Understanding taxes is one of the biggest concerns for foreign sellers.
In most cases, when a foreign individual sells residential property in China, the following taxes may apply:
• Individual Income Tax (IIT) Typically calculated based on capital gains or assessed at a standard rate if documentation is incomplete.
• Value-Added Tax (VAT) Generally exempt if the property has been held for over years and meets residential use requirements.
• Stamp Duty & Local Surcharges
Usually minor but still part of the transaction.
Tax treatment depends on: • Holding period • Property type (residential vs commercial) • Availability of original purchase records
• Number of houses owned under the family name
A common mistake is assuming foreign ownership changes tax obligations.
In reality, tax rules are determined by the property and transaction structure, not nationality.
Early tax assessment allows sellers to: • Avoid overpayment • Prepare compliant remittance documents • Reduce transaction delays