Buying property in Scotland as an American: 2024 guide

Some 5 million Americans trace their roots back to Scotland - making it no surprise that so many of us dream of buying property in Scotland to get closer to our heritage. But what’s the process to buy land in Scotland - and is Scottish real estate a good investment? This guide covers all you need to know.

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What’s the property market like in Scotland?

You can buy pretty much any sort of property you can imagine in Scotland, from city center apartments with full amenities, to coastal hideaways and historic buildings.

The property market in Scotland - as with many other countries around the world - has seen some significant ups and downs of late, particularly due to the impact of the pandemic. However, prices, particularly among larger single family homes, seem to have picked up towards the end of 2023¹.

Overall, compared to the UK as a whole, average property prices in Scotland can be on the low side. City center properties in popular places like Edinburgh, remain pretty costly, but with a wide range of property types and price points available, there’s still lots of scope to invest in Scottish property as an American.

Can Americans buy property in Scotland?

There’s no legal barrier to buying a property in Scotland as an American. Interestingly, there are also no additional taxes to pay when buying a property as a non-resident, while in many other parts of the UK overseas buyers have to pay more than you would as a local buyer.

Bear in mind though that owning a property does not automatically mean you’ll get a visa to reside in the UK, and financing a property through a UK mortgage can be harder if you’re not planning on living there full time.

What are the legal requirements of buying real estate in Scotland?

You can buy a property in Scotland as a US citizen, whether you plan to live there or not. This means you can buy a Scottish property as a vacation home, an investment or to live in at some point in the future if you want to.

Can Americans buy land in Scotland?

Yes. Americans can buy both land and property in Scotland without any restrictions based on nationality or residence status.

How to buy property in Scotland as an American: step by step

The easiest way to manage your Scottish property purchase is to work with a local solicitor. This will help you to navigate an unfamiliar system, and is particularly useful if you’ll be buying as a non-resident.

The seller will also be represented by a solicitor in most cases, which means that the paperwork and negotiation can be left to the legal representatives.

Generally the process you’ll need to follow will take these steps:

Step 1. View properties in person or online, to find the right one for you

Step 2. Engage a local solicitor to support with your purchase once you’ve found a property

Step 3. Make an offer via your solicitor, for the approval of the seller

Step 4. If this offer is accepted, you may be asked to pay a deposit of around 10%

Step 5. Next, your solicitor will commence due diligence checks on the property

Step 6. Once all checks are complete, the seller and buyer agree a date of entry - the formal closure of the sale, and the date the buyer can collect the keys

Step 7. At the date of entry, the buyer pays all remaining costs and the property is transferred into their name

Buying property in Scotland: costs

As we’ve mentioned there’s a really broad range of property types in Scotland, which means a very wide range of prices, too. Unsurprisingly, costs in city centers are high compared to the suburbs and more rural areas. We’ve picked out 3 major cities in Scotland below and looked at the live costs of housing based on Numbeo® data.

This is dynamic and changes all the time, so you can check the latest for your preferred area before you get too far down your journey to buying property in Scotland as an American.

	Price per square foot, city center	Price per square foot, outside of city center
Edinburgh²	604.44 USD	416.23 USD
Glasgow³	347.34 USD	289.29 USD
Aberdeen⁴	274.53 USD	239.70 USD

What kind of taxes and fees will you need to pay?

As well as the cost of the property itself you’ll need to consider the extra fees and taxes that can apply.

The tax structure for buying a property in Scotland is not the same as in England, so do make sure you’re up to date with the costs based on your preferred location.

For example, while England has a stamp duty which is payable on closure of a property sale, Scottish properties are subject to land and buildings transaction tax (LBTT) which has different bands and costs⁵.

Here’s a quick overview of the key fees and taxes you’ll want to think about⁶:

Fees	Price
Solicitor fees	Starting from around 400 GBP + VAT
Searches and surveys	From around 300 GBP depending on specific survey selected
LBTT	Up to 12% of purchase cost, depending on price of property

If you’re paying for your property with a UK mortgage there may also be a mortgage value report to pay for, which varies in cost depending on the type and cost of the specific property.

Other costs include real estate agent fees, but these are usually covered by the seller.

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What to consider when buying property in Scotland

Buying a property is a big deal, particularly if it’s in a whole new country. Let’s look at a few important things to consider when you’re selecting your perfect Scottish property.

The types of property available

You can buy pretty much any type of property in Scotland, but availability will depend on the location you’re targeting.

It’s helpful to note that costs of properties are usually listed as ‘offers over’ a set value, to encourage buyers to bid a higher amount for the property in hand.

If the market happens to be very competitive and there are many bids on a single property, the cost may creep up - while at slower times, the costs may be lower as sellers are willing to accept something closer to the listed starting bid.

Having a local agent or solicitor to help you navigate the system can be of great value here to help you make the most appropriate bid for the property you want.

The condition of the property

If you’re getting a UK mortgage the chances are that your mortgage provider will insist on a report on the property to confirm its value.

However, this may not look into the structural condition of the property - which means you may want to commission additional surveys for peace of mind.

There are several different survey types commonly used in Scotland, from a very thorough report which is useful for buildings with non-standard construction, such as thatched cottages, through to condition reports which are cheaper but which take a more superficial look at the property.

Consult your solicitor to discuss which type of report is most appropriate for the property you have in mind, based on its age, build type, and other factors.

The risks of buying property in Scotland

The Scottish property market is well regulated, and most deals are done through solicitors which reduces the risks inherent in high value transactions.

However, naturally you should still take common sense precautions, including checking the solicitor you commission is well rated and properly licensed.

One other risk to look out for is any potential for flooding in the area you’re planning on buying. If your property is in a flood risk area you may struggle to insure it and to resell it whenever the time comes.

There’s lots of advice on this topic available through Scottish government bodies and advisory agencies⁷.

Best places to buy property in Scotland

Scotland has huge swathes of beautiful countryside, coastlines and areas of outstanding natural beauty. If you’re looking for a quiet retreat you’ll certainly have options.

On the other hand, many Americans moving to Scotland choose to live in one of the major cities for work and to get a feel for the local culture. Here we’ve picked out 3 popular Scottish cities as great places to target if you’re thinking of a move:

Edinburgh

As Scotland’s capital, there’s a huge amount of variety when it comes to properties in Edinburgh. Prices here are high, but so is demand, making this an interesting option for investment properties.

With a walkable and historical city center and green and leafy suburbs there are many different properties available, with great employment opportunities, a highly regarded university, and a vibrant slice of Scottish cultural life.

Glasgow

Glasgow is considered to be Scotland’s second city, also home to a large and well reputed university, and with significantly lower house prices on average compared to Edinburgh.

Glasgow is considered to be a very friendly city and somewhat more cool, edgy and alternative than the capital. Again there’s a wide variety of housing types, as well as different suburbs which have their own feel and vibe.

Aberdeen

Aberdeen - in the north of Scotland - is the heart of Scotland’s oil and gas industry, and therefore a fairly wealthy and well connected city. It’s also surrounded by amazing countryside, coastlines and natural environments for when you want to get out of the hustle and bustle.

Again prices here are lower than in Edinburgh, but as housing stock outside of the city center is highly sought after, prices don’t vary that much between the city and the outskirts.

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Buying a property in Scotland as an American shouldn’t pose too much of a problem. There are no legal restrictions on buying property or land, and as long as you arrange the right local help from a qualified solicitor, the deal should pass through without event.

Use this guide to start planning your journey - and before you make any USD to GBP payments, check out Wise, for low cost currency conversion and super speedy international transfers*.

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Sources:

1. Scottish government housing data
2. Numbeo - property investment Edinburgh
3. Numbeo - property investment Glasgow
4. Numbeo - property investment Aberdeen
5. Scottish revenue service - LBTT
6. UK government money helper - buying property in Scotland
7. Citizens advice Scotland - flood risks

Sources checked on 05.24.2024