Shanghai Foreign Investment Promotion Platform

Foreign invested enterprises shall pay for the land they use. There are two ways of payment: 1) to get land use right through signing land use grant contract with the land administration authorities of the municipality, in other words, to buy once and for all the land use right for a certain number of years. 2) to pay land use fee on a yearly basis to the land administration authorities. This also applies to the lease of buildings.

The land use fee refers to the use of land resource only and does not include expenditure incurred on requisition, demolition, resettlement and infrastructure construction.

Foreign-invested enterprises, except obtaining lawful land use right through signing land use grant contract with the land administration authorities of the municipality, shall go through the procedures for fixing land use fee with land administration authorities and hand in the land use fee on time and in total amount payable in accordance with Measures on the Management of Land Use by Foreign-Invested Enterprises in shanghai promulgated by Shanghai Municipal Government on April 1, 2002.

For foreign invested enterprises which use state-owned land, procedures for fixing land use fee is administered by Shanghai Housing and Land Property Administration Bureau.

If the land for use is located in Pudong New Area, the procedure is handled through Pudong New Area land administration department.

Foreign invested enterprises which use collectively-owned land shall go through procedures for fixing land use fee with the district or county land administration authorities on the strength of the following documents: FS report, contract, and written reply to the above documents by authorities in charge; certificate of approval; business license; written reply by authorities in charge to the transfer or construction of housing and land properties and certificate of approval; certificate attesting to being a technologically advanced enterprise or an export-oriented enterprise; certificate of entrustment for being a representative of a coration; and other documents if necessary.

The land is state and collective owned in Mainland China. Only the right of land use can be obtained through land leasing with the tenure of 50~70 years for housing. The land in Shanghai is subdivided into 12 grades based upon its location: central area grade 1~3, inner ring area grad 4~5, inner and outer ring area grade 4~7, and outer ring area above grade 7.

In 2003,the average sales price of apartment in Shanghai is about 5118RMB/m².By the end of year 2004,price for apartment in downtown is RMB 13,503/m²,in area between Inner and Middle Ring Highway RMB 9,147/m²,in area between Middle and Outer Ring Highway RMB 6,344/m²,in area of Outer Ring Highway RMB 4,797/m².

Road	Area(square m²)	Rent(RMB/m²/day)
Nanjing Road(W)	40 50 80	23~27 23~25 40~45
Yu Garden	Within Department Store	Commission Rate: 21%~25%
Xujia Hui	40 60 200 450	35~37 22~24 17~19 17~20
Huaihai Road(M.)	40 80 120	40~48 40~43 30~36
Zhangyang Roda	4000 10000	3~3.5 4~4.25
Sichuan Road(N.)	10 15 50 100	45~50 24~26 22~29 17~27

Valid documents	For foreign citizens, overseas Chinese, compatriots of HK, Macao and Taiwan: buyer’s valid passport or return home certificate or identity card of compatriot of HK, Macao and Taiwan.
Procedure	For foreign institutions: institution valid registry and record as well as document made by board of directors or foreign institution authority showing housing purchase in Shanghai and its representatives, which shall be notarized and approved by the foreign affairs ministry or embassies (consulates) of China to the relevant countries or regions.
Relevant charges for housing purchase	Fill in the form with housing buying contract in local departments where the purchasing housing is located. The local departments approve the valid documents, issuing certificates for housing buyer identification. With the issued certificates, the housing buyer get to the relevant departments making the home ownership available.
Relative Fees	Transaction fee	The buyer pays 0.08% of the housing price plus 250 as first transaction
	Notarization	0.25% of the housing price plus 350 yuan
	Deed tax	0.75% of the housing price
	Stamp tax of contract	0.03% of the housing price
	Ownership certificate	4 yuan/each
	Ownership registry	0.3 yuan/ m2
	Transaction record	100 yuan
	Ownership service charge	150 yuan
Mortgage loan	The bank provides mortgage loan for individual homebuyers with 20~30 years’ term up to 60~80% of the housing price.

1.The electricity price of Power for Construction is in linewith that of the Non-Industry power.

2. The electricity price of the Non-industry power in the Power for Agriculture is reduced by RMB 0.10/kW·H.