Taiwan – Property Letting

How does the property letting process work in Taiwan?

Taiwan’s property landscape is governed by several interlocking statutes — the Land Act, the Building Act, and the Housing Act cover the broader real estate framework, while lease arrangements specifically are primarily regulated under the Civil Code. Taiwan operates as a civil-law jurisdiction, meaning written contracts are both standard practice and legally expected, rather than the informal verbal understandings that occasionally carry weight in common-law systems.

The letting process usually starts with the landlord advertising the property through online listings, estate agencies, or social networks. Once a potential tenant comes forward, the landlord should verify their identity by requesting a national identity card, passport, or Alien Resident Certificate (ARC). Tenants have a reciprocal right to verify the landlord’s identity and confirm ownership of the property — they may ask to see an identity certificate, a housing tax slip, or official proof of real estate registration.

One-year tenancy agreements are the residential norm in Taiwan, though six-month leases and arrangements tied to the academic calendar also occur. Longer terms — beyond one year — are more typical in commercial contexts. Both landlord and tenant should each hold a signed copy of the agreement.

The Rental Housing Market Development and Regulation Act constrains what terms may be included in lease contracts with the goal of protecting both parties’ interests. Competent authorities are empowered to specify mandatory and prohibited provisions; any clause that conflicts with a mandatory provision is automatically void, and all mandatory provisions are treated as incorporated into every lease regardless of whether they are explicitly written in or verbally agreed upon.

A well-drafted tenancy agreement should address: the rent level and payment schedule; which utilities are covered; subletting conditions (written landlord consent is required under the Act); early termination provisions; the deposit amount; and the state of the property at handover. Tenants who wish to exit the lease ahead of schedule are generally expected to give thirty days’ notice and may be required to pay a penalty equivalent to one month’s rent.

At the point of signing, both parties should take photocopies of each other’s identification — whether that is an identity card, passport, or alien registration card. Taiwan does not maintain a centralised national tenancy register comparable to Ireland’s Residential Tenancies Board; a lease is purely a private contractual arrangement between the two parties involved.

What types of rental arrangements are available in Taiwan — long-term, short-term, and holiday lets?

Taiwan’s rental market encompasses three broad categories: long-term residential letting, short-term furnished or serviced accommodation, and holiday or tourist letting. The legal treatment of each category differs significantly, and understanding those differences is essential for staying compliant.

Long-term residential letting — generally one year or more — is the most prevalent and most straightforward arrangement. It sits firmly within the scope of the Civil Code and the Rental Housing Market Development and Regulation Act, and the full range of standard residential protections applies: the deposit cap, repair obligations, and the respective rights of landlord and tenant described throughout this guide.

Short-term letting (under 30 days) is subject to considerably tighter restrictions. Taiwanese law does not generally allow private residences to be rented out for periods shorter than 30 days. The Rental Housing Market Development and Regulation Act explicitly excludes from its scope any rental arrangement connected with leisure or tourism, or any lease with a term of less than thirty days.

The Act for the Development of Tourism governs businesses that provide short-stay accommodation on a daily or weekly basis, including hotels and “minsus” (民宿, the local term for bed-and-breakfast style establishments). Standard residential units cannot legally be listed on short-term platforms such as Airbnb — hosts are required to hold a hotel or B&B licence, and those who operate without one risk substantial fines.

A minsu (民宿) licence permits property owners in eligible zones — typically rural, mountain, or coastal locations — to offer short-stay accommodation from their own home. Obtaining this licence involves satisfying zoning requirements and passing fire safety and building inspections under standards set by the Tourism Bureau within the Ministry of Transportation and Communications. Anyone considering short-term letting should check current requirements directly with the Tourism Bureau or their local municipal government, as rules differ by location and may change over time.

What rental income can landlords expect in Taiwan, and how are rates set?

Rents across Taiwan’s private market are driven primarily by supply and demand dynamics. Taipei consistently records the highest rents in the country, with considerable variation from city to city and between regions. Unlike several European countries where rent increases are indexed or capped across private market zones, Taiwan does not operate a broad rent-control regime — although statutory limits do exist under the Land Act.

Under the Land Act, annual residential rents may not exceed 10% of the total declared value of the property. For government-built housing, the ceiling is set at 8% of total property value. In practice, assessed property values — used as the basis for tax calculations — tend to be substantially lower than actual market values, so this cap rarely constrains market rents in major urban centres. Landlords should contact the local land office to find out the current assessed value of their specific property.

The Rental Housing Market Development and Regulation Act has narrowed the strict application of this Land Act rent ceiling in certain contexts, allowing market forces to operate more freely and acknowledging the divergence between assessed and real market values.

As a general guide, rents have historically been raised by 1% to 3% every two to three years, or in line with the Consumer Price Index from the third year of the tenancy onward. More recent legislative debate has focused on tightening these arrangements: proposals reported in 2025 would create total lease periods of three years (combining the initial contract and any renewal), permit landlords to reclaim properties only for personal use, and cap rent increases on renewal to the rate of rent index growth. Landlords should keep an eye on updates from Taiwan’s Ministry of the Interior for the latest position on any forthcoming rent legislation.

For current market rental data broken down by city and property type, the Ministry of the Interior’s Real Estate Information Platform publishes transaction data that landlords can use to benchmark their asking rent against comparable properties in the local market.

Do landlords need to provide a furnished or unfurnished property in Taiwan?

There is no legal obligation in Taiwan requiring landlords to furnish a property before letting it. In practice, however, the rental markets of cities such as Taipei, Taichung, and Kaohsiung strongly favour furnished or at least semi-furnished apartments. Most rental units come equipped with at minimum a bed frame, wardrobe, dining table, and basic kitchen appliances. In fact, fully furnished apartments — complete with air conditioning, a washing machine, and a refrigerator — are the default expectation for residential lettings rather than a premium offering.

The specific items provided should be confirmed and agreed before the tenancy begins. A detailed inventory, signed by both parties at the start of the tenancy, is strongly recommended: this document will serve as the reference point for any deposit deduction disputes when the tenancy ends.

There is no regulatory classification for standard long-term residential lets that changes according to the level of furnishing provided. However, properties offered as fully serviced short-stay accommodation — with hotel-style features such as daily linen changes — may fall into commercial hospitality categories requiring a separate licence, as discussed in the short-term letting section above.

From a tax perspective, the cost of furnishings and appliances may be treated as income-generating expenditure that resident landlords can offset against rental income. Non-resident landlords are taxed at a flat withholding rate and are generally unable to claim itemised deductions of this kind — see the tax section below for further details.

Do you need a licence or registration to let a property in Taiwan?

For standard long-term residential letting — typically one year or more — Taiwan does not require landlords to hold a formal licence analogous to, for instance, the landlord registration schemes that operate in Scotland or Ireland. The tenancy relationship is governed by contract under the Civil Code, and there is no requirement to register a residential lease with any government body.

Certain compliance steps are nonetheless effectively mandatory in practice. Landlords are expected to declare rental income on their annual tax return. Where a tenant uses the property for business purposes, they are legally required to withhold tax from rent payments and remit it to the tax authorities on the landlord’s behalf — creating a paper trail that the tax authorities can draw upon to verify rental income.

The Rental Housing Market Development and Regulation Act, which came into force in 2018 with the aim of protecting the rights of both landlords and tenants and establishing standards for the rental housing sector, requires professional rental housing service businesses — companies that manage multiple rental properties on behalf of owners — to be registered and licensed. This obligation applies to the management company, not to individual private landlords.

For short-term letting, the regulatory picture is entirely different. Standard residential units cannot lawfully be offered for short-term stays — operators must obtain a hotel or B&B licence, and those who do not face the risk of significant fines. Short-stay hospitality operations must be registered under the Act for the Development of Tourism. Prospective short-term hosts should always verify current requirements with the Tourism Bureau and their local municipality before commencing operations.

How do you obtain a landlord licence or register as a landlord in Taiwan?

For standard long-term residential letting, no landlord licence needs to be obtained. What landlords must do is ensure they are properly registered for tax purposes and that rental income is declared correctly. The steps below cover the practical compliance requirements for long-term letting as well as the formal registration process for short-term letting (minsu), which does require a licence.

Steps for long-term residential letting compliance

1. Verify ownership documents. Confirm that your property registration (建物登記謄本) is current and accessible. This document can be obtained from the local Land Office (地政事務所).
2. Prepare a compliant tenancy agreement. Use or adapt the standard residential lease template issued by the Ministry of the Interior, which incorporates all mandatory clauses required under the Rental Housing Market Development and Regulation Act. Any clause that conflicts with a mandatory provision will be automatically void, and all mandatory provisions are treated as part of every lease regardless of whether explicitly included.
3. Register for income tax. If you do not yet hold a Taiwan Tax ID (統一編號 or ARC number), contact the Ministry of Finance’s eTax Portal or your local National Taxation Bureau to register as a taxpayer with rental income.
4. Sign the lease and exchange identification copies. Both parties should keep a photocopy of the other’s identification — an identity card, passport, or alien registration card.
5. Declare rental income annually. Submit your annual income tax return between 1 May and 31 May covering the preceding tax year. Non-resident landlords whose tenants are business entities may have tax withheld at source by the tenant.

Steps for short-term letting (minsu / B&B) registration

1. Confirm zoning eligibility. Check with your local municipal authority that the property is situated in a zone where minsu operation is permitted. Rural, mountain, and coastal areas are more frequently eligible than standard urban residential zones.
2. Meet building and fire safety standards. The property must pass inspections covering fire safety equipment, emergency exits, and structural requirements as set out under the Tourism Bureau’s minsu regulations.
3. Apply to the local municipal tourism authority. Submit your application to the relevant city or county tourism bureau, including proof of ownership, building use certificates, fire safety inspection results, and relevant identification.
4. Pay the applicable registration fee. Fees differ by municipality; check with the relevant authority for the current fee schedule at the time of application, as amounts are subject to change.
5. Display the licence prominently. Once granted, the minsu licence must be displayed at the property as required by law.

The responsible authority for short-term hospitality registration is the Tourism Bureau, Ministry of Transportation and Communications. For long-term letting tax matters, contact the National Taxation Bureau in your jurisdiction. Fees and procedures are subject to change, so always confirm current requirements with the relevant authority before proceeding.

What are the rules around deposits in Taiwan?

The Rental Housing Market Development and Regulation Act provides that the security deposit for any covered tenancy must not exceed two months’ rent — a limit that is consistent with Article 99 of the Taiwan Land Act. This is a firm legal ceiling; landlords are not permitted to demand more than two months’ rent as a deposit for residential tenancies governed by the Act.

In reality, the rental market operates informally in many respects, and deposits of three months’ rent are not unheard of despite the statutory limit. Expat landlords should be aware that collecting more than the legally permitted amount exposes them to tenant complaints and potential legal challenge, even where the practice may occur in the wider market.

Unlike the tenancy deposit protection schemes found in countries such as the UK and Ireland — where deposits must be lodged with a government-approved third-party scheme — Taiwan has no equivalent formal deposit protection mechanism. Deposits are held directly by the landlord for the duration of the tenancy.

At the end of the tenancy, the landlord inspects the property for damage and the deposit is returned, minus any justified deductions for repairs, outstanding bills, or cleaning costs. The lease should specify a clear timeframe for returning the deposit after the tenant vacates; although no statutory deadline is prescribed, a period of 14 to 30 days is commonly used in practice and should be expressly agreed in the contract.

Where a deposit dispute arises, tenants can seek mediation through the Consumer Protection Committee or take the matter to court. Disputes relating to a residential lease may also be submitted to the relevant Municipal or City Land Office for conciliation.

Who is responsible for maintenance and repairs in Taiwan?

Under Taiwan’s Civil Code, the primary duty to maintain and repair a rental property rests with the landlord. Article 429 of the Civil Code provides that, unless otherwise agreed between the parties or except where certain customary obligations apply, the landlord bears responsibility for repairs to the leased premises. This principle broadly mirrors the repair obligations imposed on landlords in many other civil-law systems, and produces similar outcomes to the implied repair duties familiar from common-law jurisdictions, even though the statutory basis differs.

In practical terms, structural defects, plumbing problems, electrical failures, and breakdowns of appliances that were included in the original furnished inventory are all typically the landlord’s responsibility to address promptly. Damage caused deliberately or through the tenant’s negligence, on the other hand, falls to the tenant and may be recovered from the deposit at the end of the tenancy.

As a general rule, building and landlord liability insurance is the landlord’s responsibility, while tenants should arrange their own cover for their personal belongings. Expat landlords are strongly advised to take out comprehensive insurance for their Taiwan properties.

Taiwan has no single national habitability register equivalent to, for example, the UK’s Homes (Fitness for Human Habitation) framework, although the Building Act and local municipal authorities do establish minimum standards for registered buildings. Any tenancy dispute — including one relating to repair obligations — may be submitted to the relevant Municipal or City Land Office for conciliation; parties who decline to comply with a conciliation outcome may take their case to the courts.

How are letting agents used in Taiwan, and what do they charge?

Letting agents and property management companies are a common feature of Taiwan’s urban rental markets, particularly in Taipei, New Taipei, Taichung, and Kaohsiung. Services typically available through agents include property advertising, tenant screening, lease preparation, rent collection, maintenance coordination, and end-of-tenancy inspection.

For a basic letting service — finding a tenant and completing the lease — agent fees in Taiwan are typically equivalent to one month’s rent, though this figure varies between companies and with prevailing market conditions. Unlike the UK, where legislation now bars most fees from being charged to tenants, Taiwan has no equivalent restriction, and it is common for the agent’s fee to be split between landlord and tenant — or paid entirely by whichever party engaged the agent. Always confirm the fee structure in writing before engaging an agent, and establish clearly whether the fee covers tenant-finding only or extends to ongoing management.

For full property management services — where the agent takes over day-to-day running of the property on behalf of an overseas or absentee landlord — charges are typically calculated as a percentage of the monthly rent. Market rates for management-only services generally fall in the range of approximately 5% to 10% of monthly rent (as of 2025), though these are market-driven figures rather than regulated amounts and vary considerably. Readers should verify current market rates and any regulated fee structures with the Ministry of the Interior or a local consumer protection body.

Taiwan does not have a mandatory national licensing scheme for letting agents comparable to the compulsory licensing of property agents in Hong Kong. Real estate brokers handling property transactions must be licensed, but for letting services alone, professional standards are less formally enforced — making it important to select agents with a clear and verifiable track record.

What taxes apply to rental income in Taiwan?

Taiwan applies income tax on a territorial basis: both resident and non-resident individuals must pay tax on income arising from Taiwan sources, though the applicable rate depends on the individual’s residency status.

Resident landlords — those who spend 183 days or more in Taiwan during the tax year — include rental income as part of their consolidated gross income, taxed at progressive marginal rates of 5% to 40%. Resident landlords may offset rental income by claiming either a deemed-expense deduction or actual documented costs. The 2024 progressive rate bands begin at 5% on income up to NTD 590,000, rising through 12%, 20%, and 30% to a top rate of 40% on income above NTD 4,980,000.

Non-resident landlords face a simpler but less flexible treatment. Rental income earned by a non-resident individual is subject to a fixed rate of 20%, with no entitlement to personal exemptions or special deductions. This flat rate applies to the full amount of rental income, regardless of how much is earned, and there is no minimum threshold below which non-residents are exempt.

Where a business tenant pays rent exceeding NTD 20,000 per month, the tenant must withhold 10% of the rent and remit it to the tax authorities on the landlord’s behalf. Foreign landlords not enrolled in Taiwan’s National Health Insurance scheme are not liable for the NHI supplementary premium.

Deductible expenses for resident landlords may be claimed either as a standard deemed deduction (a fixed percentage of rental income published annually by the tax authority — for 2023 this was set at 43%; check the National Taxation Bureau for the current year’s figure) or as actual itemised costs including repairs, agent fees, insurance, and depreciation.

Other property-related taxes include house tax (房屋稅), which is the landlord’s responsibility and cannot be transferred to the tenant. Building tax is levied on all buildings in Taiwan at rates ranging from 1.2% to 3.6% depending on the classification of the building; residential properties are taxed annually at between 1.2% and 2% of their current assessed value. Both house tax and land value tax are holding taxes payable by the owner — landlords bear these in full and cannot pass them on to tenants.

All landlords — whether resident or non-resident — are advised to consult the Ministry of Finance’s eTax Portal and seek guidance from a qualified local tax adviser, particularly given the complexities of cross-border tax treatment and any applicable double taxation treaties between Taiwan and the landlord’s country of residence.

What are the rules around ending a tenancy or evicting a tenant in Taiwan?

Taiwan’s tenancy framework specifies defined circumstances in which a landlord may bring a lease to an end or seek to recover possession. A landlord is entitled to reclaim their property in the following situations: the owner intends to occupy the property or to carry out construction works; the tenant has sublet without obtaining the landlord’s permission; the tenant has failed to pay rent for two consecutive months; or the tenant has used the property for illegal purposes or has caused damage without paying compensation.

Landlords must provide written notice to the tenant at least seven days before any eviction takes effect. This is a comparatively brief notice period relative to many other countries — Germany, for instance, typically requires several months’ notice even where the landlord has a legitimate ground to reclaim the property, and the UK mandates a minimum of two months for a no-fault possession claim. In practice, Taiwan’s rental market tends to be relationship-driven, and formal eviction proceedings remain relatively uncommon.

At the end of a lease, tenants are generally required to give one to two months’ notice, as set out in the agreement. Tenants are obliged to vacate the property when the tenancy expires, though this is not always strictly enforced — informal practice in the market means that many landlords permit a tenant to remain provided rent continues to be paid.

Legislative measures reported in the media and expected to take effect from September 2025 are intended to strengthen tenant protections. These include setting a total lease period of three years (covering both the initial contract and any renewal), restricting landlords to reclaiming properties only for personal use, and capping rent increases on renewal at the rate of growth in the rent index. Landlords should verify the current legal position with the Ministry of the Interior, as these reforms may already be in effect by the time this article is read.

The Rental Housing Market Development and Regulation Act sets out the grounds for termination, the procedures to be followed, and the applicable notice periods for both landlords and tenants. If a possession dispute arises, either party may submit it to the relevant Municipal or City Land Office for conciliation; any party who refuses to comply with a conciliation outcome may subsequently bring the matter before the courts for adjudication.

What should expat landlords know about managing property remotely in Taiwan?

Running a Taiwan rental property from overseas is entirely feasible, but it requires careful structuring. The key practical considerations centre on appointing a suitable local representative, managing tax obligations correctly, and understanding the rules governing the transfer of rental income out of Taiwan.

Power of attorney: Non-resident landlords who cannot be present in Taiwan to handle day-to-day matters should execute a formal power of attorney (委任書) granting a trusted individual or professional agent the authority to sign documents, collect rent, and represent them in legal proceedings. This document should be notarised and, if signed overseas, may need to be apostilled or authenticated by a Taiwan representative office in the landlord’s country of residence.

Property management: A reputable property management company can take care of tenant sourcing, rent collection, maintenance, and lease renewals on behalf of an overseas owner. Given that most official documents and standard lease templates in Taiwan are in Mandarin Chinese, non-Mandarin-speaking landlords are strongly advised to engage a bilingual property manager or agent to navigate the letting process effectively.

Tax withholding obligations: Non-resident landlords must be aware that where a business tenant pays rent exceeding NTD 20,000 per month, the tenant is required to withhold and remit tax on the rent. Non-resident individuals are taxed on rental income at a fixed rate of 20%. Even where no withholding applies — for example, because the tenant is a private individual — the non-resident landlord remains legally obliged to file a Taiwan tax return and settle any tax due. Retaining a local certified public accountant (CPA) is strongly recommended.

Repatriation of rental income: Taiwan does not impose exchange controls specifically restricting the repatriation of rental income by foreign nationals. Funds can generally be transferred abroad through normal banking channels, subject to standard anti-money laundering documentation requirements. Tax must be properly settled before or at the time of remittance — the landlord’s bank or a CPA can advise on the correct procedure for doing so.

Non-residents of Taiwan are taxed at a flat 20% on Taiwan-sourced rental income. Non-resident landlords should also investigate whether a double taxation agreement (DTA) is in place between Taiwan and their country of residence, as this may affect how rental income is treated for tax purposes in their home country. Taiwan has concluded tax arrangements with a number of jurisdictions; consult the Ministry of Finance for the current list.

Frequently asked questions

Can a non-resident foreigner own and let property in Taiwan?

Yes. Foreign nationals are permitted to own and let residential property in Taiwan, subject to restrictions linked to nationality and the principle of reciprocity. Nationals from most countries that allow Taiwanese citizens to own property may purchase and let property in Taiwan. Non-resident landlords are subject to a 20% flat withholding tax on rental income as of 2025. Contact the Ministry of the Interior and a local lawyer to confirm eligibility based on your specific nationality.

Do I need a local agent to let my property in Taiwan?

No legal requirement obliges landlords to use a local agent for standard long-term residential letting. That said, non-resident landlords — and in particular those who do not speak Mandarin Chinese — will find it strongly advisable to engage a bilingual property management company to handle leases, tenant communications, maintenance arrangements, and tax compliance.

What is the maximum deposit I can charge tenants in Taiwan?

The Rental Housing Market Development and Regulation Act provides that a security deposit may not exceed two months’ rent. Demanding more than this is not lawful under the Act. Landlords should remain within the two-month legal ceiling to avoid complaints or legal challenge (as of 2025).

How is rental income taxed for non-resident landlords in Taiwan?

Non-resident individual landlords pay tax on Taiwan-sourced rental income at a fixed rate of 20%. No personal exemptions or special deductions are available to non-residents. Tax may be withheld at source by a business tenant. Non-resident landlords should file a Taiwan tax return and should investigate whether any applicable double taxation agreement reduces their overall tax burden. Always confirm current rates with the National Taxation Bureau (as of 2025).

Can I let my Taiwan apartment on Airbnb?

Taiwanese law does not generally permit private residences to be made available for stays of fewer than 30 days. Most residential apartments cannot lawfully be listed on short-term platforms such as Airbnb — hosts must hold a hotel or B&B (minsu) licence, and operating without the appropriate licence can attract substantial fines. Consult the Tourism Bureau and your local municipality for current licensing requirements before proceeding.

Who pays letting agent fees in Taiwan — landlord or tenant?

No statutory rule in Taiwan prescribes which party bears the letting agent’s fee. In practice, the fee — typically around one month’s rent for a standard letting transaction — is often split between landlord and tenant, or paid in full by whoever appointed the agent. Taiwan has no legislative equivalent to the UK’s near-total ban on fees being charged to tenants. Always establish and record fee arrangements in writing before instructing any agent (as of 2025).

What happens if my tenant stops paying rent in Taiwan?

A landlord is entitled to reclaim possession of their property if the tenant has failed to pay rent for two consecutive months. Written notice must be served at least seven days before any eviction. Should the tenant refuse to vacate, the landlord can pursue the matter through the Municipal or City Land Office for conciliation, or through the courts. Engaging a locally registered lawyer for formal possession proceedings is advisable.

Are there any tax incentives for landlords in Taiwan?

Landlords who qualify as “public welfare landlords” — those letting to tenants who are eligible for government rent subsidies — may have their rental income exempted from income tax, subject to a cap of NTD 15,000 per dwelling per month and a five-year limit. Resident landlords may also elect to reduce their taxable rental income either by claiming a deemed-expense deduction (a fixed percentage of rental income announced annually by the tax authority) or by deducting actual documented expenditure. Consult the Ministry of Finance for current incentive details.