The Ministry of Finance issued a notice on tax policies to promote the steady and healthy development of the real estate market. Among them, it is proposed that if an individual buys the sole home of a family (the scope of family members includes the buyer, spouse, and minor children, the same below), with an area of 140 square meters or less, contract tax will be levied at a reduced rate of 1%; if the area is 140 square meters or more, the contract tax will be levied at a reduced rate of 1.5%. If an individual buys a second home for a family with an area of 140 square meters or less, the contract tax will be levied at a reduced rate of 1%; if the area is 140 square meters or more, the contract tax will be levied at a reduced rate of 2%.

A second home for a family means a second home purchased by a family that already owns one home. Cities that abolish the standard for ordinary housing and non-ordinary housing will continue to be exempt from land value-added tax if, according to Article 8 (1) of the “Interim Regulations of the People's Republic of China on Land Value-added Tax”, taxpayers build ordinary standard residences for sale, and the value-added amount does not exceed 20% of the deducted project amount. In Beijing, Shanghai, Guangzhou, and Shenzhen, where standards for ordinary housing and non-ordinary housing are abolished, a unified value-added tax policy for individual housing sales is applied with the rest of the country after abolishing the standard for ordinary housing and non-ordinary housing. Individuals in this city who will buy homes for 2 years or more (including 2 years) are exempt from VAT. (Treasury)