled in five years, with 74% of new purchases now made through these structures. For UAE investors, this strategy offers key advantages in tax efficiency, portfolio expansion, and enhanced rental returns.
Investment opportunities
Why Are UAE Investors Choosing Limited Companies?
More investors from the UAE are structuring their UK real estate portfolios under limited companies due to:
- Tax Optimisation: UK tax regulations favour limited companies, allowing mortgage interest deductions that individuals can no longer claim.
- Portfolio Scalability: Investors using a company structure typically hold larger portfolios—an average of 14.4 properties compared to 5.2 for individual investors.
- Diversification & Higher Yields: More investors are acquiring HMOs and multi-unit properties to maximise rental income.
Shaping the Future of UK Real Estate Investment
As UAE investors continue to expand their UK portfolios, their focus is shifting towards high-yield properties:
- 20% of investors now own an HMO, increasing to 29% for those with 11+ properties.
- 10% of investors hold entire apartment blocks.
- 6% own holiday lets, doubling among larger investors.
conclusion
If you’re investing in UK real estate from the UAE, structuring your purchases within a limited company could provide significant financial benefits. Expert guidance is crucial to ensure compliance and profitability. Ready to expand your UK real estate portfolio? Visit Henley Capital to learn how we can help you maximise your investment potential.
