How can foreigners remit abroad after realizing their inheritance in China?
Time:2024-04-14 18:46:38Source:Click:次
China has become a significant source of emigration, with approximately 10.73 million overseas emigrants, ranking it as the third-largest emigrant country globally. Notably, in 2023, according to the Henley & Partners' "2023 Global Wealth Migration Report," China topped the list for high-net-worth individuals emigrating worldwide, reaching 13,500 individuals. With this considerable emigrant population, an increasing number of cases involve foreign beneficiaries inheriting assets within China.
I. Inheritance Transfer System:
Many may be unaware that China has an inheritance transfer system allowing foreign beneficiaries to repatriate the proceeds from the sale of inherited assets. This process permits foreign beneficiaries to consolidate and repatriate the entire proceeds of inherited assets in one application for foreign exchange purchase and transfer to their overseas accounts.
--No Limitation on Repatriation:
The inheritance transfer allowance has no limit, provided the funds are proven to be from the inheritance or the proceeds of the inherited assets.
--Flexibility in Repatriation:
After approval, beneficiaries can transfer the approved amount in one or multiple transactions to their foreign accounts.
--Considerations for Beneficiaries:
Beneficiaries settling abroad should decide whether to sell all inherited assets for repatriation, as this process is typically allowed only once.
--Eligibility:
Only beneficiaries with foreign citizenship or residency outside mainland China, such as Hong Kong, Macau, Taiwan, or foreign nationals, are eligible.
II. Required Documentation for Inheritance Transfer:
Stringent documentation is required due to China's strict foreign exchange regulations. Applicants need to submit the following to the local foreign exchange administration or management department:
· Written application for inheritance transfer, along with a Personal Property Transfer Application Form, detailing the relationship between the beneficiary and the deceased, the source of the inherited assets, and reasons for transfer.
· Identification documents of the beneficiary, proving foreign citizenship or residency.
· Proof of inheritance, such as notarized inheritance rights, court judgments, or mediation documents.
· Documents confirming the deceased's property rights, including property deeds, contracts, or agreements.
· Documentation related to the sale of inherited assets, including property deeds and sales contracts.
· Tax certificates from the tax authorities.
· Power of attorney and identification of the appointed agent if representation is required.
III. Practical Considerations:
--Additional documents may be required, such as copies of the deceased's identification.
--Beneficiaries should ensure their foreign bank accounts can handle repatriated funds, preferably using major Chinese banks known for smoother transaction processes.
--Upon approval, beneficiaries must conduct the foreign exchange purchase within 15 days using the original approval documents provided by the foreign exchange administration.
