Taiwan's Housing Tax Reform Cuts Short-Term Property Trades to 10%

The Ministry of Finance’s “房地合一2.0” policy, introduced in July 2021, imposed a 45 % tax on real‑estate sales held for less than two years to curb speculative flipping. Initial market conditions saw short‑term trades remain high, but successive measures—including amendments to the Average Land Rights Act in 2023 and the Central Bank’s selective credit tightening in September 2024—raised transaction costs for investors.

Data from the Finance Ministry show the share of 2‑year short‑term transactions dropped from 25.5 % of all filings in 2022 to just 10 % in the first quarter of 2026, a historic low. Conversely, sales of properties held five to ten years (subject to a 20 % tax) rose from 29.5 % to 41.8 % over the same period, becoming the dominant segment. Analysts say the market is shifting from speculation toward longer‑term home ownership.

Chen Jin‑ping, deputy manager at the Yong‑ching Real Estate Research Center, noted that the policy “effectively suppresses short‑term speculation and guides the market toward rational holding periods.”