Guidelines for Real Estate Property Investment

"Ministry of Commerce, the State Administration of Foreign Exchange on Further Strengthening and Standardizing the Foreign Direct Investment in Real Estate and Regulatory Approval Notice" Shang Zi Han [2007] No. 50, to strengthen the approval and supervision of foreign-invested real estate enterprises, strict control of foreign investment in luxury real estate.

Foreign investment enterprise that engaged in real estate development, management, project should follow the principles:-

(1)  When making an application for the establishment of real estate company, it should at an initial stage, obtain the land use rights, ownership of real estate buildings, or land management departments, the land developer / real estate building owner then signed the land use rights or property rights of the reservation transfer / purchase agreement.

(2)   It has established a new real estate development enterprises with foreign investment or business as well as foreign-invested real estate enterprises to engage in new real estate project development and management, foreign investment should be in accordance with relevant laws and regulations to apply to the approval authority for increasing or expanding the business scope by scale of operations of related procedures.

(3)   Strict controls on returns for investment ( it includes the actual control on the same person ) acquisition or investment in domestic real estate enterprises.   Overseas Investment are not allowed to change the domestic real estate enterprises for actual control mode to avoid approval of foreign investment in real estate.  Foreign Exchange Management Department, upon discovery of the door, in order to take deliberate circumvention, misrepresentation and other illegal means of established foreign-invested real estate enterprises, will be good at it.   Export revenues from capital and epiphytic held accountable for their behavior to escape foreign exchange obligations.

(4)   In the territory of foreign investors in real estate development or business, it shall comply with the principles of commercial presence to apply for the establishment of foreign-Invested real estate enterprises, according to the approved business scope in the relevant business.  Foreign-invested enterprises and foreign investment in real estate are parties entered into a guarantee in any form either a fixed return or a disguised fixed return clause.