Beyond the price itself, a buyer in Taiwan pays contract tax (契稅), stamp duty, registration fees, the land administration agent’s fee, the escrow fee and the agent’s commission, together about 3% of the price. A seller pays land value increment tax (土地增值稅), house and land income tax (房地合一稅, or property transaction income tax under the old regime), commission and mortgage discharge costs. This guide sorts every item by when it is paid, to whom, and how. For the order of events, see the buying process.
Three numbers to hold on to
- 6 to 8 weeks: the standard timeline when there is no old mortgage to pay off.
- 28 to 33%: total cash to prepare with an 80% loan, including taxes, commission and renovation.
- 4 payments: earnest money, signing, sealing, final balance.
(General practice for resale homes, data as of July 2026.)
The eight payment points
The price is paid in four instalments: earnest money (斡旋金, paid with your offer and converted into a deposit once the seller agrees), the signing payment, the sealing and tax payment, and the final balance at handover. Every payment goes through an escrow account (履約保證專戶), a third-party account held by a bank or building management company.
Step 1: Offer, with earnest money or an offer letter
Both are binding. Earnest money means handing cash to the agent with your offer; an offer letter (要約書) is a written offer with no money. When the owner signs, the contract exists and the earnest money becomes a deposit. Before the owner signs you can withdraw and get everything back. After, backing out forfeits the deposit; backing out of an offer letter commonly costs 3% of the offer price.
Our view: Most first-time buyers should use earnest money rather than an offer letter. A NT$50,000 to NT$100,000 deposit is a capped, predictable cost; a 3% penalty easily runs to several hundred thousand. Decide your walk-away price first. The negotiation window (typically 3 days) is for bargaining, not hesitating. See earnest money.
Step 2: Signing, money into escrow
The land administration agent (代書, the licensed professional who handles title transfer) reviews the contract clause by clause: price and payment dates, handover date, and what is handed over as is. The signing payment, typically 10% of the price, goes into escrow less the earnest money. You sign two promissory notes (本票), one securing the signing payment and one securing the final balance; the agent destroys them after transfer and disbursement. The seller brings the original title deed and a same-day transcript (謄本, the land registry extract).
Our view: Escrow, always. The fee is about 0.06% of the price, split equally: NT$4,500 each on a NT$15,000,000 home. Anyone asking you to wire money to the seller directly is a reason to walk away. See escrow explained.
Step 3: Sealing, the deed and the tax filings
Sealing (用印) completes the official deed for the transfer. You pay the sealing instalment (typically about 10%) into escrow; the seller provides a seal certificate issued within the past year; the agent files contract tax and land value increment tax. Apply to 2 or 3 banks right after signing, not after sealing. If you already own property, confirm how the central bank’s 2026 lending limits treat a second home before applying.
Step 4: Mortgage and loan signing
The bank checks salary transfer records, withholding statements and your credit bureau report, then appraises the home; the loan ratio applies to the appraisal, not your price. At loan signing (對保) confirm rate, term, grace period, lock-in and penalties. The mortgage is registered at 1.2 times the loan, which is standard, and funds are released into escrow after transfer.
Our view: Compare 2 or 3 banks on lending terms, not the loan officer’s enthusiasm. If you are between jobs or have complex income, strengthen your proof of income or add a co-borrower first.
Step 5: Taxes, who pays what
Buyer: contract tax (assessed building value × 6%), stamp duty, registration fees, agent fee. Seller: land value increment tax (10% preferential rate for owner-occupiers) and, after transfer, the house and land income tax return. Sellers should ask about owner-occupier relief and the repurchase refund before signing; the difference can be several hundred thousand NT dollars. Keep every receipt.
Step 6: Title transfer plus mortgage registration
The agent registers the ownership transfer and your mortgage on the same day. The home is now yours, but no money has moved. Registration fee: (declared land value + building value) × 0.1% plus certificate fee. If the seller inherited the home and has not completed inheritance registration, the transfer stalls; confirm clean title before signing. See inheritance registration.
Step 7: Payoff, then disbursement
Your loan is released into escrow; the seller’s old loan is paid off and discharged; then the balance goes to the seller. Cases with a payoff often take 1 to 2 weeks longer, so leave a buffer in the handover date.
Step 8: Inspection and handover
Check walls, floors and ceilings for cracks and water; plumbing and wiring; doors, windows and hardware; agreed appliances; utilities and management fees settled; every key, card and fob. Do not accept keys until problems are resolved.
Our view: Inspect in daylight, ideally after rain, when leaks show. We bring a full checklist to every handover.
Buyer costs: the full table
| Item | Amount or formula | When |
|---|---|---|
| Earnest money (converts to deposit) | Typically NT$50,000 to NT$100,000 | At offer |
| Signing payment plus sealing and tax payment | About 10% of price each | Week 1 / weeks 2 to 3 |
| Contract tax | Assessed building value × 6% | Tax stage |
| Stamp duty | (Assessed building value + announced land value) × 0.1% | Sealing |
| Registration fee | (Declared land value + building value) × 0.1% plus certificate fee | Transfer |
| Land administration agent fee | About NT$25,000 (depends on complexity) | Each stage |
| Escrow fee | Price × 0.06%, split equally | Signing |
| Buyer’s agent commission | Typically 1 to 2% (per contract) | Handover |
Example: a NT$15,000,000 home with an 80% loan needs about NT$3,900,000 to NT$4,200,000 in cash (26 to 28% of the price). Non-down-payment cash comes to about 3% of the price; add renovation and moving, and we suggest another 10% as a flexible reserve. The most common failure is not overpaying but putting every dollar into the down payment.
The interactive calculator is on our Chinese page (link); it estimates tax and fees on an assessed value of one tenth of the price. See also down payment.
Seller costs
The seller’s list is shorter, but the amounts can be much larger because the taxes follow the gain.
| Item | How it is calculated | When |
|---|---|---|
| Land value increment tax (土地增值稅) | On the rise in announced land value: general rates 20% / 30% / 40%, owner-occupier rate 10% | Tax stage |
| House and land income tax (房地合一稅) | Property acquired from 2016 (ROC year 105) onward; 45% / 35% / 20% / 15% by holding period; owner-occupied 6 years or more: NT$4,000,000 exemption and 10% rate | Filed within 30 days after transfer |
| Property transaction income tax (old regime) | Property acquired before 2016; only the gain on the building portion, added to personal income | Filed the following May |
| Agent commission | Per the listing agreement; buyer and seller combined may not exceed 6% of the price | Handover |
| Escrow fee | Price × 0.06%, split equally | Signing |
| Agent fee and discharge fee | Agent and registry fees for signing and discharging the mortgage | Each stage |
| House tax and land tax apportionment | Split with the buyer by days held, with handover as the cut-off | Handover |
| Mortgage payoff and penalties | Balance paid from the buyer’s funds; early repayment inside a lock-in may carry a penalty | At payoff |
Land value increment tax and house and land income tax are two separate taxes. Both are due and neither offsets the other. See selling taxes and net proceeds and housing and land income tax.
For foreign nationals: The 10% owner-occupier land value increment tax rate and the NT$4,000,000 self-use exemption depend on household registration (戶籍). Without it they generally do not apply; plan on the general rates and ask us before you list.
FAQ
Why two promissory notes at signing?
It is standard and protects both sides: one guards against a buyer defaulting on the signing payment, the other guarantees the balance after transfer. The agent tears them up once disbursement is complete.
Is escrow compulsory, and how much?
Always. About 0.06% of the price, split equally: NT$4,500 each on NT$15,000,000. It is the best-value insurance in the process.
The bank is slow. What if I miss the handover date?
Leave a wide handover window, add an extension clause if needed, and apply right after signing. In busy seasons (year end, around rate changes) approvals often take over a month.
How long does a resale purchase take?
About 6 to 8 weeks: two from signing to sealing, two for tax and transfer, two from payoff to handover. Add 2 to 4 weeks for a payoff, a tax relief application or a busy bank season.
What share of the price do I need in cash?
With an 80% loan: 20% down, about 3% for taxes, commission and escrow, 5 to 10% for renovation and reserve, so roughly 28 to 33%.
Can I borrow more than 80% if my savings are short?
You can ask, but do not overstretch. The New Youth Housing Loan 2.0 interest subsidy ended on 31 July 2026. Version 3.0 started on 1 August 2026: still up to 80%, a NT$10,000,000 limit and a 40-year term, with new conditions (applicant under 50, family income of NT$2,000,000 or less, regional price caps) and a 3+3 year staged interest subsidy. A higher ratio means a heavier payment, and any appraisal shortfall must come from cash. Work back from a payment no higher than one third of monthly household income.
For foreign nationals: The New Youth Housing Loan (新青安) generally requires household registration. Ask us what standard bank terms are realistic for you.
You decide, we guard the paperwork
With three licensed land administration agents in-house, we sit with you from offer to handover. Bring your budget and viewing list and we will check your cash plan in ten minutes. Contact us or see the buying hub.