Housing Tax 2.0 New Policy: Deadline for Reporting Owner-Occupied Homes Extended to June 2, Late Submissions May Face Penalties with Higher Tax Rates

Taiwan • Business • 05/04 09:01
Housing Tax 2.0 New Policy: Deadline for Reporting Owner-Occupied Homes Extended to June 2, Late Submissions May Face Penalties with Higher Tax Rates

The new "Housing Tax 2.0" system, implemented on July 1, 2024, will be collected for the first time in May 2025. The new system requires that owner-occupied houses must complete household registration and declaration to qualify for a preferential tax rate of 1.2% or 1%. The original deadline for the declaration was March 24, 2025, but the Ministry of Finance extended it to June 2, 2025, to protect taxpayers' rights. Those who fail to meet the deadline will be taxed at a non-owner-occupied rate ranging from 3.2% to 4.8%. This article outlines the new system's regulations, the declaration process, and common errors to help the public avoid incurring tax losses.

Key Updates

05/05 06:00

Taiwan's New Housing Tax 2.0 System to Launch in July 2024: Impact on Annual Levy and Ownership Transfer

Starting from July 1, 2024, Taiwan will implement the "House Tax 2.0" system, switching to an annual assessment. The tax period will run from July 1 to June 30 of the following year, with the tax base date set on the last day of February each year. If the property ownership registration is completed by February 28 (or 29 in a leap year), the house tax for that year will be the responsibility of the new owner; otherwise, the original owner will be responsible for paying it. This change impacts tax responsibilities in property sales and auctions, and it is advisable to clearly specify tax-sharing clauses in contracts to prevent disputes.

05/05 06:00

Taiwan's housing prices have increased by 25% in the past three years, and rents have been rising for 45 consecutive months. The government is responding with subsidies and tax reforms.

Over the past three years, housing prices in Taiwan have risen by 24.8%, and the rent index has increased by 7%, with 45 consecutive months of increase, indicating an increased burden on renters. The government is implementing rent subsidies and tax transparency policies, and reforming the tax system to incentivize landlords to report rental income legally. The appreciation of the New Taiwan Dollar has attracted capital back, impacting asset allocation in the housing market. These measures are intended to ease rental pressure and enhance market transparency.

05/04 18:00

Developers are promoting low down payments and construction upgrade strategies to capture the last opportunity market of the new young homebuyer policy.

Faced with the impending end of the new Youth Housing Policy and a weakening real estate market, developers are offering low down payment incentives and building upgrade strategies to attract home buyers. The minimum home purchase threshold is set at 250,000 NTD, and introducing designs such as green buildings and smart homes. Despite this, real estate market transaction volumes are declining, putting more pressure on developers, who are offering incentives like free interior decoration. Demand from owner-occupiers remains the main force in the market, and the government's push for green building policies is prompting industry transformation.

05/04 09:01

Housing Tax 2.0 New Policy: Deadline for Reporting Owner-Occupied Homes Extended to June 2, Late Submissions May Face Penalties with Higher Tax Rates

The new "Housing Tax 2.0" system, implemented on July 1, 2024, will be collected for the first time in May 2025. The new system requires that owner-occupied houses must complete household registration and declaration to qualify for a preferential tax rate of 1.2% or 1%. The original deadline for the declaration was March 24, 2025, but the Ministry of Finance extended it to June 2, 2025, to protect taxpayers' rights. Those who fail to meet the deadline will be taxed at a non-owner-occupied rate ranging from 3.2% to 4.8%. This article outlines the new system's regulations, the declaration process, and common errors to help the public avoid incurring tax losses.

05/04 06:00

Taiwan's real estate market has become a buyer's market. Experts recommend making offers based on current market prices, with different strategies for city center and suburban areas.

Taiwan's housing market has shifted to a buyer's market due to the central bank's lending restrictions, the ban on presale contract assignments, and international geopolitical and economic uncertainties. Experts suggest that homebuyers make offers based on real price registration data, referencing the lowest transaction prices in the past year for core areas, and considering the owner's costs in outer areas to negotiate for a sale at break-even or at a loss. The new luxury tax regulation affects homeowners' pricing strategies, providing buyers with room for negotiation. Existing homes have become the market focus due to their advantages in price and location.

05/01 11:02

The six major cities in Taiwan experienced a significant drop in the volume of real estate transactions in April due to stock market volatility and loan restrictions, resulting in a 26.3% decrease compared to the previous year.

In April 2025, the real estate transaction volume in Taiwan's six municipalities declined, with a total of 16,876 properties sold and transferred, down 7.3% from March and 26.3% from the same period last year, hitting a seven-year low. Tainan City experienced a 14.1% increase in transactions due to new project completions, but the overall real estate market was affected by stock market fluctuations, loan restrictions, and international political and economic uncertainties, resulting in a cooling of buyer interest. Real estate agents noted that the market is in a strong wait-and-see mode, with a lack of buyer confidence and diminished transaction activity.

04/30 06:01

Trump's tariff policies have severely impacted Taiwan's housing market: In April 2025, the transaction volumes in six major cities saw a dramatic decline, with Kaohsiung seeing a year-on-year drop of more than 50%.

In April 2025, Taiwan's real estate market was significantly impacted due to the announcement by U.S. President Trump of a new tariff policy. This policy led to fluctuations in global stock markets, and the transaction volume in Taiwan's real estate market declined in six major cities: a year-on-year decrease of 46% in Taipei City, 47% in New Taipei City, 50.9% in Taoyuan City, 28.2% in Taichung City, 38.6% in Tainan City, and 55.6% in Kaohsiung City. The chain reaction from this international economic policy profoundly affected the pace of transactions and the market atmosphere in Taiwan's real estate sector.

04/30 01:01

Taiwan's six major cities' rental index hits a 28-year high: Prime locations in Taipei and New Taipei City see annual rent increases of over 10%, creating economic pressure for renters.

In 2024, the annual growth rate of Taiwan's rental index reached 2.56%, reaching a 28-year high, indicating significant changes in the rental market. Taichung City experienced the highest rent increase of 26.47%, while prime areas in both Taipei and New Taipei City saw annual increases of over 10%. The rise in housing prices, land prices, and construction costs has driven up rents, putting economic pressure on renters, particularly on the younger generation. Government measures like the vacant home tax and rental subsidies have not effectively mitigated the rise in rents, and the supply-demand imbalance issue persists.

04/28 06:00

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.

04/28 02:00

Beitou's New Housing Prices Soar Past One Million NT Dollars: Top-Notch Schools and Healthcare Draw in Families and Retirees

Beitou District, Taipei City, has become a real estate hotspot due to the development of the Beitou-Shilin Technology Park and convenient transportation, with new construction prices exceeding one million NTD per ping. The area boasts high-quality school districts and well-developed medical resources, attracting small families and retirees. Despite rising prices, Beitou still holds a price advantage compared to downtown Taipei, making it a popular choice for homebuyers. This article explores the reasons behind the rising prices of new constructions in Beitou, the area's advantages, and the market's response.

Implementation of New Housing Tax 2.0 System: Widening Gap Between Owner-Occupied and Non-Owner-Occupied Tax Rates

The new Housing Tax 2.0 system will be implemented on July 1, 2024, with the first levy on May 1, 2025. One of the major changes in the new system is the addition of a "household registration" requirement, which is the official registration of residence, for owner-occupied properties. According to the Ministry of Finance's announcement, a residential property owned by an individual can apply for the owner-occupied tax rate if it meets the following three conditions:

  1. The property is not rented out or used for business purposes;
  2. It is used for actual residence by the owner, spouse, or immediate family members, and household registration is completed at the property;
  3. The owner, spouse, and minor children collectively own no more than three properties nationwide.

If these conditions are met, the tax rate is 1.2%; if only one property is owned nationwide and its current value is below a certain amount (e.g., NT$1,202,000 in Keelung City), a more favorable 1% tax rate can be applied.

Conversely, residential properties that do not meet the owner-occupied conditions will be taxed at non-owner-occupied rates, ranging from 3.2% to 4.8%, with progressive taxation, meaning the tax rate increases with the number of properties owned nationwide. For example, in Miaoli County, if two owner-occupied properties are not registered, the tax rate will increase from 1.2% to 3.2%, with each property's tax amount rising from NT$12,000 to NT$32,000, increasing the total tax by NT$40,000.

Filing and Household Registration Deadline Extended to June 2

The original deadline for household registration and filing, set for March 24, 2025, has been extended to June 2, 2025, due to numerous tax bill errors and public filing delays during the first year of the new system's implementation. This extension aims to reduce disputes and implement the policy of lower taxes for owner-occupied properties.

If individuals complete household registration and file with the tax authorities by June 2, they can apply the owner-occupied tax rate for the 2025 tax period upon approval. If an incorrect tax bill has been received and paid, the tax office will proactively process a refund. Those who miss the deadline will only be eligible for the preferential tax rate starting from the next period.

Rental Properties Also Eligible for Lower Tax Rates, Filing Deadline Extended

The new system also encourages effective use of properties. For rental properties, if the owner files rental income by March 22 each year (extended to March 24, 2025, due to holidays) and the rent meets the general rental standards set by the Income Tax Act, a lower tax rate of 1.5% to 2.4% can be applied. Considering this is the first year of the new system, the Ministry of Finance has extended the filing deadline for rental properties to June 2, similar to owner-occupied properties.

It should be noted that if the filing is late, the lower tax rate will only apply from the next period. Additionally, public rental properties, which are rented out for public benefit or under government programs, approved by the competent authority will have a tax rate of 1.2%, determined proactively by the tax office. If there is a delay in notification leading to ineligibility, corrections can be made within the deadline.

Common Errors and Remedial Measures

In the early stages of the new system's implementation, both Taipei City and New Taipei City experienced tax bill errors. The Taipei City Tax Office estimates over 50,000 erroneous tax bills, while New Taipei City may exceed 80,000 cases. Errors include:

  • Inconsistent address formats between tax and household registration systems;
  • Registrants being third-degree relatives, such as cousins, or adopted children, making automatic system matching impossible;
  • Misunderstanding by the public that registration alone qualifies for the owner-occupied tax rate;
  • Newly purchased properties not completing household registration and filing.

In response, local tax authorities have been reprinting tax bills and reminding the public to verify the contents upon receipt, including name, ID number, property location, and tax rate. If errors are found, corrections should be promptly requested from the tax authorities.

Tax Payment Deadline and Methods

The 2025 housing tax payment deadline is from May 1 to June 30, extended to the end of June due to the Dragon Boat Festival holiday, a public holiday in Taiwan. Late payments will incur a daily penalty of 1%, up to a maximum of 15%. Various payment methods are available, including:

  • Mobile payments (e.g., LINE Pay, Taiwan Mobile Payment);
  • Credit cards (with possible discounts);
  • Barcode payment at the four major convenience stores;
  • Online banking and mobile banking apps;
  • Reprinting tax bills at convenience store multimedia machines, which are self-service kiosks for various transactions.

If a tax bill is not received, it can be checked and reprinted on the local tax online filing website or printed at a convenience store with a valid ID or account information.

References

People Also Ask...

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Until when is the deadline extended for filing under the Housing Tax 2.0 new system?

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Why is residency registration required to qualify for the preferential tax rate for owner-occupied homes in the new Housing Tax 2.0?

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