🛋️ What are the steps to buy property in Taiwan?

1. Things to know before

🧾 1. Can you legally buy property here?

First things first: check if your country has a reciprocal real estate agreement with Taiwan. If not, you're out of luck. Americans, beware: it's not just about being a U.S. citizen; your state must have the right agreement. So yes, you may need to prove you’re from Oregon and not Montana.

📏 2. Size matters… and it's called a “Ping”

Taiwan doesn't use square meters: they use ping (坪), which is about 3.3 square meters or 35.5 square feet (about the size of a yoga mat for two).

Those pings often include shared areas like stairwells, gyms, and hallways. A “25 ping” flat might only give you 17 pings of actual living space.

🌱 3. Love the countryside? Proceed with caution

Thinking of buying a cute farmhouse on a rice paddy? Not so fast! Foreigners can't own agricultural land unless married to a Taiwanese citizen and even then, it’s complicated. Also, no farming = no house. You’ll need to plant crops, join the local farming association, and maybe even grow pineapples for years. If you’re not in it for the mangoes, skip it.

🏞️ 4. Protected land: Pretty but pointless

Protected land might have stunning views, but it’s basically a national park you pay for. You can't build on it, ever. So unless you're planning a lifelong career in hoeing soil with no roof, avoid it.

🏗️ 5. Pre-sale homes: Trust issues 101

A pre-sold home sounds great, pay less now, move in later. But if the building doesn’t exist yet, how do you know it ever will? Major developers are usually reliable. Smaller ones might vanish like your neighbor’s scooter helmet. You usually only pay a deposit first, but still beware.

🔨 6. Auctioned houses: Cheaper but spicier

Auction properties can be cheaper, but here’s what they don’t put on the brochure:

• You can’t visit the home beforehand
• You may inherit a squatter (previous owner/renter)
• You’ll need serious upfront cash
• You pay higher interest at first

In other words, this is like Tinder, but you have to marry them before the first date.

🛋️ 7. Fully furnished? Ha. Cute.

New homes in Taiwan usually come with nothing. No fridge. No stove. No washing machine. Maybe an A/C if you’re lucky. Prepare to hit IKEA or Carousell, and don’t underestimate how hot Taiwan gets without an air conditioner.

2. Getting a loan (If needed)

🏠 1. First-time buyer benefits:

• Taiwanese citizens get special interest rates (usually under 2%).
• Foreigners don’t qualify, unless you put the house in your spouse’s name.

🏦 2. Loan basics:

• Maximum loan:
  • 80% for locals
  • 70–75% for foreigners
  • 40–50% for farmland or oddly-zoned property
•  Loan term: Most banks offer 20 to 30 years, but it depends

💸 3. How banks evaluate you

Taiwanese banks check your financial background in two ways:

🌐 4. What if your income Is overseas?

If you're a remote worker or self-employed with a foreign company:

• Transfer money monthly into your Taiwan bank account for 6+ months before applying.
• The bank won’t accept proof of foreign income unless it’s showing up locally and consistently.
• Keep it clean. No need to fake anything, just plan the timing.

🏦 5. Which banks will work with foreigners?

If you work in Taiwan, chances are your company wires your salary to a local bank. Start there, they already know you, which makes getting a mortgage slightly less painful.

Not all banks lend to foreigners.

• Big banks may reject you outright.
• Smaller banks are more flexible.

🧠 Pro tip: Ask around. If you have local friends, ask for introductions to bank agents. Connections help a LOT in Taiwan. They make people more comfortable working with you.

🧍‍♂️ 6. Guarantor drama

Ah yes, the infamous Taiwanese guarantor. Most banks will require you to have a local citizen sign your loan unless you're married to one. No spouse? Then you’ll need a very close, very trusting Taiwanese friend. Good luck.

💸 7. The Real boss fight: Down payment

Here’s where it gets spicy. Down payments in Taiwan range from 15% to 30%, plus taxes, legal fees, and moving costs. 

This is why young people are waiting to marry, move out, or reproduce.

🧾 8. Mortgage interest = Tax deduction

If you use itemized deductions, you can write off up to 300,000 NT per year in mortgage interest. That’s more dumpling money for you.

3. Find a property

📏 1. Trust, but also measure

In Taiwan, size isn’t just a number: it’s a mystery wrapped in a ping. That lovely "30 ping" apartment might actually be 18 once you subtract balconies, elevator shafts, and your neighbor's share of the trash room.

Pro tip: Bring a tape measure (or use your phone’s measuring app) and double-check the real usable area. If you’re paying for 25 ping but only getting 17, you’ve just found a negotiation lever.

🧍‍♂️ 2. Don’t go alone: Unless you speak fluent mandarin and real estate

Bring someone. Ideally:

• A family member
• A friend with good judgment
• A fluent Chinese speaker who won't let you accidentally agree to buy a haunted house

Even better: bring someone with all three qualities.

🧑‍💼 3. The right realtor can save your sanity

In Taiwan, many homes are sold exclusively through one realtor. So without an agent, you might never even see 50% of available listings. Choose someone who:

• Understands your needs
• Actively helps you hunt
• Doesn't just push their agency’s worst leftovers

Agents often charge 1–3% of the property price as commission.

Find an agent

🔊 4. Neighbors: The wild card of taiwanese real estate

Buying a house means committing to your neighbors, whether they’re lovely retirees or a couple who collects glass bottles and feeds stray cats on your scooter.

Look out for:

• Hoarders (they’re real)
• Night owls with karaoke machines
• Thin walls with louder-than-you’d-like... habits
• That one guy who just doesn’t wear clothes around the shared space (it happens)

Sneaky trick: stomp your foot during the viewing. If someone knocks on the ceiling angrily... now you know.

🚪 Bonus cultural insight:

Don’t expect welcome baskets or neighborly chats. Most neighbors will nod politely and avoid all human interaction. If that’s your style, perfect. If not, prepare to initiate every conversation yourself.

💦 5. Check for water damage

Look closely for signs of water problems. This is one of the biggest issues with homes in Taiwan.

• Fresh paint can hide water stains. Ask why a spot was freshly painted.
• Check ceilings, balconies, and bathroom walls, even in new buildings.
• Look for musty smells, falling concrete, stains, peeling paint, ect.
• ⚠️ Even ground-floor units or lower floors can leak, especially from balconies or neighboring bathrooms.
• Ask yourself if the property is currently lived in? Is it the rainy season? Water damage might not show up if it hasn’t rained in a while.

🌊 6. Think about flooding

Check the drainage and slope of the land. Typhoons and sudden rainstorms are serious here! Look at nearby houses, do they have flood protection barriers on the doors? Don’t wait to find out the hard way. Ask:

• Has the area ever flooded?
• How deep did the water get?
• Where does the water drain?

Properties to buy in Taiwan

4. Verify property ownership and legal status

• Title deed: Confirm the seller legally owns the property
• Real estate registration certificate: Check for liens, mortgages, or legal disputes
• Survey the property: Ensure it matches the title deed (no illegal construction)
• Ask for the house condition report: By law, sellers (or agents) must provide a house condition report.
  • They might not show it during a first visit, but they must provide it before you proceed.
  • If they refuse to share it : 🚩 red flag.

  • This report includes:

    • Illegal structures (like rooftop additions or closed balconies)
    • Leaks or damage
    • Ownership and land details (for example: is the road leading to the property public or private?)

➡️ Always ask in writing (LINE or email) so you have proof later.

5. Negotiate and make an offer

• Agree on terms: Price, payment schedule, and responsibilities (repairs). Don't hesitate to negociate the price, it's not rare to be able to get 10–20% off the listing price.
• Deposit: You’ll sign a preliminary agreement and pay a deposit (typically 5–10% to secure the deal). ⚠️ The agreement should include a "subject to loan approval" clause: If your loan gets denied, the deal is canceled and your deposit is refunded. After this, the seller can’t accept offers from anyone else (usually for around 3 months).
• Notarize the contract: A notary public must certify the contract

🧠 Important: Agents work for the seller, not you, even if they act helpful.

6. Complete legal and financial steps

• Apply for Ministry of the Interior approval (if foreign buyer purchasing land or non-residential property):
  • Submit proof of identity, residency, and financial capability
• Pay deed tax:
  • 1 to 6% of the property price, paid to the local tax authority See more infos
•  Finalize loan terms with the bank

7. Register the property transfer

• Land Administration Bureau:
  • Submit documents to transfer ownership to your name
  • Pay stamp duty and registration fees (minimal costs)
• Receive the new title deed: Confirms your ownership

8. Final payments and handover

• Pay the remaining balance: The final payment (after down payment and earnest money)
• Transfer utilities and insurance: Update accounts to your name
• Handover the property: Inspect the property one last time before moving in

9. Post-purchase considerations

• Property insurance: Optional but recommended (earthquake or fire insurance)
• Tax compliance:
  • Pay annual real estate tax See the annual tax rate
  • Pay land tax See more infos
  • (When a property is inherited) Inheritance tax See the calculator
  • (When you sell the property in the future) Land value-added tax  See the calculator

Key notes for foreigners

• Visa restrictions: Some visas (student or tourist) may limit property purchases. Confirm eligibility
• Legal representation: Hire a bilingual lawyer to review contracts and handle paperwork
• Guarantor requirement: Banks or landlords may require a local guarantor for loans or purchases