BEIJING AND SHANGHAI DETAIL NEW PROPERTY REGULATIONS

BEIJING – Both the Beijing and Shanghai governments have announced further details of their new property regulations. A 20% capital gains tax on property sellers, in comparison to previous tax rates of 1% – 2% on the final sale price, will be strictly levied in Shanghai and Beijing if the original value of the house can be verified. The 20% tax will be incurred by sellers if a house owner sells the property within five years after purchase and the apartment is not the only one owned by the family.