Chinese Inheritance Law: How Succession Works

This page sets out the substantive rules: when inheritance opens, who takes and in what order, which country's law applies to a flat in China, how a will is treated, what tax is charged, and how an heir renounces. It is general information, not advice on your particular case.

1. When does inheritance begin, and who inherits?

Inheritance begins on the death of the deceased (Civil Code, Article 1121). If there is no valid will, the estate passes to statutory heirs in two orders: first the spouse, children and parents; second siblings, grandparents and maternal grandparents (Article 1127). A will, or a legacy-support agreement, takes precedence over statutory succession (Article 1123).

2. Which country's law applies to a property in Shanghai?

For "foreign-related" succession — a deceased, an heir, or the property linked to more than one jurisdiction — the Law on the Application of Laws to Foreign-Related Civil Relations governs. Article 31 provides that statutory succession follows the law of the deceased's habitual residence at the time of death, except that succession to immovable property follows the law of the place where the property is situated. Property in Shanghai is therefore governed by Chinese law.

Article 32 deals with the form of a will: a will is valid if it complies with the law of the testator's habitual residence at the time of making it or at death, the law of their nationality, or the law of the place where the will was made. A will drafted abroad can therefore be effective in China, but the form still has to be demonstrated.

3. What documents are needed to register the transfer?

Under Article 14 of the Implementing Rules of the Interim Regulations on Real Estate Registration, an applicant registering property acquired by inheritance or bequest must submit proof of death, the will (if any) or a written agreement among all statutory heirs on how the estate is to be divided, and evidence of the family relationship with the deceased. Alternatively, notarised documents or an effective court judgment may be submitted.

Notarisation of the inheritance is not mandatory. The Ministry of Justice repealed the joint notice that used to require it, and the Ministry of Natural Resources has confirmed in writing that whether to notarise is the parties' choice. In practice, however, registration authorities examine un-notarised applications closely and may ask all heirs to attend in person — which is difficult when heirs are scattered across several countries. This is the single most common practical obstacle we see.

4. Documents signed abroad: notarisation and apostille

Since 7 November 2023 the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents has been in force in China. Public documents from another Contracting Party need only an apostille — the "one-step" certificate — instead of the old chain of foreign ministry authentication plus Chinese consular legalisation. Documents from States that are not parties still follow the consular route.

In practice the chain is: sign before a notary in the country where you live → obtain an apostille (or consular legalisation) → send the original to Shanghai → we register the power of attorney and complete the transfer. Translations into Chinese may be required, and some offices insist the translation be stamped by a translation agency.

5. Tax: inheritance itself, and a later sale

• Deed tax. Statutory heirs who acquire land or buildings by inheritance are exempt (Deed Tax Law, Article 6(5)). Heirs who are not statutory heirs and receive property under a will are treated as donees and pay deed tax.
• Income tax on inheritance. No individual income tax arises on acquisition by inheritance for statutory heirs, testamentary heirs or legatees (Caishui [2009] No. 78).
• Selling later — the holding period. Where property acquired by inheritance, gift or divorce settlement is sold, the acquisition date and the original purchase price are those of the period before the inheritance (Guoshuifa [2005] No. 172, Article 4). Inherited property is therefore often already "five years old" for tax purposes, even though the heir registered title last year.
• Selling later — VAT. From 1 January 2026, a residential property held for two years or more is exempt from VAT; if held for less than two years VAT is charged at 3% of the full amount (Ministry of Finance and STA Announcement 2025 No. 17).
• Selling later — income tax. Gains are taxed at 20% of the sale price less the original price and reasonable costs. The exemption for a property held more than five years that is the family's only home still applies. Note that for inherited or gifted property, the tax authority will not fall back on the simplified 1%-of-price assessment; the calculation must be done on actual figures — which makes the deceased's original purchase documents critical.

More on tax: whether an inheritance tax exists, what is charged instead, and why a bequest to someone outside the statutory circle costs 3% in deed tax — does China have an inheritance tax?

6. Renouncing an inheritance

A heir may renounce, but only before the estate is distributed and only in writing (Civil Code, Article 1124). Silence is treated as acceptance — the opposite of the rule for a legatee, who must accept within 60 days of learning of the bequest or be deemed to have refused it. A renunciation cannot be used to defeat a legal obligation such as maintenance or a debt (Interpretation (I) on the Succession Part of the Civil Code, Article 32), and once the estate has been distributed, a change of mind will not be recognised (Article 36).

Where to go next

• Inheriting Chinese property from abroad — nationality, the three routes to title, the document chain by country, and remote completion.
• What a Chinese registration office actually accepts — the documents examined, and why files are returned.
• Does China have an inheritance tax? — what is charged instead, and when deed tax applies.
• Selling an inherited Shanghai property from abroad — the sale, the tax on it, and how the proceeds leave China.
• What a court case would cost — the case acceptance fee in bands, the preservation fee, and enforcement fees, on the rates in State Council Order No. 481.

Sources: Civil Code of the PRC (2020); Law on the Application of Laws to Foreign-Related Civil Relations (2010); Implementing Rules of the Interim Regulations on Real Estate Registration, Article 14; Deed Tax Law, Article 6; Caishui [2009] No. 78; Guoshuifa [2005] No. 172; MOF/STA Announcement 2025 No. 17; Judicial Interpretation (I) on the Succession Part of the Civil Code; Hague Apostille Convention, in force in China 7 November 2023.