Forum Moderators: open
1. How your domain ends. e.g .co.uk would get classified as UK site regardless of where its hosted.
2. They also look at where the site is hosted. If the IP address of the server is allocated to the UK , then google considers that your site is a UK one also. This is to cover the possibility that a .com for example would have UK related content.
It is a good idea to work with a top level domain from the country you are targeting ( for credibility in the market ) or to at least host in your target country. I recive about 10% of my google visits from people who have done a country specific search.
Cheers
David