Foreign entities (including individual and company) are permitted to purchase real estate in Taiwan, subject to prior government approval. This approval is country-specific in that the particular country should provide a reciprocal approval for Taiwanese nationals and Taiwanese companies to invest in that country.
Generally, foreign investors are allowed to acquire or lease real estate property in Taiwan such as places of residence, office buildings, shops and factories. If the real estate is acquired for infrastructure, agricultural and animal husbandry projects, foreign investors are required to obtain approval from the competent central authority for the planned investment. The central authority approval, together with other relevant documents, should be submitted to the municipal or county (city) government for approval.
From August 2002, qualified investors from the People’s Republic of China (including individuals, companies and institutions) are also eligible to invest in Taiwanese real estate (subject to various restrictions and approvals).
With an aim to curb real estate speculation, the government has introduced the Selective Goods and Services Sales Tax (commonly referred to as Luxury Tax). A tax rate of 10% to 15% will be applied on real estate properties purchased not for self-use and sold within two years and has been in effect starting from 1 June 2011.
Source : PWC