What are property taxes typically like in Taiwan today?
(Should this go in the Taxes Forum?)
Well, here’s what I’ve learned in my research about buying property in Taiwan. If anyone knows different, please feel free to clarify. I gathered my information by talking to friends who I know to have a lot of experience buying property here. I do not have any published references
There are basically two kinds of taxes to be concerned with when buying property here - Propery Tax and Land Tax
Property Tax is due in May. It is based on the number of pings you own, as recorded in the deed of sale. So for example, you might have a house that is 40 ping according to the deed, but the actual living space is only 35 ping. Your property tax would be based on 40 pings.
Land tax is more interesting. It is based on your “calculated area” of ownership. Let me try to explain using the 40 ping apartment. To keep things simple, let’s say the building has ten 40 ping units. Now the building sits on a plot of land that is 100 pings square. each unit owner is said to “own” 1 tenth of this ‘land’ – so your calculated area is only 100 pings / 10 unit owners = 10 ping.
The city government keeps track of a multiplier (I forget what the proper name is for this) for each district in the city. Ta-an district probably has the highest such number - and in their genius, they manage to have some figure for each of Taipei City’s 12 districts. The city uses this number and multiplies it to your “calculated area”.
I’m told that Land Tax is not really a big deal. So say you bought your apartment for NT$ 10,000,000 - your land tax may only come to about NT$ 5,000 pre year.
[quote=“Lingchen”]…
There are basically two kinds of taxes to be concerned with when buying property here - Property Tax and Land Tax
Property Tax is due in May. It is based on the number of pings you own, as recorded in the deed of sale. So for example, you might have a house that is 40 ping according to the deed, but the actual living space is only 35 ping. Your property tax would be based on 40 pings.
…
I’m told that Land Tax is not really a big deal. So say you bought your apartment for NT$ 10,000,000 - your land tax may only come to about NT$ 5,000 pre year.[/quote]
What about Property tax? is it a heavy tax?
I am thinking of buying a condo for my retiring relative to live in, and need to research for tax information. So I would appricated it if anyone knows about Property tax. I heard it is 1.6% of your current property value? is it true?
Also, how about the property transaction tax when you buy it? I heard it is 6% of the transaction value. Is it true? if so, this is quite a heavy tax considering how expensive the properties in Taipei city are these days.
Thanks. 
I found the following tax info for owning a property in Taiwan:
- When you buy a property, there is a 6% transaction tax, along with other minor tax.
- There is a annual “house tax” at the rate of 1.38% of its current assessed value.
- There is an annual “land tax” at the rate of 0.2% of its current assessed value.
- When you sell a property, there is a capital gain tax at the rate of 20%.
source:
globalpropertyguide.com/Asia … ying-Guide
globalpropertyguide.com/Asia … -and-Costs
Any feedbacks will be appreciated.
[quote=“Scott123”]I found the following tax info for owning a property in Taiwan:
2. There is a annual “house tax” at the rate of 1.38% of its current assessed value.
3. There is an annual “land tax” at the rate of 0.2% of its current assessed value.
[/quote]
It should be noted that these current assessed values are way below actual market values. If I recall correctly, mine have been only about 10% of what I paid for the properties.
[quote=“Omniloquacious”][quote=“Scott123”]I found the following tax info for owning a property in Taiwan:
2. There is a annual “house tax” at the rate of 1.38% of its current assessed value.
3. There is an annual “land tax” at the rate of 0.2% of its current assessed value.
[/quote]
It should be noted that these current assessed values are way below actual market values. If I recall correctly, mine have been only about 10% of what I paid for the properties.[/quote]
As crazy as it would be, does that mean that the Capital Gains tax would be paid on the difference between your “current assessed value” and what you sold it for?
[quote=“spaint”][quote=“Omniloquacious”][quote=“Scott123”]I found the following tax info for owning a property in Taiwan:
2. There is a annual “house tax” at the rate of 1.38% of its current assessed value.
3. There is an annual “land tax” at the rate of 0.2% of its current assessed value.
[/quote]
It should be noted that these current assessed values are way below actual market values. If I recall correctly, mine have been only about 10% of what I paid for the properties.[/quote]
As crazy as it would be, does that mean that the Capital Gains tax would be paid on the difference between your “current assessed value” and what you sold it for?[/quote]
I don’t know because I haven’t been a seller yet, but I’m sure that can’t be so.