Taiwan's Hsinchu County Offers Lower Property Tax for Rental Homes

Homeowners in Hsinchu County, Taiwan, can now benefit from reduced property taxes by renting out their vacant properties. The Hsinchu County Government's Tax Bureau is encouraging the release of idle housing stock to boost the rental market supply.

Under the new policy, eligible residential rental properties will see their property tax rates lowered. The rate will drop from the current 2.6% to 4.8% for non-owner-occupied residential homes to a more favorable 1.6% to 2.4%. This offers a financial incentive for property owners to generate rental income while easing their tax burden.

To qualify for this preferential tax rate, the property must be rented out for residential use, and the rent must align with the "local general rent standard" announced by the Ministry of Finance. Property owners must submit an application with their rental agreement to the tax bureau by March 22 each year to be eligible for the reduced rate.

Furthermore, the tax bureau reminds landlords to declare their rental income. When filing their comprehensive income tax returns in May of the following year, property owners must include their actual rental income for the year of the lease in their total taxable income. For Hsinchu County, the general rent standard for properties applicable from July 1, 2016, onwards is calculated as 10% of the assessed property value plus 1.2% of the announced land value. For properties under the old standard before June 30, 2016, the calculation is 17% of the assessed property value plus 1.2% of the announced land value.