Taiwan – Property Taxes

What taxes and fees apply when buying a property in Taiwan?

When acquiring property in Taiwan, the purchaser is primarily responsible for deed tax, stamp tax, land title registration fees, and any professional or agent fees. Unlike jurisdictions that consolidate all transaction levies into a single charge — such as the UK’s Stamp Duty Land Tax — Taiwan distributes its acquisition costs across several distinct charges, each governed by its own legislation. The overall cost to the buyer at closing is generally restrained compared with many other countries.

Deed tax is the principal government charge payable by the buyer. It is calculated on the government-assessed current value of the building rather than the actual market price, which is typically considerably higher. The rate varies according to the nature of the transaction. For a straightforward purchase (買賣), the deed tax rate is 6% of the assessed value. Other transaction types carry lower rates — gifts attract 2.5%, while partitions and exchanges are taxed at 2%. Always verify the applicable rate with the Ministry of Finance (MOF) or your nearest local revenue service office.

Stamp tax applies to the sale agreement itself. On deeds covering the sale, exchange, donation, or division of real estate, stamp tax is levied at 0.1% of the contracted amount, with each contracting party paying separately. This is a minor expense but should be accounted for when preparing a purchase budget.

Land registration fee is paid to the Land Administration Bureau (地政事務所) to formally record the change of ownership. This fee typically amounts to around 0.1% of the government-assessed land value. Adjustments to the land value tax position and the seller’s land value increment tax liability — though borne by the seller — may also influence purchase negotiations and the final settlement.

Agent fees (仲介) in Taiwan are customarily shared between buyer and seller, with each party paying roughly 1%–2% of the transaction price to the real estate agency, though this is negotiable. If you engage a licensed land administrator (代書) or lawyer to manage title registration and documentation, their fees are ordinarily modest — commonly a flat charge of NT$10,000–NT$30,000 depending on the complexity of the transaction.

Worked example — approximate buyer’s costs on a NT$15 million apartment purchase:

Note: Government-assessed values in Taiwan are generally substantially below prevailing market prices, which means deed tax as a proportion of the actual purchase price is effectively far lower than the headline 6% rate implies. Always confirm current assessed values and applicable fees with the relevant local tax bureau, as these figures are subject to periodic revision.

What taxes and fees apply when selling a property in Taiwan?

The costs falling on the seller in a Taiwan property transaction are generally more significant than those borne by the buyer, since the seller carries the primary tax liabilities arising from any profit on the sale. The principal obligations are the Land Value Increment Tax (LVIT), the House-and-Land Transactions Income Tax (covered in detail in the following section), agent commissions, and stamp tax.

Land Value Increment Tax (地價稅) is triggered at the point of sale and is assessed on the rise in the government-assigned land value since the property last changed hands. It is computed on the monetary increase in the assessed land value between ownership transfers, with rates ranging from 20% to 40% depending on the scale of the increment. This operates conceptually like a land appreciation tax found in other parts of Asia, though it applies to assessed rather than market values, which moderates the effective burden. Once the Land Value Increment Tax has been settled, the land component of the capital gain is not revisited under income tax — although the building element is addressed separately through the House-and-Land Transactions Income Tax.

Sellers who have used a property as their primary self-occupied residence may apply for a preferential LVIT rate of 10% on the land value increment, available once per decade per person, provided they satisfy the qualifying residency conditions. Eligibility should be confirmed with your local revenue service office.

Agent fees for the seller are typically 1%–2% of the sale price, subject to negotiation with the estate agency. Stamp tax at 0.1% of the contract price is also payable by the seller. Professional fees for a licensed land administrator or lawyer on the seller’s side are comparable to those on the buyer’s side.

The House-and-Land Transactions Income Tax — Taiwan’s unified capital gains charge covering both building and land — is examined in full in the section below, as it represents the most consequential tax consideration for the majority of sellers.

Is capital gains tax payable on property sales in Taiwan?

Yes — Taiwan operates a comprehensive capital gains regime for property disposals known as the House and Land Transactions Income Tax (房地合一稅). The current framework, referred to as version 2.0, came into effect on 1 July 2021 and is deliberately calibrated to penalise rapid resale while extending considerably more favourable treatment to those who hold property over the longer term.

Which properties are covered? According to the Ministry of Finance, the amended holding-period rules apply to houses and land acquired on or after 1 January 2016 and sold on or after 1 July 2021. Property acquired before 1 January 2016 is generally subject to the earlier framework, under which only the building component was liable to income tax while the land component was taxed exclusively through LVIT.

How is the taxable gain calculated? The chargeable gain equals the sale proceeds minus the original acquisition cost, minus allowable transaction expenses, minus the incremental assessed land value change already captured by LVIT. Deducting the land value increment in this way prevents double taxation on the land element.

Rates for tax residents (as of 2025):

For non-tax residents, where the holding period does not exceed two years the taxable gain is subject to capital gains tax at 45%; where the holding period exceeds two years, the rate falls to 35%. Foreign individuals and businesses are required to pay tax at the same rates as domestic entities within the equivalent holding-period brackets. This contrasts with approaches in some other countries — for example, Australia removes the 50% CGT discount for non-residents while still applying progressive income tax rates — whereas Taiwan’s rate structure is explicit, graduated by holding period, and among the most aggressive for short-term transactions in the Asia-Pacific region.

Primary residence exemption: Resident taxpayers who satisfy the qualifying conditions may exclude NT$4 million from taxable income; any gain not exceeding NT$4 million is fully exempt, and any surplus is charged at a flat 10%, provided the taxpayer, their spouse, and underage children have maintained household registration at the property for at least 6 consecutive years. This relief is available once every 6 years. Losses realised on property transactions may be carried forward for up to 3 years to offset future taxable gains from other property disposals.

Practical example: A tax resident disposes of a property held for 3 years. The sale price is NT$12 million, the original purchase cost was NT$9 million, allowable transaction expenses total NT$200,000, and the LVIT-assessed land increment is NT$300,000. Taxable gain = NT$12,000,000 − NT$9,000,000 − NT$200,000 − NT$300,000 = NT$2,500,000. Since this falls below the NT$4 million self-use threshold — assuming the property qualifies — the gain would be exempt. Without that relief (for instance, on an investment property), the 35% rate applies: tax ≈ NT$875,000. Always confirm your position with the Ministry of Finance or a qualified Taiwan tax adviser.

Are there annual property taxes in Taiwan?

Property owners in Taiwan are subject to two principal recurring levies: House Tax (房屋稅) on the physical structure, and Land Value Tax (地價稅) on the land. These are distinct charges administered at the local government level and are, by international comparison, relatively light — considerably less burdensome, for example, than council tax in the United Kingdom or the annual property tax regimes common across the United States.

House Tax is assessed on the government-assigned current value of the building, not on its market price. To alleviate the tax burden on individual owner-occupied homes, promote productive use of housing, and rationalise the tax structure, the MOF developed a revised differential rate scheme for house tax; the amendment to the House Tax Act was promulgated on 3 January 2024 and took effect on 1 July 2024. Under the updated framework, owner-occupied residential properties are taxed at approximately 1.2% of the government-assessed current value (with a transitional reduction in the tax base for 2025 — see below). The statutory rate for residential properties that are neither owner-occupied, nor rented out, nor jointly inherited rises to a band of 2%–4.8%, calculated progressively on the total number of such properties held nationally by the same owner. This higher rate targets investors who hold multiple dwellings vacant.

The tax base is reduced by 37.5% in 2025, 25% in 2026, and 12.5% in 2027 (equating to effective rates of 0.75%, 0.9%, and 1.05% respectively), with the full statutory rate restored from 2028. This phased approach cushions the transition to updated assessed values during the roll-in period.

Land Value Tax is an annual charge on land ownership. Owners of land or real estate are liable for this tax, which is levied on the assessed value of the land; land prices in Taiwan are reassessed every two years. For self-use residential land, the rate is a flat 0.2% of assessed land value. Non-residential land and properties attract a progressive rate that can range from approximately 1% to around 5%. The Land Value Tax filing window falls between 1 and 30 November each year.

On a typical mid-range Taipei apartment with a government-assessed building value of around NT$3 million and an assessed land value of around NT$2 million, the annual house tax would be roughly NT$22,500–NT$36,000 (at 0.75%–1.2%), and the land value tax approximately NT$4,000 (at 0.2%) — producing a combined annual bill of around NT$26,000–NT$40,000 (roughly US$800–US$1,250). This illustrates how modest the ongoing holding cost is relative to property tax systems in North America or Europe. Always verify current assessed values with your local tax bureau.

How is rental income from property taxed in Taiwan?

Rental income in Taiwan is taxable and must be reported as part of the property owner’s annual consolidated income tax return. The applicable rules differ depending on whether the landlord is a tax resident or a non-resident, and whether the letting arrangement is long-term or short-term in nature.

Tax-resident landlords must include net rental receipts in their annual consolidated income. A withholding tax rate of 10% applies to residents where withholding is triggered — typically when the tenant is a corporate entity. For individuals filing a consolidated return, rental income is aggregated with other income sources and taxed at the progressive rates of 5% to 40%. Landlords may offset allowable costs — including depreciation, maintenance and repair expenditure, management charges, and mortgage interest — or apply a deemed expense deduction (generally 43% of rental receipts for residential premises) where actual expenditure cannot be evidenced. Check with the National Taxation Bureau of Taipei or your regional tax bureau for the current deduction rules.

Non-resident landlords are subject to a flat withholding rate. The withholding tax rate for non-residents is 20%, typically deducted at source by the tenant or remitting party. In many cases this withholding represents the final tax liability on that income stream for non-residents who do not operate a fixed place of business in Taiwan.

Short-term rentals (e.g. Airbnb, Vrbo): The regulation of short-term letting has tightened progressively in Taiwan. Hosts using platforms such as Airbnb are generally expected to register as a business, obtain an accommodation licence from the Tourism Bureau where required, and report earnings as business revenue rather than standard rental income — which may also bring them within the scope of business tax (VAT) at 5%. Hosts who do not register but earn income from short-term lets are still required to declare that income. The treatment differs materially from ordinary long-term residential tenancy income. If you intend to operate short-stay accommodation, seek advice from a Taiwan-registered accountant and consult the Tourism Administration regarding current licensing obligations.

Landlords who let residential properties on long-term leases at below-market rents to low-income tenants may be eligible for reductions in house tax and income tax incentives through government affordable housing initiatives. Verify the conditions currently in force with the MOF.

Does inheritance tax apply to property in Taiwan?

Yes. Taiwan levies an estate tax (遺產稅) on property and other assets passing on death. The charge applies broadly and encompasses non-residents who hold property within Taiwan’s borders.

Who is liable? Estate tax is imposed on the estate of a deceased person who was a Taiwan citizen or who owned property in Taiwan. If the deceased was a Taiwan national habitually domiciled in Taiwan, tax is charged on all their property wherever situated. If the deceased was a foreign national or a Taiwan citizen habitually domiciled outside Taiwan, tax is charged only on property located within Taiwan. This distinction matters significantly for expatriates: if you are not domiciled in Taiwan, only your Taiwan-sited assets — including real estate — fall within the estate tax charge.

Exemption and rates: From January 2025, the net estate, after applicable exclusions, deductions, and the exemption, is subject to progressive rates; the basic exemption stands at NT$13.33 million per deceased. Taiwan’s estate tax has historically been moderate — tax is calculated on the prevailing value of taxable assets on the date of death, after deducting exemptions, with an exemption of NT$13,330,000 per estate tax return for each deceased person.

Beyond the basic exemption, supplementary deductions are available in respect of a surviving spouse, dependent parents, minor children, funeral costs, and outstanding liabilities, all of which can substantially reduce the taxable estate. Priority for filing and settling the estate tax falls, in order, on: the executor of the will, the heir or heirs, legatees, or the administrator of the estate.

Tax treaties: As of 31 December 2024, Taiwan has concluded 35 effective double taxation agreements (DTAs) with countries around the world. However, Taiwan’s treaty network is relatively narrow by international standards, and most agreements address income tax rather than estate or inheritance tax specifically. Foreign heirs should seek professional advice on whether their country of residence has concluded any arrangement with Taiwan that could affect their liability, and consult the Ministry of Finance for current treaty status.

Does gift tax apply to property transfers in Taiwan?

Yes. Taiwan imposes a gift tax (贈與稅) on property transferred between living persons. Estate tax applies to all property transferred at death, while gift tax applies to all property transferred during the year — both operate at the individual level. This arrangement prevents the avoidance of estate tax through pre-death gifting of assets.

Annual exemption: Every donor is entitled to an annual gift tax exemption of NT$2.44 million (as of 2025 — this figure is periodically adjusted; always verify the current amount with the Ministry of Finance). Gifts whose total value in a given calendar year falls below this threshold are not subject to gift tax. The annual exclusion is per donor rather than per recipient, so gifts made to multiple family members during the same year are aggregated when determining whether the threshold has been crossed.

Rates on amounts above the exemption: For gifts dated after 1 January 2024, if taxable gifts total NT$28,110,000 or less, the rate is 10%; if the total exceeds NT$28,110,000 but does not exceed NT$56,210,000, tax is NT$2,811,000 plus 15% on the portion above NT$28,110,000; if the total exceeds NT$56,210,000, tax is NT$7,026,000 plus 20% on the portion above NT$56,210,000. These brackets are subject to annual revision, so confirm current thresholds with the National Taxation Bureau.

Who is liable? The donor is ordinarily the taxable party, though in certain circumstances liability passes to the recipient. Estate and gift taxes are levied on the worldwide assets of Taiwanese nationals who habitually reside in Taiwan; Taiwanese nationals who habitually reside outside Taiwan, and non-Taiwanese nationals, are subject to estate and gift tax only in respect of assets situated within Taiwan. Foreign individuals who gift property located in Taiwan therefore fall within the scope of Taiwan’s gift tax rules.

Note that transferring property by way of gift does not insulate the transaction from the house-and-land transactions income tax where a gain is realised. Specialist advice should be obtained before using property gifts as a tax planning measure.

Are there any tax advantages or incentives for buying property in Taiwan?

Taiwan offers a range of reliefs and incentives, most of which are directed at owner-occupiers and those who hold property over an extended period rather than at investors or those seeking rapid returns. The following are of particular relevance to expatriate buyers.

Self-use house tax rate: Owner-occupiers registered at a single residential property benefit from a reduced house tax rate of approximately 1.2% of assessed value (further lowered under the 2025 transitional base reduction). The MOF introduced the differential rate structure for house tax specifically to ease the burden on individual owner-occupiers and to encourage productive use of housing stock. Owners of multiple properties, or those who leave dwellings vacant, face considerably higher rates.

Self-use LVIT reduction: A seller disposing of their self-occupied home may qualify for a preferential Land Value Increment Tax rate of 10% — against the standard range of 20%–40% — available once every 10 years per person. This is one of the most valuable reliefs available to long-term owner-occupiers in the Taiwan system.

Primary residence CGT exemption: As described in the capital gains section, resident taxpayers who have maintained their household registration at a property for at least 6 consecutive years may benefit from an NT$4 million exemption on disposal, with any gain above that amount taxed at a flat 10% rather than the full holding-period rate. The capital gains tax rate for family homes can be reduced to a fixed rate of 10% once every 6 years, and capital gains are assessed separately from personal income tax.

Mortgage interest deduction: Taiwan residents who borrow to finance the purchase of their primary owner-occupied home may deduct mortgage interest from their consolidated income tax liability, subject to a statutory cap. Verify the current ceiling with the relevant tax authority, as it is subject to periodic amendment. This is conceptually similar to mortgage interest relief available in certain other jurisdictions.

Long-term holding incentive: The sharply declining capital gains rate structure — from 45% on disposals within two years down to 15% for property held beyond 10 years — effectively rewards patient ownership and discourages rapid resale, making long-term investment inherently more tax-efficient than short-term trading.

Urban renewal incentives: Properties falling within designated urban renewal (都市更新) schemes may benefit from reduced house tax during the project period and from exemptions or credits on deed tax for rebuilt units. Purchasers considering older buildings in designated renewal zones should investigate these incentives with a locally experienced adviser.

Do different rules apply to foreign buyers or non-residents purchasing property in Taiwan?

Taiwan does not impose a general foreign buyer surcharge of the kind seen in certain other markets — such as the additional stamp duty levied on overseas purchasers in Singapore, Australia, and Canada. Nevertheless, there are significant restrictions, compliance obligations, and tax differences that foreign nationals and non-residents must understand before proceeding with a purchase.

Eligibility to purchase: Foreign nationals are generally permitted to acquire real property in Taiwan, subject to a reciprocity requirement (Taiwan must allow citizens of the buyer’s home country to purchase property there). Acquisitions in certain restricted categories — including mountainous areas, national parks, and specifically designated agricultural or military land — are typically prohibited or require additional regulatory approval. Always confirm the eligibility position for your specific nationality and intended property type with the Ministry of the Interior’s Land Administration Bureau before proceeding.

Capital gains tax for non-residents: For non-resident taxpayers, the applicable rate is 35% for property held for more than two years and 45% for property held for two years or less. Non-residents cannot access the self-use household registration exemption (NT$4 million), because that relief requires a Taiwan household registration — a status available only to citizens and certain ARC holders.

Same CGT structure, fewer exemptions: Foreign individuals and businesses are subject to the same House-and-Land Transactions Income Tax framework as residents with respect to the base rates, but without access to the self-use reductions and exemptions available to registered residents. The practical effect is that non-resident sellers will typically face a higher effective tax burden than comparable resident sellers.

Rental income withholding: Non-resident landlords have their rental income subject to a flat 20% withholding rate rather than the resident’s progressive scale. For non-residents with modest rental receipts, this flat rate may prove broadly comparable to, or lower than, what a high-income resident would pay, but in lower-income scenarios the progressive scale can be more favourable to residents.

Estate and gift tax: As set out in those respective sections, Taiwanese nationals habitually resident outside Taiwan, and non-Taiwanese nationals, are subject to estate and gift tax only on assets situated within Taiwan. This territorial approach is straightforward in operation: your Taiwan property is within scope; your foreign assets are not.

Financing: Foreign nationals without Taiwan residency may encounter more restrictive lending terms from local banks, including lower loan-to-value ratios. From 2020 to 2024, the central bank reduced loan-to-value ratios applicable to second homes and encouraged banks to strengthen internal credit controls. Foreign buyers should discuss current lending conditions directly with a local bank before assuming they can obtain financing on the same terms as residents.

Foreign buyers should also ensure compliance with reporting obligations under their home country’s tax law, as property held in Taiwan may need to be disclosed as a foreign asset — particularly for residents of countries with foreign asset reporting requirements.

Frequently asked questions about property taxes in Taiwan

Do I have to pay tax when I buy a property in Taiwan as a foreigner?

Yes. Buyers are required to pay deed tax (ordinarily 6% of the government-assessed building value for a standard purchase transaction), stamp tax (0.1% of the contracted amount), and land registration fees. These obligations apply to all buyers regardless of nationality. The total acquisition cost to the buyer is generally modest — typically 2%–4% of the purchase price depending on assessed values. Confirm current rates with the Ministry of Finance or your local revenue bureau.

How much capital gains tax will I pay when selling a Taiwan property?

Capital gains tax on property transactions in Taiwan was broadened in scope in recent years; as of January 2021, an amendment was enacted to increase taxes on gains from property transactions for properties sold after 1 January 2016. The applicable rate depends on how long the property was held and your tax residency status. For residents, rates range from 15% (for holdings exceeding 10 years) to 45% (for holdings of 2 years or less). For non-residents, the rate is either 35% or 45%. Owner-occupiers who have maintained household registration at the property for at least 6 consecutive years may qualify for a meaningful exemption. Always verify your specific circumstances with a qualified Taiwan tax adviser.

Is there a way to reduce the capital gains tax on my Taiwan home?

Yes. The principal reliefs are: retaining the property for more than 10 years (which reduces the rate to 15% for residents); qualifying for the self-use household registration exemption (NT$4 million exempt with a flat 10% rate on any surplus, available once every 6 years); and applying for the preferential LVIT self-use rate of 10% on the land value increment (available once every 10 years). Non-residents are not eligible for the self-use exemption. Consult a locally qualified tax adviser for personalised guidance.

How much house tax will I pay each year on my Taiwan property?

House tax is computed on the government-assessed current value of the building, which is generally well below its market price. For a single owner-occupied residential property, the effective rate is approximately 0.75%–1.2% of that assessed value (with transitional base reductions applying during 2025–2027). Annual bills on a mid-range urban apartment are typically modest — often NT$20,000–NT$50,000 per year. The statutory rate for residential houses that are not owner-occupied, not rented out, and not jointly inherited rises to between 2% and 4.8%, making investment properties substantially more costly to hold on an ongoing basis.

Do I pay inheritance tax if I inherit a Taiwan property as a non-resident?

Where the deceased was a foreign national or a Taiwan citizen habitually domiciled outside Taiwan, estate tax is charged only on property situated within Taiwan. Inheriting a Taiwan property therefore brings it within the estate tax scope regardless of where the beneficiary resides. The estate benefits from a NT$13.33 million exemption per deceased person (as of 2025), plus additional available deductions. Rates above the threshold are progressive. Consult the National Taxation Bureau and a local estate lawyer for guidance on your specific situation.

Is there a gift tax if I transfer a Taiwan property to a family member?

Yes. Gifting property in Taiwan triggers gift tax liability if the cumulative value of the donor’s gifts during that calendar year exceeds the annual exemption of NT$2.44 million (as of 2025). Rates on amounts above the exemption range from 10% to 20% based on total cumulative gift value. The donor is ordinarily the taxable party. Note that the transfer may also attract the house-and-land transactions income tax where a gain exists. Always take professional advice before gifting property.

Do I need to register as a landlord in Taiwan?

Landlords letting residential property on a long-term basis must report rental income on their annual income tax return. Those operating short-term rental arrangements — for example through Airbnb — may be subject to additional licensing and business registration requirements under the Tourism Administration’s regulatory framework, and business tax (VAT) at 5% may become payable. Confirm your current obligations with your local tax bureau and the Tourism Administration.

Where can I find official, current information about Taiwan property taxes?

The principal official sources are: the Ministry of Finance (MOF) for national tax policy; your regional National Taxation Bureau (e.g. the National Taxation Bureau of Taipei); the Taipei City Revenue Service for local taxes; and the Ministry of the Interior Land Administration Bureau for registration requirements and foreign ownership rules. Tax rates and thresholds change regularly — always verify the current figures before making any decisions, and consider engaging a locally licensed tax adviser (稅務顧問) or certified public accountant (CPA) for advice tailored to your circumstances.