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Enoch Yiu

Mainland China will cut or waive value-added tax (VAT) on the resale of homes by individuals from Thursday, in its latest move to shore up a property market that has been stuck in a prolonged slump.
Under the new rules, individuals who sell a residential property within two years of buying it will pay VAT at 3 per cent, down from 5 per cent, according to a joint statement released on Tuesday by the Ministry of Finance and the State Taxation Administration.
The policy does not apply to corporate sellers.
Sellers who have held their homes for two years or longer would continue to enjoy a VAT exemption, the statement said.
The authorities added that for housing sales where VAT had not yet been declared or paid before Thursday, the new provisions could be applied if the eligibility requirements were met.
Analysts said the tax incentives were the latest in a string of measures aimed at stabilising the real estate sector after years of falling prices and weak demand, a downturn that has pushed some heavily indebted developers into crisis and weighed on broader consumer sentiment.

China’s new home sales value fell 11 per cent year on year in January to November 2025, according to National Bureau of Statistics data cited in Morningstar research.
“The downturn in new home sales aligns with our expectation, as we forecast a low-teens contraction for full-year 2025,” said Jeff Zhang, an equity analyst at Morningstar, in a research note.
“While transaction volumes should remain subdued in 2026, we expect average home prices to stabilise, supported by a sales mix shift towards wealthier cities.”
He added that policymakers had reiterated their commitment to stabilising the property market and reducing excess housing inventory, with local governments likely to step up efforts through bond issuance and tighter land supply.
China’s VAT law, adopted by the Standing Committee of the National People’s Congress in December last year, will take effect on Thursday.
Implementing regulations issued at the same time will clarify how VAT applies across goods, services, intangible assets and real estate, and set out how rates will be handled for exports and some cross-border sales.


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Business

Property

Under new rules, sellers will pay just 3 per cent VAT if they offload a property within two years of purchase, down from 5 per cent


Under new rules, sellers will pay just 3 per cent VAT if they offload a property within two years of purchase, down from 5 per cent.


Beijing trims property resale tax in fresh push to stabilise housing market

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Under new rules, sellers will pay just 3 per cent VAT if they offload a property within two years of purchase, down from 5 per cent

Under new rules, sellers will pay just 3 per cent VAT if they offload a property within two years of purchase, down from 5 per cent