Dialogos

Beijing Takes Steps to Support Housing Market – VAT Exemption for Homes Held Over Two Years

Published December 30, 2025, 20:01
Beijing Takes Steps to Support Housing Market – VAT Exemption for Homes Held Over Two Years

China is extending the exemption of Value Added Tax (VAT) on certain home sales, in an effort to support its struggling housing market, Bloomberg reports. The measure, effective Friday, benefits those selling a home they have held for at least two years. The decision comes amid a prolonged crisis in the property market that has impacted major developers like China Evergrande and China Vanke. It follows a commitment from Beijing to take supportive measures, including potential government purchases of properties for affordable housing. The housing market crisis has led to significant price declines and rising debt for companies in the sector.