Foreign nationals who sell property in China face a critical question: how to legally transfer the sale proceeds abroad. The answer involves a multi-step process through tax clearance, bank foreign exchange application, and cross-border remittance.
Legal Framework
Under the Foreign Exchange Administration Regulations of the PRC, foreign nationals may apply to remit the legitimate proceeds from selling China real estate, provided all taxes are paid. The four-stage process takes 1 to 3 months: Tax Clearance, Document Preparation, Bank FX Application, and Cross-Border Remittance.
Step 1: Tax Clearance
Before remitting funds, complete: VAT (5-9%, exempt for properties held over 2 years), Individual Income Tax (20% of gain), Urban Maintenance Tax (7% of VAT), Educational Surcharge (3% of VAT), and Stamp Duty (0.05%). The tax authority issues a Tax Payment Certificate — a core document for bank application.
Step 2: Prepare Bank Documents
Submit: passport with Same Person Certificate if needed, property sale contract, ownership transfer certificate, tax payment certificates, FX purchase application, fund source statement, and power of attorney if applicable.
Step 3: Bank FX Application
Apply at a major bank (Bank of China, ICBC, etc.). Key advantage: Foreign nationals selling China property can remit the full amount at once, NOT subject to the annual USD 50,000 individual quota. This is a special "personal property external transfer" policy.
Step 4: Cross-Border Remittance
Funds transfer via SWIFT. Arrival: Hong Kong 1-2 days, US/Canada 2-4 days, Europe/Australia/Japan 3-5 days. Fees: cable charge (RMB 150-300) plus service fee (~0.1% with caps).
FAQs
Can I remit to a family member's account? No. Funds must go to an account under your own name abroad.
How long does it take? Typically 1-3 months total.
Conclusion
Professional legal advice is strongly recommended. Zhao Haiying's team at Lantai (Shanghai) Law Firm handles cross-border asset repatriation for foreign clients.