Summary
Taiwan taxes the gain on selling a home acquired on or after 1 Jan 2016 under its integrated house and land income tax (房地合一稅). The current version, known as 2.0, applies to sales from 1 Jul 2021 and also covers pre-sale homes, the Ministry of Finance (MOF) says. Rates depend on how long the seller held the property: for individuals resident in Taiwan, 45% within two years, 35% from two to five years, 20% from five to ten years and 15% after ten years. Non-residents pay 45% within two years and 35% after that.
Separately, amendments to the Equalization of Land Rights Act that took effect on 1 Jul 2023 bar buyers of pre-sale and newly built homes from transferring their contracts to third parties, with limited exceptions, the Ministry of the Interior (MOI) says.
What this means for Taiwan home buyers and sellers
Tax rates for individuals
| Holding period | Resident individual | Non-resident individual |
|---|---|---|
| 2 years or less | 45% | 45% |
| Over 2, up to 5 years | 35% | 35% |
| Over 5, up to 10 years | 20% | 35% |
| Over 10 years | 15% | 35% |
Source: MOF Southern Taxation Bureau.
A 20% rate applies instead to resident sales within five years for involuntary reasons such as a job transfer, to land developed jointly with a builder and sold within five years, and to a first transfer after taking part in urban renewal, the bureau says.
How the taxable gain is worked out
The taxable gain is the sale price less the acquisition cost, less related expenses, less the land value increment already counted for land value increment tax, the MOF says. Acquisition cost can include deed tax, stamp duty, scrivener and agency fees, and later improvements. If you cannot show your selling expenses, the tax office can allow 3% of the sale price, capped at NT\$300,000.
The self-use relief
A self-use home can be sold with the first NT\$4 million of taxable gain tax-free and 10% on the rest, the MOF says. To qualify:
- you, your spouse or a minor child must have held household registration at the home, owned it and lived in it for six continuous years;
- it must not have been rented out or used for business in the six years before the sale; and
- you, your spouse and minor children must not have used the relief in the previous six years.
Filing deadline
File and pay within 30 days, counted from the day after the transfer is registered, or for a pre-sale home, from the day after the contract is signed.
The pre-sale contract rules
For pre-sale and new homes contracted from 1 Jul 2023, the buyer may transfer the contract only to a spouse, a lineal relative or a relative within the second degree, or in one of six special cases approved by the local government, such as involuntary unemployment for more than six months, the MOI said on 30 Jun 2023. Buyers who signed before that date may transfer once, but the new buyer is bound by the rules. Developers may not agree to or help with a prohibited transfer, and breaches are fined NT\$500,000 to NT\$3 million per unit. The same amendments set fines of NT\$1 million to NT\$50 million per unit for price manipulation, such as spreading false information or staging sham sales, the MOI said on 10 Jan 2023.
Illustration: one sale, three holding periods
Illustration only, using the MOF's own example. A home bought for NT\$10 million sells for NT\$14.6 million, with NT\$450,000 of agency and scrivener fees and a land value increment of NT\$150,000, so the taxable gain is NT\$4 million. A resident who sells within two years pays NT\$1.8 million; after three years, NT\$1.4 million; after six years as a qualifying self-use home, nothing.
FAQ
What is the house and land tax rate in Taiwan? For residents, 45%, 35%, 20% or 15% depending on whether the holding period is up to two, five, ten or over ten years. Is the self-use relief once in a lifetime? No. It cannot be used if you, your spouse or minor children used it in the previous six years. Can I resell a pre-sale contract? Generally not for contracts signed from 1 Jul 2023, except to close family or in approved special cases.
Education only — not tax, legal or investment advice. Confirm with a licensed professional.
What to do next
- Check your acquisition date and household registration history before you agree a sale date.
- Keep receipts for deed tax, fees and improvements; they lower the taxable gain.
- If you are buying off-plan, plan to hold the contract to completion.
- Ask a verified tax adviser or lawyer to check your position: proprkey.com/en/pros?segment=legalFinance
- Compare homes for sale: proprkey.com/en/properties?segment=buyer&mode=buy