After Obtaining Overseas Permanent Residence, Can Chinese Real Estate, Equity and Deposits Be Remitted Abroad Directly?

InsightImmigration Property TransferForeign ExchangeChina AssetsCross-Border FundsForeign Exchange ComplianceOverseas Permanent Residence

Author: Zhang Jingxinyue, PRC-Qualified Lawyer｜Singapore Registered Foreign Lawyer

Note: A client recently asked: after obtaining overseas permanent residence and preparing to sell property in China, can the sale proceeds be remitted directly abroad? If the amount is substantial, must the money be remitted gradually under the annual USD 50,000 quota?

These questions are common. Many people treat “obtaining foreign permanent residence”, “acquiring foreign nationality” and “being able to remit Chinese assets abroad” as the same issue. They are not. A change in immigration status is only the starting point. Whether the assets belong to the applicant, when they were acquired, how they are realised, whether the relevant taxes have been dealt with, whether the source of funds can be demonstrated, and whether the applicant has completed the required status-related formalities may all affect the subsequent process.

For families who have moved overseas, Chinese assets cannot simply be “converted into foreign currency and sent to an overseas account”. Depending on the type of asset, the relevant sale, transfer, distribution, redemption or other lawful realisation step must be completed first. Identity, ownership, source of funds and tax documents should also be organised before the transaction. Once those steps are complete, the appropriate current-account or capital-account route should be selected according to the nature of the asset. This article focuses first on the route that is most commonly discussed and most likely to be misunderstood: immigration-property transfer.

01 What Is an “Immigration-Property Transfer”?

Under People's Bank of China Announcement [2004] No. 16 and the current foreign-exchange guidance for capital-account transactions, an immigration-property transfer refers to a natural person who moves from mainland China to a foreign country, or settles in Hong Kong or Macao, realising lawful property owned in China before obtaining the immigration status, purchasing foreign exchange through a designated bank and remitting the funds abroad. Transfers to Taiwan may be handled by reference to the relevant rules.

There are four key limitations:

First, the property must be lawful property owned by the applicant. Assets jointly owned with others, held through a nominee arrangement, subject to an inheritance dispute or otherwise unclear as to ownership cannot simply be declared as the applicant’s personal property.
Second, the property to be remitted must generate a genuine, lawful and verifiable source of funds. The relevant sale, transfer, distribution, redemption or other lawful realisation step must be completed according to the type of asset. Proceeds from a property sale, equity transfer consideration, dividends, deposit interest, or the realisation of securities or other financial assets should all be supported by a complete chain from the creation of the right to the receipt of the funds.
Third, this is a capital-account approval for a property transfer. It is not the same as the annual foreign-exchange quota equivalent to USD 50,000 per person. Splitting property-sale proceeds or equity-transfer consideration into several payments and using the annual quota does not replace the required capital-account procedure.
Fourth, when processing the purchase and remittance of foreign exchange, the bank will also review the approval documents, source of funds, tax-payment documents and receiving account. Approval does not mean that the funds may be remitted through a third-party account, in cash or through another opaque arrangement.

02 Who Can Apply?

I. Obtaining Foreign Permanent Residence Does Not Equal Naturalisation

Obtaining foreign permanent residence, such as Singapore permanent resident status, does not automatically change a person’s Chinese nationality. Acquiring foreign nationality involves a change of nationality and a series of formalities concerning the former household registration, identity documents and proof of settlement abroad.

When applying for an immigration-property transfer, however, the question is not simply whether the applicant has a “green card” or a foreign passport. The applicant must prepare supporting documents according to their specific status. The current Capital-Account Foreign-Exchange Business Guidelines (2024 Edition) provide that:

An applicant who has obtained foreign permanent residence but remains a Chinese national must provide valid identity documents, proof of settlement abroad and a certificate of cancellation of the domestic household registration issued by the public-security authority at the place of household registration before the move;
An applicant who has acquired foreign nationality must provide a foreign passport or other valid identity document, proof of settlement in that country and a certificate of cancellation of the domestic household registration issued by the public-security authority at the place of household registration before the move; and
An applicant who has settled in Hong Kong, Macao or Taiwan must submit the relevant identity documents and proof of household-registration cancellation according to the applicable status.

Accordingly, a person who has only recently obtained an immigration visa, is still at the application stage, or holds only a long-term visa without having obtained the required settlement status generally cannot apply directly through the immigration-property-transfer route. The specific documentary standard remains subject to the acceptance practice of the foreign-exchange authority at the place of the former household registration.

II. The Place of Application Is Not the Location of the Asset

An immigration-property transfer is approved by the foreign-exchange authority at the applicant’s original place of household registration. The property may be in Shanghai, the company in Shenzhen and the bank account in Beijing; this does not automatically mean that three separate applications must be filed. The first issue to determine is the applicant’s place of household registration before moving and the acceptance procedure required by the local foreign-exchange authority.

03 What Assets Can Be Included?

The current procedural guidance does not limit eligible assets to one particular type. It requires the applicant to prove the source, ownership and transaction history of the assets. Common materials include the following.

I. Salary, Royalties and Remuneration for Services

Prepare proof of the income source, tax records and bank records showing receipt of the funds. If the income has accumulated as a deposit, the applicant must also be able to explain the connection between the income and the deposit.

II. Business Income, Dividends and Equity Returns

Where the assets come from an individual business, company dividends or an equity transfer, the applicant will generally need to prepare the business licence, equity documents, financial statements, shareholder or board resolutions approving the distribution, equity-transfer agreement, proof of transfer of the transaction funds and relevant tax documents.

Company assets and a shareholder’s personal assets must not be confused. Funds in a company account cannot be remitted directly as the shareholder’s personal property simply because the shareholder has emigrated. A lawful profit distribution, capital reduction, equity transfer or other legally supported realisation arrangement should be completed first.

III. Proceeds from the Sale of Real Estate

Real estate is one of the most common sources of assets. In addition to the title certificate or a property-search record, the applicant should retain the real-estate sale contract, proof of transfer of the transaction funds and the tax document issued by the tax authority for the property transaction. If the online filing price, actual transaction price and amount transferred do not match, the bank or foreign-exchange authority may request further explanations or additional tax documents.

IV. Deposits, Securities and Other Financial Assets

Interest, dividends and bonuses, as well as proceeds from the realisation of shares, bonds and other financial assets, should be supported by deposit certificates, transaction records from securities or fund accounts, redemption or sale records and relevant tax documents. The account holder, investment eligibility and remittance route for financial assets must also comply with the applicable securities, fund and foreign-exchange rules.

V. Circumstances That Cannot Be Processed Directly

The following circumstances may significantly increase the difficulty of the application or result in the application not being accepted:

The property is subject to a judicial, supervisory or other lawful restriction;
The property is involved in an unresolved criminal or civil case;
The lawful source cannot be demonstrated, or there is an obvious break in the transaction chain;
The applicant is not the actual rights holder, or the property is subject to an ownership dispute with another person; or
A false contract, dual contract, nominee arrangement, split transaction or third-party account has been used to manufacture a source of funds.

04 Which Previous Rules No Longer Apply?

I. Approval by the Foreign-Exchange Authority at the Original Place of Household Registration

The applicant should apply to the foreign-exchange authority at the original place of household registration before the move and submit, as required, a written application, the application form for personal-property transfer, identity documents, proof of settlement and household-registration cancellation, proof of income and property rights, tax certificates or tax-payment documents, and other materials. The application may be filed personally or entrusted to another person in accordance with the applicable rules.

II. The “50%—After One Year—After Two Years” Mandatory Instalment Rule Should No Longer Be Used

The commonly repeated statement that “only 50% may be remitted initially, half of the remainder may be remitted one year later, and the full amount may be remitted only after two years” came from an old rule issued in 2004. In 2014, the State Administration of Foreign Exchange clarified that:

Immigration-property transfers are approved by the foreign-exchange authority at the original place of household registration;
The requirement to report to the State Administration of Foreign Exchange where the total transfer exceeded the equivalent of RMB 500,000 was cancelled; and
The requirement to remit immigration property in instalments was cancelled. Banks may remit the funds once or in instalments within the amount approved in the approval document.

The correct understanding at present is therefore: the applicant must still declare the full amount of property intended for transfer in one application, but after approval the bank may process the remittance once or in instalments within the approved amount. Whether the funds are remitted in one payment or several payments will also depend on the validity period of the approval document, the bank’s review and the actual receipt of the funds.

III. RMB 500,000 Is Not a Cap Above Which Remittance Is Prohibited

The former RMB 500,000 rule was once used to distinguish approval and reporting levels. It should not be understood as a cap on personal-property transfers, nor as meaning that any amount above it must follow a fixed additional “State Administration of Foreign Exchange approval” procedure. The 2014 reform cancelled the reporting requirement for amounts above RMB 500,000. The current Capital-Account Foreign-Exchange Business Guidelines (2024 Edition) and the current procedures of the foreign-exchange authority at the original place of household registration should now be followed.

IV. The Destination and Account for the Remittance Must Be Genuine

After the purchase of foreign exchange for the property transfer, the funds should in principle be remitted directly to the applicant’s own account in the country or region where the applicant resides. Foreign-currency cash should not be withdrawn in China, and the funds should not be transferred through a friend’s or relative’s account, an underground bank or a cash intermediary. The payee, bank, account number and purpose of the funds should be consistent with the application materials.

05 Clarify These Four Lines When Planning Assets

When preparing the application materials, an immigrant family should organise the following four lines separately:

Identity: Is the status permanent residence, foreign nationality or another form of long-term residence? Has the household registration been cancelled?
Assets: Who holds the assets? Are they personal assets, matrimonial property, company assets, trust assets or nominee-held assets?
Tax: Have the reporting and tax-payment steps for the sale, distribution, redemption or transfer been completed?
Funds: From which account were the funds received, through which transaction steps did they pass, and into whose overseas account will they ultimately be remitted?

These four lines should not be assembled only at the final application stage. In particular, real estate, company equity and financial assets may need to be realised, distributed or transferred first before entering the funds-transfer process.

Conclusion: A Change in Status Is Only the Starting Point; the Funds Route Requires Separate Planning

For families who have moved overseas, the real question is usually not simply “is there a way to remit the money?” It is where the money came from, who owns it, through which transaction it was generated, and whether the conditions for a compliant remittance have now been met.

An eligible applicant may lawfully apply for an immigration-property transfer, but this route does not replace the need to clarify asset ownership, complete compliant transactions and deal with tax matters. Before selling real estate, transferring equity, closing an account or completing a change in immigration status, it is advisable to verify the identity, assets, tax and funds lines together, and then confirm the latest documentary requirements with the foreign-exchange authority at the original place of household registration and the processing bank.

Key References

This article is for general information only. It does not constitute legal, tax, financial or investment advice for any specific individual or family. Foreign-exchange, tax and banking rules may change; the latest requirements of the relevant foreign-exchange authority, tax authority and processing bank should be followed in each case.

This article is general information and not legal advice. Specific matters require assessment by appropriately qualified professionals.