Published by ChinaMNC · Chancheng

Foshan Expands Housing Provident Fund Withdrawals for Renovation and Property Fees

Foshan has revised its housing provident fund withdrawal rules to allow employees to withdraw for home renovation and property management fees, with detailed caps and conditions relevant to foreign founders managing local staff.

What foreign founders need to know about Foshan's updated housing provident fund withdrawal rules

Foreign founders operating in Foshan should note that the city has revised its housing provident fund (HPF) withdrawal management measures. The changes, based on the national Housing Provident Fund Management Regulations and local conditions, expand the circumstances under which employees may withdraw from their personal HPF accounts. Two new withdrawal categories have been added: renovation of self-occupied housing and payment of property management fees for self-occupied housing. The revisions aim to better meet diverse housing consumption needs while maintaining the fund's role as a safeguard. For foreign founders, understanding these rules helps ensure compliance and supports employee benefits administration.

New withdrawal categories

Renovation of self-occupied housing

Employees and their spouses may now apply to withdraw HPF for renovating a self-occupied home within Foshan. If multiple homes are renovated or the same home is renovated repeatedly, only one withdrawal per home is allowed. The application must be made after holding the property ownership certificate for at least eight years, and only one withdrawal is permitted. The withdrawable amount is calculated as the property's floor area multiplied by a renovation unit price of 1,500 yuan per square meter, capped at a maximum of 210,000 yuan. For homes with multiple owners, total withdrawals cannot exceed the cap, and owners must agree on the allocation. The Foshan Housing Provident Fund Center may adjust the time limit, unit price, and cap based on market and fund conditions, subject to approval by the municipal HPF management committee and public announcement.

Payment of property management fees

Employees and their spouses may also withdraw HPF to pay property management fees for self-occupied housing within Foshan. The withdrawable amount is based on the property's floor area multiplied by the government-guided top-tier rate for early-stage property services for ordinary residential housing, multiplied by 12 months, and capped at an annual maximum. Each withdrawal can only cover the current withdrawal year; unused amounts do not carry over. Owners of the same property must agree on the allocation. If the guided rate changes, the new rate applies from the next withdrawal year. The center will announce the annual cap each year; for the 2026 withdrawal year (July 1, 2026 to June 30, 2027), the annual cap is 4,536 yuan.

General principles and scope

The revised measures adhere to the principles of "housing is for living, not speculation," promoting both renting and buying, fairness, and efficiency. Priority is given to supporting rent withdrawals, with key support for purchasing self-occupied housing. Self-occupied housing is defined as a residential property owned and lived in by the employee, including new commercial housing, affordable housing, economically applicable housing, and second-hand housing. Non-residential properties such as offices, shops, commercial apartments, and parking spaces are not eligible.

Rent withdrawals

Employees who have continuously and fully contributed to HPF for at least three months, and who have no self-owned housing in Foshan and rent a home, may apply for rent withdrawal. They can choose annual or monthly withdrawals within each withdrawal year (July 1 to June 30), with no retroactive claims. If eligible under multiple rent scenarios, only one can be chosen. For those renting public rental housing, the application must be made under that category. For those renting commercial housing, the monthly maximum withdrawal is 15% of the previous year's average monthly wage published by the statistics department. Families with three or more minor children renting commercial housing may withdraw based on actual rent paid, verified by rental invoices, with a monthly cap of 60% of the average monthly wage; any excess is not counted. One multi-child family can only apply for one housing unit in the same period. For all rent scenarios, the lease period must be specified and can only be for the current withdrawal year, with no duplicate claims. Unused amounts do not carry over.

Purchase-related withdrawals

Employees who purchase self-occupied housing without a mortgage may apply for a purchase withdrawal. Purchases jointly with non-spouses or non-direct relatives (direct relatives being parents and children) are not eligible. The application must be made between six months and two years after the purchase date, and only once. The purchase date is based on the contract signing date or the date on the property ownership certificate. The withdrawal amount cannot exceed the actual purchase price. For co-owned properties with clear shares, amounts are calculated per share; without clear shares, they are divided equally. For those using a mortgage to buy new commercial housing in Foshan where the project is filed with the HPF center by the developer, a down payment withdrawal is allowed. Application must be made before the sales contract is filed, and only once. If the online contract filing is not completed within one year, the withdrawal is automatically canceled. The amount cannot exceed the down payment; multiple buyers must agree on allocation. If the sales contract is canceled or voided, the developer must refund the withdrawn HPF to the center's account before deregistering the contract filing. If the employee later applies for an HPF loan for the same home, the withdrawn down payment amount can be counted as part of the account balance for loan calculation.

For repayment of mortgage principal and interest, applications can be made during the repayment period, with monthly withdrawals allowed until the loan is settled. The amount cannot exceed the total repayment; if HPF offset repayment has been used, that portion is excluded. Co-owned properties with clear shares are calculated per share; otherwise equally.

Major repair and one-time withdrawals

Major repair withdrawals are allowed when partial structural components need to be moved or replaced without full demolition, and the housing hazard assessment reaches level C or D. The amount cannot exceed actual costs, excluding renovation expenses. Co-owned properties follow the same share rules. Additionally, employees may make a one-time withdrawal of the entire account balance and close the account under certain circumstances, such as death or being declared dead, in which case heirs or legatees may withdraw; if none, the balance goes to the HPF value-added income.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.