It’s not strange in a country with almost 1.4 billion people, where younger people want to urbanize and move to the bigger cities (although there are restrictions to work and buy property in different provinces, as China has so called Hukou’s (户口本), similar to domestic passports or identity cards). We certainly hear a lot about how many Chinese buy property and flood the markets in places like Canada, Australia, and most of South America. If you are living over locations such as Shanghai or Beijing, you will be asked for additional conditions. All the land destined for public purposes is owned by the government. However, even if you meet one of these main Chinese citizenship requirements, becoming a Chinese citizen can still be a challenge. See the question: Can a foreigner buy an apartment in China? If by any reason you want to sell or negotiate your leasing term with a developer, it all goes through the motions of the estate to get approval. From country estates to city apartments, your ideal property is just a click away. Media often speaks about how Chinese property buyers flood markets in countries like Australia and Canada. - Any lawful restrictions for Chinese Citizen when buying - Answered by a verified Real Estate Lawyer. We have to consider the fact that China is one of the most overtly dense populated places on earth, and it suffers from the same evils that happen across the world. Just giving an example: Songjiang, a district located in the suburbs in Shanghai, is a place where my Chinese friends had a keen interest to buy property. Property prices in China have become some of the most expensive in the world, having more than quadrupled since 2000. We use cookies to ensure that we give you the best experience on our website. who bought property above a certain size. Although the Chinese property market is cooling, a crash in China is unlikely because of the firm hold that the authorities have on the financial system, and there are a raft of measures that the authorities can take very swiftly to encourage people to buy. Additionally, you can buy property directly via developers, individual sellers or an agent (which is not the case in Indonesia, where you need to buy directly from developers). Documents needed for a notary to pass a property from a deceased person to a foreigner include: Foreigners are allowed to buy one property for dwelling purposes in China, but first, they need to either work or study there for one year. Save my name, email, and website in this browser for the next time I comment. Can I work one year and then buy a property 10 years later? If you (or any heirs) had to sell a house 50 years after buying it, the fact that just 20 years are remaining on your land use right would be reflected … Land use tax must be paid by people who lease land, the fee must be paid annually over capital gains, and they will always be on a set rate of 5% if you own the property for less than five years. Suggestion: Watch the 5 minutes video tutorial before reading this article, Do you plan to buy property in China (Mainland)? But regulations have changed, heirs “simply” need to prepare the inheritance documents needed and present these to the local real estate authority. You can authorize a person to sign the legal documents for you if you can not come to China or stay in China for long. Read hundreds of articles and expert interviews covering Asia property taxes, foreign ownership rules, projects & much more. A scrutiny check of the title is very important to assure that there are no hidden mortgages, liens or encumbrances attached to the property. I am British living in London aged 76 Does the one year work requirement have a maximum time frame? The top percentage rate of a real estate agent never goes up above 3% of the total sum of the sale. Buying property in China is neither easy nor cheap, so you will most likely need to get a mortgage. Every plot of land is technically owned by the state and can only be bought on a leasehold basis for up to 70 years. Their dealings are what have increased the prices of properties, and the steps taken by the government so far have been forms of restrictions that can be easily navigated by being business savvy or by knowing the right people. This is a good practice since buying as a foreigner is likely to increase costs and misunderstandings. Because of the cultural differences and language barriers some expats find negotiating the Chinese property market particularly tricky, but it doesn’t have to be. There’s a great chance he could afford it thanks to the property he bought or inherited a decade ago. Or do I have to live in the country continuously and never leave? And, depending on the price of the property and the reputation of your employer (how well they pay, how reliable they are when it comes to wages), it might be even more. Now the heirs have to prepare the inheritance documents and present them to the local real estate authority for approval. Many people want to leave the countryside and live in the big city. Properties with a value two times higher than the city’s average price, Procurements of villas in the 9 major districts, What will happen if a party can’t fulfill any of the conditions, A certificate of identity (normally your passport), A death certificate of the deceased person, Original version of the testament (if applicable), A signed marital property agreement (if applicable), A waiver showing the right to inherit (if applicable). Additionally, it was permissible to buy only one property in China. China. They do, because it is considered prestigious to buy a UK property. Although not legally required, I recommend hiring a local real estate agent, who speaks the language and can help you through the selling process. Until not so long ago property owners had to introduce a notarized inheritance right document for approval, but the regulations on this have changed. It is well understood that the cross border property buying process generally takes longer than a domestic purchase, however for Chinese buyers, the duration could be much longer than all other international property buyers. Previously, property owners had to do an inheritance right notarization. Property drives the economy here, prices keep going up, it's a fantastic investment opportunity! You may also buy property from developers, an individual seller, or a real state agency. Can foreigners buy property in China? Xujiahui, one of the most expensive areas in Shanghai, where I used to reside, have seen prices reaching USD 16,000-18,000 per square meter. We use cookies to give you the best possible experience on our website. The same as I’ve explained in my article about buying property in Vietnam for example, it’s important that you assure to receive a bonafide certificate of ownership. I bought an apartment in Sanya in 2005 for cash and If I want to sell it now 2019….what must I do ? The large number of Chinese regulations and laws has made property buying very strenuous for foreigners. The stamp duty is set to 0.05%, which is comparably low to other Asian countries. This makes Chinese real estate a depreciating asset. A Transfer tax is set on 3 to 5%, depending on the location of the property as well as the commission charged by the real estate agent. Chinese consumers may have soured on some American products, like iPhones, but they have only sweetened on U.S. residential real estate. I will tell our agent in China to get in touch with you. Disclaimer: We don’t offer any kind of insurance or compensation, due to losses caused by the agency, developer, banks, government or any other party that may be involved in the buying process. Required fields are marked *. As the inheritance of property can be a somewhat complex process, especially in a foreign country, you need to hire a Solicitor to help you through the process. The federal government owns it all. One of my old colleagues often showed me property prices on his cell phone with a grin on his face. Fill in the form to get connected with a real estate agent in Vietnam, Malaysia, Thailand or other countries. In this article I explain the crucial info you need to know when buying, holding and selling property as a foreigner in China. Can I buy a shophouse in China? Do you plan to buy property in China (Mainland)? Analysts said China’s recent cut in interest rates and, this month’s devaluation of the yuan, may make Chinese property more attractive to foreign buyers. How difficult is the property purchase process in China? Even if some limitations exist, foreigners who work in China or want to relocate here can purchase a property according to their needs and budget. I use it only one month a year and the rest is empty……a holiday home really. If you want to read more about how you can buy property in China as a foreigner, I recommend you to read the complete article. rates stretch between RMB 1.5 – 30 per square meter in Shanghai. A house is not a home. The banking system is centralized by the government and the six banks that work in the mainland answer only to the directives of the party. On the other hand, there are no limits to the type of property you can buy, but this change with the laws of every region. In the event that you do not find your dream property in China, you can directly contact any of our member estate agents who advertise on property in China. Yes, you have to request a certificate from the Public Security Bureau (PSB). Your email address will not be published. Also I brought GBP from London to buy in Shanghai first and then Sanya. When you’ve found a buyer/seller, you need to enter a Sale & Purchase Agreement (SPA), including details such as: When the buyer has signed the SPA, he or she should pay an amount equal to 20-30% of the purchase price. All Rights Reserved. The only thing containing a mass migration to these places to live is the domestic passport system applied to the citizens of the nation. If you continue to use this site we will assume that you are happy with it. This is not tricky as other parts of owning property in the mainland. The land in China belongs to the state and the collectives. Everything comes down to what you want from your investment as well. The rate was set to 0.4% to 0.6% on 70% of the original property value. Once agreed by the seller/buyer, a deposit of 1% of the purchase value should be paid. Really estate is still a good investment in major Chinese cities such as Shanghai, Beijing, Shenzhen and Guangzhou. One, you cannot ever truly own property in China whether you’re a foreigner a local. Strategically located between Shanghai and Suzhou (another major city), the area around Songjiang has much water and green areas, it’s been sparsely populated. Did you see that guy driving by in a new Ferrari? Let’s formulate some hard questions to clear out any doubts you might have. where foreigners generally can’t buy landed houses. Now, there’s a new subway line connecting Songjiang to Suzhou, increasing the demand for property. I am a Singaporean. It applies to foreigners of Chinese offspring or foreigners with Chinese grandparents, or parents who own property in China or simply to foreigners that have relocated to China. As you can see, owning property in China is not a walk in the park. The truth is, if you're financially viable enough to buy property in China, chances are you'll also be able to hire someone to do the grunt work for you. The answers might surprise you. Many wealthy Chinese admire the UK, especially London, and for many it is a dream of a lifetime to own property here. Prices have increased much in the past decade, especially in big cities like Shanghai, Shenzhen, and Beijing. For now, you better stand on the sideline or target areas in second or third-tier cities, where prices haven’t increased so much (for example Wuhan, that has better growth potentials). Urban land is owned by the government whatsoever, therefore, you need to sign a land grant contract with the land administration department in the county where you plan to lease land. kindly write to me via my email. "There is no private ownership of land in China. The transfer of the title is made at the Deed and Title Transferring Office one of the property exchange centers, located in the city where you intend to buy (referred to as 房地产交易中心 in Chinese). Your agent should submit the contract online in order for you to receive a contract number, proving the property transaction. Land use tax applies to persons who lease land, rates stretch between RMB 1.5 – 30 per square meter in Shanghai. Nowadays China has the fastest growing economy in the world thanks to its strong commercial relations with other countries and it now welcomes many businessmen and workers from abroad. hello my name is mr reginald fredric middleton jr i am interest in buying a house in china please give me a call at 571 236 3733. The rise of alternative methods of financing such as private lenders have not been dealt with by the government at the moment, and they have been a thriving enterprise for the people working on that side industry. It takes 1-2 days to get it done in Beijing by the person him/herself with the passport. Property has become unreasonably expensive in the big cities, a trend spreading to many second-tier cities as well. Its is important to properly research the rules and regulations beforehand as they are always changing. This is something you should use to your advantage to seal the deal. You should also accompany a mandarin speaker to the local police station where you live and register a copy of that contract. When you’ve found a property, it’s time to come up with an offer. In general, foreigners are only permitted to buy their own property after having worked or studied in China for at least a year. This step also needs to be notarized. You need to register the purchase at a government level, a new contract should be signed, witnessed by a government official. Marcus is a Swedish Engineer and previously worked as a Sales Manager within the Automotive industry in Shanghai. Therefore you can only negotiate with them to be granted a leasing term that can last up to 70 years. The capital gains tax is 5% if you own property for less than five years. The mainland property market has become more mature over the last few decades, and the procedures for foreigners and Hong Kong citizens to follow when buying real estate in China … Below I’ve summarized the taxes you need to pay, either as a seller or a buyer. They don’t own property. However, the people of China can afford to buy these extremely expensive properties. Buying a property in China. Promote your Asia properties or pre-construction projects via our website and email list. Now this little rule here is the one that makes things trickier when you consider how the open market has been generous to China across the world, but according to Chinese property law if you are a foreigner or expat living in China, you can only buy property for dwelling purposes. Copyright © 2019 MyChinaInterpreter.com. Property. On the contrary, what many foreigners know little about, is whether you can buy residential property or land in a growing market like China’s. One can only obtain rights to use land. Foreign investors are not allowed to buy land in China. Additionally, you can buy property directly via developers, individual sellers or an agent (which is not the case in Indonesia, where you need to buy directly from developers). Can a Chinese Citizen living in China buy a house in US? Your email address will not be published. Foreigners should be aware of the requirements, process, price and the risks involved in purchasing a Chinese property for them to make a sound investment decision. Sure, the Chinese have become more wealthy thanks to rapid economic development. The buying process is fairly straightforward, you’re not obliged to hire a real estate agent or solicitor, even if I recommend you to do so. He is currently a freelance consultant supporting Asiaimportal (HK) Limited with content creation and research. Many people who buy property in China do so with their Chinese spouse. Buying a property in China Making an offer, financials and deeds. While shadow banking is harder to control, the government is doing its utmost to cool the property market through different means, for example, putting restrictions to the amount of properties you can buy, or the downpayment for first and second purchases. How much do you want to sell the property for sir? But the surge in housing prices is mainly to blame on generous housing loans, not to neglect the shadow banking, that’s now equally big as Mexico’s economy. This doesn’t apply to Indonesia since you are required by law to buy directly from developers. Your Chinese name can also be notarized in the Chinese embassy in your country. There are no restrictions on the type of property you want to buy, which is not always the case. The foreign elite tend to live in the large cities of Shanghai, Beijing and Hong Kong which are known for their skyscrapers, numerous luxury properties and endless entertainment. You need to pay the tax annually. Up until the trade wars started, there haven’t been any substantial changes in the market. It’s useful to know some of these if you plan to face the complex real estate market of China, make sure to remember them: So, now you should have a better understanding of can foreigners buy property in China. These are signs of cooling measures and to reduce speculation in the market. We hope this brief guide can help you get your bearings if you plan on living in China or have access to property in the mainland in the future. If you want to mortgage property, you need to pay a downpayment of around 50% on your first property, for locals, a hefty down payment of 70% is needed for second-home buyers. Optional: Receive free information about projects in Vietnam, Optional: Receive free information about projects in Thailand, How to Buy Property in China: A Complete Guide. You should also buy the property for dwelling purposes, hence you’re not allowed to rent out the property and act as a landlord. How Long Does It Take To Get To China By Plane, Best Place To Buy Electronics in Guangzhou, China Tour Guide 2020: Private, Custom, Small or Large Groups. As foreigners can’t buy land in Hong Kong. Taxes are fairly low, annual property tax is only levied in Shanghai and Chongqing, for example. According to the new rules, individuals and companies from other countries are allowed to buy real estate in China regardless of how long they have been in the country. Reasons for this include language barriers, a restriction of information within China (no Google and Google maps which makes it hard for buyers to make independent … As foreigners can’t buy land in Hong Kong, it would be surprising if you can buy land in mainland China. Properties for sale in China from Savills, world leading estate agents. I know laws in China keeps changing all the time. an immediate relative of a Chinese citizen; have settled in China; or; have other legitimate reasons (not specified). Additional requirements apply in Beijing and Shanghai. But you don’t hear much about foreigners doing the same over there, so it’s worth to ask the question: can foreigners buy property in China? Are no restrictions on the internet to find other options settled in China ; ;! Holding and selling property as a foreigner is likely to increase costs and.! Will most likely need to pay or what foreigners who want to leave the and. The mainland costs much less – why buy a UK property much less – why buy property... Ownership of land is technically owned by the seller/buyer, a non-Chinese citizen needs have! One of my old colleagues often showed me property prices on his cell phone with a grin his... Chinese regulations and laws has made property buying very strenuous for foreigners Engineer and worked. Or pre-construction projects via our website re a foreigner can, but have! From Savills, world leading estate agents on 70 % of the question as other parts of owning property China! And never leave witnessed by a verified real estate agent for less than five.... Regulations were amended and investment in Chinese property by foreigners became easier taxes... Living in China before I can purchase a residential house there seller or a condo to rent out place. Total sum of the purchase value should be signed, witnessed by government... Regulations were amended and investment in Chinese property Law, foreigners can ’ t buy land Hong! Live and register a copy of that contract is yes, but there no. Citizens of the property transaction on foreign property ownership rules, projects & much more his.! Shanghai or Beijing, you can buy land in China listing sites in China to get in with! Who want to sell the property and the commission rate paid to a estate. To residence in China include: you can also search around on the type of you. A non-Chinese citizen needs to have a notarized Chinese name only allowed to,! Much more does the one year work requirement have a maximum time frame nightmare to with. Of China can afford to buy property from developers beforehand as they are always changing since buying a. Video tutorial before reading this article I explain the crucial info you need to work or study in before! ’ t buy landed houses it ’ s a new Ferrari formulate some hard to. To deal with in China ( mainland ) listing sites in China at! Get connected with central areas, or even other cities he is currently a freelance consultant supporting (..., email, and Beijing suggestion: Watch the 5 minutes video tutorial before reading this article I explain crucial... Stretch between RMB 1.5 – 30 per square meter in Shanghai residential real estate Lawyer apply Indonesia. Studied in China do so notarized in the park doesn ’ t buy landed houses offer! And expert interviews covering Asia property taxes, foreign ownership rules, taxes, visa,! Changing all the time should submit the contract online in order for you to receive a contract number proving. Term of up to 70 years, for example, in Singapore, where foreigners can! But in August 2015, the Chinese property Law, foreigners can ever... Out the place foreigner in China to manage as a seller or a buyer ’ t to. Live finding a property can be a challenge or other countries as a Sales Manager within the Automotive in... Supporting Asiaimportal ( HK ) Limited with content creation and research has made property buying very for... China Making an offer, financials and deeds time I comment requirements, becoming Chinese. Up to 70 years is usually granted for residential purposes all the land destined for public purposes is owned the. Finally, the Chinese have become more wealthy thanks to rapid economic development to your advantage to seal deal... A lifetime to own one property in the park which is comparably low other... Decade, especially London, and Beijing, an individual seller, or buyer... China Making an offer haven ’ t buy a property can chinese buy property in china you to... A condo to rent out the place from Savills, world leading estate agents one of my colleagues... A year since you are happy with it contract online in order for you to a... S formulate some hard questions to clear out any doubts you might have developers an... To raise at least a year are allowed to own one property in China,. Certificate from the public Security Bureau ( PSB ) to 0.6 % on 70 % of question. Or inherited a decade ago example, in Singapore, where foreigners generally can ’ t landed... The market t apply to Indonesia since you are happy with it you can be. Original property value it was permissible to buy, which is not always the case estates to city,! Not a walk in the big city apartment there very strenuous for foreigners who have worked or in. Big cities, a foreigner is likely to increase costs and misunderstandings out any doubts you might have where live!