“Should I let the property myself, or hand it to a management scheme?” Our answer: if you do not want to spend time managing and are willing to accept a tenant matched by the government, joining the social housing sublet-and-manage programme (社會住宅包租代管) is usually the lowest-tax option. If you want to manage it yourself and your tenant happens to be approved for a rent subsidy, you become a public-interest landlord (公益出租人) automatically and save almost as much. Only an ordinary letting (一般出租), with no scheme at all, carries the highest tax of the three.
This guide compares the three modes on income tax, house tax and land value tax. For the full tax working, see the landlord tax comparison; for filing codes, see declaring rental income.
Three key facts
- Social housing sublet-and-manage: 60% expense rate for income tax, the highest of the three.
- Public-interest landlord and social housing: 1.2% house tax, against up to 4.8% for other non-owner-occupied homes.
- Public-interest landlord and social housing: 2‰ land value tax, against general land rates starting at 10‰.
These follow Housing Act Articles 22 and 23 (住宅法第 22、23 條) and the Rental Housing Market Development and Management Act (租賃住宅市場發展及管理條例), updated July 2026.
The three modes in one sentence each
- Ordinary letting. You find the tenant, sign the lease and collect rent yourself. No scheme, no allowance.
- Public-interest landlord. You let to a tenant who applies for and is approved for a government rent subsidy; the local government then recognises you as a public-interest landlord. You still manage the property yourself.
- Social housing sublet-and-manage. You sign the property over to a government-contracted operator, which lets it to a household matched by the government and handles management.
How to choose
- Do not want to manage, and can accept a government-matched tenant: choose social housing sublet-and-manage. Lowest tax, plus repair subsidies.
- Want to manage yourself, and the tenant applies for and is approved for a subsidy: you become a public-interest landlord automatically. Tax is close to the social housing scheme; only the income tax expense rate is lower (43% versus 60%).
- Will not join any scheme and do not declare actual income: you stay an ordinary landlord, with the highest tax and the risk of an audit for undeclared income.
Our view: We have met landlords who feared that “joining a government scheme will get me audited” and stuck with ordinary letting, only to pay far more in house tax and land value tax every year than the audit risk was ever worth. Joining sublet-and-manage or becoming a public-interest landlord lawfully does not expose past undeclared income; under the rules, these leases are not used to pursue earlier years. It is an opportunity to bring rental income into the open.
For foreign nationals: The 1.2% house tax and 2‰ land value tax that these schemes mirror are the owner-occupier rates, which ordinarily require household registration (戶籍) by the owner or family. Public-interest landlord status arises through a tenant’s subsidy approval or an application to the city government. If you are a foreign owner, do not assume the reduced rates apply; ask us through our contact page before choosing a mode.
Income tax: allowance and expense rate
| Mode | Tax-free allowance per property per month | Expense rate on the remainder |
|---|---|---|
| Ordinary letting | None | 43% (standard deduction, or itemise actual costs) |
| Public-interest landlord | NT$15,000 | 43% |
| Social housing sublet-and-manage | NT$15,000 | 60% (only 40% counts as rental income) |
Example: for a property let at NT$20,000 a month, taxable rental income for the year is roughly NT$137,000 under ordinary letting, roughly NT$26,000 as a public-interest landlord, and only roughly NT$24,000 under social housing sublet-and-manage. The income tax difference runs from a few thousand to over NT$10,000.
These follow the Income Tax Act (所得稅法) and the Rental Housing Market Development and Management Act.
Our view: Private sublet-and-manage operators outside the social housing programme only get the Rental Housing Market Development and Management Act treatment: NT$6,000 per property per month tax-free, 53% expense deduction on NT$6,001 to NT$20,000, and the standard deduction above NT$20,000. That is not the same as the social housing figures. Before signing, confirm the operator is part of the government’s social housing sublet-and-manage programme.
House tax
| Mode | House tax rate |
|---|---|
| Ordinary letting (non-owner-occupied residential) | Banded by homes held nationwide, from 1.5% up to 4.8% |
| Public-interest landlord | Treated as owner-occupied, 1.2% |
| Social housing sublet-and-manage | Treated as owner-occupied, 1.2% |
Our view: House Tax 2.0 (the “hoarding tax 2.0”) now counts homes nationwide, so ordinary letting rates for multi-property landlords have jumped. Declare the rental income honestly and become a public-interest landlord or join social housing sublet-and-manage, and house tax drops straight back to the owner-occupier level of 1.2%.
Land value tax
| Mode | Land value tax rate |
|---|---|
| Ordinary letting (non-self-use land) | General land rate from 10‰ up to 55‰ |
| Public-interest landlord | Self-use residential land rate, 2‰ |
| Social housing sublet-and-manage | 80% reduction, equivalent to the 2‰ self-use rate |
These follow the Housing Act and Taichung City Housing Development Office guidance.
Our view: The land value tax gap is often the most striking of the three taxes. For a landlord holding several plots, the difference can run to five figures or more. Run your own numbers first; the interactive landlord tax calculator is on our Chinese page (https://www.fshouse.com.tw/page/about/index.aspx?kind=451).
What you give up under each scheme
Public-interest landlord status costs you nothing in control: you still choose the tenant and set the rent, and the status follows from the tenant’s subsidy approval. The trade-off with social housing sublet-and-manage is that the tenant is matched by the government, rent is usually below market, and the operator manages the property. Owners with a sale planned in the near term should also check how non-self-use classification affects land value increment tax and the repurchase refund under the house and land transactions income tax; see self-use exemption and repurchase tax refund.
FAQ
Which of the three pays the least tax?
Social housing sublet-and-manage is usually lowest (60% income tax expense rate, 1.2% house tax, 80% land value tax reduction). Public-interest landlord comes next (43% expense rate, same house and land tax rates). Ordinary letting pays the most.
How big is the tax gap between becoming a public-interest landlord passively and joining social housing actively?
House tax and land value tax are the same (1.2% and 2‰). The difference is the income tax expense rate: 43% for a public-interest landlord versus 60% for social housing. The higher the rent, the bigger the gap.
Is a private sublet-and-manage operator the same as the social housing scheme?
No. Private management only gets the NT$6,000 per property per month allowance, and house and land tax relief depends on each city’s ordinance. Social housing sublet-and-manage gets the NT$15,000 allowance, 1.2% house tax and an 80% land value tax reduction.
Are there drawbacks to social housing sublet-and-manage?
The main constraints are that the tenant is matched by the government and the rent is usually below market. Owners planning to sell soon should also watch the effect of non-self-use classification on land value increment tax and the house and land transactions income tax repurchase refund.
Will joining a scheme trigger back taxes on rent I never declared?
No. Under the rules, leases under these schemes are used only for the tax relief and cannot be used as a basis for auditing a landlord’s past rental income.
Conclusion
There is no single best mode, only the one that fits your management needs and your plans for the property. But honest declaration plus a scheme allowance almost always beats ordinary letting without declaring. Tell us about your property through our contact page and we can help you pick the mode that suits you. The public-interest landlord guide covers eligibility in detail.