UK citizens can buy property in the USA without a visa or residency, but the GBP/USD exchange rate and FIRPTA tax rules can each shift the total cost by tens of thousands of pounds. Most British buyers transfer the deposit and final balance through a specialist currency broker, with many also locking in today’s rate via a forward contract to protect against dollar swings between offer and closing.
That’s the short version. The detail matters because UK buyer transfers in this corridor typically run from £150,000 for a Florida holiday home to £2 million-plus for a New York investment property — and the difference between using your bank and using a specialist routinely runs into five figures.
Who this guide is for
This guide is written for UK-based buyers purchasing residential property in the USA, settled in US dollars. Holiday home, investment property, family relocation, or a place to use during work secondments — the financial mechanics are the same. If you’ve already moved permanently to the USA on a visa, the rules differ; those situations are best discussed directly with a specialist.
Can a UK citizen buy property in the USA?
Yes. There is no federal restriction on UK nationals owning real estate in the United States. You don’t need a visa, residency, or any prior US connection to buy. Owning US property does not on its own grant any immigration status, so you’ll still enter the country on an ESTA visa waiver (90 days) or a B-2 visitor visa for longer stays.
What buying property does affect is your US tax footprint. Once you own US real estate, you become a non-resident alien with a US-source asset, which brings the Foreign Investment in Real Property Tax Act (FIRPTA) into scope on resale, plus ongoing state and local property tax obligations.
How much does buying property in the USA cost UK buyers?
Median sale prices vary widely by state. Florida, the most popular destination for British buyers, typically runs $300,000–$700,000 for a detached holiday home in central Florida, and $500,000–$1.5 million for coastal Gulf and Atlantic markets. Manhattan apartments rarely come in below $1 million; outer-borough New York is more accessible. Texas and the Carolinas are generally cheaper, California and the Pacific Northwest generally more expensive.
At a GBP/USD rate of 1.27, a $500,000 purchase converts to £393,700 at the mid-market rate. Add closing costs of 3–5% of the purchase price, annual state property taxes (Florida averages around 0.85%, but rates range from 0.3% in Hawaii to over 2% in New Jersey), home insurance, and — in Florida specifically — flood and hurricane premiums that have risen sharply since 2022.
What are the main ways to transfer money for a US property purchase?
There are four practical options. Pick based on the size of the transfer, the timing, and whether you want a human on the other end of the phone.
| Method | Typical FX margin | Transfer fee | Speed | Best for |
|---|---|---|---|---|
| High street bank wire | 2.5–4% | £15–£40 | 1–3 working days | Small payments under £20,000 |
| Wise / Revolut | 0.4–0.7% | Variable, transparent | Hours to 1 day | Smaller payments, low complexity |
| US escrow international wire | 1–2% (often hidden in the rate) | £0–£50 | 2–5 working days | Convenience, rarely cheapest |
| Specialist currency broker | 0.3–0.8% | Typically £0 | 1–2 working days | £25,000+, multi-stage payments, hedging |
The headline fee rarely matters. What matters is the exchange rate margin — the difference between the mid-market rate and the rate you’re given. On a £400,000 transfer, a 3% bank margin costs £12,000 versus £2,000 at a 0.4% specialist margin. That’s a £10,000 difference on a single payment.
How do you transfer money for a US property purchase from the UK?
A typical end-to-end process looks like this:
- Set your budget in both currencies. The asking price is in USD. Convert it to GBP at the live mid-market rate to set your real budget — the rate at quote may not be the rate at completion.
- Open a specialist broker account before you make the offer. UK ID verification typically takes one working day. Doing this early means you can lock in a rate at the moment your offer is accepted, not after.
- Provide source-of-funds documentation. For transfers above £25,000, expect to be asked for a payslip, savings statement, sale-of-property document, or inheritance documentation. This is a UK money laundering compliance requirement, not optional.
- Lock in your exchange rate. This can be done as a spot transfer at the moment of payment, or fixed weeks or months ahead via a forward contract.
- Send the GBP balance to your broker. Faster Payment from your UK current account to the broker’s safeguarded client account.
- Broker wires USD to the US escrow or title company. This is the legally protected account that holds the deposit and balance during closing.
- Confirm receipt with the title company. USD typically lands at the US bank within 1–2 working days. Get written confirmation before signing further paperwork.
- Keep records for tax. Hold the GBP→USD conversion records for both UK CGT (when you eventually sell) and any FIRPTA filings the IRS requires.
How much can the GBP/USD rate move during a US property purchase?
A typical US closing window from accepted offer to keys in hand is 30–60 days. GBP/USD has moved by 5% or more in that window in three of the last five years. On a $500,000 property, a 5% rate move is roughly £19,000 — equivalent to a year’s worth of property taxes on the same place.
Anthony Bull, CEO of Cambridge Currencies, comments that British buyers tend to underestimate how much currency risk sits between offer and closing. A 60-day window is enough for a Federal Reserve rate decision, a UK inflation print, or a US jobs surprise to shift the dollar by 3–5%. On a £400,000 purchase, that’s the cost of the closing fees and the first year of property tax combined — paid in foregone exchange rate, not in invoices.
For the live rate and recent moves, see our GBP/USD exchange rate page and the USD forecast 2026. For the underlying interest rate context on the sterling side, the Bank of England’s MPC schedule is the primary source.
When should you use a forward contract for a US property purchase?
A forward contract lets you fix today’s GBP/USD rate for a payment up to twelve months ahead, paying a 10% deposit on booking and the balance when the payment is due. For a US property purchase, this is most useful in three situations:
- The offer has been accepted and the cost is committed in dollars
- The closing date is 30 or more days away and you want certainty over the GBP cost
- You’re paying in stages — typically a 10% deposit at offer, balance at closing — and want a single agreed rate
Will Stead, head of currency at Cambridge Currencies, observes that around 70% of property buyers using Cambridge for a US purchase opt for a forward contract on at least part of the purchase price. The most common pattern: lock in the rate on the deposit and 50–70% of the balance, leaving 30–50% as spot exposure in case GBP strengthens before completion.
A forward works in both directions. If GBP strengthens against USD after you’ve locked in, you’ll have paid more than the spot rate would have given. The trade-off — certainty for the upside — is much like contents insurance: a small known cost to remove a large unknown one.
What about US mortgages for UK buyers?
US mortgages are available to UK buyers but on stricter terms than for US residents. Most US lenders require a 30–50% deposit (versus around 20% for US borrowers), charge interest rates 0.5–1.5 percentage points above the headline US rate, and require either a US tax identification number (ITIN, applied for via IRS Form W-7) or a US Social Security Number.
Specialist foreign-national mortgage brokers in the US handle the application end-to-end. UK private banks such as Coutts and Weatherbys can also arrange US property finance for higher-net-worth clients with existing UK assets. A second route for UK buyers with significant equity in a UK home is to take a UK bridging loan against the UK property and pay cash in the US. The currency cost on a cash purchase is typically lower than on a US-mortgage-financed purchase, because there’s a single large transfer rather than a series of smaller monthly ones.
What are the tax considerations for UK buyers?
Tax circumstances are personal. The notes below are general guidance — speak to a qualified cross-border tax adviser before any large purchase.
On the US side. Foreign owners of US property pay annual state and county property taxes (rates vary widely — Texas and New Jersey are above 2%, Hawaii and Alabama below 0.5%). On resale, the Foreign Investment in Real Property Tax Act (FIRPTA) requires the buyer to withhold 15% of the gross sale price (10% if the buyer will use it as a primary residence and the sale price is between $300,000 and $1 million; 0% under $300,000 with primary residential use). FIRPTA is a withholding, not a final tax — you reclaim the difference by filing a US tax return for the sale year. An ITIN is required to file.
On the UK side. UK residents pay UK Capital Gains Tax on the disposal of a US property, with credit available for US federal tax paid under the UK–US double taxation treaty. The current UK residential CGT rate is 18% or 24% depending on your income tax band — see the GOV.UK Capital Gains Tax guidance for the current thresholds.
Estate planning. US property held by a UK national is subject to US estate tax on death above the (very low for non-residents) $60,000 threshold, unless the UK–US estate tax treaty applies. This is the area where most UK buyers of higher-value US property benefit from upfront structuring — typically holding the property through an LLC or trust.
Why use a specialist currency broker for a US property purchase?
Four practical reasons that don’t show up well in app comparison tables:
- Better rates above £25,000. Specialists work on tighter margins because their average transfer size is higher and they don’t run a retail branch network.
- Multi-stage payment planning. A specialist can structure your deposit, mid-process payments, and final balance as a single forward contract or a co-ordinated series — fixing the GBP cost across the whole transaction.
- Phone-based dealing with a named contact. Cambridge Currencies completes all transfers by phone with a dedicated dealer. For a £400,000+ purchase with a fixed completion date, a single named person tracking your timeline matters more than an app.
- Source-of-funds and compliance support. Large UK→US transfers face questions on both sides of the Atlantic. A specialist handles the paperwork directly and gets the wire instructions right first time.
Cambridge Currencies operates via FCA-authorised partners Currencycloud (FRN 900199) and ScioPay (FRN 927951). Client funds are held in safeguarded client accounts throughout the transfer process. For more on how we work with property buyers, and for purchases above £500,000, see our guide to large international money transfers. If you’re also paying US tuition for a child studying in the States, our US tuition fees guide covers that adjacent transfer cluster.
Frequently asked questions
Yes. There is no federal restriction on UK nationals owning US real estate. You don’t need a visa or residency to buy, but property ownership doesn’t grant any immigration status — visits remain limited to your ESTA or B-2 visa duration.
Most US lenders require a 30–50% deposit from non-resident foreign buyers, compared with around 20% for US residents. Interest rates are also typically 0.5–1.5 percentage points higher than the headline US rate. A cash purchase, often funded by a UK bridging loan, avoids this entirely.
For purchases above £25,000, a specialist currency broker typically gives the best rate, with margins of 0.3–0.8% versus 2.5–4% at high street banks. On a £400,000 purchase that’s an £8,000–£14,000 difference on a single transfer. For amounts under £20,000, Wise or Revolut may be marginally cheaper.
Yes. A forward contract lets you fix today’s rate for a payment up to twelve months ahead, paying a 10% deposit on booking and the balance when the payment is due. Most US property closings happen within 30–60 days, well within forward contract limits.
FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer of a US property from a foreign seller to withhold 15% of the gross sale price and pay it to the IRS. It applies on resale, not on initial purchase. The withholding is reclaimed by filing a US tax return — it’s a prepayment, not a final tax.
Yes, on both sides. The US taxes the gain via FIRPTA withholding and the seller’s US tax return. The UK then taxes the gain again under UK CGT rules, with credit for US tax paid under the UK–US double taxation treaty. Speak to a cross-border tax adviser for personal circumstances.
Typical US closings run 30–60 days from accepted offer to keys in hand — faster than the UK’s 8–12 weeks for a comparable purchase. Cash buyers can close in 14–21 days. The compressed timeline is one reason a forward contract on the GBP/USD rate is widely used by UK buyers.
Speak to a Cambridge Currencies specialist about your US property purchase
If you’re buying property in the USA and want a clear view on the GBP/USD rate, the option of a forward contract for the closing date, and a single named dealer to handle the transfer by phone, request a quote and we’ll talk you through it. We work routinely with UK buyers in Florida, New York, the Carolinas, California, and across the country.
