Chinese law does not stipulate whether the former production team is still the legal owner. Hong Kong has grown from a small trading hub to become one of the top three financial centers in the world. The COVID-19 pandemic had a great impact on the market as well and some analysts believe that luxury homes will see price reductions of 10%. The agent also needs to provide a land search and provide a copy of that land search to the tenant. Growing numbers of Hong Kong residents have been seeking to buy property in London in recent weeks, according to several reports in the past week. [11] There are several types of usufructuary rights. When you’ve found an agent, you should assure that he or she has a reputable track record and is well-versed in English, Cantonese, or Mandarin, depending on your needs. China has a system of public notaries which are a subordinate agency of the Ministry of Justice of the People's Republic of China. Don’t take for granted that all of the above-mentioned banks offer mortgages for nonresidents, especially if your income comes from abroad. Security rights do not exist independently, but require a valid principal claim, and lapse when the debt lapses. Hong Kong is a former British colony. Before signing the tenancy agreement, you need to set up an estate agency agreement, which formalizes your collaboration with the agent. More than 1,000 law enforcement officers swept through Hong Kong on Jan. 6, arresting 53 residents under Beijing’s new national security law. I’ve personally been in touch with some banks to confirm if it’s even possible to get a local property loan as a non-resident foreigner. If a rights holder wants to protect his property, he can evoke certain procedural safeguards, which include: In the event that an agreement cannot be reached between homeowners and the government, the expropriation can only be carried out after judicial review.[33]. In case you buy and sell property with a profit-seeking incentive, you might need to pay a capital gains tax. Banks don’t pay much attention to your nationality or residency status. The introduction of tighter lending policies and an increased Buyer’s Stamp Duty (BSD) in April 2018 had some effect, as prices started to fall during the second half of the year. [1] Landlords paid taxes to the government in return for land-owning rights (known as subsoil rights), but did not have the right to actively use the land. Optional: Receive free information about projects in Vietnam, Optional: Receive free information about projects in Thailand. Private forest holdings continued to exist until the collectivization of the countryside. Normally, this is done by the agent who helped you buy the property. Article 6 provides for a general registration requirement in the cases of creation, modification, transfer, and elimination of rights to immovables. Regarding rural land, these changes began with the establishment of the Higher Agricultural Production Cooperatives in 1956. The right to land contractual management allows a contractor of the right to possess, utilize and obtain profits from agricultural land. New regulations effective from January 21, 2011 have provided hope for the future with regards to several controversies surrounding urban property expropriation. It can harm neither public interests nor the legitimate rights and interests of others.[9]. [17] As a protection of the right, the term of the right shall be automatically renewed upon expiration[18] If it has to be taken back, compensation shall be given. It is made either in cash (based on market prices) and accounts for any moving expenses or resettlement subsidies, or in kind (in the form of a replacement structure).[42]. All the land destined for public purposes is owned by the government. Even if some leases will expire by 2047, there’s an assumption that these leases will be renewable, free of charge. Trading on the Hong Kong Stock Exchange . Do I need an HSBC account to get a mortgage or invest in a property overseas? Evidently, the Chinese play a big role in the market as we saw a correction of around 10% during the first quarter of 2019. This makes Chinese real estate a depreciating asset. There’s a reason why it has one of the world’s most expensive and most overvalued real estate markets. It’s not strange that Hong Kong investors flood to Bangkok and Ho Chi Minh as real estate prices are totally on the other side of the spectrum. [4]:60, In the areas controlled by Communist forces traditional land tenure was broken up through Land Reform. A local billionaire who bought nearly 300 properties managed to buy additional properties worth HKD 1.4 billion through his company. However, the article neither provides, either in the constitution or in any subsidiary legislation, for the quantum of the payment, nor does it stipulate that the payment must be proportional to the size of the land. Process When Buying Real Estate in Hong Kong, Your source of income (which should preferably be in Hong Kong), HKID or passport of borrower (and guarantor), Temporary Sales Agreement (for new purchases), Latest 3 month’s payroll record (bank statement), Latest repayment schedule or latest 3 months’ mortgage repayment record (for refinance), Your name and HKID number (or passport number), The seller’s name and HKID number (or passport number), Information related to instalment payments, Information regarding encumbrances and liens, If you’re a permanent resident (HKPR) and a second home buyer, you’ll be charged a flat rate of 15%. Let’s have a look at the taxes you need to pay when buying, holding, or selling real estate in Hong Kong. However, the requirements vary from region to region. Although these new regulations relate to urban land, the legal principles established have significant implications for the rule of law in China. Foreigners and locals cannot own land on a freehold basis in Hong Kong. Hong Kong’s property market is well-known for being transparent with an efficient title-recording system. The first deposit is called ”the Initial deposit” and usually 5% of the purchase price. The lawyer can help you to check the title deed, confirm if there are any mortgages or encumbrances on the property, help you in the communication with the seller, and more. An investor who wants to invest or develop land or property in China must bear in mind China's property laws, most notably the property law introduced in 2007,[7] which for the first time protects the interest of private investors to the same extent as that of national interests.[8]. Do you plan to buy property in Hong Kong S.A.R.? Farm households negotiated contracts under which they had to deliver grain quota to the state at low fixed prices. One of which is to first hold the minimum 30% premium for the property before you can borrow mortgage from a bank, so … The Provisional Agreement is, as it speaks, just a simplified and initial contract. But in order to secure a … You’ll be sure to find plenty of agents in Hong Kong and there are almost 40,000 agents registered there at the moment. Currently, the types of compensation are: However, the first two are paid to the collective landowners instead of the farmers. How can a Hong Kong resident or foreigner dispose of a property in mainland China? ), use rights of state-owned wasteland (includes mining, military purposes. It was handed back to China in 1997. The rate is currently set to 15% and deducted from your rental income. With that said, agents will most likely be reluctant to reduce the rate if you bring the discussion to the table. [6] The 1982 constitution provided for the "socialist public ownership" of the means of production, which takes two forms- state ownership and collective ownership. Some expats try to get RMB out of China through Hong Kong. Firstly, you should know what financing options you have. If you want to learn more about the market, I recommend you to visit one of Hong Kong’s most popular property events. [4]:67 Newly accrued land along rivers, creeks and other waters – so-called riparian rights – was clearly designated as state property, and the Qing government repeatedly emphasized this in imperial edicts. You can search for the title in the land register online but should review the title with the help of your realtor and a lawyer. However, you’re able to make deductions for maintenance first, if those are considered relevant. Meanwhile, Bangkok, Ho Chi Minh City, and Istanbul offered the lowest prices for buying a residential property. 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