This article is from the Australian Property Journal archive
TAX and marriage, they do not go together like horse and carriage in China, as thousands of astute couples queue up for hours to dissolve their matrimony, to avoid new taxes on property investments and benefit from tax breaks for singles.
Local media agencies in China are warning couples to expect long delays at registry offices in Beijing, Zhejiang, Shanghai, Guangzhou, Tianjin and other cities.
At one office, the Minhang District in Shanghai, deputy head Liu Rong has reportedly said since March 04, the number of divorce hearings has increased from eight per day to over 60 couples per day.
And for a fee of $AU1.45 to process their claims, couples are pretending that they no longer love each other, otherwise commonly referred to in China as “lacked mutual affection,” in order to get a divorce.
In the city of Tianjin, local media outlets are reporting that more than 300 couples are divorcing per day and Time Magazine said many are aged between 25 and 35 years old.
The rush by these savvy Chinese couples to break up their marriage is in response to the Chinese government introducing new measures on March 01, to cool down the country’s hot property market.
The government announced that couples would be slugged up to 20% of capital gains tax on the sale of second homes and couples would have to cough up to 60% tax when they buy a second home.
However if the second home was acquired whilst the person was single, regardless of whether they have never married or are divorcees who later remarry, they are exempt and will only pay 1% or 2% tax.
Time Magazine interviewed one realtor Mr. Jin who advises his clients considering the process.
Jin said that they can be back in happy matrimonial bliss within as little as three weeks.
“If you pay the full price in cash up front, the whole transaction can be completed in as little as 10 days — and even if you’re taking out a mortgage, it only takes about six weeks. Once that’s done, you can go and get remarried right away,” he advised.
Property Review
