How to get your money out of China through banks?

Understanding China's Capital Controls

Capital controls in China primarily target Chinese citizens, imposing a strict US$50,000 annual foreign exchange cap. Although foreigners and expatriates aren't completely exempt, they generally face fewer restrictions. However, they may still encounter challenges when sending money overseas, especially for large amounts.

Getting Cash Out of China via Banks

To transfer money out of China through banking services, follow these steps:

1. Find a Bank with International Services
   First, locate a bank that offers international banking services. Major Chinese banks and international banks with branches in China typically provide these services.
2. Prove Your Income Source
   As long as you can prove that the money was earned in China through your tax and income records, you can transfer it to an account abroad.
3. Prepare Required Documents
   Banks will typically request details about the transfer destination along with several important documents:
   • Passport
   • Employment contracts
   • Bank account records showing employer deposits
   • Tax certificates
4. Account for Living Expenses
   Depending on the bank, you might not be able to send your entire earnings abroad. The institution will account for your living expenses in China and calculate the actual/remaining amount you can transfer.

Transfer Timeline

The process for moving money out of China through banking services involves two phases:

• Initial Verification: The bank's verification of your documents (income proof, tax documents, etc.) typically takes an hour or two.
• Complete Transaction: The entire international banking transaction process can take up to a week to complete, depending on the bank, transfer method, and specific circumstances.

Transferring Inheritance Money or Gifts from China

Taking money out of China that has been gifted or inherited is subject to the same rigid rules, particularly when the total exceeds the US$50,000 annual cap and requires approval from the State Administration of Foreign Exchange.

Requirements for foreigners include:

• Disclosing the source of the funds
• Presenting a notarized gift deed
• Providing tax compliance paperwork
• Furnishing proof of the money's origin

Once approved, the money can be moved via banks that comply with China's capital control regulations.

Tips for Foreigners

• While foreigners typically enjoy greater freedom compared to locals, banks and regulators have increased oversight to prevent capital flight.
• Ensure your transactions adhere to Chinese regulations to avoid complications.
• Bring all necessary proof and documentation when visiting the bank.
• Have patience, as the verification process can be thorough and time-consuming.

Conclusion

Transferring money out of China requires careful navigation of the country's capital control regulations. By ensuring you have the proper documentation, choosing the right bank, and following the correct procedures, foreigners can successfully move their funds overseas. Remember that transparency about your income sources and tax compliance is crucial for a smooth transfer process.