Before 2010, there were no strict restrictions on foreign individuals and organizations buying property in China. However, on November 4, 2010, the Ministry of Construction and the State Administration of Foreign Exchange issued a notice titled “Regulations on Further Standardizing the Management of Overseas Institutions and Individuals Purchasing Property,” which imposed specific requirements on foreigners and foreign-funded organizations purchasing property in China.
According to the regulations, foreign individuals can only purchase one residential property for self-use within the country. Overseas organizations that establish branches or representative offices in China can only buy non-residential properties required for their registered city’s office space.
In other words, eligible foreigners can only purchase one residential property for self-use in China. Foreign branch offices can only purchase office spaces in the city where they are registered. However, many multinational corporations have branch offices registered in various cities, allowing them to buy office spaces in different locations.
In early 2012, the National Development and Reform Commission (NDRC) issued a notice titled “Regarding Issues Related to the Application for the Scale of Medium and Long-Term Foreign Debt for Domestic and Overseas Banks in 2012.” The notice stated that when approving the quota for medium and long-term foreign debt, the NDRC would primarily consider the demand for foreign debt related to fixed asset investment projects.
It explicitly stated that the quota for medium and long-term foreign debt would not be allocated for personal housing mortgage loans provided to foreign nationals. However, it doesn’t rule out the possibility that foreign banks may offer loans to eligible property buyers.
What documentation is required when a foreigner with foreign nationality purchases property and signs a contract for registration of property rights?
I. Foreigners need to provide the following identity documents:
- Passport and foreigner’s residence permit (for those without a residence permit, a Chinese translation of the passport certified by a Chinese notary institution is required).
- Proof of working or studying in China for at least one year (such as a labor contract or a visa valid for at least one year).
II. For purchasing new commercial properties, the following documents are required:
- If there are two or more co-owners, a joint application must be submitted. If any of the applicants lacks full capacity for civil conduct, a guardian certificate and a photocopy of the guardian’s ID card (or passport) must be provided.
- “Opinion Letter on Foreign-Related Examination and Approval” issued by the office responsible for foreign-related examination and approval.
- After obtaining the land and housing surveying certificate, the real estate ownership certificate can be processed at the real estate transaction center.
III. For purchasing second-hand properties, the following documents are required:
- Notarized sales contract.
- “Opinion Letter on Foreign-Related Examination and Approval” issued by the office responsible for foreign-related examination and approval.
- “Property Evaluation Report.”
- “Land and Housing Surveying Certificate.”
IV. For foreigners applying for property loans, the following documents should be provided:
- Identity proof.
- Proof of down payment.
- Proof of income, educational background, and creditworthiness of the loan applicant.
- Marriage certificate (marriage certificate or certificate of single status). If one spouse entrusts the other to handle the loan, an “Authorization Letter” should be provided. All these documents should be authenticated by the Chinese embassy or consulate in the country or by the embassy or consulate of that country in China.
If the property purchase is conducted through an agent, an authorization notarization procedure is required. The authorization letter should clearly state the authorized scope and period to avoid any potential loss caused by unclear authorization.
It should be noted that policies may vary in different cities, so it is necessary to understand the local regulations, especially in cities with property purchase restrictions.
