Transferring Funds from China?

Question

I have a friend who lives in the US but has a daughter in China who wants to buy US property. My question is how can she transfer funds from China to the US for the purchase of property?

Thanks in advance for your time and help!

Ted Harris · Answer

When I transferred monies won from Nigeria, I had to .... never mind, that didn't work out so well.  :lol:

F Chiang · Answer

This is exactly the same question I needed to solve earlier this month. My cousin's brother in China wants to buy an investment property. Our answers and solutions came first from a good title officer and then later with the help of some Chinese community legal service in Chinatown. We're making offers on property right now and hopefully will be in contract within the next week or two.

My title officer told me that transferring money from China can be done using several solutions depending on the situation as China restrictions on the amount individuals transfer ($50k/yr). Businesses in China don't have such restrictions so going through one of them is one way. Another way would be to take the money to Hong Kong and transfer it as there are no restrictions in Hong Kong.

As for taxes and filing, we've applied for a social security number for the brother and will be filing the appropriate tax returns 1040NR (nonresident). This will also let them open a US bank/checking account to hold funds, write checks etc.

To make the signing of documents and closing easier we had a power attorney drawn up so my cousin can sign documents, open bank accounts and handle the property on behalf of his brother. The power of attorney needs to be notarized at the US embassy in China.

In anticipation of purchasing the property we're having the brother wire the funds into his US bank account first way before close of escrow so we don't have to do any last minute fretting about the funds.

My title officer was a great resource for answering these questions since she's had to close a number of transactions with foreign nationals. She says Vietnam was a nightmare (took her 6 months to close).

Vikram C. · Answer

It's not as easy as using HSBC.  In fact, it is not even about that.  The main issue is the foreign exchange regulations that most developing countries have.  Each country has its own set of weird rules that restrict the remittance of foreign currency by its citizens.  Your friend's daughter will need to find out what the Chinese rules are.

Once you know the rules, and assuming China allows the remittance of foreign currency abroad for the purchase of real property, she will need to work with her bank to fill out the required paperwork.  Once she does that, she can simply wire the funds to the U.S. using normal international wiring instructions (SWIFT code, etc.).  Any decent-sized Chinese bank will have a correspondent banking relationship with a major bank in the U.S.  Therefore, she should be able to wire funds from her bank to any bank in the U.S. through the correspondent bank.

The first step, of course, is to learn the foreign currency remittance rules of the country you are remitting from.

Peter T. · Answer

I hope this problem has been solved.

Peter B, it is not about the banks it is all about the fact that the Chinese government (i.e. SAFE) has implemented control on in and outward remittance of funds.

For anyone interested to learn more here is the website from SAFE :

http://www.safe.gov.cn/model_safe_en/index.jsp?id=6

Agree with what Glen is saying anyone with some degree of wealth will know how to adress this problem.

Myself I have been living in China for 4 years and had all the fun with remitting money back to my home country which takes me like 1-1.5 hour a month because it required:

1. Copy employmnet contract
2. Tax slips
3. Salary slips
4. Copy passport
5. Copy Visa / Work permit

They really know how to keep an expat busy....

Glen Rosen · Answer

Hello,
I'm an American but I've lived in China ten years. It's rather strange that a Chinese citizen wouldn't know someone who has a business and is allowed to wire out as much money as they want, to any country, and will do it for them for a small fee. I'm in Beijing and my wife is Chinese American, and we know a million people that can do this. Any Chinese person who has enough cash to invest in the U.S. should be smart enough and connected enough to do this.I don't want to sound insulting, but how to do it is common knowledge in China.

Mohit Madaan · Answer

I don't think this option would fit in at all, because of following reasons

a) The investor MUST bring in at least $1,000,000 or $5,00,000 (in rural areas).

b) This option is good if she wants to move to US as a permanent resident.

c) Assuming she does want to move, not only she has to bring the above mention investment but also produce at least 10 full time jobs within first 2 years of investment.

d) Oh and the process can easily take a year from the time you fill the first form till the time to get to invest.

Account Closed · Answer

There is another option that I don't think I saw posted here yet. Not sure if it would be a fit...

http://www.uscis.gov/working-united-states/permanent-workers/employment-based-immigration-fifth-preference-eb-5/eb-5-immigrant-investor

Fei Guo · Answer

That was great information! I hope all went well and your relative now owns the property!

Peter B · Answer

I don't know that you can have direct access to funds in HSBC stateside and vice versa.

Rather you may have to actually make transfers from one bank account in China to a separate back account in the US.

Have you consulted the Bank?

Liam Weldon · Answer

Would a simple resolve not be to have a HSBC account with both the father and daughter on it?

That way the daughter can make her deposits into the account, and the father can simply make withdrawals here stateside.  Is there something that I am missing?

Transferring Funds from China?

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