China Mortgage
An obstacle facing those considering buying property in China is the limitation on the availability of China mortgages. Government restrictions mean that it is very difficult for foreigners to obtain a mortgage in China. The fact that only 2% of properties in China are purchased with a China mortgage gives an indication of the small size of the home loans market in China. Since China mortgage regulations are subject to change, consult an independent legal expert for information on a China mortgage. As well as information on China mortgages, you may wish to consider alternative options for purchasing property for sale in China such as equity release.
China Tax
Property investment in China involves a different process to those in many countries and you should take expert advice, particularly with regard to China tax information. There are several China taxes to take into consideration when you buy a Chinese property, including deed tax and stamp duty.
There are several restrictions on the ownership of China property by foreigners and in addition, foreigners cannot let their investment property in China. There are options for ownership via a Chinese company, but you should take expert legal advice regarding this. For further China mortgage, tax and ownership information, click here to download the China Investment Property Guide.
