China to Reduce VAT on Short‑Term Property Sales to 3% Starting January 2026
China has announced a major change in its property tax rules that could reshape the housing market and influence economic activity across the country. Beginning January 1, 2026, the government will reduce VAT on short‑term property sales to 3% for homes owned for less than two years. This new rule comes as part of broader tax reforms aimed at stabilizing the real estate sector and encouraging more active transactions. The move is expected to affect homeowners, property investors, real estate developers, and financial markets, including the stock market.
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