Overview
- The Ministry of Finance said individuals selling homes held for at least two years will be exempt from VAT starting January 2, 2026.
- Sales within two years will be taxed at 3%, a level that compares with higher rates previously used in some major cities such as Shanghai.
- The national policy formalises VAT exemptions introduced by several large cities in late 2024 and is designed to lower sellers’ transaction costs.
- Property agents and analysts describe buyer sentiment as cautious and say the tax change alone is unlikely to revive demand or fix developer finances.
- Leaders have pledged additional housing support, with options under discussion including government purchases for affordable housing, though broad buyer subsidies have not been adopted.