How do heirs who live abroad sell an inherited flat in China and get the money out?
Heirs abroad sell an inherited flat in China in three steps: the flat is registered in the heirs' names, an agent in China sells it under a power of attorney signed abroad, and the foreign exchange authority approves sending the money out. A sale can't pass title until the heirs are on the register (Civil Code art. 232). Foreign citizens and Hong Kong, Macao and Taiwan residents then buy foreign currency with the price and send it to their own account abroad (Interim Measures on Transfers of Personal Property Abroad arts. 2, 11 and 14).
June Zhang has practised law in China since 1998 and has focused on family and inheritance work since 2012. How heirs abroad inherit the flat in the first place is set out in how to inherit property in China when you live abroad.
Why does the flat have to be in the heirs' names before it is sold?
The flat has to be registered to the heirs first because a sale by heirs has no effect on title until the heirs themselves are registered (Civil Code art. 232). The heirs own the flat from the moment of death (art. 230), but the register still shows the parent. So there are two registrations, one after the other.
- The heirs. An heir can apply alone (Real Estate Registration Regulations art. 14). The registry takes proof of death, the will or an agreement of all the statutory heirs on who takes the flat, and proof of relationship; or notarised documents; or a binding court document (Implementing Rules for the Regulations art. 14).
- The buyer. The sellers and the buyer apply together (Regulations art. 14).
Whether the first registration needs a notarised inheritance certificate is explained in what an inheritance notarial certificate is.
Which heirs have to agree to the sale?
Before the estate is divided, every heir has to agree to a sale. The Supreme People's Court treats an undivided estate as held jointly by the heirs who have not given it up (2016 minutes of the Eighth National Conference on Civil and Commercial Trials, item 25, written under the former Inheritance Law). Selling jointly held property needs the consent of all the joint owners, unless they agreed otherwise (Civil Code art. 301).
Once the heirs are registered, it depends on how they hold the flat.
- Held jointly: all the joint owners agree (Civil Code art. 301) and apply to register the sale together (Implementing Rules art. 10).
- Held in shares, for example a third each: owners of at least two-thirds of the shares can agree to sell the whole flat, unless the owners agreed otherwise (Civil Code art. 301), and they apply together (Implementing Rules art. 10).
- An owner in shares can also sell just their own share; the other owners can buy it first on the same terms (Civil Code art. 305).
The two-thirds rule can stall at the registry counter. In 2020 the Ministry of Natural Resources answered a suggestion from National People's Congress deputies about registries that refused to register because a minority owner would not cooperate. It confirmed the rule and called the refusals an implementation problem. Ask the registry in the city before you rely on it. If the heirs can't agree on dividing the estate at all, they can go to mediation or to court (Civil Code art. 1132); see inheritance disputes in China.
Can one heir keep the flat and pay the others?
One heir can keep the flat and pay the others if all the heirs agree. Heirs decide by agreement when, how and in what shares an estate is divided (Civil Code art. 1132), and an asset that is hard to split can be dealt with by valuing it, paying compensation or keeping it in co-ownership (art. 1156).
- At division, the heirs sign an agreement that gives the flat to one heir, and the registry registers that heir alone on the strength of it (Implementing Rules art. 14).
- After registration in shares, one owner buys the others' shares. A transfer between co-owners gives the rest no right to buy first, unless they agreed otherwise (Supreme People's Court Interpretation (I) on the Real Rights Book art. 13). Both sides apply to register it (Implementing Rules art. 10).
Two things to settle before anyone signs. The heir who buys can't also sign for the others as their agent, unless they agree or later ratify it (Civil Code art. 168). And ask the tax office how it treats the payment, and the foreign exchange office whether money paid to an heir abroad can leave China on the inheritance route described below.
Can heirs sell without travelling to China?
Heirs can sell without travelling to China, through an agent there. An applicant abroad who appoints someone to register a sale must have the power of attorney certified or notarised under national rules, or follow a treaty route China has joined (Implementing Rules art. 12). For most countries that means a local notary, then an apostille or consular legalisation; the route for each country is in documents heirs abroad need.
A written power of attorney names the agent, the matters, the powers and the period, and you sign it (Civil Code art. 165). For a sale, list each step the agent may take:
- agree the price and payment terms, and sign the sale contract;
- apply for the transfer registration;
- declare and pay the sellers' taxes and collect the tax receipts;
- receive the price into an account the power of attorney names;
- hand over the flat and settle the bills;
- apply to the foreign exchange authority and the bank to send the money abroad.
A missing step means signing again, with another notarisation and apostille or legalisation. The same document can also cover the inheritance registration that comes first; whether the registry and the foreign exchange office in that city will accept one document for both is checked before you sign.
What taxes are due when heirs sell an inherited home?
The sellers pay individual income tax and may owe VAT; the buyer pays deed tax. The amounts turn on how long the home has been held, what was paid for it and local rates, so the tax office where the flat is gives the final figure.
| Tax | Who pays | National rule |
|---|---|---|
| Deed tax | Buyer | Paid by the person who takes the transfer (Deed Tax Law art. 1). |
| VAT | Sellers | Since 1 January 2026: 3% of the full price if the home was bought less than two years earlier; none if bought two years or more earlier (Ministry of Finance and State Taxation Administration Announcement No. 17 of 2025). |
| Individual income tax | Sellers | 20% of the sale price less the original value and reasonable costs (Individual Income Tax Law arts. 3 and 6). Heirs abroad pay it too: selling real estate in China is income from China (art. 1; Implementing Regulations art. 3). |
| Land appreciation tax | Sellers | Individuals selling a home are currently exempt (財稅〔2008〕137號, item 3). |
The tax office decides two points on the facts: when an inherited home counts as bought, for the two-year VAT test and the five-year test below; and the original value, which is the purchase price plus related costs, or a figure the tax office sets where records are incomplete (Implementing Regulations art. 16). If there is no purchase contract or invoice and the deed tax file shows no earlier price, the tax office can charge income tax at a locally set 1% to 3% of the sale price (國稅發〔2006〕108號, item 3; 國稅發〔2007〕33號, item 4). Look for your parent's purchase papers early.
Income from selling a home used for five years or more that is the family's only home in the province is exempt from individual income tax (財稅字〔1999〕278號, item 4; 國稅發〔2007〕33號, item 3). We don't estimate the tax on a particular sale, and tax in the country where you live is a question for an adviser there.
How do foreign citizens and Hong Kong, Macao or Taiwan heirs send the money abroad?
A foreign citizen or a Hong Kong or Macao resident who inherits property in China can turn it into cash, buy foreign currency at a designated bank and send it abroad, with approval from the State Administration of Foreign Exchange, SAFE (Interim Measures arts. 2 and 10). Taiwan residents use the same measures (art. 14).
- Where: the SAFE branch where the deceased's household was registered (Interim Measures art. 5; SAFE notice 匯發〔2014〕2號, item 6(1)).
- What: a written application explaining the inheritance and the sale, SAFE's form, your identity papers, proof that you inherited, the deceased's title papers, and a tax certificate or receipt from the tax office where the property is (Interim Measures art. 9). A foreign citizen adds proof of settlement abroad issued or certified by a Chinese embassy or consulate (art. 9).
- How often: everything inherited from one person goes in one application and can be sent in one or several payments (art. 6).
- To where: the bank sends the money straight to the heir's own account in the country or region where the heir lives, and pays out no foreign cash in China (art. 11).
A family dispute can hold everything up at this stage. SAFE won't accept an application for property involved in a civil or criminal case in China until the case ends, or for property whose lawful source can't be shown (art. 12). The property must be the applicant's own, with no dispute over it (art. 3).
What if the heir is still a Chinese citizen?
A Chinese citizen who lives abroad is not named in the inheritance route, which covers foreign citizens and Hong Kong, Macao and Taiwan residents (Interim Measures arts. 2 and 14). Two other rules may matter.
- The emigrant route covers property a person owned before obtaining immigrant status abroad or settling in Hong Kong or Macao (Interim Measures art. 2; Implementing Rules of the Measures on Individual Foreign Exchange Administration art. 20). Property inherited later is not named in it.
- Domestic individuals, Chinese citizens who hold a PRC resident identity card (Measures art. 37), may each buy up to USD 50,000 or its equivalent in foreign currency a year (Implementing Rules art. 2). A property transfer abroad that needs foreign currency needs SAFE approval (Measures art. 20).
Which route fits depends on your passport, your residence status abroad and whether you still hold a resident identity card, so June Zhang confirms it with the SAFE branch and the bank before you agree a sale. To start, send a few lines about the flat, the city and the names of the other heirs; a conflict check comes first.
What does it cost?
Selling an inherited property and sending the money abroad is from USD 3,500 per property. If the flat is not yet in the heirs' names, registration comes first.
| Service | Fee |
|---|---|
| Selling an inherited property and sending the money abroad, per property | from USD 3,500 |
| Registering an inherited property in the heir's name, per property | from USD 2,500 |
| Power of attorney and declarations for an heir abroad, bilingual (first heir) | USD 650 |
| From power of attorney to registration: one property, up to three heirs | from USD 6,650 |
Taxes, notary and registration fees, translation and legalisation are paid separately, at cost. See how fees and payment work.
Other questions heirs ask about selling
Can the heirs sign a sale contract before the flat is in their names?
Heirs can sign a sale contract before the flat is in their names. A contract to transfer real estate takes effect when it is made, and the lack of registration doesn't affect it (Civil Code art. 215). Title passes to the buyer only on registration, after the heirs are registered (art. 232), so the contract should allow time for both.
Can someone in China make the SAFE application for me?
An agent in China can make the SAFE application (Interim Measures art. 7), with the agency agreement and the agent's identity papers (art. 9). Since 2014 these and the title papers need no notarisation (匯發〔2014〕2號, item 6(4)).
Is there a tax filing before the money leaves?
A tax record may have to be filed before the money leaves. A single payment abroad of more than USD 50,000 that is a person abroad's income from transferring real estate in China needs one filed first (State Taxation Administration and SAFE Announcement No. 40 of 2013, item 1). The bank tells you whether it applies on top of the tax certificate in the SAFE file.
If I give up my inheritance, can I still get part of the sale price?
Someone who gives up the inheritance has no claim to the sale price as an heir. Giving up takes effect from the start of the inheritance (Interpretation (I) on the Inheritance Book art. 37), so you are treated as never having inherited. An heir who says nothing accepts (Civil Code art. 1124) and shares in the division. The choice is explained in giving up an inheritance in China from abroad.
This page explains PRC law in general terms. It is not advice on a particular estate or sale.
Related reading
- Inheriting Property in China From Abroad: Steps and Fees
- China Inheritance Documents: Checklist for Heirs Abroad
- Give Up an Inheritance in China From Abroad: How to Sign
Sources
- Civil Code, Articles 165, 168, 215, 230, 232, 301, 305, 1124, 1132 and 1156.
- Supreme People's Court: Interpretation (I) on the Real Rights Book (2020), Article 13; Interpretation (I) on the Inheritance Book (2020), Article 37; minutes of the Eighth National Conference on Civil and Commercial Trials (法〔2016〕399號), item 25.
- Interim Regulations on Real Estate Registration (2024), Article 14; Implementing Rules (2024), Articles 10, 12 and 14; Ministry of Natural Resources reply to NPC suggestion No. 3226 (2020).
- Deed Tax Law, Article 1; Individual Income Tax Law (2018), Articles 1, 3 and 6, and its Implementing Regulations, Articles 3 and 16; the tax notices and announcements cited above.
- Interim Measures on the Sale and Payment of Foreign Exchange for Transfers of Personal Property Abroad (2004), Articles 2 to 7, 9 to 12 and 14; 匯發〔2014〕2號, item 6; Measures on Individual Foreign Exchange Administration (2006), Articles 20 and 37, and its Implementing Rules, Articles 2 and 20.
Translations of Chinese law on this page are unofficial.