Case Studies
Taiwan’s Rule Change on Holding Periods for Inherited Property Sales – What You Should Know
Taiwan has expanded the rules for property sales inherited via successive inheritances—this could affect how gains are taxed and whether you qualify for owner-occupied exemptions.
By NomadicTax Research Team • 5-8 min read • September 5, 2026
## What's New in the Holding Period Rule
On **August 4, 2026**, Taiwan’s National Taxation Bureau (Southern Area) announced a change: wherein property sold which was acquired through **successive inheritances or bequests** (on or after January 1, 2016), the **holding periods of all prior decedents/testators** may now be **combined** to determine eligibility for lower tax rates or owner-occupied incentives under the House and Land Transactions Income Tax regime. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8e2f0590743d44daaee19672a4779c16&utm_source=openai))
## Why This Matters
Previously, the heirs might be taxed at a higher rate or miss out on incentives because they hold only inherited property for a short period, even though the family line may have held the asset for many years. This latter change **reduces perceived penal treatment** of heirs. It’s especially relevant in heating real estate markets where inherited property is often disposed sooner.
## Key Impact Points
- **Combined holding period** is now recognized: you can aggregate ownership from successive owners for tax rate calculations. Figuring total ownership time is essential. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8e2f0590743d44daaee19672a4779c16&utm_source=openai))
- **Owner-occupied exemption** (first NT$4 million gain is exempt, rest taxed at 10%) may apply earlier based on your combined period. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8e2f0590743d44daaee19672a4779c16&utm_source=openai))
- Applies only for **property sold on or after January 1, 2016**. Inheritances must occur via legal bequest or succession. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8e2f0590743d44daaee19672a4779c16&utm_source=openai))
## Example
Taxpayer *A* inherits a property: Mother bought it in 1996; after her death in 2018, Father inherited it; upon Father’s death in March 2022, *A* received the property and sold it in February 2024. Aggregating the mother’s + father’s period results in more than 10 years total holding. **15% tax rate** applies rather than a higher one for short holding. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8e2f0590743d44daaee19672a4779c16&utm_source=openai))
## What Heirs Should Do
- **Document acquisition chains**: purchase dates by prior decedents, inheritance dates, sale date.
- **Keep inheritance/bequest paperwork**: wills, land registration, probate documents. These help establish holding periods.
- **Consult tax authorities** to confirm eligibility **prior to sale**—the real estate tax & land transactions income tax rules trigger mandatory filing within 30 days after ownership registration. ([mof.gov.tw](https://www.mof.gov.tw/eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=8e2f0590743d44daaee19672a4779c16&utm_source=openai))
- **Calculate potential tax liabilities** ahead of time under both old vs new rules; may affect timing of sale.
## Limitations & Watch Outs
- Property must have been sold after inheritance, not earlier. Acquisition through inheritance must follow legal succession.
- Sale contracts, registration dates crucial. Ownership transfer date is the key trigger.
- Owner-occupied exemptions have thresholds—first NT$4 million gain exempt; anything above taxed. Might still be higher rate if ownership < threshold period without other criteria.
## Bottom Line
For those inheriting real estate in Taiwan, the new rule gives you a chance to lower your tax bill by combining previous ownership periods. If you're planning to sell inherited property, sketch out your ownership history now and check qualification. It might provide meaningful savings.