Selling property in China while you’re abroad is quite common, and there are structured ways to do it legally and smoothly. The key is authorizing someone in China to act on your behalf and making sure all documents are properly notarized and legalized.
Here’s how it typically works:
Selling property in China such as while you are abroad is feasible through proper authorization and compliance with local regulations.
1. Appoint a Representative and Sign Power of Attorney (POA)
You’ll usually need to grant a Power of Attorney (POA) to someone in China (trusted friend, family member, or a lawyer). The contents of the POA should be very specific, including authority to sign contracts, handle taxes, and complete transfer registration etc. Since you're outside China, your documents must be authenticated such as being apostilled.
2. Prepare Required Documents
- Property Ownership Certificate (不动产权证)
- Passport copy (authenticated)
- Same person statement (if ID has changed)
- Marriage certificate (if applicable)
- Original purchase contract (sometimes requested)
- Tax-related documents
3. Engage a Real Estate Agency (Optional but Common)
Most sellers use local agencies to market the property and find buyers. They could help you with pricing, marketing, buyer screening and complete the transaction.
4. Taxes
- Individual Income Tax: typically 1% or 20% of gain （Tax exemption：5-year sole residence properties）
- VAT: applicable if holding period < 2 years
- Deed Tax: to be borne by purchaser
5. Bank Account Requirement (Important)
If the you do not have a bank account in China, it is generally necessary to open one in order to receive the sale proceeds.
- Most transactions require funds to be paid into a Chinese bank account under the seller’s name.
- Opening an account may require the seller to be physically present in China, depending on the bank. However, I also assisted clients to open a bank account in China without clients’ presence at bank.
- Without a Chinese bank account, receiving and transferring funds can be significantly delayed or restricted
6. Foreign Exchange & Payment
Chinese banks strictly enforce SAFE rules. Conversion from RMB to foreign currency is subject to regulatory scrutiny. If you want to remit proceeds abroad:
- Ensure clear documentation of transaction
- Use compliant bank channels
- Keep complete tax record for applying tax clearance certificate
By David Gao, an international family lawyer in Beijing, China.
Email: gaohexin@jingsh.com, gaohexin@163.com
Tel: 86 13611158067
