Buying a Home in Taiwan

Buying a home in a foreign country can be a daunting task, especially when you're unfamiliar with the local real estate market and regulations. This guide aims to provide expats with a comprehensive overview of the home buying process in Taiwan, covering everything from finding properties for sale to understanding the legal requirements and potential pitfalls. Whether you're planning to settle down in Taiwan or looking for an investment opportunity, this guide will help you navigate the Taiwanese real estate market with confidence.

How Do I Find Houses for Sale in Taiwan?

There are several ways to find houses for sale in Taiwan. Online property portals such as 591.com.tw and Century 21 Taiwan offer a wide range of listings. Local newspapers and real estate agencies are also good sources of information. It's advisable to engage a local real estate agent who can help you navigate the market, understand the local property laws, and negotiate the best deal.

Are There Restrictions on Foreigners Owning Property in Taiwan?

Yes, there are restrictions on foreigners owning property in Taiwan. According to the Land Act, foreigners can only buy property in Taiwan if there is a reciprocal agreement between Taiwan and their home country. However, there are legal ways around this. One common method is to set up a company in Taiwan and purchase the property under the company's name. It's advisable to consult with a local lawyer to understand the best approach for your situation.

Does Taiwan Have an MLS Type System?

Taiwan does not have a Multiple Listing Service (MLS) system like in the United States. Instead, real estate agents and brokers use various online platforms and networks to list and find properties. This makes it even more important to work with a reputable and experienced real estate agent when buying a home in Taiwan.

Do Brokers Have Licenses and How Do I Know if They are Licensed?

Yes, real estate brokers in Taiwan are required to have a license. You can verify a broker's license by checking with the Real Estate Brokers Association of the Republic of China. It's important to work with a licensed broker to ensure that you're protected throughout the home buying process.

What Documents are Required When Buying a Home?

When buying a home in Taiwan, you'll need several documents including your passport, Alien Resident Certificate (ARC), proof of financial capability, and a contract of sale. If you're buying through a company, you'll also need the company registration certificate. The contract of sale should be in Chinese and English and must be notarized.

Do I Need a Lawyer When Buying a Home in Taiwan?

While it's not mandatory to have a lawyer when buying a home in Taiwan, it's highly recommended. A lawyer can help you understand the legal aspects of the purchase, review the contract, and ensure that the transaction is conducted legally. The cost of a lawyer can vary, but you should budget for around 1% of the property price.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Both options are common in Taiwan. Some people choose to buy property outright with cash, while others prefer to take out a mortgage. If you're considering a mortgage, keep in mind that most banks in Taiwan require a down payment of at least 20% of the property price.

Are There Inspections That Take Place, and If So What is That Process Like?

Yes, property inspections are common in Taiwan. A professional inspector will examine the property for any defects or issues that could affect the value or livability of the home. The inspection report can be used to negotiate the price or request repairs before the sale is finalized.

What are Some of the Pitfalls to Avoid When Buying Property in Taiwan?

Some common pitfalls to avoid when buying property in Taiwan include not understanding the local property laws, not conducting a thorough property inspection, and not negotiating the price. It's also important to be aware of potential fraud or scams. Always verify the seller's identity and ownership of the property, and never make a payment without a signed and notarized contract.