Taxes and charges may vary from place to place because local governments often offer different tax incentives or disincentives in light of the property market in its jurisdiction. To the extent of our practice in Shanghai, buyers will generally be required to pay the following charges and taxes to government:
(1) Deed tax. This tax is solely levied on the part of buyer. For ordinary property, deed tax will be equal to 1.5% of the property value, and for non-ordinary property, it will be 3% of the property value.
(2) Stamp duty. This tax is levied on both parties to the deal in an amount of 0.05% of the property value.
(3) Transaction fee. This is calculated at the rate of RMB 2.5 per square meter.
(4) Transfer registration fee. RMB 80.
(5) Mortgage registration fee. RMB 200. It is applicable when buyer need to take out bank loan to finance its purchase and banks often require the buyers to mortgage the property to the banks as security for extending the loan.
(6) Mapping fee. RMB 25.
It is always safer to bring with you a little more than your calculation of those items refereed to above to meet any unexpected costs.
Please be noted that, real estate taxes change all the time in line with the fluctuation of the property market. For more information in that regard, please click the following link for more: http://www.doroto.com/english/seriesDetial.asp?id=154&bigclass_id=Real%20Estate.
Please also be advised that taxes associated with retail or commercial property transaction differs a lot from residential property. The aforesaid taxes here are in relation to residential property deals only.
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