Shanghai: Shanghai will implement a reduction in certain real estate transaction taxes starting December 1, aiming to provide a boost to the local property market, according to reports from state media. The new policy will simplify tax classifications by eliminating the distinction between “ordinary” and “non-ordinary” housing that exceeds 144 square meters (1,550 square feet). From now on, non-ordinary housing will be taxed under the same value-added tax (VAT) standards as ordinary housing.
Additionally, Shanghai residents will be exempt from VAT when purchasing or selling property that they have owned for two or more years, further incentivizing property transactions in the city.
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The move is expected to stimulate the property market, which has faced challenges in recent months due to shifting economic conditions and evolving government regulations. By reducing tax burdens and encouraging longer-term property ownership, the city aims to create a more favorable environment for real estate investment and homeownership.
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