When you sell property in Taiwan, do you pay the old property transaction income tax (財產交易所得稅) or the new consolidated housing and land income tax (房地合一稅)? It is not decided by when you sell but by when you acquired the property. That one date puts you in one of two completely different tax systems, and the bill can differ several times over.
Inherited or gifted property is where the confusion is worst: an inheritance looks back to the deceased’s original acquisition date, while an ordinary gift (not between spouses) looks at the date you received it. This guide explains the test, the two calculation methods, and the inheritance and gift cases. If you already know you are in the new regime, go to Consolidated housing and land income tax. The interactive calculator is on our Chinese page (https://www.fshouse.com.tw/page/about/index.aspx?kind=389). Rules follow the Ministry of Finance’s description of the regime, verified July 2026.
The only test: the acquisition date
Whether you bought, inherited or received the property, one rule decides: acquired before 1 January 2016, the old property transaction income tax applies; acquired on or after 1 January 2016, the new housing and land income tax 2.0 applies. “Acquisition date” means the ownership transfer registration date for a purchase, the inheritance registration date for an inheritance, or the gift registration date for a gift, always the Land Office’s registration date, never the contract or payment date.
Our view: Many clients assume “anything sold in 2026 is under the new regime”. Not so. A home bought in 2015 or earlier and sold in 2026 is still filed under the old regime, as part of that year’s consolidated income tax return. Get this wrong and the filing method, the tax office and the withholding rules are all different.
The old regime: property transaction income tax
For houses acquired on or before 31 December 2015, Article 14, Paragraph 1, Category 7 of the Income Tax Act applies. The gain is the actual sale price less the original cost and necessary expenses, and it is added to your consolidated income for the year. That means the gain sits on top of your salary and other income and is taxed at the progressive income tax rates, which reach 40%. Only the house portion is taxed; the land is exempt from income tax because it has already borne land value increment tax (土地增值稅).
No cost records? The Ministry of Finance deems the gain
If the actual sale price or original cost cannot be proven, the tax office applies the Ministry of Finance’s annual standard for deemed gains on house sales:
- Above the high-price threshold (Taipei City total price NT$60,000,000 or NT$1,200,000 per ping; New Taipei NT$40,000,000 or NT$750,000 per ping; Taichung and the other special municipalities plus Hsinchu NT$30,000,000 or NT$500,000 per ping; elsewhere NT$22,000,000 or NT$350,000 per ping): the house’s share of the price is worked out from the ratio of assessed house value to the total of assessed house and land values, and 20% of that share is the gain. A ping (坪) is the standard floor-area unit in Taiwan, 3.3 m².
- Below the threshold: the gain is the assessed house value multiplied by a fixed ratio published by each regional tax bureau, which differs by district and is adjusted yearly.
The new regime: housing and land income tax 2.0
Property acquired on or after 1 January 2016 and sold after 1 July 2021 falls under version 2.0. House and land gains are calculated together on the actual sale price and taxed on their own, not added to your income tax return. The rate depends on holding period, from 45% down to 15%, with a 10% rate and a NT$4,000,000 exemption for qualifying owner-occupiers.
Our view: The new regime looks harsher with its 45% top rate, but because it is taxed separately it does not push your salary into a higher bracket, the deductible costs are clearer, and the owner-occupier relief exists. The old regime has no owner-occupier relief at all.
For foreign nationals: the owner-occupier relief in the new regime depends on household registration (戶籍), which most foreign owners do not have. Assume the holding-period rate applies, and ask us to confirm how your residency status affects the filing.
Inheritance and gift: opposite rules
This is where most people go wrong, because inheritance and gift are treated differently. For inherited property, the regime is decided by the deceased’s original acquisition date. For an ordinary gift (not between spouses), the regime is decided by the gift registration date, that is, the day you received it, with no look-back to the donor’s purchase.
Inheritance example: a father bought a home in 2010, the son inherited it in 2026 and sells in 2027. The father’s acquisition date is 2010, before 1 January 2016, so the sale is under the old regime. If instead the father had bought in 2018, the sale falls under the new regime and the holding period includes the father’s years rather than restarting at inheritance.
Gift example, the reverse: the same father bought in 2010 but gives the home to his son in 2026, and the son sells in 2027. The son’s acquisition date is the gift registration date in 2026, after 1 January 2016, so the new regime applies, and the holding period runs from 2026 only, about one year, which means the 45% rate. None of the father’s years count.
The single exception is a gift between spouses: the acquisition date and holding period look back to the date the spouse originally acquired the property, which resembles the inheritance rule. Cost rules for inherited property, estate tax and shares among heirs are covered in Selling an inherited property and Gift tax on property.
Three cases: the same NT$3,000,000 gain
Case 1, old regime, not owner-occupied, no cost records: bought 2012, sold 2026, assessed house value NT$2,000,000, district ratio 40%. Deemed gain = NT$2,000,000 × 40% = NT$800,000, added to income tax at a 20% marginal rate, roughly NT$160,000 (varies with your bracket).
Case 2, new regime, held under 5 years, not owner-occupied: bought 2022, sold 2026, held about 4 years, taxable gain NT$3,000,000 at 35% = NT$1,050,000.
Case 3, new regime, qualifying owner-occupier: the same NT$3,000,000 gain is within the NT$4,000,000 exemption, so the tax is zero.
The regimes use different bases: the old taxes only the house on a deemed ratio; the new taxes house and land on the actual price, with an exemption that can bring an owner-occupier’s bill to nothing. Run your own numbers.
A quick self-check
Three questions before you see a professional: when was the property acquired, by you or by the deceased or donor; do you still have the purchase contract and cost receipts; and do you meet the owner-occupier conditions? With those answers, a land administration agent (代書), the licensed professional who handles title transfer, or an accountant can confirm your position quickly. Before signing, also confirm the escrow (履約保證) arrangement and the full cost picture; see Escrow explained and Buying and selling costs.
FAQ
How do I know which tax applies?
Only the acquisition date matters: before 1 January 2016, the old property transaction income tax; on or after, the new housing and land income tax 2.0. The date is the registration date, not the contract or sale date.
Whose acquisition date counts for an inherited home?
The deceased’s original acquisition date, not the inheritance registration date. Under the new regime the deceased’s holding period is added to yours. An ordinary gift uses the gift registration date with no look-back; only a gift between spouses looks back to the spouse’s acquisition.
What if I have no cost records under the old regime?
The Ministry of Finance’s annual standard applies: above the high-price threshold, the house’s share of the price times 20%; below it, the assessed house value times the district ratio, which changes yearly.
Is land taxed under the old regime?
No. Only the house portion is taxed; the land is exempt because its gain has already been taxed through land value increment tax.
Does the old regime have an owner-occupier relief?
No. The NT$4,000,000 exemption and 10% rate exist only in the new regime, for sellers meeting the three conditions. The old regime offers only the deemed or actual-cost calculation.
Which regime is better for me?
You cannot choose; the acquisition date is fixed. The task is to identify your regime and use its rules well: claim the owner-occupier relief under the new regime, or keep cost records to file on actual figures under the old.
Conclusion
Old or new is not a choice. The acquisition date has already decided it. Confirm the date, then gather the right records and file under the right rules. For an inheritance, look back a generation for the original purchase date; for an ordinary gift, use the date you received it. Contact us if you want a second pair of eyes on your case.