The repurchase refund is not a slogan of “trade up and get your tax back”. It runs on two separate tracks, one national and one local, and movers most often trip over the 2-year window or the 5-year monitoring period. The conclusion first: there is a refund of consolidated housing and land income tax (房地合一稅) under Article 14-8 of the Income Tax Act, and a separate refund of land value increment tax (土地增值稅) under the Land Tax Act. The conditions differ and each is applied for on its own. What they share is that the sale and the repurchase must both be registered within 2 years, and the property must meet owner-occupier conditions.
This guide sets the two tracks side by side, walks through the timing, and shows how the refund ratio works. For the sale itself, see Selling a home in Taiwan: 8 steps; for what you keep after tax, Selling taxes and net proceeds. Three figures: a 2-year window between the two registrations; 2 tracks; and a 5-year monitoring period during which letting or reselling risks clawback. Rules follow Article 14-8 of the Income Tax Act and the Land Tax Act as of 2 August 2026; each case is decided by the tax authorities.
Income tax track vs land tax track
The two tracks can be planned together, but the counter, the calculation base and the rules on whose name the property is in all differ.
| Income tax track (housing and land income tax) | Land tax track (land value increment tax) | |
|---|---|---|
| Legal basis | Income Tax Act, Article 14-8 | Land Tax Act repurchase provisions |
| What is refunded | Income tax paid (or due), proportionally refunded or credited | Land value increment tax paid |
| Time limit | Sale and repurchase registered within 2 years | Sale and repurchase registered within 2 years |
| Price logic | Ratio of repurchase price to sale price, capped at 100%; trading down still refunds proportionally | In principle trading up: the new land’s value must exceed the old land’s value less the tax already paid |
| Name on title | You or your spouse (owner-occupier conditions still apply) | In principle the same owner |
| Where to apply | National Taxation Bureau | Local tax authority |
| Monitoring | The repurchased property is monitored; breaches can be clawed back | The repurchased land is monitored for 5 years; breaches can be clawed back |
For the general rates and the NT$4,000,000 owner-occupier exemption, see Consolidated housing and land income tax and The NT$4 million self-use exemption.
Our view: If an agent tells you only that “moving gets you a refund”, ask which track and which tax. Anyone who cannot explain the two tracks should not be planning your move.
For foreign nationals: both tracks require owner-occupier status, which in practice rests on household registration (戶籍). Most foreign owners cannot meet that condition, so plan on paying the full tax on the sale and ask us before assuming any refund.
The 2-year window: buy first or sell first
Buying first and selling later, or selling first and buying later, can both qualify. What matters is whether the two ownership transfer registration dates fall within 2 years. Contract dates and handover dates are useful for planning, but the tax law looks at the registration dates, so put them in your calendar alongside the mortgage and handover schedule.
- Review the home you are selling. Confirm owner-occupier status and estimate both the land tax and the income tax.
- Identify the home you are buying. Whose name it will be in, owner-occupier plans, total price and land value.
- Line up the 2-year window. Both registration dates within the statutory 2 years; buying first is fine.
- Apply on both tracks separately. The National Taxation Bureau for the income tax refund; the local tax authority for the land tax refund.
Your deposit and cash flow for the next home are covered in Down payment. Keep both transactions in escrow (履約保證), the third-party account that holds the buyer’s money until transfer completes; see Escrow explained.
How the refund ratio works
On the income tax track the refund or credit is broadly the tax paid multiplied by the ratio of repurchase price to sale price, capped at 100%. If the new home costs more, the whole tax paid can be recovered. If it costs less (trading down), the refund shrinks in proportion rather than disappearing.
| Scenario | Sale price | Repurchase price | Ratio | Result |
|---|---|---|---|---|
| Trading up | NT$12,000,000 | NT$18,000,000 | min(18,000,000 / 12,000,000, 100%) = 100% | Tax paid can be claimed back in full |
| Trading down | NT$18,000,000 | NT$12,000,000 | 12,000,000 / 18,000,000 ≈ 66.7% | Refunded in proportion, not refused |
The examples illustrate the ratio logic only; the actual refund follows the assessed return. The land tax track looks at land value, not the total price: in principle the new land’s value must exceed the old land’s value less the land value increment tax already paid, and the owner must be the same person. The statutes are on the national law database, or check current practice with the tax authorities. If the home you are selling was inherited, the timing and regime are more complex; read Selling an inherited property before fixing the repurchase date.
The 5-year monitoring period and common mistakes
Receiving the refund is not the end. The repurchased land or property is monitored (5 years is the common period on the land tax track), and if it is converted to non-owner-occupier use, let out or resold, the refund can be clawed back. If your plan is “live in it first, let it out in two years”, price the clawback risk into your return before you commit.
The second mistake is the wrong name on title. The land tax track is strict about the same owner; the income tax track allows your spouse’s name but still requires owner-occupier and registration conditions. The third is calculating on total price when the land tax track works on land value, which gives the wrong answer every time. Where the NT$4,000,000 exemption and the refund are used together, check the exemption’s three conditions first.
Our view: Before negotiating a move, write down four dates: the sale registration, the repurchase registration, the application dates on both tracks, and the start of the monitoring period. If the dates work, the refund is possible. If they do not, no other condition will save it.
FAQ
How do the two tracks differ?
One is the housing and land income tax refund (national, Article 14-8 of the Income Tax Act); the other is the land value increment tax refund (local, Land Tax Act). Counter, calculation base, name rules and monitoring differ, and each is a separate application.
Can I buy first and sell later?
Yes. The sale and repurchase registrations must fall within 2 years, in either order, and each track’s owner-occupier conditions must be met.
Does trading down still qualify?
On the income tax track, yes: the refund is calculated on the ratio of repurchase price to sale price, capped at 100%, so a cheaper home still earns a proportional refund. On the land tax track the logic is trading up in land value, so a full refund on trading down is usually hard.
Can the new home be in my spouse’s name?
Income tax track: the sale and repurchase may be in your name or your spouse’s, subject to the owner-occupier conditions. Land tax track: in principle the same landowner, so a purchase in a spouse’s name may not qualify; confirm with the tax authority before filing.
Where do I apply?
The income tax refund at the National Taxation Bureau; the land tax refund at the local tax authority. Documents usually include the sale contracts, deeds, proof of tax paid and household registration records; follow each office’s published list.
Can I let the home during the 5 years?
Usually there is a monitoring period (5 years is common). Converting, letting or reselling during it can trigger clawback of the refund. Work out the risk before you let.
Can an inherited home use the refund?
Only if the sale of the inherited home meets each track’s owner-occupier, holding and registration conditions. It is not automatic. Line up the inheritance registration, the sale date and the repurchase date together.
Can I combine it with the NT$4,000,000 exemption?
Yes, planned together but under independent conditions. The exemption covers the gain on this sale; the refund covers a purchase within 2 years. Check the three exemption conditions first, then the repurchase timing.
Conclusion
Separate the two tracks, then line up the 2-year window, and only then ask how much comes back. Trading up, trading down and buying first are not slogans but ratio and land value rules. Fusheng Realty can put your sale proceeds, repurchase budget and refund windows on one timeline. Contact us to plan your move.