China Introduces Yet More Tax Cuts to Spur Real Estate Market

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The move comes amid a broader government effort to revive China’s economy. China has made steep cuts to property taxes in another round of measures designed to shore up the country’s beleaguered real estate market. First-time home buyers across the country will now be charged a deed tax of only 1% when purchasing a property with a floor space of up to 140 square meters, according to a Wednesday guideline jointly issued by several central government departments. The same rate will also be applied to families purchasing a second apartment with a floor space of up to 140 square meters. Previously, first-time buyers in most Chinese cities had to pay a 1.5% deed tax when buying a property measuring more than 90 square meters. Anyone purchasing a second home in a first-tier city such as Beijing and Shanghai have to pay a 3% deed tax. That means people purchasing a second home for 1 million yuan ($140,000) within the eligible size range will now have to pay only 10,000 yuan in deed tax, c ………………………………