Xiamen is a beautiful seaside city and a city with high property prices. Buying a second-hand house in Xiamen requires an understanding of the relevant tax standards and calculations in order to budget and plan properly.

Xiamen second-hand house transaction tax standards

The tax you need to pay to buy a second-hand house in Xiamen mainly includes deed tax, personal income tax and value-added tax.

1. Deed tax: Deed tax is a tax on the price of the house agreed in the contract of sale and purchase of housing in accordance with the prescribed percentage. In Xiamen, the deed tax rate is 1.5%.

2. Individual income tax: Individual income tax is the tax that the seller needs to pay in the sale price of the house, the tax rate is 20%. If the seller is a non-resident individual, the tax rate is 10%.

3. Value-added tax (VAT): If the seller is a real estate development enterprise, he needs to pay VAT. The VAT rate is 5%.

Calculation of Taxes and Fees for Used House Transactions in Xiamen

The calculation of taxes and fees that need to be paid for purchasing a used house in Xiamen is as follows:

1. Calculation of Deed Tax: Deed Tax = Price of the house x 1.5%

For example, if you buy a house for one million yuan, you will need to pay Deed Tax of one million yuan x 1.5% = 15,000 yuan.

2. Individual Income Tax Calculation: Individual Income Tax = (house transfer price - purchase price - house value added) x 20%

Wherein, the house transfer price is the selling price, the purchase price is the original purchase price, and the house value added is the house value added.

For example, if the purchase price of a house is 1 million yuan, the selling price is 1.5 million yuan, and the value added to the house is 200,000 yuan, then the personal income tax to be paid is (1.5 million yuan - 1 million yuan - 200,000 yuan) × 20% = 60,000 yuan.

3. Calculation of value-added tax: value-added tax = price of house transfer × 5%

For example, if you buy a house for 1 million yuan and sell it for 1.5 million yuan, you need to pay value-added tax of 1.5 million yuan × 5% = 75,000 yuan.

Precautions

When buying a second-hand house, you need to pay attention to the following:

1. Confirm that the house's title certificate, land certificate and other relevant documents are complete.

2. Confirm whether the house is mortgaged, seized and so on.

3. Confirm whether the actual area of the house and the area of the title are the same.

4. Confirm whether the property fee, maintenance fund and other related expenses of the house have been paid.

5. Confirm whether the seller is a legal real estate development company or individual.