Taxation on Real Estate Transactions - The main taxes involved in real estate transactions include value-added tax (VAT), urban maintenance and construction tax, education fee surcharge, local education surcharge, land value-added tax, deed tax, and individual income tax [2][3]. - For sellers, if a property is sold within two years of purchase, a VAT of 5% is applied on the total price and additional fees [2]. - Properties sold after two years are exempt from VAT, as are self-built and self-used properties [2]. - In cases of family property division, transfers of real estate and land use rights are also exempt from VAT [2]. Tax Rates and Exemptions - Urban maintenance and construction tax rates vary: 7% for urban areas, 5% for county towns, and 1% for other areas, with education fee surcharges at 3% and local education surcharges at 2% [2]. - From January 1, 2023, to December 31, 2027, small-scale VAT taxpayers will have their urban maintenance and construction tax, education fee surcharge, and local education surcharge halved [2]. - Land value-added tax and deed tax are temporarily exempt for individuals selling housing [3]. Individual Income Tax Regulations - For individuals who can provide the original property value, individual income tax is calculated at a rate of 20% on the net income from the sale [3]. - If the original property value cannot be provided, a flat rate of 1% (3% for auctions) is applied to the sale price [3]. - Properties that have been used as the family's only residence for over five years are exempt from individual income tax [3]. - Transfers of property between family members, such as spouses and direct descendants, are also exempt from individual income tax [3]. Tax Refund Policies - From October 1, 2022, to December 31, 2025, individuals who sell their property and purchase a new one within one year are eligible for a tax refund on the individual income tax paid during the sale [3]. - Conditions for this refund include that both properties must be within the same city and the seller must be one of the owners of the new property [3].