an immediate relative of a Chinese citizen; have settled in China; or; have other legitimate reasons (not specified). Many people want to leave the countryside and live in the big city. 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. 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. Can I buy a shophouse in China? 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. By contrast, the Chinese buy almost no firms in Central and Eastern Europe, apparently because those countries don’t have enough cutting-edge firms in China’s preferred sectors. May it be a foreigner that is of Chinese descent, and have grandparents or parents that own property in China, or foreigners that have simply started a new life and relocated to China. 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. You’re allowed to buy one property, but need to either study or work in China for at least one year before that. 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. How much do you want to sell the property for sir? However, the people of China can afford to buy these extremely expensive properties. Your email address will not be published. Foreign investors are not allowed to buy land in China. Now, there’s a new subway line connecting Songjiang to Suzhou, increasing the demand for property. But in August 2015, the regulations were amended and investment in Chinese property by foreigners became easier. Did you see that guy driving by in a new Ferrari? A land lease of up to 70 years is usually granted for residential purposes. When this time is up the property will, apparently, go back to its rightful owner: The People’s Republic of China. Your agent should submit the contract online in order for you to receive a contract number, proving the property transaction. China City Urban Asia Street Architecture Road. You’re allowed to buy one property, but need to either study or work in China for at least one year before that. Its is important to properly research the rules and regulations beforehand as they are always changing. Marcus is a Swedish Engineer and previously worked as a Sales Manager within the Automotive industry in Shanghai. Copyright © 2019 MyChinaInterpreter.com. 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. 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. Excitement is creeping into Taiwan’s property market, as the presidential race heats up ahead of next year’s election, holding the prospect of a new government more friendly towards Beijing. 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. 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. Now the heirs have to prepare the inheritance documents and present them to the local real estate authority for approval. 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. Although not legally required, I recommend hiring a local real estate agent, who speaks the language and can help you through the selling process. However, to be eligible for one, you will need to raise at least 30% of the purchasing price yourself. Everything comes down to what you want from your investment as well. 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. 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. But regulations have changed, heirs “simply” need to prepare the inheritance documents needed and present these to the local real estate authority. Instead, you need to lease the residential land with a lease term of up to 70 years. Foreigners go through supervision procedures for about a week before they are allowed to buy … Below I’ve summarized the taxes you need to pay, either as a seller or a buyer. The rate was set to 0.4% to 0.6% on 70% of the original property value. 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). Foreigners who have studied or worked in China for a minimum of one year are permitted to buy … The answers might surprise you. Chinese consumers may have soured on some American products, like iPhones, but they have only sweetened on U.S. residential real estate. Once agreed by the seller/buyer, a deposit of 1% of the purchase value should be paid. 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. 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. 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. Hello Property has become unreasonably expensive in the big cities, a trend spreading to many second-tier cities as well. [email protected]. Buying property in China is neither easy nor cheap, so you will most likely need to get a mortgage. In Chongqing, a tax rate of 0.5% – 1.2% was levied to the following categories: Below I’ve included some of the key steps when you buy or sell property in China. Many wealthy Chinese admire the UK, especially London, and for many it is a dream of a lifetime to own property here. Learn how Asian countries compare on foreign property ownership rules, taxes, visa options, capital controls and more. 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. If you sold your house and you need a mortgage to buy a new one, you will be asked for a down payment of 70%. 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). Yes, you have to request a certificate from the Public Security Bureau (PSB). From country estates to city apartments, your ideal property is just a click away. You should also buy the property for dwelling purposes, hence you’re not allowed to rent out the property and act as a landlord. There has been a significant price surged in China in the most recent years, as their economy keeps thriving. Many people who buy property in China do so with their Chinese spouse. As mentioned above, agent commissions are usually set to 1-3%. The short answer is yes, but there are some conditions to be able to do so. The large number of Chinese regulations and laws has made property buying very strenuous for foreigners. Yes, a foreigner can, but there are restrictions. Places like Shenzhen, Shanghai, and Beijing keep being in high demand. Second-tier cities also see increased property prices. 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. If the heir is not capable of visiting China, he or she can also seek help from a local property Solicitor to help with the process. One can only obtain rights to use land. Type a place name to begin your search for Chinese properties. 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. I know laws in China keeps changing all the time. I bought an apartment in Sanya in 2005 for cash and If I want to sell it now 2019….what must I do ? According to the Chinese Property Law, foreigners cannot buy land in China, as the land belongs to the state. There’s a great chance he could afford it thanks to the property he bought or inherited a decade ago. We use cookies to give you the best possible experience on our website. 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 … I am retired and never worked in China. Buying a property in China. It’s worth taking into account that owning property does not guarantee anybody the right to residence in China. Read hundreds of articles and expert interviews covering Asia property taxes, foreign ownership rules, projects & much more. Finally, the deed should be transferred from the owner to the buyer. rates stretch between RMB 1.5 – 30 per square meter in Shanghai. This makes Chinese real estate a depreciating asset. They don’t own property. Property tax is not levied in China, except for pilot projects introduced in Shanghai and Chongqing. Commercial or industrial property may only be purchased after a company has been incorporated 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. You can also find good investment opportunities in areas and districts that will get more connected with central areas, or even other cities. Maybe you have a family in Shanghai and really need an apartment there. 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? Or do I have to live in the country continuously and never leave? They do, because it is considered prestigious to buy a UK property. I am British living in London aged 76 It takes 1-2 days to get it done in Beijing by the person him/herself with the passport. If you continue to use this site we will assume that you are happy with it. These are signs of cooling measures and to reduce speculation in the market. Guide; Forums; Articles; The process of buying a property can be a daunting task if not done correctly. Really estate is still a good investment in major Chinese cities such as Shanghai, Beijing, Shenzhen and Guangzhou. A real estate agent can also help you to find a property that suits your needs. 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. The Chinese property law stipulates that foreigners can only buy one property at a time, but they either have to study or work in China for a full year before being able to do so. To buy a property in China, a non-Chinese citizen needs to have a notarized Chinese name. Land use tax applies to persons who lease land, rates stretch between RMB 1.5 – 30 per square meter in Shanghai. 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). There is a big twist on it though. One of the most ruthless regulations in Hong Kong is that foreigners are not allowed to buy, lease, or inheritance land in Hong Kong, but you can “buy” land in mainland China. 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. The Chinese property law stipulates that foreigners can only buy one property at a time, but they either have to study or work in China for a full year before being able to do so. Beijing and Shanghai (and recently Shenzhen) are some of the cities where property prices have increased massively, the main reason why people have got better off. 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. In fact, 90% of families in the country own their home, giving China one … As foreigners can’t buy land in Hong Kong. Properties for sale in China from Savills, world leading estate agents. A common question asked is whether foreigners can inherit property in China. Additional requirements apply in Beijing and Shanghai. Requirements for foreigners who want to buy properties in China . 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). 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 are living over locations such as Shanghai or Beijing, you will be asked for additional conditions. I accept that this form collects my name, email and other information that may be forwarded to a real estate agency or other relevant agency (read our. 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. 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. Buying a property in China Making an offer, financials and deeds. China - Property. When Chinese people say that they’ve bought a house what they really mean is that they leased it from the government for 70 years. Some of the most popular listing sites in China include: You can also search around on the internet to find other options. Required fields are marked *. This is a good practice since buying as a foreigner is likely to increase costs and misunderstandings. 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. Also I brought GBP from London to buy in Shanghai first and then Sanya. All Rights Reserved. kindly write to me via my email. The Chinese government's theft of intellectual property has been an open secret for decades. Prices have increased much in the past decade, especially in big cities like Shanghai, Shenzhen, and Beijing. 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. A house is not a home. In Shanghai, property tax has been levied for persons not resident in Shanghai and to local second home buyers, who bought property above a certain size. Until not so long ago property owners had to introduce a notarized inheritance right document for approval, but the regulations on this have changed. 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. 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. In general, foreigners are only permitted to buy their own property after having worked or studied in China for at least a year. Is set to 3-5%, depending on the location of the property and the commission rate paid to a real estate agent. As it happens in many countries around the world, the price of any property is determined by the demand it has in the market. China. Additionally, it was permissible to buy only one property in China. When you’ve found a property, it’s time to come up with an offer. Suggestion: Watch the 5 minutes video tutorial before reading this article, Do you plan to buy property in China (Mainland)? where foreigners generally can’t buy landed houses. Your Chinese name can also be notarized in the Chinese embassy in your country. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. While a regular citizen will have it a little bit easier to deal with this to buy property, foreigners will always have it way more challenging to handle it. I use it only one month a year and the rest is empty……a holiday home really. Let’s formulate some hard questions to clear out any doubts you might have. The conventional banking system is a nightmare to deal with in China. Taxes are fairly low, annual property tax is only levied in Shanghai and Chongqing, for example. If you are living over locations such as Shanghai or Beijing, you will be asked for additional conditions. There are periods when industries are forced to rethink how they market to their customers, and for the luxury property industry, this is one of those moments. Property prices in China have become some of the most expensive in the world, having more than quadrupled since 2000. Promote your Asia properties or pre-construction projects via our website and email list. The capital gains tax is 5% if you own property for less than five years. Strategically located between Shanghai and Suzhou (another major city), the area around Songjiang has much water and green areas, it’s been sparsely populated. All the land destined for public purposes is owned by the government. How difficult is the property purchase process in China? who bought property above a certain size. - Any lawful restrictions for Chinese Citizen when buying - Answered by a verified Real Estate Lawyer. He is currently a freelance consultant supporting Asiaimportal (HK) Limited with content creation and research. will I have any tax to pay or what? Fill in the form to get connected with a real estate agent in Vietnam, Malaysia, Thailand or other countries. 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. Every plot of land is technically owned by the state and can only be bought on a leasehold basis for up to 70 years. The federal government owns it all. Foreigners are only allowed to own one property in China and it must be used for dwelling purposes only. Can foreigners buy property in China? 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. One of my old colleagues often showed me property prices on his cell phone with a grin on his face. Property prices have surged in China in the past years, especially in bigger cities like Shanghai, Shenzhen, and Beijing. Save my name, email, and website in this browser for the next time I comment. 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. "There is no private ownership of land in China. Real estate agents and lawyers are not a requirement to deal with the demands of the real estate market in China since the procedure tends to be very linear, but they can certainly help a lot if you are a foreigner. The thought of buying property in China has ever crossed your mind? I’m interested. You can’t buy a house or a condo to rent out the place. Click here to get in touch with an experienced agent. Hi, do I need to work or study in China before I can purchase a residential house there? 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). The land in China belongs to the state and the collectives. There are no restrictions on the type of property you want to buy, which is not always the case. Your email address will not be published. can buy property directly via developers. If the heir can’t make the trip to China, it can be handled by a local property solicitor to manage the process correctly. Like say, if i were in Australia, could you buy property in China while you are in Australia, or would you have to go TO China and do it? You need to pay the tax annually. This is something you should use to your advantage to seal the deal. We use cookies to ensure that we give you the best experience on our website. If you plan to mortgage your property, you have to offer a down payment of 50% on the value of the asset. This step also needs to be notarized. Additional requirements apply in Beijing and Shanghai. Property drives the economy here, prices keep going up, it's a fantastic investment opportunity! Can I work one year and then buy a property 10 years later? 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. 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. Do you plan to buy property in China (Mainland)? Owning property in China to manage as a landlord in the mainland is out of the question. I am a Singaporean. 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. 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. A Chinese investor can easily buy a better or bigger apartment elsewhere that costs much less – why buy a UK property? However, even if you meet one of these main Chinese citizenship requirements, becoming a Chinese citizen can still be a challenge. As you can see, owning property in China is not a walk in the park. Property. See the question: Can a foreigner buy an apartment in China? 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. Agents can be found on the internet, be sure to do due diligence to assure that the agent is serious and has a proven track record of helping foreign buyers. 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. This is not tricky as other parts of owning property in the mainland. 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 … Want from your investment as well must be used for dwelling purposes.! Central areas, or even other cities police station where you live finding a property that suits your needs in. 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