Deed Tax in China 2025: The Ultimate Guide for Foreigners

Note: This content is specific to the Chinese property market.

If you are an expat or investor looking to buy property in China, you need to be aware of the Deed Tax (契税 - Qìshuì). It is the single most significant tax you will pay upon closing the transaction.

Unlike Western countries where you might have complex stamp duties, transfer taxes, and notary fees, China's system is relatively streamlined but heavily dependent on the size of the property and whether it is your first or second home.

Deed Tax Rates (2025)

The tax is calculated based on the official transaction price.

1. First Home (Family Unit)

If this is the only property registered under your family's name (you, spouse, and minor children) in that specific city:

• ≤ 90 square meters: You pay 1% of the purchase price.
• > 90 square meters: You pay 1.5% of the purchase price.

2. Second Home

If you already own a residential property:

• ≤ 90 square meters: You pay 1% (in most Tier-2/3 cities) or higher in Tier-1 cities.
• > 90 square meters: You pay 2%.
• Note: In Tier-1 cities like Beijing, Shanghai, Guangzhou, and Shenzhen, preferential rates for second homes are often suspended, meaning you might pay the standard 3% rate regardless of size.

3. Third Home or Non-Residential

• The standard rate of 3% applies (can go up to 4% in rare cases).

When do you pay it?

You must pay the Deed Tax to the local taxation bureau after signing the commercial housing contract and before applying for the Property Ownership Certificate (the "Red Book"). You cannot get the title deed without the tax receipt.

Strategy for Investors

The 90 sqm (approx. 970 sqft) threshold is critical.

• Buying an 89 sqm apartment as your first home incurs a 1% tax.
• Buying a 91 sqm apartment as your first home incurs a 1.5% tax.

On a 5 million RMB apartment, that 0.5% difference is 25,000 RMB (approx. $3,500 USD) just for 2 extra square meters. Smart investors often target units just under the 90 sqm limit to optimize costs.

👉 Calculate your China Deed Tax here