Expert guide to buying land for sale in another currency

Published:
12:08 18 July 2022



Buying land overseas can be a huge step for businesses, but also a move that can help ensure their future viability.

However, with today’s unpredictability in the market, the rising cost of living, and a host of financial challenges to overcome, how do you know if such an investment is a worthwhile venture?

To help you understand the money issues you’ll need to consider, we talk to Reece Dye, Head of Corporate Transactions at Clear Currency.

Below, he reveals the answers you need to make your decision.

Q: What are the benefits for UK businesses of buying land overseas?

A: It’s an investment for the future and a great way to diversify your business and access new markets. You may also find that overseas land prices offer better value for money.

Companies may want to open an office or build infrastructure in another country and need land for the project. Breaking into foreign markets can provide access to new networking opportunities, untapped marketing potential and wider recruiting options.

Over the next few years, it is also likely that many companies, especially those working in the energy, agriculture and technology sectors, will need to increase their sustainability and switch to green energy.

Considering buying land now can ensure you have the resources in place to operate in a more environmentally friendly world.

Q: Can foreign companies also buy land in the UK?

A: Absolutely. Places like Norfolk can be suitable locations for renewable energy farms. Current wind farm projects in East Anglia include the Hornsea Three offshore wind farm, operated by Danish energy group Ørsted.

Plans include the construction of up to 231 offshore wind turbines, located around 120km off the Norfolk coast, to generate enough green electricity to power more than two million homes.

European energy company Vattenhall has also obtained permission for its Norfolk Vanguard Offshore Wind Farm project. It aims to provide electricity to 1.95 million UK homes a year, saving three million tonnes of carbon dioxide emissions.


Energy companies are buying up land overseas and in the UK to turn it into wind farms to tackle the rising climate.
– Credit: Getty Images/iStockphoto

Q: How have Brexit and Covid-19 affected overseas land purchases?

A: Following Brexit, the accessibility and ease of setting up a business in another country has become more difficult for UK businesses. If you’re considering moving your business overseas, it’s important to consult with a local legal specialist to help you understand the applicable regulations and laws.

It’s not just the UK that has experienced an economic downturn. Covid-19 has affected markets around the world, so it is essential to research the financial situation of the country in which you are buying land before moving forward, as this can impact costs.

Rising inflation could also affect land prices. To budget effectively, businesses will need to be aware of their current income and expenses and understand any outside events that may alter profitability.

Q: What else will business owners need to consider when buying land in another country?

A: You will need to consider the size and duration of the project you are undertaking. Land sales can take many years, and several years longer for construction to be completed. This means companies will need to consider the possibility of price increases and understand when the project may become commercially unviable. In today’s climate, businesses must play out a multitude of scenarios and prepare for the unexpected.

During the selling period, it is imperative to mitigate the risk of currency exposure. When transferring large sums of money overseas, costs can be affected by rises and falls in exchange rates and fees.

Using a simple tool such as a forward contract can fix exchange rates at a fixed price until a future date when payments will be made.

Working with a currency expert can help ensure you have enough cash to carry on, provide you with financial protection, and help you plan for contingencies. This means that even if there are surprises along the way, you’ll be better prepared to handle them.


Clear Currency, specialist in foreign transfers, offers advice on buying a landing abroad

A currency specialist can help you reduce the impact of currency risk on your budget.
– Credit: Andrea Piacquadio/Pexels

Q: Why use a money transfer specialist like Clear Currency when buying land in another currency?

A: Our goal is to help companies save money when dealing with overseas projects by understanding the client’s end goal, highlighting potential risks and executing an effective strategy.

Exchange rates are constantly changing, and even small fluctuations can make a significant difference to how much you’ll pay for the acquisition. This can cause you to spend more than expected or, in certain circumstances, make adventure abroad unaffordable.

A dedicated account manager will help you understand the financial factors you will need to consider. They will provide you with a personalized and tailored service and aim to reduce the impact of currency risk on your budget.

You can use our online payment platform to manage and track all your international payments in one place, access live exchange rates and make same-day transfers. This eliminates stress and makes it easier to manage your money. We offer access at competitive rates and do not charge you a transfer fee, which helps keep costs down.

Even if the land deal doesn’t go through, it’s still worth having a conversation with us. The more informed you are, the better the outcome.

Although today’s market may seem difficult and uncertain, with the right help, there’s no reason for it to get in the way of your business plans.

Clear Currency is regulated by the FCA and has a 5* Trustpilot rating.

To find out more about international transfers and open a free account, visit clearcurrency.co.uk.

Call +44 (0)20 7151 4871 or email [email protected] for more information.

About Kristina McManus

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