Foreign invested enterprises shall pay for the land they use. There are two ways of payment:
1) to get land use right through signing land use grant contract with the land administration authorities of the municipality, in other words, to buy once and for all the land use right for a certain number of years.
2) to pay land use fee on a yearly basis to the land administration authorities. This also applies to the lease of buildings. The land use fee refers to the use of land resource only and does not include expenditure incurred on requisition, demolition, resettlement and infrastructure construction. Foreign-invested enterprises, except obtaining lawful land use right through signing land use grant contract with the land administration authorities of the municipality, shall go through the procedures for fixing land use fee with land administration authouities and hand in the land use fee on time and in total amount payable in accordance with Measures on the Management of Land Use by Foreign-Invested Enterprises in shanghai promulgated by Shanghai Municipal Government on June 21, 1996. For foreign invested enterprises which use state-owned land, procedures for fixing land use fee is administered by Shanghai Housing and Land Property Administration Bureau. Add: 9F, 201 Laoshan Road (W.) Pudong; Tel: 5888 1688. If the land for use is located in Pudong New Area, the procedure is handled through Pudong New Area land administration department. Foreign invested enterprises which use collectively-owned land shall go through procedures for fixing land use fee with the district or county land administration authorities on the strength of the following documents: FS report, contract, and written reply to the above documents by authorities in charge; certificate of approval; business license; written reply by authorities in charge to the transfer or construction of housing and land properties and certificate of approval; certificate attesting to being a technologically advanced enterprise or an export-oriented enterprise; certificate of entrustment for being a representative of a coration; and other documents if necessary. The land grade with the price in Shanghai: The land is state and collective owned in Mainland China. Only the right of land use can be obtained through land leasing with the tenure of 50-70 years for housing. The land in Shanghai is subdivided into 12 grades based upon its location: central area grade 1-3, inner ring area grad 4-5, inner and outer ring area grade 4-7, and outer ring area above grade 7.