Selling Property in China as a Foreigner

Selling property in China as a foreigner involves specific procedures and tax considerations. Here's what you need to know about the process.

Can Foreigners Sell Property?

Yes, foreigners who legally own property in China can sell it. However:

• Must have owned for minimum period (varies by city)
• Some cities require 2-5 years ownership
• Tax implications differ based on holding period

Required Documents

• Property ownership certificate
• Valid passport
• Original purchase contract
• Tax payment receipts from purchase
• Marriage certificate (if applicable)
• Power of attorney (if not present)

Taxes on Sale

Individual Income Tax

• 20% on capital gains, OR
• 1-2% of sale price (simplified method)
• Exemption if owned 5+ years and only home

Value Added Tax

• 5% if owned less than 2 years
• Exempt if owned 2+ years (residential)

Other Taxes

• Stamp duty: 0.05%
• Land appreciation tax (commercial property)

The Sales Process

1. List property and find buyer
2. Sign preliminary agreement
3. Buyer conducts due diligence
4. Sign formal sale contract
5. Pay taxes and fees
6. Transfer ownership at registry
7. Receive payment

Repatriating Sale Proceeds

To transfer money abroad:

• Provide sale contract and tax receipts
• Show original purchase was with foreign funds
• Bank verification process
• May take several weeks

Common Issues

• Missing original documents
• Property has mortgage
• Disputes over fixtures
• Buyer financing falls through
• Tax calculation disputes

Tips for Sellers

• Gather all documents early
• Calculate tax liability in advance
• Use reputable agent
• Verify buyer's qualifications
• Plan for fund repatriation