Compliance
Compliance Essentials for Foreign Property Sales in Taiwan: What Foreigners Must Know
Foreigners selling Taiwanese property face specific income-tax rules and tight deadlines—understanding the requirements helps avoid harsh penalties.
By NomadicTax Research Team • 5-8 min read • August 17, 2026
## Understanding Taiwan’s ‘House & Land Transaction Income Tax’ for Foreign Individuals
Foreign taxpayers in Taiwan—including non-residents, special visa holders, or those living abroad—face **separate taxation** for gains from house and land transactions. These are reported under the Liability of Property Gains Act provisions in Taiwan’s Income Tax Act. Importantly, the gain from these transactions is **not included** in your annual consolidated income. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai))
**Key triggers** that require filing:
- The property or house use rights are acquired on or after **January 1, 2016**. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai))
- Selling shares or capital in companies (domestic or foreign) where **50 % or more** of the value is in property, with more than half of the shares or capital in your name or business. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai))
- Applies even if there is **no taxable gain or there is a loss**. Filing is mandatory. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=9e72a26632b744bc87ffd685f02af77b&utm_source=openai))
## Rates, Deadline, and Penalties
| Holding Period | Tax Rate for Non-Residents / Foreigners |
|---|---|
| Less than 2 years | **45 %** ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai)) |
| 2 years or more | **35 %** ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai)) |
- **Deadline**: Within **30 days** from the day **after ownership-transfer registration**, or after the transaction date if house rights/presales. Missing this leads to fines. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai))
- **Fine Range for late filing**: NT$3,000 to NT$30,000. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai))
## What Counts as Deductible vs What Doesn’t
To compute income properly, you subtract:
- The **original acquisition cost** of the house/land.
- Necessary expenses **directly related** to acquisition, improvement, and **fee/costs for ownership transfer**. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=e8405aacef294b96889226b7e810538c&utm_source=openai))
**Not deductible**:
- House tax, land value tax while owning
- Interest payments on loans
- Management fees, cleaning, maintenance etc.
These expenses are not transaction-related. Overclaiming can trigger reassessment and additional tax. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=0963e0e43c144113a39b032d33936fcd&utm_source=openai))
## Practical Example
- Ms. Wang (foreign national) acquired a property in Jan 2021, sold it in Sept 2024.
- Transaction price: **NT$12,000,000**
- Acquisition cost: **NT$8,000,000**
- Transfer fees / improvement costs: **NT$1,000,000**
- Holding >2 years → **35 % tax rate**
- Income = 12,000,000 − 8,000,000 − 1,000,000 = **3,000,000**
- Tax payable = **NT$1,050,000**
- If she mistakenly included non-allowed expenses (e.g. loan interest NT$40,000, house tax NT$60,000), tax authority will remove them and adjust upward. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=0963e0e43c144113a39b032d33936fcd&utm_source=openai))
## Steps for Foreign Sellers to Ensure Compliance
1. **Determine acquisition date** (must be on or after Jan 1, 2016 for rules to apply).
2. **Track all acquisition and transfer documentation** to prove original cost, construction permits etc.
3. **Calculate income: price − cost − allowed expenses**.
4. **File the return within 30 days** of registration.
5. **Pay applicable tax rate** based on holding period.
6. **Avoid claiming non-deductible items**. Submissions without supporting docs may limit deductions to statutory percentages. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=9e4b08237f974d2b8320b581c48f077a&utm_source=openai))
By carefully following these rules, foreign property sellers can minimize exposure to penalties, avoid surprises, and ensure that any tax liability is handled correctly and efficiently.