Buying a house in China is common for expatriates, and Shenzhen, Shanghai and Beijing all have sizeable numbers of foreign property owners. Once the purchase is done, will and inheritance planning often gets pushed aside. The reasons are easy to understand: language barriers, big differences between Western and Chinese succession rules, and uncertainty about which country's law applies to a property in China. When the owner passes away, family members are often left with a longer and more complicated process. This guide sets out the basic rules so that foreign owners and their families know the path in advance.

A key rule: real estate in China is generally inherited under Chinese law

Under China's Law on the Application of Laws to Foreign-Related Civil Relations, statutory succession of immovable property follows the law of the place where the property is located. In plain terms, if the property sits in China, inheritance is generally handled under Chinese law. This matters a lot to foreign owners: even if a will was made in the home country under home-country law, the part concerning the Chinese property must be assessed against Chinese law for form and validity. For the validity of a will, the law allows a choice among the law of the deceased's habitual residence, the law of the country of nationality, or the law of the place where the will was made. The analysis is not straightforward, and specific cases need professional advice.

Start with the basics: statutory succession and testamentary succession

Chinese succession law recognizes two tracks: statutory and testamentary. Without a will, statutory succession applies, and the scope and order of heirs are fixed by law: the first order is spouse, children and parents; the second order is siblings, grandparents and grandchildren, with the first order taking priority. With a valid will, the will prevails. For most foreign owners, making an effective will is the most direct way to keep control.

Six forms of wills, each with its own requirements

Chinese law recognizes six forms: holographic (handwritten), attested, printed, audio-visual, oral, and notarized wills. A holographic will must be written, signed and dated by the testator in person. Attested and printed wills require two or more witnesses, who cannot be heirs, legatees, or persons with an interest in the estate. Audio-visual wills also need two or more witnesses, with names and dates recorded. An oral will is only valid in emergency situations and should be replaced in writing or by recording as soon as the emergency ends. A notarized will is prepared through a notary office; for cross-border matters, notarized wills usually make subsequent procedures run more smoothly, and most foreign owners prefer notarization or a lawyer-drafted will that is then notarized.

Extra points for foreign owners drafting a will

The language of a will does not affect its validity. However, when Chinese real estate is involved, keeping a Chinese version or a notarized translation is advisable, since it will be used in inheritance procedures in China. The will should clearly identify the specific property in China and the share each beneficiary receives, rather than using vague wording such as "all my property," which can trigger disputes across jurisdictions. A testator may revoke or change a will at any time; when several conflicting wills exist, the last valid one prevails, so significant changes should be documented in writing.

How heirs carry out the procedures

After the owner passes away, heirs need to confirm the validity of the will and the scope of heirs, normally through an inheritance notarization or a lawsuit before a Chinese court. Identity and kinship documents issued abroad generally need to be notarized, translated, and authenticated under the applicable rules; since China acceded to the Apostille Convention, parts of the process have been simplified. With the notarial certificate or a final court judgment in hand, heirs apply for registration of title at the local real estate registry. If the heirs plan to remit the proceeds of a sale abroad, this falls under personal property transfer rules and requires supporting documents under the State Administration of Foreign Exchange regulations. Professional advice in advance is advisable.

Five common mistakes

First, assuming home-country law covers everything, when Chinese property is in fact mainly inherited under Chinese law. Second, leaving no will at all, which leaves the burden to the family; cross-border inheritance usually takes longer and involves more steps. Third, ignoring authentication and translation of documents, which can stall the whole process. Fourth, drafting a vague will that does not point clearly to the Chinese property. Fifth, overlooking local purchase restrictions and tax matters: eligibility for foreigners to buy property in China is subject to local policy, and any taxes arising from inheritance should be confirmed with the tax authorities.

Cross-border inheritance services at Yingke Shenzhen Law Firm

Yingke Shenzhen Law Firm (Yingke Law Firm Shenzhen Branch) provides cross-border family and inheritance services, covering civil and commercial litigation and arbitration, annual legal counsel, contracts, labor, family and matrimonial matters, intellectual property, debts and receivables, construction and real estate, administrative litigation, criminal defense, and corporate compliance. Cross-border inheritance cases often involve multiple legal systems, translations and procedures spanning jurisdictions. The local Shenzhen team is familiar with the processes of local notary offices, real estate registries and foreign exchange authorities, different practice teams can work together on one case, and a 24-hour emergency channel is available. Foreign clients can reach the team at yaozongxun@yingkelawyer.com.

Common questions

Can foreigners buy property in China? Yes, but local purchase restrictions apply and rules vary by city, so check local policy before purchasing. Does China have an inheritance tax? China currently has no inheritance tax; other taxes may apply, and the tax authorities' position should be confirmed case by case. Must a will be notarized to be valid? No, Chinese law recognizes several forms, but a notarized will usually makes later procedures smoother in cross-border cases. Must inheritance be handled in China? The property is in China, so the procedures are basically handled in China, including title registration and any court process. Can I handle everything in English? Yes, working with a team that knows Chinese law and communicates in English saves time and reduces misunderstandings.

Looking ahead

Cross-border estate planning is on the rise, and more foreign owners are considering wills, trusts and tax arrangements together. For anyone holding property in China, drafting a clear will early and understanding the basics of Chinese succession law costs far less than dealing with problems later. The core of the matter is finding a team that knows Chinese cross-border inheritance law and can handle multilingual documents and procedures across jurisdictions. Yingke Shenzhen Law Firm offers such services; whether it fits your situation can be discussed case by case at yaozongxun@yingkelawyer.com.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For specific cases, consult a qualified lawyer.