No. China has not enacted an inheritance tax, so there is no tax on the estate or on the heirs when someone dies. What actually decides the outcome is who inherits under the Civil Code, and how the assets are transferred.
Who inherits when there is no will
Article 1123 sets the framework: when succession opens, statutory succession applies; if there is a will, the will or a bequest governs; and a legacy-support agreement applies according to its terms. Under Article 1127 the first order of heirs is the spouse, children and parents; the second order is siblings and grandparents. If any first-order heir survives, the second order inherits nothing. “Children” includes children born outside marriage, adopted children and step-children with a support relationship. Article 1128 lets the children of a predeceased heir inherit by representation, and Article 1129 treats a widowed son- or daughter-in-law who mainly supported the deceased parents-in-law as a first-order heir. Shares are generally equal under Article 1130.
If you leave a will
Article 1133 lets you dispose of your property by will, name an executor, give assets to statutory heirs or to anyone else, and create a testamentary trust. Form matters. A holograph will must be written, signed and dated by you (Article 1134); a dictated or printed will needs two or more witnesses, with every printed page signed (Articles 1135 to 1136); audio, video and oral wills have their own witness and recording rules (Articles 1137 to 1138); a notarised will is made at a notary office (Article 1139). Article 1141 requires a will to leave a necessary share for heirs who cannot work and have no income.
Taxes and paperwork in practice
With no inheritance tax, the real costs sit in transferring the assets. Real property is where it bites: registration formalities apply, and tax treatment can depend on who the heir is, so confirm your position with a tax adviser rather than relying on a general rule. Foreign heirs usually need notarised, apostilled or consular-legalised proof of inheritance, with translations, before a bank or a property registry will move the asset.
A short illustration (hypothetical)
Suppose an overseas businessman dies in Shanghai leaving an apartment and a bank account, with no will, a widow and two children. They share equally as first-order heirs, while his brother, being second order, takes nothing. The heirs still need notarised documents before the bank and registry will transfer anything.
The takeaway: no inheritance tax, but succession is decided by the Civil Code — so a China-compliant will is the cheapest planning you can do.
Common questions
Q: Is there really no inheritance tax in China?
A: Correct. China has not enacted an inheritance tax, so neither the estate nor the heirs pay one. Other costs can still arise when assets are transferred.
Q: Who inherits if there is no will?
A: Under Article 1127, the spouse, children and parents inherit first; siblings and grandparents inherit only if no first-order heir survives.
Q: Can a foreigner inherit property in China?
A: Yes. Foreign heirs inherit under the same Civil Code rules, but they normally need notarised, apostilled or consular-legalised proof of inheritance first.
Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512