How to Purchase Property in Taiwan as a Foreigner
Who can buy property in Taiwan?
Foreigners are allowed to possess real estate in Taiwan, with approval for an individual´s acquisition of a real estate title generally granted reciprocally. In other words, if the foreigner´s home country permits Taiwanese citizens to purchase properties there, Taiwan will reciprocate and allow citizens from that country to buy properties in Taiwan. Moreover, a foreign company is restricted from owning real estate in Taiwan unless it is duly registered in the country.
Do the research
Taiwan has a diverse landscape, including mountains, plains, and a rugged coastline. The island has a rich cultural heritage influenced by its indigenous peoples, Chinese settlers, and periods of Dutch and Japanese colonization.
In terms of governance, Taiwan operates as a separate entity with its own political system, but its status is a subject of international debate. China claims sovereignty over Taiwan, while Taiwan sees itself as a self-governing democratic state. The relationship between Taiwan and China remains complex and sensitive, with political, economic, and security implications for the region.
Here are various attractive areas for real estate investment:
- Taipei City - As the capital and largest city of Taiwan, Taipei is a major economic and cultural center. It has a variety of neighborhoods catering to different preferences, from the bustling city center to quieter residential areas.
- Xinyi District, Taipei - This district is known for its modern architecture, upscale shopping malls, and proximity to the Taipei 101 skyscraper. It´s a desirable area for both residential and commercial real estate.
- Da´an District, Taipei - Da´an is a well-established district with a mix of residential and commercial spaces. It´s known for its parks, cultural attractions, and a vibrant lifestyle.
Banqiao District, New Taipei City - As part of the greater Taipei metropolitan area, Banqiao is a bustling district with a mix of residential and commercial properties. It´s well-connected to other parts of Taipei. - Tianmu, Taipei - Also known as Shilin District, Tianmu is a popular area among expatriates. It features a mix of residential options, international schools, and a more relaxed atmosphere compared to the city center.
Where to find properties online:
Financing
Taiwanese banks and lenders typically demand a substantial down payment from foreign nationals, often ranging from 30% to 40% of the property´s purchase price. However, these deposit requirements may vary, so it´s recommended to inquire with several local banks and lenders. Some of the local banks that are known to offer mortgages to foreign nationals are CTBC Bank, Cathay United Bank and Land Bank of Taiwan.
Property Buying Costs and Taxes in Taiwan
| Transaction Costs | ||
| Who Pays? | ||
| Deed Tax | 6.00% | buyer |
| Stamp Duty | 0.10% | buyer |
| Notary Fee | 0.10% | buyer |
| Legal Fees | 0.10% - 1.00% | buyer |
| Stamp Duty | 0.10% | buyer |
| Real Estate Agent´s Fee | 1.00% - 2.00% 3.00% - 8.00% |
buyer seller |
| Costs paid by buyer | 7.40% - 9.30% | |
| Costs paid by seller | 3.00% - 8.00% | |
| ROUNDTRIP TRANSACTION COSTS | 10.40% - 17.30% | |
| Source: Global Property Guide | ||