Taiwan proposes hefty fines, registration cancellation for Chinese land buyers using nominees

Taiwan's government is moving to tighten regulations against Chinese entities acquiring land through nominee registrations, proposing significant penalties including fines of up to NT$25 million and the cancellation of property registrations. These measures are intended to close national security loopholes.

The proposed amendments to the Act Governing Relations Between the People of the Taiwan Area and the People of the Mainland Area and the Act Governing Relations Between the People of Hong Kong and Macao Areas were reviewed by the legislature's internal affairs committee. Mainland Affairs Council (MAC) Minister Chiu Chui-cheng stated that the amendments would explicitly define such circumventing actions as prohibited.

"Preventing Chinese capital from circumventing reviews through nominee registrations and closing national security loopholes!" Chiu declared. He noted that in recent years, Chinese capital has frequently purchased strategic land through local individuals internationally, raising concerns about national security and geopolitical risks in various countries.

Chiu emphasized that Taiwan faces significant infiltration threats. To prevent Chinese funds from exploiting "nominee registrations" and other methods to bypass regulatory reviews, thereby creating vulnerabilities in Taiwan's real estate market and national security defenses, the proposed amendments grant authorities the power to cancel registrations and order restoration to the original state within a specified period. These actions are deemed necessary to plug national security gaps.

The proposed legislation aims to prevent Chinese individuals or entities from acquiring, setting up, or transferring real estate rights in Taiwan without prior approval. Currently, Article 69 of the Act Governing Relations Between the People of the Taiwan Area and the People of the Mainland Area prohibits such actions, but lacks corresponding punitive clauses for violations. The new amendments seek to rectify this by introducing substantial fines and the possibility of revoking registrations, thereby strengthening legal enforcement and deterrence.

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Preventing Chinese capital from circumventing reviews through nominee registrations and closing national security loopholes!