Taiwan – Selling Property

What steps are involved in selling property privately in Taiwan?

Whether a seller proceeds independently or through a professional intermediary, Taiwan’s property transaction framework requires a consistent sequence of legal steps. Certain obligations — most notably registering the ownership transfer and discharging applicable taxes — are compulsory regardless of how the sale is arranged. A clear understanding of each phase allows you to plan both your schedule and your budget with confidence.

1. Assemble your documentation. Collect your original title deed, land registration certificate, national ID card or passport (for overseas sellers), and any mortgage records. Confirm the title deed names you as the registered owner, review the real estate registration certificate for encumbrances such as liens, mortgages, or ongoing disputes, and verify that the physical property corresponds to what appears on the title with no unauthorised additions or modifications.
2. Commission a property condition report. Sellers — or their appointed agents — are legally required to produce a house condition report before a buyer can proceed. This report sets out all known defects, water ingress problems, and structural concerns, and represents a statutory obligation rather than a matter of courtesy.
3. Advertise the property. Sellers choosing to proceed without an agent can list on major online platforms. 591.com.tw is among Taiwan’s largest real estate portals and carries both sale and rental listings from across the country. Expat communities and local residents frequently use Facebook groups as an additional channel for sharing property listings and market information.
4. Negotiate and confirm terms. Agree on the final price, payment milestones, and responsibility for any remedial works. Price reductions of 10–20% from the initial asking price are not unusual during negotiation.
5. Execute a preliminary agreement and collect a deposit. Once terms are agreed, both parties sign a preliminary agreement and the buyer pays a deposit, ordinarily 5–10% of the purchase price, to lock in the deal. Following this, the seller is generally prevented from entertaining other offers — typically for a period of around three months.
6. Retain a licensed land administration agent (scrivener). A scrivener is engaged to manage tax and title transfer applications, including the submission of the actual transaction price to the authorities. You must work with a licensed land administration agent to file formal government applications and liaise with lending institutions where relevant. This professional’s involvement is obligatory even when no estate agent is appointed.
7. Execute the formal Sale and Purchase Agreement. The buyer and seller enter into a binding Sale and Purchase Agreement that formally records the transaction. From the moment this document is signed, both parties are contractually committed.
8. Discharge outstanding taxes and bills. The seller must clear all outstanding house tax and land tax liabilities ahead of ownership transfer. Responsibility also falls on the seller to settle any unpaid utility charges and building management fees before handing over the property.
9. Complete title registration. Buyer and seller jointly submit the title transfer application to the local Land Administration Office. Legal ownership passes to the buyer only once registration is formally completed at that office.
10. Lodge and pay capital gains tax. Capital gains tax becomes due within 30 days of the date on which ownership registration is finalised. File the relevant return with the Ministry of Finance or the appropriate local tax authority.

Do most sellers in Taiwan use an estate agent, or is selling privately common?

Engaging a licensed real estate agent is overwhelmingly the standard approach in Taiwan. No legislation compels a seller to appoint one, yet the practical demands of the process — covering mandatory disclosure documentation, tax submissions, and title registration — lead the vast majority of sellers to seek professional assistance. Private sales do occur, but they represent a minority of transactions and are far less prevalent than in markets such as France or the Netherlands, where owner-managed sales are well established and routine.

Agent commissions on property transactions in Taiwan typically fall between 2% and 5% of the final sale price, with the Real Estate Broking Association setting a legally enforceable ceiling of 6%. Because this commission is a meaningful sum, some sellers do choose to list independently — particularly through digital platforms — in order to preserve more of the proceeds.

591.com.tw is one of the country’s foremost property websites and accommodates private listings alongside those placed by agencies, giving sellers a direct route to potential buyers without appointing formal representation. That said, the administrative burden does not disappear with an agent’s absence. Even in a purely private transaction, a licensed scrivener must be engaged to manage the title transfer and tax registration process, which means that genuinely DIY selling in Taiwan is considerably more involved than it might initially seem.

When evaluating agents, check that the agency holds membership with the Taiwan Real Estate Broker Association (TREBA) or another recognised professional body, as these affiliations carry conduct and ethics standards. Foreign sellers in particular are well advised to seek out bilingual agents who have prior experience handling cross-border transactions, as the documentation and communication requirements can be considerably more complex than for local sellers.

How does capital gains tax apply when selling property in Taiwan?

Taiwan applies an “integrated house and land transactions income tax” framework, introduced in 2016 and substantially reinforced from July 2021. Rather than taxing property gains at a single flat rate or folding them into a general income calculation, Taiwan uses a tiered rate structure that varies according to how long the property has been held — with particularly severe rates imposed on short-term sellers to discourage speculative activity in the market.

The capital gains regime was broadened in recent years; an amendment passed in January 2021 increased the tax burden on property transaction profits for properties disposed of after 1 January 2016. The applicable rate depends on both the length of ownership and the seller’s tax residency status in Taiwan.

For sellers who are not tax residents of Taiwan, a holding period of two years or less results in taxable gains being subject to capital gains tax at 45%. Where the property has been held for more than two years, the rate falls to 35%. These flat rates apply uniformly regardless of the magnitude of the gain, and they are materially more onerous than the long-term rates available to tax residents.

Tax residents are subject to the same method of computing taxable income, but benefit from a graduated scale. As of 2024, the applicable rates are: 45% for properties sold within two years of acquisition; 35% for a holding period of two to five years; 20% for five to ten years; and 15% for properties held beyond ten years.

Taiwan tax residents selling a principal residence may be entitled to a significant relief. Where the seller has held the qualifying primary residence for more than six years and satisfies the conditions prescribed under the relevant legislation, the first TWD 4,000,000 of capital gain is exempt from tax, with any surplus above that threshold taxed at 10%. This relief is unavailable to non-residents.

The taxable gain is arrived at by deducting from the sale price the original acquisition cost, transaction-related expenses, and the incremental increase in assessed land value. This last deduction is critical: because the Land Value Increment Tax (LVIT) is charged separately on the land component, the same increase in land value cannot also be subjected to income tax. Once the Land Value Increment Tax has been settled, the corresponding portion of the gain is excluded from income tax.

Losses realised on property transactions may be carried forward for up to three years and set against taxable gains arising from other property sales. Always confirm current rates and thresholds with the Ministry of Finance or a qualified Taiwan tax adviser, as the figures cited here reflect the position as of 2024 and may be amended by future legislation.

What other taxes and costs does a seller face in Taiwan?

Capital gains tax is far from the only financial consideration for a seller in Taiwan. Several additional levies and professional fees must be taken into account when calculating net proceeds, and some of these — particularly the Land Value Increment Tax — can be considerable.

Land Value Increment Tax (LVIT): This tax is computed on the government-assessed rise in land value since the property last changed hands, with rates ranging from 20% to 40% depending on the scale of the increase. Responsibility for this tax ordinarily rests with the seller, though it is sometimes a subject of negotiation between the parties before the sale is finalised. Always verify the current assessed land value and applicable rate with the relevant local tax authority before committing to a price.

Stamp duty: A stamp duty of 0.1% of the contract value is charged on real estate sale agreements. This cost is conventionally divided equally between the buyer and seller.

Agent commission: Real estate agent fees typically sit within a range of 2% to 5% of the agreed sale price, with the combined total for both sides of the transaction generally settling around 4% to 5%. The customary arrangement allocates approximately 4% of the sale price to be shared between the seller’s agent and the buyer’s agent.

Land administration agent (scrivener) fees: Professional fees for the licensed conveyancer who manages title transfer applications and tax registrations typically range from NTD 20,000 to NTD 50,000. Confirm current charges directly with the scrivener you intend to retain, as fees can vary.

Outstanding annual taxes: The seller must clear all house tax and land tax arrears before ownership can be transferred. House tax is an annual levy applied to all buildings in Taiwan at rates that differ according to use classification, ranging from 1.2% to 3.6% for residential properties calculated on the government-assessed value of the structure.

In aggregate, seller-side costs — spanning taxes, professional fees, and agent commissions — can represent a meaningful proportion of the sale price. Seek a personalised cost estimate from a tax professional registered with the Taiwan Ministry of Finance and a licensed land administration agent before committing to the transaction.

What legal obligations must sellers fulfil in Taiwan?

Taiwan imposes explicit disclosure duties on property sellers, and these requirements are enforceable by law whether or not an agent is involved. Failing to comply can leave a seller exposed to legal liability well after the transaction has concluded.

Mandatory property condition report: Sellers — or their agents — are legally required to furnish a house condition report to prospective buyers before any purchase proceeds. This report must address known structural deficiencies, water penetration issues, unauthorised construction, and any other material problems with the property. This is a statutory duty, not merely best practice.

Disclosure of material facts: Sellers are required to confirm that ownership of the property is undisputed, that no undisclosed tenancy agreements are in place, and that there are no concealed quality defects — including issues such as sea sand construction, radiation-contaminated reinforcement bars, or persistent leaks. Depending on the terms of the sale and purchase agreement, a seller may remain liable for pre-existing defects discovered after completion.

Environmental responsibility: Where a property is found to be contaminated and the seller is identified as the responsible party, that liability persists under Taiwanese law, including the Soil and Groundwater Pollution Remediation Act, even after the sale is finalised. This is a particularly important consideration for sellers of older commercial or industrial sites.

Foreign seller reciprocity rule: The right of foreign nationals to purchase — and therefore to sell — property in Taiwan is conditional on their home country extending equivalent rights to Taiwanese citizens, a principle of reciprocity set out under Articles 17 and 20 of Taiwan’s Land Act. Overseas sellers should confirm their eligibility with a qualified local legal professional before listing their property.

Foreign company restrictions: A foreign company is not permitted to hold real estate in Taiwan unless it is formally registered in the country. Sellers who hold property through an overseas corporate structure should obtain specialist legal advice before proceeding with any disposal.

Taiwan does not currently mandate the equivalent of an energy performance certificate (EPC) for residential sales as is required across the European Union, but sellers are advised to consult the Ministry of the Interior — Land Administration for any developments in disclosure requirements.

How do exchange and completion work in a Taiwan property sale?

The property transaction process in Taiwan differs in meaningful ways from systems such as those in the UK or Australia, where exchange and completion constitute two legally distinct events managed predominantly by solicitors. In Taiwan, the process moves from a preliminary agreement — functioning similarly to a reservation contract — through to a binding sale and purchase agreement, with title registration at the Land Administration Office serving as the definitive moment of completion. Transactions are typically conducted through a combination of real estate agents and licensed scriveners rather than through lawyers.

Scriveners carry responsibility for title transfer applications and land surveys, while real estate brokers support the parties through site visits, inspections, and contract discussions. Notaries public are available to notarise certain documents — lease agreements of more than five years being a common example — though notarisation is not a compulsory step in most straightforward residential sales. Where notarisation is obtained, it adds a further layer of legal certainty to the transaction.

The parties may choose to have contracts certified by a notary public, but this is not required. Most transactions are managed and certified by licensed real estate agents or land administration agents who oversee both the contractual and registration aspects of the process.

After the preliminary agreement is signed and the deposit has been received, the transaction progresses to the formal Sale and Purchase Agreement. Once executed, this agreement becomes legally binding on both parties. Ownership formally passes to the buyer upon completion of the title registration at the land administration office — this registration step is the functional equivalent of legal completion.

Capital gains tax must be filed and paid within 30 days of the date the ownership registration is finalised. The full cycle — from signing a preliminary agreement through to completed title registration — ordinarily takes between one and three months, though the duration can vary depending on mortgage approval timescales, government processing capacity, and transaction complexity. Confirm expected timeframes with your land administration agent before proceeding.

Is a direct property swap or part-exchange possible in Taiwan?

A direct property exchange — in which two parties transfer their respective properties to each other in lieu of a conventional cash sale — is recognised under Taiwan’s Civil Code, which governs barter-type contracts. Nevertheless, this arrangement is neither common nor well-established in the residential market and is far less frequently encountered than standard cash purchases or mortgage-financed transactions.

Under Taiwan’s Land Act and tax legislation, a property exchange is treated as two concurrent sale transactions, each generating its own independent tax obligations. Both parties are therefore treated as sellers: each bears liability for the Land Value Increment Tax on the rise in assessed land value of their respective property, as well as capital gains tax under the House and Land Transactions Income Tax regime. Tax is assessed by reference to the market value of each property being exchanged, not merely on any cash adjustment made between the parties.

For overseas sellers, a direct exchange arrangement introduces substantial additional complexity. Each party must independently meet the reciprocity conditions imposed by the Land Act, and both face double the usual volume of tax filings. Where any uncertainty exists, consulting a professional conveyancer or real estate adviser is strongly recommended to ensure the transaction proceeds without complications. A scrivener with specific experience in exchange transactions would be essential, and legal counsel from a Taiwan-qualified attorney is strongly advisable before pursuing this route.

In practice, most property owners in Taiwan who wish to move up or down the market complete two separate transactions rather than undertaking a formal swap. In Taiwan’s urban centres, where the secondary property market is sufficiently liquid to allow simultaneous purchase and sale, there is little practical incentive to accept the legal complexity that accompanies a direct exchange.

What do foreign sellers need to know about transferring sale proceeds out of Taiwan?

Taiwan does not operate the kind of blanket capital controls found in some other Asian jurisdictions, but there are reporting obligations and procedural requirements that foreign sellers must follow when moving large sums abroad after completing a property sale. Overlooking these steps can result in delays or complications when dealing with Taiwanese banks.

Foreign nationals wishing to transfer funds out of Taiwan are generally expected to demonstrate the legitimate origin of the money. For proceeds from a property sale, this typically requires presenting documentation evidencing the completed transaction — including the sale contract, the title transfer registration record, and confirmation that all applicable taxes, particularly capital gains tax and the Land Value Increment Tax, have been paid in full. Banks in Taiwan will normally require this paperwork before processing a substantial international remittance.

Foreign exchange regulations in Taiwan are overseen by the Central Bank. Annual remittance thresholds apply: as of 2024, individuals may transfer up to USD 5 million per year or the equivalent in another currency, though this limit and the associated declaration requirements are subject to change. Always confirm current limits and procedures directly with the Central Bank of the Republic of China (Taiwan) or your Taiwanese bank before initiating any transfer.

Taiwan has concluded double taxation agreements (DTAs) with a number of countries, and these arrangements may affect whether profits or income arising from a property sale are taxed a second time in your country of residence. The Taiwan Ministry of Finance publishes a current list of tax treaties on its website. If a DTA exists between Taiwan and your home country, seek advice from qualified tax professionals in both jurisdictions, as the interaction between the two systems can produce unexpected results.

When repatriating a substantial sum, using a specialist international currency transfer service rather than a standard bank wire may offer better exchange rates and lower fees. Whichever route you choose, ensure all transfers are thoroughly documented for the purposes of both Taiwanese tax authorities and those in your country of residence.

Frequently asked questions

How long does the process typically take from listing to completion in Taiwan?

Timelines differ from case to case, but the period from agreeing a sale and signing a preliminary agreement through to finalised title registration generally spans one to three months. Potential sources of delay include the buyer’s mortgage approval, backlogs at the Land Administration Office, and the administrative steps involved in discharging an existing mortgage over the property. Sellers who prepare their documentation thoroughly in advance and appoint a scrivener at an early stage typically experience a smoother and faster process.

What happens if the buyer pulls out after signing the preliminary agreement?

Where a buyer withdraws after signing the preliminary agreement and handing over a deposit, the default position under Taiwanese practice is that the seller keeps the deposit as compensation for the aborted transaction. Should the seller be the party who backs out, they are ordinarily required to refund the deposit to the buyer at twice its value. The precise consequences in either scenario depend on the wording of the preliminary agreement itself, making it important to ensure these clauses are unambiguously drafted before any signatures are exchanged.

Can I sell my property in Taiwan remotely, or do I need to be present in Taiwan?

Physical presence in Taiwan is not an absolute requirement — a seller who is unable to attend in person may designate a proxy to execute documents on their behalf. Where the sale is to be managed through a legal representative or agent, a notarised power of attorney is likely to be required. Remote selling is therefore feasible, but the power of attorney will typically need to be notarised in your country of residence and apostilled for recognition in Taiwan before your representative can act. Consult a Taiwan-qualified lawyer regarding the correct format and procedure for your specific circumstances.

Do I need a Taiwan tax identification number to sell property?

Yes. Foreign nationals disposing of property in Taiwan require a Taiwanese tax identification number — commonly referred to as a Unified Identification Number for foreign nationals — in order to submit the capital gains tax return and complete the title transfer registration. If you do not yet hold one, your licensed land administration agent or a local accountant can guide you through the application process before the sale moves forward.

Are there restrictions on which nationalities can sell property in Taiwan?

Foreign nationals — with certain exceptions applicable to nationals and entities of the People’s Republic of China, who are subject to additional restrictions — are permitted to own real estate in Taiwan and to dispose of it, subject to the relevant governmental approvals. The right to acquire and hold title is extended on a reciprocal basis: Taiwan grants the right to foreign nationals whose home countries extend equivalent rights to Taiwanese citizens. The same principle applies to a subsequent sale. If you are uncertain about your eligibility, consult the Ministry of the Interior — Land Administration for guidance.

Is there a primary residence exemption from capital gains tax in Taiwan?

Yes, but the relief is confined to tax residents. Where a tax resident has held their principal residence for more than six years and satisfies the qualifying conditions set out in the applicable legislation, a capital gain of up to TWD 4,000,000 is exempt from tax, with any amount exceeding that threshold taxed at 10%. The qualifying criteria include maintaining household registration at the property for the seller, their spouse, and any minor children for a minimum of six consecutive years. Non-residents are ineligible for this exemption and remain subject to the flat rates that apply to overseas sellers. Verify the current qualifying criteria with the Ministry of Finance.

What is a scrivener (land administration agent) and do I really need one?

A scrivener — officially designated a land administration agent — is a licensed professional responsible for title transfer applications and land surveys. Working with such an agent is essential for submitting formal applications to the government authorities; ensure the individual you appoint has passed the relevant national examination and holds a valid licence. In practice, a scrivener is indispensable in any Taiwan property transaction: they prepare and file the tax documentation, communicate with the Land Administration Office, and ensure the legal validity of the title transfer. Their fees represent a non-negotiable component of the transaction costs, not an optional convenience.

What ongoing tax liabilities does a seller have after the sale completes?

Once the ownership transfer has been registered, the seller’s obligations in relation to house tax and land value tax on that property come to an end — those responsibilities transfer to the incoming owner. The seller must, however, ensure that all annual taxes accrued up to the point of completion are fully settled before the transaction closes, as these liabilities cannot simply be passed on to the buyer. Where a seller has incurred a loss on a property disposal, that loss can be carried forward for up to three years and applied against taxable gains from future property transactions — a provision that may be of particular relevance to sellers holding multiple properties in Taiwan.