In 2024, the number of filings for Taiwan's unified housing and land tax rose to 134,000, with reselling properties held for 5-10 years becoming the mainstream trend.

In 2024, the number of filings for Taiwan's unified housing and land tax reached 134,000 filings, an increase of 17,000 from 2023. Due to anti-speculation measures and the seventh wave of credit controls, transaction volumes shrank rapidly in the fourth quarter, and the proportion of short-term transactions decreased. Resales of properties held for 5 to 10 years became the norm, with 36.1% of cases taxed at a 20% rate. The decline in short-term transactions is due to high tax costs and conservative bank valuations for properties resold within a year.

Growth in the Number of Integrated Housing and Land Tax Declarations in 2024

According to the latest statistics from the Ministry of Finance, the total number of integrated housing and land tax declarations in Taiwan reached 13.4 million in 2024, an increase of about 17,000 compared to 2023. Although there was a growth trend throughout the year, the transaction volume in the fourth quarter of 2024 significantly declined due to policy pressure, with only about 26,000 declarations, a decrease of about 10,000 from the third quarter. Zhang Xulan, Executive Director of the Taiwan Housing Group Trend Center, pointed out that the central bank's successive implementation of the sixth and seventh waves of credit control measures last year led to a rapid contraction in the real estate market transaction volume in the second half of the year.

Changes in Tax Rate Distribution: Resale After 5-10 Years Becomes Mainstream

In the 2024 distribution of integrated housing and land tax rates, transactions involving resale after holding for 5 to 10 years, subject to a 20% tax rate, accounted for 36.1 percent, becoming the largest category, with the proportion increasing year by year. Chen Dingzhong, Senior Manager of the Taiwan Housing Group Trend Center, stated that under the current tax system, the resale tax rate for holding 2 to 5 years is 35%, while the rate drops to 20% for holding 5 to 10 years, and 15% for over 10 years. Due to the significant 15% tax burden gap between holding for 5 and 10 years, and only a 5% difference after 10 years, the benefits of tax savings diminish, leading most holders to choose to sell within the 5 to 10-year period for optimal tax planning.

Sharp Decline in Short-term Transactions

Short-term transactions, defined as resale within 2 years and subject to a heavy 45% tax, saw their proportion drop from 25.5% in 2022 to 18.2% in 2024, a decrease of 7.3 percentage points. Particularly in the fourth quarter of 2024, the proportion of cases resold within 1 year fell to 15.7%. Zhang Xulan noted that the reduction in short-term resale transactions is mainly due to limited room for property value appreciation and high tax costs, making short-term holders less competitive in terms of concession margins and pricing compared to long-term holders.

Conservative Bank Valuations Affect Short-term Transactions

In addition to tax factors, banks' conservative valuations of properties with transaction records within a year are also a key reason for the reduction in short-term transactions. Banks often use lower prices as a basis for lending to avoid excessive market inflation. This conservative valuation strategy lengthens the time short-term resale properties remain on the market, further suppressing the willingness for short-term transactions.

Proportion of Tax-exempt Cases Hits a New Low

In 2024, the proportion of tax-exempt cases was only about 20%, hitting a record low. Chen Dingzhong pointed out that there are three scenarios under which integrated housing and land tax can be exempt: first, if there is no profit or a loss in the transaction; second, if the property has been continuously registered as a primary residence for over 6 years and the resale profit is below NT$4 million; third, if specific conditions for tax refund on repurchase are met. However, with rising property prices in recent years, the likelihood of a loss has decreased, and most long-term holders' resale profits exceed the NT$4 million tax exemption threshold, resulting in a decrease in the proportion of tax-exempt cases.

In 2024, the number of filings for Taiwan's unified housing and land tax rose to 134,000, with reselling properties held for 5-10 years becoming the mainstream trend.

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