Global Trade Alert

On 11 April 2010, the Ministry of Housing and Urban-Rural Development and the State Administration of Foreign Exchange jointly issue the Notice on Further Regulating the Administration on House Purchase by Overseas Institutions and Individuals (Zhujian '2010' No.186). The notice clarifies the rules for residential and commercial real estate purchases of foreign persons.
 
According to the Notice, a foreign citizen may only purchase a single housing unit for his own living. When registering the real estate at the registrar, the following documents shall be provided:
1) A statement issued by a relevant authotity that this person has been working in China for more than 1 year. For citizens of Hong Kong, Macao and Taiwan an official statement proving that this person is working or studying in mainland China suffices.
2) A written statement that the person does not own other residential real estate in China.
 
A foreign company which establishes a branch or representativeoffice within the territory of China may only purchase non-residentialproperties for office work in the city where it registers, unlessotherwise provided by any law or regulations. To this end, foreign companies shall provide the following documents:
1) The registration documents of its subsidiaries or branches in China;
2) Awritten statement confirming that the real estate is purchased for office use only.