Can a Chinese Citizen living in China buy a house in US? 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. Prices have increased much in the past decade, especially in big cities like Shanghai, Shenzhen, and Beijing. 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. 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. Land use tax applies to persons who lease land, rates stretch between RMB 1.5 – 30 per square meter in Shanghai. I’m interested. This is by no means a complete guide on buying property in China, and it would take months of studying to fully understand the legal and financial framework surrounding this topic. How much do you want to sell the property for sir? 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. They do, because it is considered prestigious to buy a UK property. This makes Chinese real estate a depreciating asset. Until not so long ago property owners had to introduce a notarized inheritance right document for approval, but the regulations on this have changed. However, to be eligible for one, you will need to raise at least 30% of the purchasing price yourself. Strategically located between Shanghai and Suzhou (another major city), the area around Songjiang has much water and green areas, it’s been sparsely populated. 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. A land lease of up to 70 years is usually granted for residential purposes. Although not legally required, I recommend hiring a local real estate agent, who speaks the language and can help you through the selling process. As mentioned above, agent commissions are usually set to 1-3%. There is a big twist on it though. Also I brought GBP from London to buy in Shanghai first and then Sanya. How difficult is the property purchase process in China? Foreigners are only allowed to own one property in China and it must be used for dwelling purposes only. 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. Property prices in China have become some of the most expensive in the world, having more than quadrupled since 2000. You should also accompany a mandarin speaker to the local police station where you live and register a copy of that contract. These are signs of cooling measures and to reduce speculation in the market. Suggestion: Watch the 5 minutes video tutorial before reading this article, Do you plan to buy property in China (Mainland)? Its is important to properly research the rules and regulations beforehand as they are always changing. We use cookies to give you the best possible experience on our website. 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. Read hundreds of articles and expert interviews covering Asia property taxes, foreign ownership rules, projects & much more. 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. Commercial or industrial property may only be purchased after a company has been incorporated 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. 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. Therefore you can only negotiate with them to be granted a leasing term that can last up to 70 years. Save my name, email, and website in this browser for the next time I comment. [email protected]. "There is no private ownership of land in China. Second-tier cities also see increased property prices. 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? I bought an apartment in Sanya in 2005 for cash and If I want to sell it now 2019….what must I do ? Property has become unreasonably expensive in the big cities, a trend spreading to many second-tier cities as well. The large number of Chinese regulations and laws has made property buying very strenuous for foreigners. 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. 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). They don’t own property. I am a Singaporean. If you continue to use this site we will assume that you are happy with it. 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. It takes 1-2 days to get it done in Beijing by the person him/herself with the passport. Properties for sale in China from Savills, world leading estate agents. 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. 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. 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. One, you cannot ever truly own property in China whether you’re a foreigner a local. 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. 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. As foreigners can’t buy land in Hong Kong. Or do I have to live in the country continuously and never leave? Yes, a foreigner can, but there are restrictions. Hello You can also find good investment opportunities in areas and districts that will get more connected with central areas, or even other cities. will I have any tax to pay or what? 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. who bought property above a certain size. Really estate is still a good investment in major Chinese cities such as Shanghai, Beijing, Shenzhen and Guangzhou. I know laws in China keeps changing all the time. Some of the most popular listing sites in China include: You can also search around on the internet to find other options. I will tell our agent in China to get in touch with you. You need to register the purchase at a government level, a new contract should be signed, witnessed by a government official. Your agent should submit the contract online in order for you to receive a contract number, proving the property transaction. 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. Maybe you have a family in Shanghai and really need an apartment there. 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. China. 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 … 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). Click here to get in touch with an experienced agent. This doesn’t apply to Indonesia since you are required by law to buy directly from developers. A common question asked is whether foreigners can inherit property in China. From country estates to city apartments, your ideal property is just a click away. kindly write to me via my email. Promote your Asia properties or pre-construction projects via our website and email list. 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. 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. 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. See the question: Can a foreigner buy an apartment in China? Fill in the form to get connected with a real estate agent in Vietnam, Malaysia, Thailand or other countries. Foreigners who have studied or worked in China for a minimum of one year are permitted to buy … The short answer is yes, but there are some conditions to be able to do so. 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. China - Property. 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. Required fields are marked *. This is not tricky as other parts of owning property in the mainland. Buying a property in China Making an offer, financials and deeds. Up until the trade wars started, there haven’t been any substantial changes in the market. This is a good practice since buying as a foreigner is likely to increase costs and misunderstandings. Your email address will not be published. If you are living over locations such as Shanghai or Beijing, you will be asked for additional conditions. 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. where foreigners generally can’t buy landed houses. Sure, the Chinese have become more wealthy thanks to rapid economic development. Your Chinese name can also be notarized in the Chinese embassy in your country. 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. 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. If you plan to mortgage your property, you have to offer a down payment of 50% on the value of the asset. All the land destined for public purposes is owned by the government. I am British living in London aged 76 rates stretch between RMB 1.5 – 30 per square meter in Shanghai. Every plot of land is technically owned by the state and can only be bought on a leasehold basis for up to 70 years. Hi, do I need to work or study in China before I can purchase a residential house there? We use cookies to ensure that we give you the best experience on our website. Marcus is a Swedish Engineer and previously worked as a Sales Manager within the Automotive industry in Shanghai. Can I work one year and then buy a property 10 years later? You’re allowed to buy one property, but need to either study or work in China for at least one year before that. The top percentage rate of a real estate agent never goes up above 3% of the total sum of the sale. Yes, you have to request a certificate from the Public Security Bureau (PSB). Property tax is not levied in China, except for pilot projects introduced in Shanghai and Chongqing. Buying a property in China. I am retired and never worked in China. One of my old colleagues often showed me property prices on his cell phone with a grin on his face. 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. Does the one year work requirement have a maximum time frame? Guide; Forums; Articles; The process of buying a property can be a daunting task if not done correctly. 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. People don’t own their homes in China. Your email address will not be published. However, the people of China can afford to buy these extremely expensive properties. Can foreigners buy property in China? 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. It’s worth taking into account that owning property does not guarantee anybody the right to residence in China. Finally, the deed should be transferred from the owner to the buyer. 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