On September 15th, the “Housing Lease Regulations” signed by Chinese Premier Li Qiang will come into effect, causing concerns among Chinese citizens about excessive taxation by the government. This new policy, together with the mandatory social security policy that took effect on September 1st, is widely seen as a way for the authorities to increase revenue from the private sector amid China’s economic downturn and tight finances. Analysts point out that the underlying logic behind these policies is the Chinese Communist Party’s deep-seated fear of a recurrence of the “Blank Paper Movement.”
The “Housing Lease Regulations,” signed by Premier Li Qiang in July and officially released by the State Council, will be implemented on September 15th.
The fears sparked by the mandatory social security policy that came into effect on September 1st continue to escalate, with the majority of ordinary Chinese people strongly opposing and resisting it. With the upcoming implementation of the “Housing Lease Regulations” in September, the combination of these two policies has heightened concerns among the public about excessive taxation by the Chinese government. The topic of landlord taxes has become a hot topic on mainland Chinese social media in recent days.
A recent article on China Daily’s website titled “Landlord Tax is Coming, Effective from September 15!” attracted widespread attention and discussion among netizens, but the article was quickly taken down, further fueling speculation about the real purpose behind the policy.
The core of the “Housing Lease Regulations” is “mandatory filing + tax regulations.” The regulations require landlords and tenants to sign real-name contracts and file with the housing department. Intermediaries and leasing companies that do not file could face fines of up to 100,000 yuan. Although individual landlords are currently not subject to fines, authorities can exert pressure through other means, such as restricting their children from entering school or withdrawing from public funds.
More damaging is that the regulations empower tenants to file independently, putting pressure on landlords. Many landlords previously reluctant to file for fear of trouble or taxes are now compelled to do so. If landlords fail to file, tenants can do so themselves. Once tenants complete the filing, they can use this proof to deduct personal income tax. Ultimately, landlords will still face tax collection by the tax authorities.
According to the regulations, residential leases below 100,000 yuan per month are exempt from value-added tax but still subject to property tax and personal income tax.
For example, for a house rented at 8,000 yuan per month, the landlord would have to pay 320 yuan in property tax and 640 yuan in personal income tax, totaling 960 yuan, equivalent to a direct 12% reduction in rental income.
On various social media platforms, prominent financial experts delve deep into analyzing the Chinese Communist Party’s increased taxation agenda against the private sector.
Veteran media expert Zheng’s article suggests the regulations will have a significant impact on the market. Firstly, rent prices may increase. In core areas of first-tier cities where landlords already have the upper hand, the cost of taxes is likely to be passed on to tenants. I have a friend renting a two-bedroom in Shanghai; the landlord has already announced a 500 yuan increase starting in September, citing it as a “tax subsidy.” Conversely, in less desirable areas of third and fourth-tier cities, if landlords raise prices, tenants may opt to vacate, leaving landlords to shoulder the tax burden. This differentiation will become increasingly apparent.
Starting September 15th, every rented property in the market will leave a trace in the real estate administration. Meanwhile, per Article 30 of the regulations, the filed information for these rental properties will not only reside with the real estate management department but also establish an information-sharing mechanism with tax, statistical, and other departments.
A financial blogger with 264,000 followers, “Fang Zhuang,” asserts that the Chinese government’s introduction of the “Housing Lease Regulations” under the guise of “regulating rental businesses and protecting tenant safety” signifies the country’s financial desperation. “The regulations require landlords to file. This information will be shared among relevant CCP departments, including tax authorities. While the regulations claim to uphold public interests, certain details unveil its true purpose – revenue generation. The landlord class earning rental income will face severe financial losses. Of course, this cannot be openly stated.”
“Fang Zhuang” points out the regulations severely betray Chinese parents who invested heavily in school district homes. This betrayal is too severe because children of families renting can also enter school districts, negating the need to spend millions on school district homes. Those who have already purchased such properties will now be stuck with them.”
The regulations specify that non-residential spaces such as kitchens, bathrooms, balconies, corridors, and storage rooms cannot be rented out for accommodation. Moreover, the maximum number of tenants and the minimum average living area per person must meet local basic requirements, effectively eliminating subletting and room partitioning.
“Zhuan Fang” believes the authorities have deeper motives behind the regulations: setting strict standards for rented properties, disqualifying previously low-priced properties from rental eligibility. The people living in these properties are considered by officials as “low-end population,” as former Beijing Party Secretary Cai Qi once demanded Beijing clean up the “low-end population”.
He says, after the implementation of these rental regulations, poor people without affordable rental options will be pushed out of cities. “The underlying purpose of this policy is to forcibly remove young people from cities like Beijing drifters, Shanghai drifters, etc., all under the guise of ‘for your own good’. This is the most fundamental, hardcore logic behind this policy.”
The “Blank Paper Movement,” also known as the “Blank Paper Revolution,” erupted at the end of 2022 when Chinese citizens protested against stringent “zero-COVID” policies. People in several Chinese cities, including Beijing, Shanghai, Nanjing, Chengdu, Wuhan, took to the streets holding a blank A4 paper as a silent protest against censorship and government policies.
“Fang Zhuang” further points out that the current situation of the Chinese Communist Party is similar to the end of the Ming Dynasty. China’s economic and financial struggles have forced the CCP to squeeze the population for every last penny. However, with numerous expenses, even with this increased taxation, barely surviving in 2025 will lead to new challenges in 2026. As public resentment grows, the CCP’s debt will escalate, becoming increasingly irreparable, forming a vicious cycle.
A blogger with 275,000 followers, “Brother Dog,” analyzes how the regulations spare no one – landlords, tenants, or intermediaries. No loopholes are provided for property owners. The “landlord tax” may just be the appetizer. “Given the collapse of the Chinese economy, the CCP government faces a severe financial crisis. They are broke, so they must find ways to make money, and intensifying tax collection is a crucial avenue.”
He adds, “The tax burden on ordinary Chinese people is already extremely high, arguably the highest in the universe. But Chinese citizens do not enjoy any social security benefits or welfare; they feel life is very tough, with enormous pressure. Consequently, people are extremely sensitive and resistant to the CCP government’s increased taxation.”
Blogger “Liu Da” highlights that the core purpose of the regulations is for local governments to make up for the massive shortfall in land revenue. In the first half of 2025, the nationwide land sales income was only 1.42 trillion yuan, nearly 60% less than the peak in the same period of 2021, maybe even falling back to pre-2010 levels. Faced with a declining real estate market and dwindling land sales income, the government had to tax property owners.
“Liu Da” believes that the authorities rushed to announce and implement the regulations in July and September to prevent any market response. This step also lays the groundwork for future collection of real estate taxes.