Laws for transfer of money from China to the US

[Smaug]

Not paychecks, but when my Ivy moves here, she will have a big chunk of money from a sold condo and misc. savings that we will want access to.

What are the rules for transferring it here without her getting taxed to death?

I asked my immigration lawyer, and they want to charge us for a separate case for this. I'm wondering whether someone else here has been through this and can tell me how it works. I suspect it is not as complex as they make it out to be.

The deal is that she owns two condos in Guangzhou, and has the usual savings and such. When she moves here, she'll keep one condo and sell the other, and move the money from the condo sale and most or all of her savings here.

Thanks in advance.

[Robertt S]

I would try to keep that money as far away from the USA as possible, only a matter of time before they figure out a way to get at all your money. I suggest an off shore account in the Cayman Islands or somewhere Uncle Sugar can't blackmail into coughing up your account number and deposit records. You can bet your bottom dollar the socialists in our government here was watching everything that transpired in Greece recently and are just waiting for the right chance to tax or seize your surplus savings to ensure you are paying your fair share. http://matadornetwork.com/life/ten-best-countries-to-set-up-an-offshore-account/


But anyway, here is a link that gives you a idea of what is involved! One thought though, you might be able to use some of her relatives to help thranfer some of the money also.     http://customsesq.com/blog/50000-00-wire-transfer-limit-from-china-to-the-u-s/   

[Willy The Londoner]

There are limits that can be sent out of China by wire transfer but the important bit I know is that RMB cannot be sent out of China and any amount you get the bank to agree to has to be converted at the bank into US Dollars and the bank takes their cut for this transaction before the rest of the process has started which will incur additional fees.

The other thing barring any transaction taking place is if the person sending it cannot prove that the tax has been paid on the money.  The paperwork has to be perfect and just as the bank requires.

You then pay a fee on the amount for transfering it out and probably the US bank will charge again for it coming in.

Any transaction requires a person to attend the bank in person with all the documents and ID that the bank require.  As I understand it there is no such thing as an online bank transfer even when sending a few hundred dollars out of China. it has to be done in person at the bank.

This means that the person sending out the money has to be physically in China and if the bank has a restriction on what they send out in a wire transfer (I believe it is 500 US Dollars a day at the moment) then that could mean several visits and a long stay in China with a large wack taken out of each 500 dollars in charges.  There is also a restriction on how much a Chinese Citizen can send out of China each years, currently this is 50,000 rmb.

I transfer into China the equivalent of 40,000 rmb a month from London to my B of C account and that in itself is a hassle once it reaches China so imagine what it is like trying to send it out!  Plus even with UK Banks a person has to go to their own bank in person to arrange payments for amounts over £5000 (about $7500 US). This is all designed to stop money laundering.

Taking out more than 10,000 USD in cash will require you to get a special permit used by the State Administration of Foreign Exchange. If you take out more than 5,000 USD without declaring, you run the risk of having trouble with the authorities and worse, having your money confiscated. The new scanning equipment at airports can detect money in luggage and on the body!!!  And you do not need a special sniffer dog to sniff out wads of RMB's, even I can pick out that musty smell at a distance.

One other thing, this process will open the authorities eyes to the fact that a wife is no longer going to be a Chinese citizens and as they do not permit dual passports then your wife will not have free access back and forth into China and will need to obtain visa and have the same restrictions as a foreigner. This is not something many Chinese women want to give up completely so they rarely bring their attention to the authorities.  The banks have a requirement to forward all foreign transactions to the state authority.

Once a person comes to the attention of the Authorities here then it is hard to shake them off!

Willy

[Smaug]

Thanks for the info, Fellas.

Darn, it sounds like it actually IS complicated, and my law firm was NOT lying about that.

I thought there was some kind of provision for transferring money into the US on a one-time basis, as part of immigration... But it seems the Chinese government was to take as big a slice as possible.

That second-to-last paragraph is a shocker to me! She would have to give up her Chinese citizenship to get US citizenship? I don't think she knows that. Even the possibility of citizenship is still some years off, but I don't think she planned to give up her Chinese citizenship.

Those limits Willy talked about are pretty low. That would pretty much forbid her from bringing her money here. 50k RMB is not much, I think about $8,200 at the moment. It would take a lot of such transfers to send 900k RMB. Maybe we will save this problem for another day. Deal with immigration first. Money is secondary, and she can always just leave it in China and let it grow.

If the US economy keeps getting worse, China may be more and more attractive, in the long run. (though I've also heard that China doesn't want westerners as citizens...)

[Willy The Londoner]

Westerners who bring their money into China are very welcome.
 
People who take money out of China have things made very difficult.  Westerners are welcome to apply for citizenship but why even consider that?

To be a citizen of China one would need to give up their current passport as China does not accept dual nationality.  Far better to pay the 150 dollars a year for the new S1 or S2 Visa.


Willy

[Arnold]

Like Willy said, the current limit per years is $50,000 (per Person) to send out off China. When Qing's brother bought the house here for $200k, he used his wife/himself/mother and dad to bring it all at ones to buy it. All done with Western Union for a fee of course ($37 each, if I remember right). Straight to Escrow through borthers wife account we had opened earlier in the year for her, while she was here to check out the House we found for her and brother.

[JohnB]

Willy, "I transfer into China the equivalent of 40,000 rmb a month from London to my B of C account.."
40,000  CNY=6,575  USD  Wow, China is that expensive!
I was of the understanding you vacated 'expensive' Zhuhai for low- rent Zhongshan.

[Willy The Londoner]

No that is extra to what I need to live on.  Having bought and paid for the house and car here there is not a lot more to spend it on as living here is cheap.  As I intend to live in China forever I am gradually bringing my money over here and investing it in various businesses etc.  China is on the up again after initial financial setback caused when they let Leimans Bank going under.  Plus the way things are going in the UK I can get more interest on the money here than in a bank there.

I am restricted as to how much I can transfer by online or telephone banking.  I can do more if I go to my bank in person in London but my pensions and online websites tend to build up in between time. 

I vacated Zhuhai for love not for economic reasons.

Willy

[Willy The Londoner]

I was wrong about one thing. There is not only a limit on what a private person can  send out of China ever year but now I find that there is the same limit, $50,000.00 a year, when sending money into China for exchanging into RMB.   

I had wrongly assumed that I could import as much as I wanted and exchange it into Chinese money!

My bank here tell me that today I reached my limit and now have to wait until 2014 to start afresh for a New Year.

Of course there are several other methods of doing under the counter exchanges.

Willy