Chinese Real Estate Tax 0.5%, More For Investment Properties

The initial real estate tax may be around 0.5% according to reports, or ¥5000 per year on a ¥1 million property. It is expected the tax on second or third homes may be below 2%, but not more than 3%.

Five things it will accomplish:

1. Crush speculators
2. Weaken investment in homes (holding of empty homes)
3. Inhibit home price increases
4. Reduce need for land finance
5. Reduce the wealth gap

Widespread implementation expected in 2017.

iFeng: 房地产税初稿成形 100万房每月或缴税400元

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