If you plan to live in Shanghai for a long time, you may begin to consider buying a house. But it will take you some time to know how to become a home owner, and become familiar with the requirements and procedures involved. Below is some basic information and advice for you to prepare for your home purchase plan.

Who can buy an apartment or house in Shanghai?

• Expats holding Chinese permanent residency;
• Expats who have been working in Shanghai for at least one year.

Other conditions for expats to buy property 

• You must have a labor contract (holding a work visa);
• Without other real estate in China;
• You will need to provide continuous social security or your personal income tax payment records for one year or more; 
• The property is used for living only—you are not permitted to rent it out or use it for commercial purposes; 
• Single expats are allowed to purchase only one residential property.

Notice: Those who hold a permanent residence permit of China are not required to submit a labor contract, personal income tax or social security payment proof, or work residence permit when purchasing a house.

 

When and where to check my eligibility?

It's recommended that you apply for a preliminary qualification review after finding your favored house. Submit the application documents to the real estate developer or the agent you have hired and they will help you with the review at the property administration authority. 

You can also call Shanghai's real estate transaction service hotline at 021-962269 for policy inquiries.

 

Can I apply for a mortgage and how to pay for the tax? 

You can apply for a mortgage if necessary and you need to provide the notarized contract and other materials required by the bank. Generally, loans in renminbi or foreign currency are both acceptable. Remember to consider the foreign exchange rate if you choose a foreign currency.

Before property registration, you should pay for tax, including deed tax and other types, depending on the property you purchase, local real estate regulations and the specific situation. Detailed taxation rules and procedures can be obtained from your agent and the property administration authority.

How to register for property ownership?

In most cases, expats should apply for official approval from the property project office for security examination proving that the property is permitted for foreign ownership. Ask the real estate developer to handle the procedure if you purchase a newly-built property. For a second-hand house, the identity documents of the seller and the purchaser and property ownership certificate should be provided.

You can go to the registration office after all these things are completed. Required paperwork includes your passport or residence permit, the property purchase contract, tax payment certificate, signed application form and letter of commitment for a house purchase and other materials on request. One important thing to keep in mind: all the documents in any foreign language should be translated into Chinese and notarized. If an agent is entrusted, submit the letter of authorization and the identity certificates of the applicant and the agent.

Notice: It is advised to consult a professional agent and the property administration authority on specific home purchase policies. It is also advised that you contact an international real estate agency (as opposed to a local one), as global real estate agencies are generally more knowledgeable about the specifics of buying property in the city as an expat, as well as the legal aspects involved.

 

Sources: Shanghai Municipal Bureau of Housing Management, govt.chinadaily.com.cn, City News Service