China to implement new property tax in 2017
Shanghai and Chongqing were chosen to pilot a property tax scheme in 2011. The government is now preparing its extension on a national scale, to restrict real estate speculation and stabilize the market. The legislative process will begin in 2015, and is part of the larger fiscal reform whose aim is to revamp and modernize the Chinese tax system.
In the two pilot cities, large properties were taxed annually between 0.4 and 1.2 of their total value. The property tax is expected for 2017 and will impact a large scope of actors and operations, including real estate promoters and rural land sales, as well as urban housing property holders. These changes should affect the whole market.