A Comprehensive Guide for Foreigners on Home Purchase Policies and Processes up to 2025（1）
In a global context, China’s real estate market presents unique appeal to expatriates. An increasing number of foreigners are considering purchasing property in China. However, complex regulations and high housing prices deter many. According to data from 2024, the proportion of homes purchased by foreigners is only about 0.8%, but the growth rate of housing purchase inquiries has reached as high as 25% (taking Shanghai as an example).
There are significant differences between home purchasing in China and international practices, such as the 70-year property rights validity period and strict home purchase requirements. What is little known is that obtaining permanent residence in China, foreign-funded enterprises holding properties, or applying for talent visas can break through some home purchase restrictions.
This article will combine the latest policies up to 2025 to provide a detailed analysis of the entire process of foreigners buying houses in China.
I. Analysis of Home Purchase Qualifications
Restrictions for Ordinary Expatriates
Not all foreigners can buy houses in China. Foreigners (including those from Hong Kong, Macao, and Taiwan) who are outside of China must hold a residence permit and study or work in China for at least one year to be eligible to purchase a house. They are usually only allowed to own one residential property for living purposes and are not allowed to rent it out. Requirements vary by province and city. Taking Shanghai as an example, families without a Shanghai household registration (including foreigners) need to provide tax or social security payment certificates and can only purchase one house in their own name within the country. Individuals are not allowed to buy non-residential properties.
Privileges for Special Groups
Foreigners with Permanent Residence: Foreigners holding a permanent residence permit can break through the “one residential property” restriction. If it is for children’s education, a second house can be purchased after providing a school district enrollment certificate. They can also enjoy the same home purchase benefits as Chinese citizens, with the down payment ratio reduced to 20% and the same loan interest rate.
Specific Talent Groups: Foreigners holding a Class A work permit or selected for national talent programs can have their residential requirement reduced from one year to six months, lowering the time threshold for home purchase.
If you have any questions about home purchase qualifications, our professional team can provide identity planning solutions based on your specific situation to help you obtain permanent residence and more home purchase conveniences.
II. Material Preparation Strategy
Ordinary Foreign Individuals
Identity-related: Non-Chinese passports need to be translated and notarized by a regular translation agency; the duration of residence proof is determined according to different types of residence.
Home Purchase Qualification-related: A foreign-related approval document issued by the relevant department is required.
Compliance with Home Purchase Policy-related: Provide proof of self-use and self-occupation principles, such as future living plans; provide proof of duration, such as employment or student status proof.
Other Materials: Income proof can be issued by the employer or replaced by personal asset proof; marriage proof is provided according to the marital status.
Special Channels
Foreign Company Owners: If the registered company’s paid-in capital reaches 500,000 US dollars, a business license can be used to replace personal proof.
Hong Kong and Macao Residents in the Greater Bay Area: With a home-return permit, tax payment proof is waived, and a second house can be purchased for “cross-border retirement.”
III. Home Purchase with Loans
Foreigners can apply for mortgage loans for properties in China. Generally, a down payment of 30%-50% is required, and the mortgage interest rate may be higher, with special terms in the contract. Taking HSBC Bank as an example, applying for a loan requires signing a risk commitment letter.
However, foreigners holding a Chinese permanent residence permit have more convenience in handling financial services, and the home purchase loan process is simplified. Permanent residence status equals dual advantages in interest rates and loan amounts.
| Conditions | Permanent Residence Holders | Non-Permanent Residence Holders |
|——————|—————————–|———————————|
| Down Payment Ratio | Minimum 20% | 30%-50% |
| Interest Rate (Over 5 Years) | 4.1% (Same as Citizens) | 5.2%-6.8% |
| Repayment Term | Up to 30 Years | Up to 15 Years |
P.S.: We can assist in applying for a Chinese permanent residence permit to make home purchase loans smoother. Feel free to contact us.
