For foreign investors seeking luxury property for sale, London is becoming an attractive option, according to UK financial experts. While UK investors are being forced to look elsewhere for luxury property for sale, London and its relaxed property tax laws have made the city a prime location for foreign investors.

Tax structure a big draw

According to property tax experts, wealthy investors are being drawn to luxury properties in London due to a tax structure that allows overseas investors who purchase shares in a company that sells or owns luxury properties to pay only 0.5 percent stamp duty. Those who directly purchase a £1m or more luxury property for sale, London experts explain, must pay a 5 percent stamp duty. It is that fact that has resulted in foreign investors purchasing more than £4 billion worth of luxury property for sale, London real estate professionals calculate. 

This year, £4.3 billion in luxury property was purchased by wealthy foreign investors, compared to just over £2 billion in 2010. Homes costing as much £40 million are routinely being purchased by overseas investors, including a £136 million penthouse apartment located in central London that became the most expensive apartment in the world with that sale.

A less complicated process

Besides tax advantages that are spurring the purchase of luxury property for sale, London also has less complicated paperwork associated with the transaction, as compared to cities such as New York and Paris. In addition, well-documented troubles in the Middle East have made London much more attractive as a destination for overseas property investors. Because of the boom in luxury property for sale, London is not only seeing existing properties purchased but investment in new property developments as well. According to reports more than 9,000 luxury dwellings are expected to be built in the next 10 years. The cost of the construction will top approximately £21 billion.

For those seeking luxury property for sale, London is poised to be a top investment destination for years to come, use our bespoke property search at  comparethefinancialmarkets.com.