Taiwan Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Taiwan landlord and tenant laws are judged by the Global Property Guide to be slightly Pro-Landlord between landlord and tenant. Taiwan's legal framework aims to provide a fair baseline, but the lack of detailed tenant-specific protections and common use of informal contracts often leave tenants at a disadvantage—especially in high-demand urban areas.

Rents: Can landlord and tenant freely agree rents in Taiwan?

The parties may freely agree on the rent. 

According to the Land Act, annual house rentals cannot exceed an amount equivalent to 10% of the total declared value of the property. For government-built housing, the rent cannot exceed 8% of the total value of the property. Land valuation is done annually for tax purposes. If the landlord intends to increase the rent upon renewal of the lease, then his tax liabilities will also increase.

Under Taiwan law, unless the lease of land is for the purpose of constructing buildings, the lease term cannot exceed 20 years. Any lease exceeding this limit is automatically reduced to 20 years. Additionally, renewal clauses in 20-year lease agreements may be subject to legal challenge, so parties often need to enter into a new lease agreement after the term expires.

Deposits

In Taiwan, the standard security deposit is typically equivalent to two months’ rent, unless the landlord and tenant agree otherwise.

Key deposit: A smaller refundable amount, typically between NT$500 and NT$2,000, paid for door keys and returned when the keys are handed back.

What rights do landlords and tenants have in Taiwan, especially as to duration of contract, and eviction?

Length of term on Residential leases typically last between one and two years. Rent adjustment clauses are less common in residential leases and are usually negotiated by the parties when renewing the lease.

At the end of a lease in Taiwan, tenants are typically required to give 1–2 months’ notice, as specified in the lease agreement. Before moving out, the landlord will inspect the property for any damages. The security deposit is then refunded, minus any deductions for necessary repairs, unpaid bills, or cleaning costs. In cases of disputes, tenants can seek mediation through the Consumer Protection Committee or take the matter to court.

How effective is the Taiwanese legal system?

Disputes regarding lease of a house are submitted to the respective Municipal or City Land Office for conciliation. Any party to the dispute who refuses to abide by the conciliation decision may bring the case before the judicial authorities for adjudication.

In reality, the rental market is very informal. Although the law requires that the maximum deposit should be 2 months' rent, three months' rent is not uncommon. Contracts are not mandatory but they are readily available in 7-11 shops. It is actually very easy for the landlord to throw out his tenants.

Legislation

In addition to the Civil Code and the Land Act, leases of residential premises are also governed by the Rental Housing Market Development and Regulation Act along with its related regulations.