Over 20% of Home Sellers Paid No Property Gains Tax in Taiwan Over Past 4 Years

More than 20% of homeowners who sold their properties between 2022 and 2025 paid zero property gains tax. Industry analysts attribute this trend to the tax exemption for owner-occupied homes and, in some cases, sales at a loss.

Since the property gains tax was implemented in 2016, an increasing number of sellers have benefited from the exemption of up to 4 million New Taiwan dollars for owner-occupied homes, provided they have resided in the property and maintained their household registration there for at least six consecutive years. Many sellers' profits have fallen within this exemption limit, leading to no tax liability. Additionally, some sellers facing urgent sales may have incurred losses, further exempting them from the tax, though reporting is still required.

According to Ministry of Finance statistics, over 100,000 property transactions were subject to the property gains tax each year from 2022 to 2025. Of these, more than 20,000 transactions resulted in no tax payable. In 2023, the proportion of tax-exempt sales was highest, at approximately 24.38%, meaning about one in every 4.1 sales paid no tax. The year 2024 saw the largest number of tax-exempt transactions, with 28,700 cases.

Industry experts note that while the highest tax rate for short-term property sales has seen a year-on-year decrease, transactions eligible for the 10% owner-occupied tax rate have steadily increased. For instance, in 2025, the number of transactions subject to the 45% tax rate was around 12,500, a significant drop from nearly 25,000 in 2024. Conversely, transactions qualifying for the 10% owner-occupied rate exceeded 3,000 in both 2024 and 2025, more than doubling the 1,427 cases recorded in 2023.