Are there any restrictions on the ownership of real estate by foreign entities in China?

Yes, there are restrictions on the ownership of real estate by foreign entities in China. Under the China Business Ventures Law, foreign companies are limited in their ability to purchase or lease real estate. They are only allowed to purchase land, construct and operate fixed assets on the leased land, or to purchase existing buildings and related real estate assets. Foreign companies are prohibited from owning land in China unless they have special authorization from the Chinese government to do so. Additionally, foreign companies are not allowed to purchase or lease land for more than fifty years, or to sublet or transfer the land unless permission is granted from the Chinese government. Furthermore, foreign entities are restricted in the types of real estate they are allowed to purchase or to manage. Generally, foreign entities must abide by a “three-fence” rule, meaning that their operations must be confined to within three pre-defined areas. These three areas are: land, buildings, and leased premises. Foreign investors are only allowed to purchase or lease land, buy existing buildings, or construct buildings on leased land. Any other actions related to real estate must be approved by the Chinese government.

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Are there any restrictions on the ownership of real estate by foreign entities in China?

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