The State Administration of Foreign Exchange (SAFE) of China issued a policy notice regarding the settlement and payment for property purchases by overseas individuals in China, leading many netizens to mistakenly believe that there has been a major policy change or even that restrictions on property purchases by overseas individuals in China have been lifted. SAFE Deputy Director Li Bin emphasized that this adjustment to facilitate settlement and payment for overseas individuals purchasing property within China does not change the current policy on overseas individuals buying property in China.
According to Economic Daily on Sunday (October 5), SAFE issued the “Notice on Matters Concerning Deepening the Reform of Foreign Exchange Management in Cross-border Investment and Financing,” in which policies related to real estate include a reduction in the negative list of onshore payments using foreign exchange earnings from capital accounts and their converted RMB income, as well as facilitation of settlement and payment for overseas individuals purchasing property in China.
The report said that after the “Notice” was issued, many netizens misunderstood the policy, believing that the policy on overseas individuals buying property within China had undergone significant changes, or even that the restriction on overseas individuals purchasing property in China had been cancelled.
In this regard, Li Bin emphasized that this adjustment to facilitate settlement and payment for overseas individuals purchasing property within China only optimizes the bank review process for fund settlement and payment, and does not change the current policy on overseas individuals buying property in China. The prerequisite for overseas individuals to enjoy convenient policies is to meet the qualification criteria set by real estate regulatory authorities and local authorities.
Li Bin stated that in recent years, the domestic real estate market situation has changed and relevant macro-control measures for the real estate industry have also been optimized and adjusted. In view of this, it is necessary to optimize and adjust relevant foreign exchange management measures to respond to new situations and requirements, and to help the real estate market develop steadily. Therefore, the recently issued “Notice” reduces the negative list for the use of capital account income and removes the restriction that prohibited those funds from being used to purchase non-owner-occupied residential properties.
At the same time, the “Notice” also optimizes the settlement and payment policy for overseas individuals purchasing property within China, which will make payments more convenient for eligible overseas individuals purchasing property in China.
Li Bin explained that previously, to make settlement and payment for property purchases within China, overseas individuals were required to provide registration certification documents issued by real estate regulatory authorities, whereas real estate developers or second-hand property sellers would often require receipt of the down payment before processing online filing.
According to Economic Daily on Sunday (October 5), SAFE issued the “Notice on Matters Concerning Deepening the Reform of Foreign Exchange Management in Cross-border Investment and Financing,” in which policies related to real estate include a reduction in the negative list of onshore payments using foreign exchange earnings from capital accounts and their converted RMB income, as well as facilitation of settlement and payment for overseas individuals purchasing property in China.
The report said that after the “Notice” was issued, many netizens misunderstood the policy, believing that the policy on overseas individuals buying property within China had undergone significant changes, or even that the restriction on overseas individuals purchasing property in China had been cancelled.
In this regard, Li Bin emphasized that this adjustment to facilitate settlement and payment for overseas individuals purchasing property within China only optimizes the bank review process for fund settlement and payment, and does not change the current policy on overseas individuals buying property in China. The prerequisite for overseas individuals to enjoy convenient policies is to meet the qualification criteria set by real estate regulatory authorities and local authorities.
Li Bin stated that in recent years, the domestic real estate market situation has changed and relevant macro-control measures for the real estate industry have also been optimized and adjusted. In view of this, it is necessary to optimize and adjust relevant foreign exchange management measures to respond to new situations and requirements, and to help the real estate market develop steadily. Therefore, the recently issued “Notice” reduces the negative list for the use of capital account income and removes the restriction that prohibited those funds from being used to purchase non-owner-occupied residential properties.
At the same time, the “Notice” also optimizes the settlement and payment policy for overseas individuals purchasing property within China, which will make payments more convenient for eligible overseas individuals purchasing property in China.
Li Bin explained that previously, to make settlement and payment for property purchases within China, overseas individuals were required to provide registration certification documents issued by real estate regulatory authorities, whereas real estate developers or second-hand property sellers would often require receipt of the down payment before processing online filing.