Why Offshore Structures Are Still Used in 2025

Offshore company ownership of UK property has long been a strategy for certain high-net-worth (HNW) and ultra-high-net-worth (UHNW) buyers. Motivations range from privacy and asset protection to facilitating international investment structures. In some cases, the ownership vehicle is part of a broader corporate structure tied to global business operations.

However, in 2025, this route is far more complex than it once was. Regulatory changes, higher transparency standards, and increased lender due diligence mean that buyers must navigate a more rigorous process to secure finance.

What’s Changed in the Regulatory Landscape

The introduction of the UK’s Register of Overseas Entities has transformed how offshore property ownership is monitored. Companies based outside the UK that own UK property must now declare their beneficial owners, with penalties for non-compliance.

Lenders are also conducting deeper anti-money laundering (AML) and know-your-customer (KYC) checks on both the company and its underlying owners. This applies whether the offshore entity is newly formed or has held property in the UK for many years (Lending to Offshore Trusts: What UK-Based Borrowers Need to Know in 2025).

In short, the days of anonymous property ownership through offshore companies are over.

How Lenders View Offshore Company Purchases

Mainstream UK lenders often have limited appetite for lending to offshore entities, particularly where ownership structures are complex or based in jurisdictions perceived as high-risk. This doesn’t mean funding is impossible — but it often requires specialist lenders or private banks with experience in international client profiles.

Private banks tend to be more flexible, especially where the borrower already has a relationship with them, or is prepared to place assets under management (AUM) as part of the arrangement (Private Bank Mortgages Explained: Benefits and Drawbacks).

Specialist lenders can also provide solutions for offshore-owned purchases, particularly in prime and ultra-prime markets, but interest rates and fees may be higher to reflect the perceived complexity.

Key Documentation and Compliance Requirements

If you’re buying through an offshore company in 2025, expect lenders to request:

• Full ownership and control details, including ultimate beneficial owners (UBOs)
• Incorporation documents and constitutional agreements
• Corporate structure charts if multiple entities are involved
• Financial statements for the company
• Identification and source of wealth evidence for all key individuals

Where the company is newly formed, lenders will look closely at the rationale for its use. This may include legal opinions confirming compliance with relevant laws and the borrower’s tax obligations (although any tax advice must be provided by a qualified specialist).

Why Some Buyers Still Choose Offshore Ownership

Despite tighter rules, there are still scenarios where an offshore company is the preferred or most practical route. These can include:

• International corporate structures that already own global real estate assets
• Joint ventures between multiple investors in different jurisdictions
• Estate planning arrangements, particularly for non-UK domiciled individuals
• Privacy considerations for high-profile buyers — albeit with reduced anonymity in the UK

Case Study: Offshore Company Purchase of Prime London Property

Willow Private Finance recently advised a Middle Eastern client purchasing a £9 million property in Belgravia through an existing offshore holding company. The client’s wealth and business operations were spread across several jurisdictions.

By working with a private bank experienced in cross-border finance, we structured a loan secured against the UK property, supported by a detailed compliance pack that met both the bank’s AML/KYC requirements and UK regulatory standards. The deal completed within eight weeks — a tight timeframe given the complexity.

Mitigating Challenges in Offshore Lending

The main obstacles to financing offshore-owned property in 2025 are speed, complexity, and compliance. Transactions often involve multiple legal teams across jurisdictions, which can delay document production. To avoid this, buyers should:

• Engage legal advisers early
• Prepare full ownership and compliance documentation in advance
• Work with a broker who understands both the lending market and the regulatory framework for offshore entities

How Willow Private Finance Can Help

At Willow Private Finance, we have extensive experience arranging finance for offshore companies acquiring UK property. We understand which lenders are open to offshore ownership, the specific documentation they require, and how to navigate the additional compliance layers.

Whether your offshore entity is part of a longstanding corporate structure or newly formed for a UK acquisition, we can structure finance to meet lender requirements and keep the transaction moving forward.

📞 Buying UK Property Through an Offshore Company?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward — whatever your plans in 2025.