Real estate blog

Below we present various topics related to purchasing property through a limited company in England

The materials and information presented on this website are provided for informational purposes only. They do not constitute investment or accounting advice. Potential investors and individuals setting up a company are fully responsible for making their own independent assessments and analyses.

List of topics:
How to prepare as early as 3 years in advance before making your first transaction if your income is in Poland? (opinion)
How to start buying your first property in England and what it looks like at the beginning?
Do bank statements from Polish banks confirming Polish income used to purchase a property always have to be translated into English?
Surprises related to starting the process of buying a house with a solicitor
Is your English company a UK tax resident or not if you live outside England?
Disadvantages of investing in rental houses in England.
Advantages of investing in rental houses in England.
Which solicitor in England would you ultimately recommend if someone has income in Poland?
What is important in the survey of the property being purchased?
Indemnity – a previously completely unknown option
Do you need to take a course on investing in property in England in order to invest in property in England?
Disclaimer

How to prepare in the best way over the 3 years leading up to your first transaction if your income is in Poland? (my personal opinion)

The transaction will be handled by a lawyer known as a solicitor – conveyancer. The general term for a lawyer is solicitor, while the one who is authorised to transfer property ownership is a conveyancer. So you can use these terms interchangeably, but the term solicitor is broader — in practice, you will be handled by a solicitor who is also a conveyancer.

Unfortunately, this lawyer does not deal solely with transferring property ownership. Their role is to verify whether the funds used to purchase the property were obtained legitimately in Poland (AML analysis) — assuming your income over the last 3 years was earned in Poland. In practice, many conveyancers may be reluctant to handle this type of case, because they either do not know how to examine it properly or do not want to risk penalties for incorrect checks. At the same time, they are approached by many other clients with income earned in England, which is usually more straightforward to verify. By 'having no idea', I mean, for example, a lack of procedures, or issues related to professional indemnity insurance. For instance, an insurer may cover risks only if the solicitor’s client is based in England and not in another country. Regardless of the reasons, many conveyancers may be unwilling to handle Polish income. You should also bear in mind that response times may be slower during the holiday period in December and early January.

If, however, you find a conveyancer who is willing to take you on, for AML purposes it is important that your Polish bank statements do not contain any deposits from unknown sources. Ideally, check 3 years before the transaction whether your Polish bank allows you to generate PDF bank statements in English. For example, in mBank for large companies ( https://companynet.mbank.pl/mt/ ) there is an option for statements to be generated in English. If your statements are in Polish, look for a translator who understands that mainly the headers on the statements need to be translated, not the description of every single transaction.

Also find a conveyancer who has their own AML analysis rules — for example, one who does not review every transaction, but only those above £3,000. Remember that in AML, each conveyancer has their own rules of analysis, as there are no hard and fast rules imposed on them. People who claim that a conveyancer will check every single deposit on your statement, even one of 10 PLN, may simply be exaggerating the issue and discouraging you from buying property in England. Also consider over what period of time you earned the money for the property in England — whether it was the above-mentioned 3 years or perhaps longer.

How to start buying your first property in England and what does it look like at the beginning?

1) Think about what you want to buy – a flat, a 2-bed house, a 3-bed house, for how much and where.
In my opinion, the best options are 3-bed houses where the price is around £100,000 and the rent is around £800 per month, but everything depends on your strategy. This is a high-yield rental strategy, but it may also involve higher tenancy risk, for example higher turnover, rent arrears or greater wear and tear. Discuss strategies with ChatGPT. Flats are generally less attractive due to costs imposed by the management company. Instead of a residents’ association, there is a management company and a freeholder. Flats are leasehold rather than freehold. You pay annually for ground rent and shared costs – electricity in common areas, lift maintenance, grass cutting (you pay, not the tenant), etc. If the management company suddenly plans a major renovation, you may have to contribute an additional amount (you, not the tenant). Therefore, owning a flat can be financially risky. Houses are freehold. However, strategies vary – develop your own. Some invest only in flats, some invest in £100,000 houses with £800 rent, and others buy a house in London and keep it empty.
2) Browse listings in the area you are interested in on rightmove.co.uk – set alerts.
3) Arrange a viewing – you may need to call, as agents sometimes do not respond to emails.
4) During the viewing, pay attention to cracks in walls inside and outside, and whether windows are plastic or rotten wood, how thick the glazing is, and ask the agent various questions. Check if there is gas, a gas boiler, and electrical fuse boxes. Take photos. Upload photos and viewing impressions to ChatGPT. You can get many useful tips there. Agents’ answers can be very important, e.g. the property returned to the market because no bank would finance it due to cracked walls; or the house was repossessed by a bank.
5) Selective licensing – even single-let houses may fall under this. Investigate it – use ChatGPT, the local council website, council map searches, or email the council to confirm whether selective licensing applies to a specific address. This does not prohibit renting, but involves a licence fee and inspections by council officers checking the property condition.
6) Make an offer through the agent, receive acceptance, and provide a passport scan, utility bill, and proof of funds – sometimes agencies use external verification apps where you upload your passport.
7) Arrange a property condition report – Level 2 or Level 3 RICS Full Building / Structural Survey – depending on the property price. At this stage, there is financial risk of losing around £700, as the report may be very negative, or you may pay for the report and the seller withdraws, since either party can withdraw without costs to the other. Unfortunately, the survey is necessary to avoid buying a house with structural issues. Otherwise, you may end up paying annually for crack monitoring. Therefore, visually inspect cracks during the viewing and avoid houses with cracked walls.
8) Correspond with your solicitor – this leads to completion and payment unless the seller withdraws. Financial loss may also occur here if the seller pulls out.

Do bank statements from Polish banks confirming Polish income used for the purchase always have to be translated into English?

No. If someone from Poland works at the solicitor’s office in a very senior position, for example a partner or director at the law firm, then statements from Polish banks do not need to be translated into English.

Surprises related to starting the process of buying a house with a solicitor

1) A certified copy of the passport instead of simply a scan – if I had known earlier, I would probably have arranged it earlier – I had to drop everything and suddenly go to a local law office so they could make a certified copy of the passport using a colour photocopy.

2) Stamp duty calculated by the solicitor at 7% – from the solicitor’s perspective this calculation is correct, however the surprise came from having incorrect information + after the purchase it will still be necessary to consult a tax advisor, who may correct it to 5% – it is a matter of assessing whether the English company is or is not a UK tax resident. I believe the English company is a UK tax resident, but I understand the solicitor’s caution.

3) The need to find buildings insurance quickly at the exchange of contracts stage.
It came as a surprise to me that buildings insurance had to be arranged very quickly at the exchange of contracts stage. This is not something most people think about at the beginning of the process, but in practice the solicitor may require confirmation that the policy will be in force from the moment of exchange. This means you may need to find a suitable policy and make a decision within a short period of time.

4) The need to find a witness to sign the documents (TR2).
Another surprise was the need to sign a document in the presence of an independent witness. This concerned a transfer form (for example TR2 – Transfer of whole of registered title). The witness must be an independent person who confirms the director’s signature and provides their name and address. In practice, finding such a person turned out to be more difficult than I expected, as many people do not want to take on this role. In the end, I used the assistance of a solicitor who was able to act as the witness and properly witness the signature.

Is your English company a UK tax resident or not if you live outside England?

Arguments FOR:

1. The company is registered in the UK
✔ incorporated in England & Wales
✔ has a British Company No.
✔ subject to Companies House
➡️ a fundamental argument for residency.

2. Official registered office and correspondence address in the UK
✔ registered office in London
✔ official correspondence is received in the UK
✔ corporate documentation stored in the UK

3. Property and business activity are in the UK
✔ the property is located in England
✔ rental activity conducted in the UK
✔ income generated in the UK
✔ operational activity relates to the UK market
This is one of the strongest arguments.

4. Operational management performed in the UK
(e.g. by professional entities)
✔ a UK letting agent manages the tenancy
✔ UK contractors perform repairs
✔ a UK solicitor handles transactions
✔ a UK accountant maintains the accounts
➡️ shows actual management on the ground.

5. Financial operations related to UK activities
✔ payments related to the property in the UK
✔ rent received from the UK
✔ operational expenses incurred in the UK
(the point is not the location of the bank, but the nature of the transactions)

6. Corporate decisions may formally be made in the UK
It can be demonstrated through:
✔ signing documents in the UK
✔ board resolutions prepared in the UK
✔ cooperation with a UK solicitor regarding decisions
This is important for “central management & control”.

7. A director living outside the UK does not automatically mean the company is non-resident
HMRC examines:
✔ where strategic decisions are made
✔ where business activity takes place
✔ where management is exercised
Not only the director’s residential address.
Many British companies have directors living abroad.

8. No activity outside the UK
If:
✔ the company does not operate outside the UK
✔ it has no office outside the UK
✔ property and operations are exclusively in the UK
➡️ strengthens the UK resident status.

Disadvantages of investing in rental houses in England

- you will have to provide many bank statements from Poland to the conveyancer in the UK if your income is in Poland – personal statements, business activity statements, statements from a Polish limited company (sp. z o.o.), for 3 years or possibly even more,
- disputes regarding the stamp duty rate when buying the house – the solicitor will want to charge 7%, because they do not know whether the company is a UK tax resident or not – you may have to instruct an accountant to recover an overpayment, because if the company is a UK tax resident the rate should be 5%.
Whether the company is or is not a UK tax resident will depend on the interpretation of the tax advisor.
- the fact that today a wall in a house from the late 19th century is not cracking does not mean it will not crack next year,
- if the letting agent does not periodically take photos from inside the house, and if the tenant selection process is weak, it may negatively affect your investment. Pay attention to whether the letting agent intends to carry out regular inspections, document the property condition, and apply objective and lawful criteria to all applicants, such as references, affordability, payment history and general suitability for the property. Of course, no applicant should be rejected outright without a proper and consistent assessment,
- when operating in a foreign market, you may encounter communication challenges related to language, local practices and expectations.

Advantages of investing in rental houses in England

- you can lend money to a UK company directly from a Polish limited company (sp. z o.o.),
- buy-to-let interest-only mortgages – you might even buy 10 houses step by step by financing them for example with 50% credit and paying only interest for many years – there are many Polish-speaking mortgage brokers,
- historically, UK property has shown long-term growth trends, although prices may fluctuate. At the same time, the price of other assets may also fluctuate, for example an apartment in Poland after a drone strike and the introduction of a cadastral tax, shares of a Chinese company after foreign brokerages are cut off from the Chinese market (the Gazprom case) – however you may also consider houses/apartments in other countries for example Dubai if buy-to-let mortgages are available there,
- you have a functioning company in another country generating revenue or even profit. Diversifying income sources across jurisdictions may provide additional financial flexibility, for example through a UK bank account such as Revolut UK, additionally offering interest of over 2% in GBP (status as of 16 February 2026).

Summary – the author’s opinion:
would it be bad to have a company in England, with a bank account in England earning interest in GBP, owning 10 houses in England with tenants selected using objective and lawful criteria, with moderate leverage for example up to 50% – probably not bad, as long as it is not your only asset, the walls do not start cracking and the tenancy process is properly managed.
The process can, however, be stressful and requires patience and resilience. Reaching 10 houses requires a lot of patience and you should not overuse leverage – for example 50% of your own money invested in the house rather than something like 75% of an inflated valuation.

Which solicitor in England would you ultimately recommend if someone has income in Poland?

Ivona Supernat, Solicitor, ardenslaw.com
Norvin House, 45-55 Commercial Street, London, E1 6BD.

What is important in the survey of the property being purchased?

Historic structural movement – old and non-progressive, typical for this type of building.
Damp (penetrating damp) – mainly at the rear of the property, requiring repair (e.g. pointing).
Works without building control approval – documents should be checked or indemnity considered.
Overall technical condition – cracks, wear and tear, standard refurbishment items.
Possible asbestos – worth keeping in mind during larger works.

Practical conclusion:
During the viewing, always check the electrical installation (type of wiring) – it may turn out that a full rewiring is required, which is a significant cost.

Indemnity – a previously completely unknown option

One of the biggest surprises when buying property in England is so-called indemnity insurance. In Poland, this is hardly discussed, while in the UK it is completely normal and often used to “push a transaction through”.
Examples:
1) Lack of building regulations documentation
The first case may concern a situation where there is no confirmation that certain works in the property were approved by building control.
Instead of:
searching for documents,
contacting the council,
risking problems,
an indemnity policy is purchased.
What does it provide?
it covers costs if the authority takes action (e.g. orders demolition or remedial works),
it covers legal costs and potential loss of property value,
it allows you to avoid contacting the council so as not to “trigger” the issue.
Importantly – this is not insurance for the quality of the works. If something is technically done incorrectly – that is your problem. The policy only applies if there is formal action by the authority.
Cost? Even as little as around £22 as a one-off payment, with indefinite coverage.
2) Chancel repair indemnity (an even more unusual case)
The second example is even more abstract.
It concerns so-called chancel repair liability, i.e. a potential obligation to contribute to church repairs.
It sounds absurd, but:
this historical liability still exists in the UK,
in some cases property owners may be charged for such costs.
Normally, a specific search is carried out to check this. Instead, a “No Search Chancel Indemnity” policy can be used.
So:
you do not check the risk,
you simply insure against the possibility that it may arise.
The policy:
covers costs if the church makes a claim,
includes legal expenses,
may have a very high limit (even several million pounds).

Practical conclusion:
In the UK, indemnity works as a kind of “workaround”:
instead of investigating → you insure the risk,
instead of contacting authorities → it is better not to,
instead of having 100% certainty → you have a policy “just in case”.
At first, this may seem completely illogical from a Polish perspective.
However, in practice:
without indemnity, many transactions simply would not take place.

Do you need to take a course on investing in property in England in order to invest?

Probably not. Pay attention to the information above and talk to ChatGPT. Watch for cracks and wooden windows. Viewing photos can be uploaded to ChatGPT. Talk with the assistant and with agents. You can also share map screenshots of areas you are interested in. The same applies to screenshots of property listings — the assistant can analyse them and provide insights. ChatGPT can also be a helpful research tool when buying a house.
The best experience often comes from going through one full purchase process. Courses may be more useful if someone wants to pursue more complex strategies — HMOs, office-to-residential conversions, rather than buying a standard single-let house, which will usually be managed by a letting agent to keep the investment hands-off.

Disclaimer

The materials and information presented on this website are for informational and educational purposes only. They do not constitute investment, tax, legal, or accounting advice. The operator of the website accepts no responsibility for any decisions made on the basis of the content presented or for any financial, legal, or other consequences arising from its use. Before making any investment or business decisions, you should consult an appropriately qualified and licensed adviser.