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Property sales in Shenzhen

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  1. #21

    Join Date
    Jan 2010
    Posts
    6,282

    Again, the amount of properties under your name doesn't matter. The extra tax is if the buyer purchases a second property.
    If you are holding the property under home return permit the bank will force you to exchange the money to HKD and transfer to HK. If you hold it under a foreign passport you can transfer USD to your home country. There are no restrictions on the amount you can transfer overseas if you are NOT a Chinese citizen AND have proof of taxes paid.
    The person buying the apartment is probably gonna take out a mortgage and the bank won't allow something shady like half cash, half wire transfer. I wouldn't recommend it either way, that's a good way to get scammed. Usually the buyer will pay you 10% deposit into your Chinese bank account, then you and the buyer will open a joint bank account at the branch the buyer will get the mortgage from. The buyer transfers the down payment into that account, you both go to the property bureau to transfer the properties, you will get your fingerprints and a photo taken, depending on your contract the buyer will use his bank card to pay all the taxes on the spot, after a few days the bank will pick up the new property book, you both go to the bank with your ID, you will get your money released to your account and the buyer will get a stamped copy of the property book with the bank keeping the original. Sometimes the bank will force you to open a new account with them to have the money released into.

    Last edited by mrgoodkat; 23-03-2019 at 08:19 PM.
    redrobin81 likes this.

  2. #22

    Join Date
    Jun 2010
    Posts
    80

    What mrgoodcat describes above is pretty much what I experienced.

    When I sold my property in September 2018, I was told by several estate agents that the buyer had to pay extra tax if the seller owned 2 properties or more or if he has owned it for less than five years.

    If it was only a case of owning the property for five years there would have been no need for me to sign a declaration at a HK law firm.

    Mainlanders don’t need to do this because their hukou book shows how many properties the family owns.

    I might be wrong about this so to be certain just check with your estate agent. I don’t know if this is a HRP thing or if it’s a recent law.

    This will only effect the amount of tax the buyer pays and has nothing to do with you getting money back to the UK.

    All tax is paid for the buyer.

    Last edited by aslan; 23-03-2019 at 09:33 PM.
    redrobin81 likes this.

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