Taiwan – Buying or Importing a Car

How do I buy a new car in Taiwan as a foreigner?

Foreign nationals who wish to purchase a car in Taiwan must hold a valid Alien Resident Certificate (ARC) and a locally issued driver’s licence. The ARC — also referred to as a residence card — is Taiwan’s official document confirming legal residency status for foreign nationals, and it is issued by the National Immigration Agency. Securing your ARC is a prerequisite to vehicle purchase, so if you have not yet obtained one, this should be addressed before anything else after arriving in Taiwan.

Vehicles assembled within Taiwan — including models produced under brands such as Ford, Honda, Hyundai, Mitsubishi, Nissan, and Toyota — tend to be considerably more affordable than imported alternatives. Imported cars can cost one and a half to two times more than domestically produced equivalents, largely as a consequence of import taxation. For this reason, buying a locally assembled car through a dealership is typically the most cost-efficient route for residents.

When you visit a dealership, you should have your ARC, passport, local driver’s licence, and evidence of your Taiwan address ready. In most cases, the dealership will handle the registration paperwork on your behalf — a clear advantage over buying privately. This streamlines the process considerably for first-time buyers in Taiwan.

Obtaining credit to finance a car purchase can be challenging for foreign nationals in Taiwan. The majority of car transactions are settled in cash or via bank transfer. Some banks do extend car loan facilities to foreign residents, particularly those who have been resident for a longer period and hold stable employment. It is advisable to approach your bank directly to explore your options, as lending criteria differ between institutions. Always confirm your current eligibility with your bank before relying on a loan as part of your purchase plan.

It is also worth knowing that price negotiation is standard practice in Taiwan’s car market, even at franchised dealerships. Researching prevailing market prices in advance — through automotive websites and local car publications — will give you useful leverage when entering into discussions with a seller.

How do I buy a used car in Taiwan?

Taiwan has a well-established and well-stocked second-hand car market. Online platforms offer a convenient starting point for browsing, with both dedicated automotive websites and social media groups connecting buyers with sellers. Some of the most widely used channels for used car transactions in Taiwan include Sinjang Co. Ltd., TCV, Tealit, and the USED CAR @Taiwan Facebook Group.

Before committing to a purchase, it is strongly recommended that buyers arrange for an independent inspection by a qualified mechanic or technician. A professional assessment can reveal any outstanding repair requirements, uncover accident history, and help facilitate a smoother overall transaction. The buyer should also cross-check that the engine number, chassis number, and vehicle colour all match what is recorded in the registration documentation. These checks are particularly important for buyers who are less familiar with local vehicle standards and practices.

Both private sellers and dealers have a legal obligation to clear any outstanding financial liabilities attached to the vehicle. The Motor Vehicle Office will refuse to process a change of ownership if there are unresolved debts — including unpaid parking penalties, road taxes, or other fines — registered against the vehicle. This requirement provides meaningful protection to buyers, as no transfer can be formally completed while such liabilities remain outstanding.

For private purchases, both the buyer and seller should travel to the local Motor Vehicle Office together to complete the ownership transfer in person. The documentation required includes: the original and a photocopy of the identity card, Residence Permit, or valid driver’s licence for both the buyer and the seller, together with the seals of both parties (or, where the vehicle is registered in an individual’s name, the owner’s signature alone will suffice).

Price negotiation is expected and accepted when buying a used vehicle. Bringing along a Chinese speaker who can assist with communication and help negotiate terms is a practical advantage. Once both parties have agreed on a price, a written contract is signed by both sides. This contract should specify any repairs that must be carried out before the transaction is finalised.

For up-to-date guidance on vehicle transfer procedures, contact your local Motor Vehicle Office. In Taipei, the Taipei City Motor Vehicles Office offers English-language assistance. The national Motor Vehicle Information Service is operated by the Highway Bureau (HB) of the Ministry of Transportation and Communications (MOTC) and is accessible at mvdis.gov.tw.

Can I import a vehicle into Taiwan, and how does the process work?

In practice, the combination of mandatory inspections, duties, and multiple layers of taxation makes importing a vehicle into Taiwan a costly, time-consuming, and logistically demanding exercise. Taiwan’s domestic automotive industry benefits from significant tax protections, and the financial burden on importers is substantial. Most expats who have thoroughly investigated this option ultimately conclude that it is not financially worthwhile unless the vehicle holds exceptional specialist or sentimental significance.

Since 2002, both new and used vehicles manufactured in countries that are members of the World Trade Organisation (WTO) have been eligible for import into Taiwan. However, not every foreign vehicle can be brought in. The car must have been built in compliance with Taiwanese regulations; otherwise, clearing the mandatory government inspection is extremely difficult.

Taiwan uses right-hand traffic, meaning all vehicles travel on the right-hand side of the road. Right-hand drive vehicles — common in many parts of the world — are not permitted on Taiwanese public roads. Any vehicle intended for import must be left-hand drive and must satisfy Taiwan’s applicable safety and emissions requirements.

Individuals seeking to import a vehicle with a declared value exceeding US$20,000 must obtain an import permit from the Board of Foreign Trade. This requirement applies regardless of whether the importer is relocating to Taiwan or purchasing from overseas. The Taiwan International Trade Administration (TITA) — which has assumed the functions previously carried out by the Board of Foreign Trade — handles import permits and licensing matters.

With regard to personal effects exemptions: vehicles imported as part of a personal effects consignment may qualify for a waiver of the standard import duty, but a 5% VAT charge and a trade promotion tax of 0.04% will still be levied. This partial relief is potentially relevant to people relocating to Taiwan who owned their vehicle prior to the move. The specific qualifying conditions and documentary requirements should be confirmed directly with the Customs Administration of the Ministry of Finance, as the rules are subject to revision.

The full import process proceeds as follows:

1. Check eligibility: Verify that the vehicle was manufactured in a WTO member country, is left-hand drive, and already meets — or can be modified to meet — Taiwan’s safety and emissions standards.
2. Obtain an import permit: Apply to the Taiwan International Trade Administration (TITA), submitting the required documents, which include the vehicle registration certificate, proof of ownership, and the purchase invoice.
3. Ship the vehicle: Organise shipment to the Port of Kaohsiung or Taipei. The vehicle must be itemised on a shipping manifest, with full details including make, model, registration information, and year of manufacture.
4. Clear customs: On arrival at the port, the importer or their appointed customs broker must complete and submit customs declaration documents through Taiwan’s electronic customs system. The declaration must include detailed particulars such as the description, quantity, unit price, total value, country of origin, and applicable tariff code.
5. Pay duties and taxes: Settle all applicable charges, including import duty, commodity tax, business tax (VAT), and any other relevant levies (refer to the cost breakdown section below for details).
6. Pass safety and emissions inspection: Before registration is permitted, the vehicle must satisfy Taiwan’s safety and emissions requirements. A safety certificate must be obtained from an approved inspection station, and an emissions certificate from the Ministry of Environment.
7. Apply for licence plates and registration: Submit an application at your local Motor Vehicle Office. The vehicle will undergo a formal inspection. Required documents include proof of identity (Alien Resident Card and driver’s licence), two copies of the new licence plate registration certificate for vehicles that have passed inspection, and customs clearance certificates confirming payment of duties and taxes.

Engaging a licensed customs broker is strongly advisable for the clearance process, as errors in documentation can result in costly delays. For current requirements, consult the Customs Administration, Ministry of Finance.

What are the costs involved in importing a car to Taiwan?

Bringing a vehicle into Taiwan triggers a series of overlapping tax obligations that can push the total outlay well beyond the car’s original purchase price. Unlike many import regimes where a single customs duty represents the main charge, Taiwan applies several sequential taxes, with each calculated on a base figure that incorporates the previous levy.

The primary charges are: import duty at 17.5% of the customs value of the vehicle (which reflects the vehicle’s make, model, and age); commodity tax at 25–30% depending on engine displacement; business tax at 5% of the combined customs value, import duty, and commodity tax; and VAT at 5% of the vehicle’s value inclusive of import duty and commodity tax. These rates are current as of 2024; always confirm the latest figures with the Customs Administration and the Ministry of Finance before making financial commitments.

Taiwan uses the CIF (Cost, Insurance, and Freight) method for calculating import duties and taxes. This means that shipping and insurance costs are factored into the dutiable value, so higher freight charges will directly increase the total tax burden — an important consideration when planning your budget.

In addition to these tax layers, the following costs should also be factored in:

• International shipping: Freight costs vary considerably depending on the country of origin, chosen shipping method (container shipping versus roll-on/roll-off), and the size of the vehicle. Shipping a car from the United States to Taiwan typically takes between 31 and 48 days, depending on the port of departure. Obtain quotes from specialist vehicle freight companies to compare options.
• Homologation and compliance: All imported vehicles must be brought into conformity with Taiwanese technical standards, and additional charges may arise in ensuring compliance. If a vehicle does not already meet Taiwan’s requirements for safety equipment, lighting, emissions, or instrument display, modification costs can be considerable — potentially encompassing changes to headlamp beam alignment, speedometer calibration (km/h), seatbelt configurations, and exhaust systems.
• Customs brokerage fees: Licensed customs brokers charge fees for handling the preparation and submission of import clearance documentation. These fees are separate from, and in addition to, the customs duties and VAT payable on the imported vehicle.
• Registration and inspection fees: A fee is payable for the mandatory vehicle inspection prior to registration; the amount varies depending on whether the vehicle is a motorcycle or a car, and larger vehicles attract higher charges. Contact your local Motor Vehicle Office for current fee schedules.

For the overwhelming majority of people, the total financial outlay involved in importing a vehicle into Taiwan renders the exercise uneconomical. When the import duty (17.5%), commodity tax (25–30%), and cascading business tax and VAT are combined, it is not uncommon for the full cost of importing a mid-range car to exceed twice its original purchase price. Buying a vehicle through a local dealer in Taiwan is almost invariably the more sensible financial choice. These rates apply as of 2024; always verify the current figures from authoritative sources before committing to any decision.

How do I register a vehicle in Taiwan?

Vehicle registration in Taiwan falls under the authority of local Motor Vehicle Offices, which operate beneath the Highway Bureau (HB) of the Ministry of Transportation and Communications (MOTC). Each city and county administers its own Motor Vehicle Office, and registration must be carried out locally. In Taipei, this function is performed by the Taipei City Motor Vehicles Office.

When purchasing a new vehicle from a dealership, the registration process is generally handled by the dealer on the buyer’s behalf, making it quite a straightforward experience. You will nonetheless need to supply your ARC, proof of identity, and confirmation of your local address.

For registration of a new vehicle, the required documents include: two completed New Licence Plate Registration forms, an ex-factory certificate along with a commodity tax paid (or exemption) certificate, and an official purchase invoice. For an imported vehicle, you will additionally need an import certificate and a commodity tax paid certificate issued by the customs authority. In the case of an imported used vehicle, an approval document for the vehicle model safety inspection issued by the Ministry of Transportation and Communications is also required.

For a used vehicle ownership transfer, the documentation required consists of the originals and photocopies of the identity card, Residence Permit, or valid driver’s licence of both buyer and seller, together with the seals of both parties (or, where the vehicle is registered under an individual’s name, the owner’s signature will be sufficient).

Every vehicle must successfully pass a roadworthiness and safety inspection before registration can be finalised. New vehicles sold through authorised dealers typically come with the required factory certification, which simplifies this requirement considerably. Imported vehicles and older used cars will need to undergo a formal inspection at an authorised testing station. For the most current documentation requirements and applicable fee schedules, contact your local Motor Vehicle Office directly or visit the Motor Vehicle Information Service.

What insurance do I need to drive legally in Taiwan?

All motor vehicles in Taiwan are subject to a mandatory insurance requirement. The compulsory cover is known as Compulsory Automobile Liability Insurance (CALI) — a government-prescribed third-party liability scheme. While CALI policies are sold through authorised private insurers, the system operates within a regulated framework overseen by the Financial Supervisory Commission (FSC).

CALI is designed to compensate third parties — including passengers and other road users — for bodily injury or death arising from a traffic accident. It does not extend to damage sustained by your own vehicle or to property damage caused to other parties. To obtain that level of protection, you will need to take out an additional voluntary policy — either comprehensive cover or a third-party property damage product — through a private insurer.

Motorcycle owners are legally required to hold valid CALI; failure to maintain it exposes the owner to financial penalties. The same obligation applies to car owners, and driving without valid CALI constitutes a legal offence that can attract significant fines.

CALI coverage is typically linked to the vehicle rather than to any individual driver — an arrangement broadly similar to motor insurance systems in several European countries. Policies can generally be arranged through a bank, an insurance company, or at the time of vehicle registration. Many dealerships will assist in setting up CALI as part of the overall purchase process.

Regarding overseas no-claims history: Taiwanese private insurers are not obliged to formally recognise a foreign no-claims discount, and in practice such discounts are often not accepted. You should contact insurers directly and be prepared to present documentation of your overseas claims record. Initial premiums may be elevated until you accumulate a local insurance history.

For a comprehensive list of authorised CALI providers and current premium rates, refer to the Financial Supervisory Commission or the Taiwan Insurance Institute.

What driving licence do I need in Taiwan as an expat?

Expats who intend to live in Taiwan and drive regularly should convert their overseas licence to a Taiwanese (ROC) licence. Although a foreign licence may be acceptable for a short period following arrival, it does not constitute a long-term authorisation to drive for individuals with resident status in Taiwan.

Taiwan maintains bilateral driving licence exchange arrangements with a number of countries. Holders of licences issued by those countries may exchange their overseas licence for a Taiwanese one without sitting a full driving examination — typically requiring only a vision assessment and payment of an administrative charge. The list of countries covered by these agreements is subject to change, so it is essential to check current bilateral arrangements with your local Motor Vehicle Office or the Taipei City Motor Vehicles Office before assuming you qualify for a straightforward exchange.

For those whose licence was issued in a country not covered by a bilateral agreement, the process involves completing a written road rules test and, in certain cases, a practical driving assessment at the Motor Vehicle Office. Tests are conducted in Chinese; some offices provide support for foreign applicants, but you should confirm the availability of such assistance in advance.

On the subject of International Driving Permits (IDPs): given that the Republic of China has had limited formal diplomatic relations with most of the world since the 1970s, IDPs issued by Taiwan are largely not recognised abroad. Conversely, IDPs issued by foreign countries are generally accepted in Taiwan for visitors driving on a temporary basis. Residents, however, are expected to hold a locally issued licence as the proper legal authorisation for driving.

The Taipei City Motor Vehicles Office provides English-language guidance on obtaining a driver’s licence in Taiwan at tpcmv.thb.gov.tw. For those based outside Taipei, your local city or county Motor Vehicle Office — operating under the Highway Bureau of the MOTC — is the appropriate point of contact.

How do I sell a car in Taiwan?

Selling a vehicle in Taiwan requires a formal transfer of ownership to be recorded at the local Motor Vehicle Office. It is not sufficient to simply hand over the keys and registration paperwork — the change of ownership must be officially registered to protect both the seller and the buyer from future liability.

Both private sellers and dealerships must ensure that all outstanding financial obligations on the vehicle are settled before a transfer can proceed. The Motor Vehicle Office will not finalise an ownership change while any debts remain — including unpaid parking penalties, taxes, or other fines. Sellers should therefore clear all such liabilities in advance of agreeing a sale, including any outstanding road tax (the fuel utilisation fee), unpaid penalty notices, and overdue registration fees.

It is common practice for sellers to request a deposit — or the full payment — prior to completing the formal ownership transfer. The terms of payment should be agreed in writing before attending the Motor Vehicle Office, so that the financial transaction and the administrative transfer are aligned and carried out in a mutually understood sequence.

At the point of sale, both buyer and seller should attend the Motor Vehicle Office in person, each bringing their proof of identity (ARC or national ID card) and the vehicle’s registration documents. The seller’s details are formally removed from the register and replaced with the buyer’s. Until this recorded transfer is completed, the seller may remain legally exposed to fines or traffic violations incurred involving the vehicle.

Regarding taxation: Taiwan does not currently impose a specific capital gains tax on private vehicle sales by individuals. However, where vehicles are sold as part of a commercial activity, different tax treatment may apply. For current guidance on the tax implications of selling a vehicle, consult the Ministry of Finance or a qualified local tax adviser.

Vehicle owners must settle any outstanding penalty notices within the stipulated timeframe to prevent them from escalating. Persistent non-payment can result in the cancellation of the vehicle’s licence plates, after which the owner must wait six months and arrange a fresh inspection before a new plate can be issued. Sellers should confirm that all fines have been resolved before attempting a transfer, or they may find themselves unable to complete the transaction cleanly.

Are there any ongoing costs or obligations for vehicle ownership in Taiwan?

Owning a vehicle in Taiwan carries a range of recurring financial obligations and legal responsibilities that apply to all registered owners, including foreign residents.

Road Tax (Fuel Utilisation Fee): Taiwan’s equivalent of an annual road tax is the Fuel Utilisation Fee (燃料使用費), levied on the basis of engine displacement and payable each year. The overdue fine for failing to pay the automobile fuel utilisation fee ranges from NT$300 to NT$3,000. For motorcycles, the overdue fine ranges from NT$300 to NT$600. Owners who fail to pay the licence plate tax for cars and motorcycles with engine capacity exceeding 150 cc within the required timeframe are liable to a penalty of double or triple the tax originally due. As of 2025, always verify current fee amounts with your local Motor Vehicle Office.

Periodic Vehicle Inspection: All registered vehicles in Taiwan must undergo regular roadworthiness inspections — comparable to the annual MOT in the United Kingdom or the periodic TÜV check in Germany. Newly registered vehicles are typically exempt from inspection for the first few years, after which mandatory periodic checks apply on a set schedule (generally every two years for passenger cars, with higher-frequency requirements for older vehicles). Inspections cover safety systems, lighting, emissions output, and general mechanical condition, and are carried out at authorised inspection facilities.

Owners who modify the bodywork, engine, or chassis of a car or motorcycle must apply for a special inspection. If a vehicle is not presented for inspection within the required timeframe, the owner faces a fine of between NT$900 and NT$1,800. Should the inspection remain overdue by more than one month, the licence plates will be suspended until the examination has been completed. If the vehicle remains uninspected for more than six months beyond the due date, the licence plates will be cancelled entirely.

Compulsory Automobile Liability Insurance (CALI): As described in the insurance section, CALI must be kept in force at all times for every registered vehicle. Allowing a policy to lapse constitutes a legal offence and carries financial penalties.

Emissions testing: Emissions compliance is assessed as an integral part of the periodic inspection process. Vehicles that do not meet the required standards must be repaired and re-tested before their registration can be renewed. The Ministry of Environment (formerly the Environmental Protection Administration) is responsible for setting the emissions standards that vehicles must satisfy.

For the latest inspection timetables, fee schedules, and registration renewal procedures, consult the Motor Vehicle Information Service or your local Motor Vehicle Office.

Frequently asked questions

Do I need to be a permanent resident to buy a car in Taiwan?

Permanent residency is not a requirement, but you must hold a valid Alien Resident Certificate (ARC). Tourists and short-stay visitors on visitor visas are not eligible to purchase and register a vehicle in Taiwan. Once your ARC has been issued, you are entitled to buy. Check current requirements with the National Immigration Agency or your local Motor Vehicle Office, as policies may be updated over time.

Can I drive in Taiwan on my foreign driving licence?

Visitors are generally permitted to drive in Taiwan on a valid foreign licence for a limited time. If you are a resident holding an ARC, however, you should convert your overseas licence to a Taiwanese one. Taiwan has bilateral exchange agreements with various countries that enable a direct licence swap without a full driving test. Confirm your eligibility with your local Motor Vehicle Office, as the roster of covered countries is revised periodically.

Is importing a car into Taiwan worth the cost?

For most people, the answer is no. The multi-layered tax structure — combining a 17.5% import duty, a 25–30% commodity tax based on engine displacement, and a 5% business tax applied to the cumulative total — means that importing a vehicle almost always results in a total cost far exceeding that of a locally purchased equivalent. Unless the vehicle has unique or specialist qualities that cannot be replicated locally, buying through a Taiwanese dealer is substantially more cost-effective. Rates are current as of 2024; verify the latest figures with the Customs Administration.

What is the Compulsory Automobile Liability Insurance (CALI) and is it enough cover?

CALI is the legally mandated minimum insurance in Taiwan, providing compensation for bodily injury and death to third parties. It does not cover damage to your own vehicle, property damage caused to others, or theft. Most drivers complement CALI with a voluntary comprehensive or third-party property damage policy from a private insurer. For details on coverage levels and current premium rates, contact the Financial Supervisory Commission or an authorised insurance provider.

How often do I need to have my car inspected in Taiwan?

Newly registered vehicles are generally exempt from inspection for the initial years following registration, after which periodic roadworthiness checks become compulsory — typically every two years for passenger cars, with more frequent requirements for older vehicles. Missing an inspection deadline can result in fines and, ultimately, cancellation of your licence plates. Confirm the specific inspection schedule for your vehicle with your local Motor Vehicle Office or through the Motor Vehicle Information Service.

Can I bring a right-hand drive vehicle to Taiwan?

No. Taiwan uses right-hand traffic, and right-hand drive vehicles are prohibited from use on public roads. Any vehicle being imported must be left-hand drive and must comply with Taiwan’s safety, lighting, and emissions requirements before it can be legally registered and driven.

What happens to outstanding fines or debts if I buy a used car privately?

The Motor Vehicle Office will not process an ownership transfer while any outstanding fines, parking penalties, taxes, or debts are registered against the vehicle. Any unresolved liabilities effectively prevent the transfer from being completed. While it is the seller’s responsibility to clear such obligations, buyers should independently verify the vehicle’s status before entering into any agreement. Attending the Motor Vehicle Office together with the seller ensures the transfer is formally recorded and confirmed.

Where can I find official information on vehicle regulations in Taiwan?

Authoritative sources include: the Customs Administration, Ministry of Finance (for import duties and customs clearance procedures); the Taiwan International Trade Administration (TITA) (for import permits and trade licensing); the Motor Vehicle Information Service / Highway Bureau, MOTC (for registration and inspection matters); the Taipei City Motor Vehicles Office (for licence and registration matters in Taipei); and the Financial Supervisory Commission (for insurance requirements).