Can Foreigners Buy Property In China?

Can Foreigners buy property in China? Yes, foreign nationals can purchase property in China. If paying in full, there are fewer restrictions. However, if seeking a bank loans, you must consider local housing policies and bank loan conditions. If you meet the criteria, you can obtain a loan for purchasing a home, but the approval process is generally stricter for foreign nationals compared to domestic residents.

The specific qualifications for purchasing property depend on the local restrictions, including whether you need to have social insurance and a work or residence permit in the area, etc. (as the housing requirements vary across different regions in China, the specifics must be checked locally for clarity).

Shanghai is a beautiful and bustling city that attracts many foreign nationals. So, how to buy a property in Shanghai and what are the policies for foreign nationals buying property in Shanghai?

Housing Policy for Foreign Nationals in Shanghai

Foreign nationals can purchase property in Shanghai, but they must have lived in the area for more than one year. They are allowed to buy only one residential unit and are required to provide relevant materials:

• Choose a Chinese name (usually a translation of your English name) and have it notarized at a notary office; you will receive a notarized document for your Chinese name as a foreign national.
• Proof of income (I forget how many months are required, but it seems to be six months).
• The work visa must be valid.
• A work contract that is valid for at least one year.
• Tax paid for at least one year.
• The reason for purchasing the property must be for self-occupancy.
• No other properties in China prior to the purchase.
• Open a debit card at the Construction Bank for applying for loan, foreign applicants can also try ICBC, CMB).
• After the previous owner has relocated all household registrations, we can apply for the property certificate.
• The previous owner and we will agree on a time to go to the notary office to notarize the sales contract, and both parties must have no objections to this contract (the notary fee is borne by the buyer).

Tips of Foreigners Buy Property In China

1. Foreign nationals who have paid taxes in Shanghai for three years can receive a refund on property tax; I received about five thousand (although it’s not a lot, it’s better than nothing).
2. Be sure to ensure that there are no issues with the sales contract and personal qualification materials. (On the day we went to collect the property certificate, an Italian gentleman reached the process of collecting the certificate but was told his property certificate could not be processed due to issues with the sales contract; the specific reason was unclear)
3. We applied loans at the CMB on Yuyuan Road. If you pay housing fund in China, you can use your housing fund for the mortgage, otherwise, foreign applicants can only apply for the commercial mortgage with higher interest rate. (Ignore this point if paying the full amount upfront).
4. Foreign nationals can only apply for commercial loans when purchasing property if you don’t have the housing funds. Loans can be borrowed from the CMB and the ICBC without spouse’ co-signing (if your wife is Chinese citizen).
5. It can takes months to approve the loans. My loan took 3 months.
6. If you have properties outside Shanghai, it doesn’t affect buying a property in Shanghai.

With the recent decline in housing prices and the relaxation of purchasing policies, the housing policies in Shanghai will also change. If you have any questions or interested in buying property in China, feel free to comment or contact us for details.