All urban land in China is state-owned. You buy the flat and a right to use the land for 70 years: what renews, what is unclear, what collective land is and how inheritance works.
Anyone who has bought a flat in Poland or most of Europe expects to own the land under it. In mainland China that is not how it works. This article explains what is actually being bought, how long it lasts and where the rules are still open. It is general information, not legal advice, and rules change. It says nothing about who is allowed to buy: for that, see our guide for foreign buyers.
The land belongs to the state
In mainland China urban land is state-owned, and rural land is owned by village collectives. Private persons and companies do not own land. What they can hold is a right to use it, granted by the state for a fixed term. A home buyer receives the flat together with a share of that right, and both are recorded in the real estate register.
The terms
Under the State Council's 1990 regulations on assigning and transferring urban land-use rights, the maximum terms are:
- 70 years for residential use;
- 50 years for industrial use;
- 40 years for commercial, tourism and recreational use.
Other uses have their own limits. A commercial flat or an office therefore comes with a shorter right than a home. The term normally runs from the date the land was granted to the developer, not from the day you buy, so a flat in a building completed years ago has fewer than 70 years left. Read the land certificate for the date and the end of the term.
What you actually own
You own the flat as a building unit, together with the right to use the land under it for the rest of the term. The law treats the building and the land right as one package: summaries of the Urban Real Estate Administration Law say that when a house is transferred the land-use right goes with it, and that a mortgage on a house covers the land right too. You cannot sell the flat and keep the land right, or the other way round.
What happens when the term ends
This is the part to understand before you buy.
- For residential land the Civil Code (Article 359) says the right renews automatically on expiry. You do not have to apply.
- The Civil Code does not settle whether a fee is payable. It says payment, reduction or exemption follow what laws and administrative regulations provide, and we found no national regulation that does so.
- In December 2016 the Ministry of Land and Resources, as an interim approach for homes whose terms were expiring, reportedly said: no application, no fee, transactions proceed as normal. That was a stop-gap, not a permanent national policy.
- A Chinese press report of August 2026 describes two views still in play, free renewal or a recurring charge modelled on Hong Kong's rates, and no firm plan. It also says Chengdu has confirmed that no renewal application is needed.
The honest summary is that renewal is promised, the price of renewal is not. For non-residential land the Civil Code leaves renewal to other laws, so the position is less certain still.
Rural collective land and "small-property-right" housing
Village collectives own rural land, and housing built on it for village members is a different legal category from urban commercial housing. The 2019 amendment of the Land Administration Law allowed collective construction land used for profit to be transferred or leased, with approval of the village. We did not find a source saying that housing on collective land has become ordinary tradeable housing. Flats marketed as "small-property-right" housing are not registered like urban commercial flats, which can leave a buyer unable to register, mortgage or resell. Ask for the real estate certificate and check it in the local registry before paying anything.
Mortgage and inheritance
A mortgage on a flat in China is registered against the flat and the land right together, and becomes effective on registration. Foreign buyers also face money-transfer rules: see mortgages and money transfers.
For inheritance, law-firm sources describe two routes for a foreign heir: a notarial succession certificate from a Chinese notary if the heirs agree, or a court judgment if they do not. Title is then transferred at the local real estate registry. A January 2024 law-firm briefing says a will made abroad must be confirmed by a Chinese notary before the property can be processed. Real property is generally governed by the law of the place where it lies. We found no inheritance tax in the sources, but they are older: see inheritance and gift tax on property abroad and ask a Chinese lawyer. We did not find how land-use rights as such pass to foreign heirs, so allow time and local advice.
How it compares
- Freehold, as in most of Europe: you own the land with no term. A Chinese land-use right is closer to a long lease with a promise of renewal.
- Poland has a similar idea in perpetual usufruct, where the land belongs to the public authority and you own the building.
- Hong Kong is also leasehold. Government leases there are long, many expire in 2047, and a 2024 ordinance provides for automatic 50-year extensions: see our Hong Kong guide.
- Thailand shows a different route for foreigners, with registered leases: see land in Thailand for foreigners. For a wider map of where foreigners cannot own land, see where foreigners cannot own land and what they hold instead.
Common misunderstandings
- "70 years and then I lose the flat." Not as the law is written for homes: renewal is automatic, the open question is the cost.
- "I bought in 2026, so I have 70 years." Usually not: the term runs from the grant to the developer.
- "I own the land." No: you hold a right to use it.
- "All property in a Chinese city is the same." No: urban commercial housing, collective-land housing and commercial or industrial space differ in term and tradability.
- "The developer's brochure shows the term." It often does not: only the land certificate does.
FAQ
Can the state take the land back? A land-use right can be withdrawn for public purposes with compensation, as in many countries. We did not research the compensation rules, so ask a Chinese lawyer if this matters to you.
Is a 70-year right worth less than freehold? In principle a shorter remaining term lowers value and affects mortgage terms, and buyers and banks do look at the remaining term.
Do I need to do anything when the term ends? For residential land, the Civil Code says renewal is automatic. Watch for local notices and for any national rule on a renewal fee.
What this means for a normal buyer
- You are buying a flat plus a right to use state land, not the land.
- Read the land certificate: the grant date, the end date and the land use.
- Residential renewal is promised, its cost is not. Do not pay a premium for "70 years" without checking the remaining term.
- Avoid housing on rural collective land unless a Chinese lawyer confirms it can be registered, mortgaged and resold.
- Plan for heirs: a notarised will confirmed in China, local advice and time. Read about due diligence and scams and the rest of our material in the China and Hong Kong guide.
If you want an independent buyer-side view before committing, D.H. Realting works from Warsaw as an independent consultant and can bring in a local lawyer; ask us how we are paid, as you would ask anyone.