China allows qualified foreign individuals to purchase commercial housing for their own use and residence. Commercial housing transactions must comply with relevant Chinese laws and regulations. Commercial housing sales can be priced by unit, by net floor area or by floor area. Among them, the floor area of commercial housing is composed of the net floor area and the shared floor area. The former pertains to independent ownership, while the latter falls under joint ownership. For more information, please refer to the Regulatory Measures on the Sale of Commercial Houses issued by the Ministry of Housing and Urban-Rural Development.

Which overseas institutions and individuals can buy houses in China?

Branches and representative offices established by foreign institutions in China (except for enterprises approved to engage in real estate business) and foreign individuals who have worked or studied in China for more than one year are eligible to purchase commercial housing only for their own use or residence in accordance with their actual needs. Foreign institutions that have not established branches or representative offices in China and foreign individuals who have worked or studied in China for less than one year are not allowed to purchase commercial housing.

For cities with housing purchase restrictions, overseas individuals purchasing houses shall comply with local policy regulations.

Foreign institutions that establish branches or representative offices in China are only eligible to purchase non-residential properties required for office use in the city of registration, unless otherwise provided by laws and regulations.

How do overseas institutions and individuals register property rights when purchasing a house in China?

Foreign institutions and individuals who meet the requirements shall use the real-name system to purchase commercial housing for their self-use or residence and go to the land and real estate authorities to handle the corresponding procedures of land use rights and housing property registration with valid certificates (foreign institutions shall hold certificates of approval from China's relevant authorities for the establishment of their domestic institutions, and foreign individuals shall hold certificates approved by the relevant authorities for their work and study in China, the same below). Real estate property registration departments shall handle property registration for foreign institutions and individuals in accordance with the principle of self-use and self-residence strictly, and shall not register those who do not meet the requirements.

[For details, please refer to the Opinions on Regulating Foreign Investment Access and Management in the Real Estate Market]

When applying for the filing of commodity housing pre-sale contracts and the registration of the house ownership, foreign individuals shall provide: a certificate issued by the relevant department proving that the foreign individual (excluding residents from Hong Kong, Macao, and Taiwan as well as overseas Chinese) has worked in China for more than one year, and a written commitment that the foreign individual has no other housing in China.

What are the procedures for branches and representative offices established by overseas institutions in China to purchase houses in China?

(1) If the money is remitted from abroad, the applicant shall apply to the designated foreign exchange bank with the following documents. After the designated foreign exchange bank verifies the authenticity of the application, it shall convert the foreign exchange funds into RMB and directly transfer them to the RMB account of the real estate developer:

Commercial housing sales contract or pre-sale contract;

Approval documents and valid registration certificates for the establishment of domestic branches and representative offices;

Relevant certificates issued by the real estate administration department, including registration and filing of the pre-sale contract for commercial housing purchased by the domestic branch or representative office at the place of registration;

A written commitment that the commercial housing purchased is for self-use.

The foreign exchange accounts under the current account of real estate development enterprises shall not hold funds remitted from abroad by their domestic branches and representative offices for purchases of commercial housing.

(2) If the purchase price of a house is paid with funds from a domestic foreign exchange account, the applicant shall apply to the designated foreign exchange bank with the documents  specified  in  paragraph  (1)  of  this  Article.  After  the  designated  foreign exchange bank verifies the authenticity of the application, it shall directly transfer the foreign exchange settlement funds for the purchase of the house to the RMB account of the real estate development enterprise. The funds in the current account of a domestic representative  office  shall  not  be  used  to  purchase  domestic  commercial  housing through the conversion of foreign exchange.

What are the procedures for foreign individuals who have worked or studied in the country for more than one year to purchase a house in China?

(1) If the money is remitted from abroad, the applicant shall apply to the designated foreign exchange bank with the following documents. After the designated foreign exchange bank verifies the authenticity of the application, it shall convert the foreign exchange funds into RMB and transfer them to the real estate development company's RMB account:

Commercial housing sales contract or pre-sale contract;

Valid passport or other identification documents;

A valid domestic employment contract or student status certificate with a duration of more than one year;

Relevant certificates issued by the real estate regulatory department, such as the registration and filing of the pre-sale contract for the commercial housing purchased by the overseas individual in the city where he/she is located;

The foreign exchange accounts under the current account of real estate development enterprises shall not hold funds remitted from abroad by overseas individuals for house purchases.

(2) Where the purchase of a house is paid from a domestic foreign exchange account, the applicant shall apply to the designated foreign exchange bank with the various documents specified in paragraph (1) of this Article. After verifying the application's authenticity, the designated foreign exchange bank shall directly transfer the funds for housing purchase to the RMB account of the real estate development enterprise.

Foreign institutions and individuals applying for foreign exchange settlement for house purchases should strictly follow the Notice on Issues Concerning Foreign Exchange Management in the Real Estate Sector.

How long is the land use period?

In China, land use rights have a certain term, ranging from 40 to 70 years. Specifically, land for commercial, tourism and entertainment use has a term of 40 years, while residential land has a term of 70 years. Article 359 of the Civil Code of the People's Republic of China, which came into effect on January 1, 2020, clearly stipulates that "the term of the right to use land for the construction of housing units shall be automatically renewed upon expiration."