Sale of a property in China

Sale of a property in China

Updated on Tuesday 19th April 2016

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Sale-of-a-Property-in-China.jpgWith one of the world’s greatest economies, China is a country of major interest for foreign investors. China has become a more urbanized place and, in 2013, a study had revealed that property sales were expected to grow, as an effect of economic development. Our Chinese lawyers can present to you the legal framework under which property sale is regulated in China

Property in China 

Proprietorship in China has had many meanings throughout the centuries. Since 1949, land and properties were held by the state, but since 2007, after the adoption of the Property Law of the People’s Republic of China, property laws have changed, allowing owners to “have the right to possess, utilize, dispose of and obtain profits from their real or movable property in accordance with the law”, according to the article 39 of the 2007 Law. If you need legal advice upon this matter, we advise you to refer to our law firm in China.  

Property Sale in China – Taxes 

Selling a property in China may represent a challenge for the seller, in terms of taxes imposed by the Chinese legislation. Our law firm in China can represent your interests, according to the sale you are interested in, but as a client you should know that the following taxes may apply:
enterprise income tax – applicable for commercial property sale only. The seller must pay a rate of 25% of the enterprise income tax, applied to the profit on the sale, and a 5% business tax,
land value appreciation tax – applicable at the transfer of real properties and it can vary from 30% to 60% of the appreciation of the property (the increase in value gained by the asset over time). The tax is stated by the Guo Shui Fa Circular, applicable since May 2010. Our attorneys in China can provide you with legal documentation upon this Chinese law. 
deed tax – the tax is applicable to the buyer at the moment of the sale, and its value varies between 3% and 5% of the transfer value of the property, 
stamp duty – applicable at the changing of the title of the property. 
If you need further details about proprietorship and property selling in China, please contact our Chinese lawyers, who can help you with assistance on this matter. 


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