FAQ – China Property Sale & Fund Remittance

FAQ – China Property Sale & Fund Remittance

Can a foreign company sell property in China without a local entity?

Yes. A foreign company can sell property in China even without a registered local entity. However, the transaction must be structured carefully to comply with tax clearance requirements, regulated bank settlement procedures, and SAFE-approved cross-border fund remittance.

Can a foreign individual sell property in China without returning in person?

Yes. Foreign individuals do not need to be physically present in China to complete a property sale.

Through a notarized and hague apostilled power of attorney, the owner may authorize a trusted representative to handle the entire transaction process on their behalf, including property transfer, tax procedures, and related formalities.

If the passport was renewed between the time of purchase and the time of sale, what should be done?

If the passport has been renewed or changed between the property purchase and sale, you must obtain an official attestation to confirm that the old passport and the new passport belong to the same individual.

If you were a Chinese national when purchasing the property but obtained foreign permanent residence or a foreign passport at the time of sale or after the sale, can the proceeds from the property sale be remitted abroad?

Yes, as long as the relevant documents are prepared in accordance with regulations, you may handle the foreign exchange purchase and outward remittance of the housing sale proceeds based on your immigration status.

If you are a foreign citizen or a resident of Hong Kong, Macao and Taiwan, and you inherit a housing property in Chinese Mainland, can the proceeds from selling the property be processed for foreign exchange purchase and outward remittance?

Yes, as long as all required documents are ready, you can process foreign exchange purchase and outward remittance in one time.

If a married couple intends to complete inter-spousal title change or name addition on a property located in Chinese Mainland, is it allowed and are taxes involved?

It depends on which city the property is located in. If the city does not impose property purchase restrictions, the procedure can be processed directly only if the relevant documents required are ready. If the city has purchase restrictions, such as Beijing, the party whose name is being added or changed must hold valid property purchase qualification. Regarding taxes: This transaction is tax-exempt.

Why do many foreign-owned property transactions in China fail?

Many transactions fail due to unclear payment structures, lack of tax planning, and uncertainty around cross-border fund remittance. Without a compliant and pre-designed transaction pathway, buyers often withdraw due to perceived regulatory risk.

What taxes apply when a foreign company sells property in China?

Foreign-owned property sales may involve multiple taxes, including value-added tax, land appreciation tax, and corporate income tax. Accurate tax assessment and clearance are essential before ownership transfer and fund remittance can proceed.

What taxes apply when a foreign individual sells property in China?

When a foreign individual sells property in China, several taxes may apply depending on the property type, holding period, and transaction structure. Commonly applicable taxes include value-added tax (VAT), individual income tax, and surcharges related to the transaction. In certain cases, exemptions or preferential treatments may apply if specific conditions are met. Accurate tax assessment and proper clearance with local tax authorities are essential before ownership transfer and cross-border fund remittance can proceed.

What preparations are needed before selling a property in China?

It is important to make a clear plan in advance. In addition to understanding the procedures and documents required for the sale, researching the current market price of the property, and preparing for the outward remittance of the sale proceeds, you should also decide which country you plan to remit the funds to. Many countries implement global taxation and double taxation, so you need to learn in advance about the local tax policies of the destination country — and even state or regional governments — where the funds will be received, as well as what supporting documents must be submitted. This way, you can have everything ready in advance during the property transaction process.