Tax-Efficient Real Estate Investment Strategies for UK & International

ax-Efficient Real Estate Investment Strategies for UK & International High-Net-Worth Investors — And How Rise Capital’s Model Supports Them

For high-net-worth individuals (HNWIs) and family offices, property remains one of the most reliable asset classes — combining income, capital growth, and portfolio diversification. But alongside returns, there’s a growing focus on tax efficiency — especially for investors who are:

• UK resident but non-domiciled

• Based internationally and investing into UK real estate

• Seeking long-term wealth planning strategies
  
  

At Rise Capital, our debt-free, structured real estate model not only delivers fixed returns and capital protection — it’s also designed with tax optimisation in mind.

In this insight, we explore the most effective tax-efficient strategies for real estate investors in 2025, and how Rise Capital’s investment structure can support both UK and overseas investors in maximising their after-tax returns.

Why Tax Efficiency Matters More Than Ever

With changes to UK tax law on the horizon (including the 2025 abolishment of the non-dom regime), combined with ongoing HMRC scrutiny on offshore structures and passive income, HNWIs are:

• Reviewing their UK real estate exposure

• Restructuring how and where they hold property assets

• Prioritising transparent, low-risk, and compliant investment frameworks

Key Tax-Efficient Strategies for Real Estate Investment in 2025

1. Investing via UK Limited Company SPVs

Holding property through a UK Special Purpose Vehicle (SPV) enables:

• Corporation tax on profits (currently 25%) vs personal income tax (up to 45%)

• Ring-fencing of liabilities and costs

• Inheritance tax (IHT) planning via shares vs property assets

• Easier transfer of ownership through share sales
  

Rise Capital structures all projects via SPVs, giving investors exposure through secured shares or units, depending on their jurisdiction.

2. Capital Gains Tax (CGT) Planning

SPVs can defer or reduce CGT liabilities by:

• Timing disposals at the corporate level

• Managing base cost uplift within the structure

• Allowing international investors to sell shares offshore in some cases (subject to rules)
  
  

3. Avoiding Double Taxation for Overseas Investors

International HNWIs face complex cross-border tax issues. The Rise Capital model is compatible with:

• Offshore holding structures (via nominee or discretionary trusts)

• Jurisdictions with double tax treaties (e.g., UAE, Singapore, Luxembourg)

• Tax-efficient profit distribution and capital return methods
  
  

We work with tax advisors to ensure our model supports investors' residency and domicile profiles.

4. No Interest Deductibility Limits = Simpler Planning

Many traditional property investments rely on debt, which creates:

• Complex interest deduction limitations (especially post-Section 24)

• Higher exposure to HMRC scrutiny

• Risk of disallowance of finance costs
  
  

Rise Capital’s debt-free model removes interest from the structure entirely, simplifying your tax profile and reporting.

How Rise Capital’s Model Helps Investors Stay Tax-Efficient

Our investment framework is built with both UK and international investors in mind. Here’s how:

Capital Is Invested in SPVs

• Structured as UK-registered development companies

• Investors subscribe via share units or loan notes (depending on product)

• Allows access to returns with corporation tax efficiency
  
  

Returns Are Fixed and Predictable

• 90% of project costs raised via syndicate investors, earning 10% fixed annual return

• Tax-efficient income: can be structured as interest, dividend, or loan repayment depending on investor location

Capital Held in Escrow

• Third-party solicitor escrow accounts control capital release

• Adds governance and protection — a key requirement for trust and family office structures
  
  

No Leverage = No Interest Tax Complications

• No bank loans = No need to track interest deductibility or exposure to thin capitalisation rules

• Simplifies cross-border compliance and tax filings
  
  

Flexible Exit = Clean Tax Event

• If sales are delayed, the project pivots to a BTL structure, with ongoing rental yield and equity upside

• Syndicate investors can exit via refinance, not forced disposal, allowing better control over tax timing

Tailored for UK & International Investors Alike

Whether you’re based in:

• London

• Dubai

• Hong Kong

• Geneva

• Singapore
  
  

…our structure has been designed with cross-border compatibility in mind.

We work with trusted legal and tax advisors to ensure clean ownership, clear tax treatment, and minimal friction across jurisdictions.

Summary: Efficient, Compliant, and Predictable Returns

Let’s Discuss a Tax-Efficient Investment That Works for You

Every investor’s tax situation is different — and we’re happy to work with your advisors to align our structure with your optimal tax strategy.