Asia · Greater China
China
Effectively closed to residence-by-investment, hostile to dual nationality, and taxing residents on worldwide income after six years — the new K visa is about STEM talent, not capital.
Tax position
- Income tax (top)
- 45% top marginal rate on comprehensive income
- Capital gains
- 20% on most gains; gains on A-shares traded on domestic exchanges are currently exempt for individuals; 20% on real property gains
- Wealth tax
- none; a property tax has been piloted but not rolled out nationally
- Inheritance tax
- none — repeatedly proposed, never enacted
- Special regime
- The 'six-year rule': foreign individuals are taxed on foreign-source income paid by foreign entities only after residing in China for 183+ days in each of six consecutive years — and the clock RESETS with a single absence of more than 30 consecutive days in any year. This single trip is the most valuable tax planning device available to foreigners in China.
- Territorial
- No — worldwide income taxed
- CFC rules
- Yes
- Exit tax
- No
- CRS
- Participating
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