By the end of 2025, the city had been able to pay more than a pound of money! A joint letter from the ministry of finance and the general tax administration had been issued on 1 january 2026, whereby individuals had purchased two years (including two years) of housing and were directly exempt from vat; even if they had held less than two years, the vat collection rate had been reduced from 5 per cent to 3 per cent. This is not a small-scale concession, but a real reduction in transaction costs that directly benefits both the people who want to change their homes and the owners who sell them in a hurry, and the “breath vessels” that circulate in the city will be completely broken。
The new deal saves more money than you can see. A 1 million-dollar flat, with less than two years in its possession, would have to pay 50,000 vat, now only 30,000 and 20,000 directly; if there were 5 million new houses, there would have to be 238,000, and after the new deal only 146,500, which would have cost 9. 25 million! It would have been better to have two-year-old houses, no matter how much they sold, without vat, which could have been more than a year's salary, which would have been a real loss for ordinary families。
At the heart of the new deal is the activation of the replacement chain. Many people used to want to change houses, but they were stuck with high taxes and fees — tens of thousands or even hundreds of thousands of vats to sell old houses — and the cost of changing houses was too high for them to bite. Taxes are now reduced, the pressure to sell old houses is reduced, the owners are more willing to put up cards, and the source of second-hand houses is more abundant; while buyers do not indirectly bear the cost of the seller’s transfer, and the threshold for buying houses is lowered。
And there's a warm detail, and the policy has put in place a transition period. Those who had sold their houses before 1 january 2026 but had not yet declared vat are able to do so under the new deal, provided they meet the conditions and do not have to pay any more, reflecting the humanization of the policy. This policy, which covers the entire country, has made it possible for municipalities to benefit from benefits, whether they are newly needed in three or four cities or to improve their housing in the first line。
Two key prerequisites should be noted: first, that the policy is personal and that ordinary taxpayers in individual businesses do not apply; and second, that the length of the purchase of a house is measured by the actual time of holding, and that the cumulative time between the day of the purchase and the day of the transfer of the house is determined in advance. In addition, vat is paid by sellers, but with lower taxes, sellers have more room for lower prices and buyers can benefit indirectly, amounting to dividends for both buyers and sellers。
The new deal is not about setting fire, but about supporting a reasonable housing demand. When the market is in a steady period of adjustment, lowering transaction costs will increase market activity, restore housing to residential properties, and help more families to achieve the goal of “residence and accommodation.” as taxes and fees come to the ground, together with local policies to optimize home-purchase restrictions, the real estate market will be healthier and housing options for ordinary families will be greater。
Do you have a change of room plan now? How long has the house been in your hands? How much will the new deal save you
