Total Cost of Buying a House in China
（购房税费与总成本）
Important Notice: Tax rates and fees vary by city and change frequently based on policy adjustments. Information shown reflects common ranges as of November 2025. Always consult current official sources and tax professionals for accurate calculations.
Beyond the property purchase price, buyers in China face additional costs typically ranging 3-8% of the total property value. This guide breaks down all major cost components, down payment requirements, and ongoing ownership expenses.
Cost Components Breakdown
Understanding each cost element helps buyers budget accurately and avoid surprises during the transaction process.
Deed Tax (契税) - 1-3% of Property Value
Rate Structure
- First Home ≤90㎡: 1% in most cities
- First Home 90-144㎡: 1.5% typically
- First Home >144㎡: 3% standard rate
- Second+ Homes: 3% in most areas
Calculation Basis
Based on either transaction price or government-assessed value, whichever is higher. Local tax bureaus maintain reference price databases to prevent under-reporting.
Example: $694,000 home, first purchase 100㎡ = $10,400 deed tax (1.5%)
Value-Added Tax & Surcharges (增值税及附加) - 0-5.6%
VAT Application
- Properties <2 Years Old: 5.6% (VAT + surcharges)
- Properties ≥2 Years Old: Often exempt
- Non-Ordinary Properties: May face differential VAT
- Commercial Properties: Different rules apply
City Variations
Beijing, Shanghai, and other Tier-1 cities may have stricter definitions of "ordinary" residential properties. Luxury homes often face additional VAT regardless of holding period.
Example: New $1.11 million home = $62,200 VAT (5.6%)
Individual Income Tax (个人所得税) - 0-1%
Tax Scenarios
- Seller's Only Home ≥5 Years: Usually exempt
- Other Cases: 1% of transaction price or 20% of capital gains
- Inheritance/Gift: Special rules apply
Buyer Impact
Typically paid by seller but often factored into negotiated price. Buyers should understand this cost when evaluating market prices and negotiating terms.
Real Estate Agent Fees (中介费) - 1-3%
Fee Structure
- Traditional Agencies: 2-3% total (split buyer/seller)
- Online Platforms: 1-2% increasingly common
- Direct Sales: 0% but requires more effort
Services Included
Property matching, viewing coordination, price negotiation, contract preparation, transaction supervision, and paperwork assistance throughout the process.
Additional Administrative Fees
Property Assessment (评估费)
Cost: 0.3-0.5% of property value
Required for mortgage applications and sometimes for tax calculations
Registration & Legal (登记费/律师费)
Cost: $69-278 typically
Property registration, title transfer, and legal document preparation
Mortgage Registration (抵押登记费)
Cost: $28-69 standard fee
Required when using bank financing
Insurance & Inspection
Cost: 0.1-0.3% annually
Property insurance, structural inspection (optional but recommended)
Down Payment & Mortgage Requirements
Down payment requirements vary significantly by city tier, buyer status, and current policy settings.
Down Payment Ranges by City Tier
Tier-1 Cities (Restrictive)
- First Home: 30-35% typically
- Second Home: 50-70% common
- Non-Residents: May require 50%+
Tier-2/3 Cities (Moderate)
- First Home: 20-30% standard
- Second Home: 30-40% typical
- Non-Residents: Similar to locals
Policy Changes: Down payment requirements change frequently based on market conditions and government policy. Some cities offer reduced rates for certain buyer categories or property types during specific periods.
Mortgage Interest Rates & Terms
Current Rate Environment
First Home Rates: 3.8-4.5% typical range
Second Home Rates: 4.5-5.5% or higher
Commercial Loans: 5.5-7% depending on bank
Loan Terms
Maximum Term: 30 years for most buyers
Age Limits: Loan term + borrower age typically ≤65-70
Income Requirements: Monthly payment ≤50% of income
Repayment Methods
Equal Principal & Interest (等额本息): Same monthly payment throughout loan term. Higher total interest but stable payments.
Equal Principal (等额本金): Fixed principal + declining interest. Lower total interest but higher initial payments.
Ongoing Ownership Costs
Property ownership involves recurring costs that should be factored into long-term budget planning.
Property Management (物业费)
High-End Communities: $0.40-1.10/㎡/month
Standard Residential: $0.20-0.40/㎡/month
Older Buildings: $0.07-0.20/㎡/month
Covers security, cleaning, maintenance, utilities for common areas
Maintenance Reserve (维修基金)
One-time Payment: 2-3% of property value
Required fund for major building repairs and upgrades
Paid during initial purchase, managed by community
Parking (停车费)
Private Parking: $14-69/month varies by location
Parking Purchase: $6,900-41,700 in city centers
Essential consideration in most urban areas
Utilities & Services
Water/Electricity/Gas: $14-42/month typical
Internet/Cable: $7-21/month
Property Tax (试点): Limited pilot programs in some cities
Cost Calculation Examples
Practical scenarios showing total cost breakdown for different property types and buyer situations.
Example 1: First-Time Buyer in Beijing
Property: 85㎡ apartment, $972,000 ($11,400/㎡), 3 years old
Purchase Costs
- Property Price: $972,000
- Deed Tax (1.5%): $14,600
- Agent Fee (2%): $19,400
- Assessment/Legal: $3,500
- Total: $1,009,500
Financing
- Down Payment (35%): $340,200
- Mortgage Amount: $631,800
- Monthly Payment (4.2%, 30yr): ~$3,100
- Total Interest: ~$358,000
Example 2: Second Home in Hangzhou
Property: 120㎡ apartment, $667,000 ($5,560/㎡), new development
Purchase Costs
- Property Price: $667,000
- Deed Tax (3%): $20,000
- VAT (5.6%): $37,300
- Agent Fee (2%): $13,300
- Other Fees: $2,800
- Total: $740,400
Financing
- Down Payment (60%): $400,200
- Mortgage Amount: $266,800
- Monthly Payment (4.9%, 25yr): ~$1,530
- Total Interest: ~1,380,000
Example 3: Foreigner Purchase in Chengdu
Property: 95㎡ apartment, $333,000 ($3,470/㎡), 5 years old
Purchase Costs
- Property Price: $333,000
- Deed Tax (3%): $10,000
- Agent Fee (2.5%): $8,300
- Legal/Translation: $2,100
- Total: $353,400
Financing (If Eligible)
- Down Payment (50%): $166,700
- Mortgage Amount: $166,700
- Monthly Payment (5.2%, 20yr): ~$1,130
- Often requires full payment
Important Notes & Disclaimers
Policy Variations & Changes
Local Differences: Tax rates, exemption criteria, and down payment requirements vary significantly between cities and change frequently based on market conditions and policy objectives.
Timing Sensitivity: Property purchase restrictions, tax incentives, and mortgage rates can change with little notice. Always verify current regulations before committing to transactions.
Professional Consultation: Given the complexity and frequency of policy changes, consulting qualified tax advisors, real estate lawyers, and experienced agents is essential for accurate cost estimation.
Budget Planning Tips
- Reserve 5-10% of property value for transaction costs beyond the purchase price
- Factor in 3-6 months of ongoing costs as emergency reserves
- Consider currency fluctuation if income is in foreign currency
- Account for potential rent loss during transition periods
- Plan for renovation costs if purchasing older properties