Entity Setup
Setting Up an Entity in Taiwan? Consider How ‘House Tax 2.0’ Affects Multi-Property Ownership
Taiwan’s House Tax 2.0 reforms change how owning multiple properties—especially non-self-occupied ones—is taxed. If you plan to start a company that holds real estate, here’s what to understand.
By NomadicTax Research Team • 5-8 min read • September 12, 2026
## What Is House Tax 2.0?
Launched under the reforms published in **House Tax Act** amendments, **House Tax 2.0** went into effect starting **1 July 2024**, with first assessments under the new regime collected in **May 2025**. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
The changes include:
- **Global aggregation (全國歸戶)**: All non-owner-occupied residential properties owned anywhere in Taiwan are treated together to determine tax rate and bracket. Previously, only per-county counting. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
- **Higher statutory rates for non-self-occupying homes**: Non-self-occupied units are taxed at **2%–4.8%**, with higher rates for those owning more properties. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
- **Self-occupied homes relief**: For those holding exactly one property used exclusively as a home (owner, spouse, minor children), and within certain value thresholds, the tax rate drops to **1%**. Compare to former baseline around 1.2%. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
- **Rental incentive**: If a non-owner-occupied property is rented out and declared (with approved rent), it may qualify for lower rate bracket of **1.5%–2.4%** rather than full non-self-occupying rate. Public housing rented under lease programs still treated favorably at 1.2%. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
## Implications for Businesses and New Entities
| Impact Area | What It Means for Your Entity |
|---|---|
| Multi-property holding companies | Owning many units pushes you into higher brackets; upfront tax costs will increase significantly if properties are left vacant or for investment and not declared rental income. |
| Property investment trusts or REIT-style vehicles | Need to ensure compliance with rental income declaration; non-compliance could mean paying full higher non-self-occupied rate |
| Developers with unsold inventory | Idle units held as assets rather than rented or sold quickly may incur higher carrying costs from tax burdens under progressive brackets. |
| Family-run holding firms | For small portfolios, combine ownership to keep property count down or ensure at least one unit is self-occupied to seek the 1% rate relief. |
## Practical Setup Advice
- **Plan ownership count**: If possible, structure ownership to have just one home occupied by you or family to benefit from 1% rate. Above that, expect higher rates.
- **Declare rentals where relevant**: Transparent declaration of tenancy income may unlock lower brackets—non-declare means worse rates under 2%. Keep documentation and rental agreements official. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
- **Valuation thresholds matter**: The relief for self-occupied homes depends on value caps set by local government using MOF benchmarks. Understand how local authorities apply these. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
- **Inheritance & co-ownership**: Joint property ownership via inheritance may result in different tax liability or relief treatment; ensure legal ownership structures are aligned early. ([mof.gov.tw](https://www.mof.gov.tw/house/multiplehtml/fb9a2a1b9efa426bb0cc7802e1a8da91?utm_source=openai))
- **Consult early**: If setting up a new entity that will hold property, assess if structuring with rentals, leasing arms, or multiple holders changes your exposure.
## Case Illustration
Entity “ABC Holdings” owns three units in Taipei and Taichung, none of which are self-occupied. Under House Tax 2.0, all three are aggregated and taxed at a national rate bracket, say 4.2% (for properties 5-6 units). If ABC rents two and leaves one vacant, declaring only rented units may reduce tax—but only partially. If it reduces properties to one self-occupied, that unit may fall back to the 1% rate if under value limit.
## Big Picture Takeaways
- Owning idle non-self-occupied real estate in Taiwan carries higher ongoing cost under House Tax 2.0.
- Rental income declaration is not just tax compliance—it yields tangible tax savings under new regime.
- Entity-level ownership requires careful structuring: ownership count, legal status (corporation, trust), and usage matter.
- Aligning entity setup and property strategy early ensures lower tax exposure.
## Compare with Hong Kong
Hong Kong’s stamp duty rises on high-value property echo Taiwan’s approach to discourage speculation. But in HK, allowances and reliefs remain central to individual income tax rather than property tax per se. Entities operating real estate in both jurisdictions need tailored advice to handle overlapping tax drivers.