If you meet the three owner-occupier conditions, claim the NT$4,000,000 exemption. If you are not sure whether the home was ever let out, check before you sign anything. Many owners rely on a folk rule known as “4-3-2”, miscount the years, and lose the relief, at a cost of hundreds of thousands to over a million NT dollars.
The official answer comes from the Ministry of Finance tax portal, Q1811 (updated 14 March 2025): an individual selling an owner-occupied house and land who meets all three conditions pays no consolidated housing and land income tax (房地合一稅) on taxable gain up to NT$4,000,000, and 10% on the excess. This guide sets out the three conditions, the calculation, the 30-day filing rule, and the common traps. For what you keep overall, see Selling taxes and net proceeds; for the process, Selling a home in Taiwan: 8 steps. Figures follow Q1811 and are current as of 2 August 2026; each case is decided by the National Taxation Bureau.
The three official conditions
Our position is simple: if all three conditions are met, claim the relief; if one is missing, it does not apply. The official wording is not “4 years owned, 3 years registered, 2 years lived”. These are the three tests:
| Condition | Official content (summary) | How to check |
|---|---|---|
| (1) Registered, owned and lived in for 6 years | You, your spouse or minor children have completed household registration (戶籍) at the house and have owned and lived in it for 6 continuous years | Household register or transcript, plus the ownership start date on the deed |
| (2) No letting or business use in the 6 years before sale | The house and land were not let, used for business or for professional practice in the 6 years before the transaction | Leases, house tax records, unusual utility use, business registrations |
| (3) Not used in the past 6 years | You, your spouse and minor children have not used this owner-occupier relief in the 6 years before the transaction | Whether any family member recently claimed it |
Why the “4-3-2” shorthand is wrong
The old shorthand split ownership, registration and residence into different numbers of years, which does not match current law. Registration, ownership and residence must all run for 6 continuous years together. If an agent still uses the shorthand, open Q1811 and compare. The full rate table is in Consolidated housing and land income tax.
Our view: If you are not certain whether the home was let in the 6 years before sale, check before you sign. Letting, business use or professional use, even for a short period, can knock out condition (2). Better to list two weeks later than to sell with the conditions unclear.
For foreign nationals: condition (1) requires household registration, which most foreign owners cannot obtain. Without it the exemption does not apply, and the holding-period rate of 45%, 35%, 20% or 15% is the realistic assumption. Ask us to check your case before you set a price.
How the taxable gain is calculated
The NT$4,000,000 is exempt from taxable gain, not from the sale price. Taxable gain is roughly the sale price minus acquisition cost, minus expenses, minus the land value increment amount (details follow the return form and the tax bureau’s assessment). Then:
| Taxable gain | With the owner-occupier relief | Result |
|---|---|---|
| NT$4,000,000 or less | Fully exempt | Tax NT$0 |
| Over NT$4,000,000 | Exemption fixed at NT$4,000,000; excess × 10% | Example: NT$5,400,000 gain gives about NT$140,000 with the relief against about NT$1,080,000 without |
Without the relief the same property reverts to the general rates: 45% under 2 years, 35% for 2 to 5 years, 20% for 5 to 10 years, 15% over 10 years, as in force for the year of sale. That gap is often larger than the agent fee. The interactive calculator is on our Chinese page (https://www.fshouse.com.tw/page/about/index.aspx?kind=804). The agent fee is a separate cost, see Agency fees, and keep payments in escrow (履約保證), the third-party account that holds the buyer’s money until transfer completes.
File within 30 days, even if exempt
Even when the sale is exempt or made a loss, you must file the housing and land income tax return with the National Taxation Bureau within 30 days of the day after transfer registration. Many owners assume “no tax means no return”. That is wrong. Late filing can bring a fine and a fresh review of whether you qualify for the relief.
In practice the land administration agent (代書), the licensed professional who handles title transfer, prepares the return, but the taxpayer is still the seller. Agree at signing who files and by when. If the home was inherited, first confirm the registration and which regime applies; see Selling an inherited property.
Our view: Handover is not the finish line; the filing date is the tax checkpoint. We confirm the filing schedule in the week the transfer completes, so no owner assumes “the agent will handle it”.
Can it be combined with the repurchase refund?
Yes, but the conditions are independent. The NT$4,000,000 exemption deals with the gain on this sale. The repurchase refund deals with buying another owner-occupied home within 2 years before or after the sale and recovering tax already paid. Each has its own counter and paperwork.
Movers should read Repurchase tax refund: the income tax refund under Article 14-8 of the Income Tax Act and the land value increment tax refund are two separate tracks, each with a 2-year window, a proportional rule for trading down, and a 5-year monitoring period. Confirm the three conditions on this page first, then plan the timing of the next purchase.
What owners in Taichung should do
Many local owners have lived in one home for years and are moving once, the typical profile for this relief. Work in this order:
- Check the three conditions. Continuous registration, 6 years of ownership and residence, any letting or business use in 6 years, any family use of the relief.
- Work out the net figure. Land value increment tax, income tax and agent fee deducted from the price.
- Plan the timing. If buying again, line up the 2-year repurchase window with the handover date.
- Sign last. Do not sign a sale contract while a condition or a letting history is unresolved.
If you are sure you qualify, treat the net figure after the relief as your floor in negotiations. If condition (2) is in doubt, estimate at the general rate and do not assume in the contract that the exemption will be granted.
FAQ
What are the conditions?
Per Q1811: (1) you, your spouse or minor children registered, owning and living there for 6 continuous years; (2) no letting, business or professional use in the 6 years before sale; (3) no use of this relief by you, your spouse or minor children in the 6 years before sale. Gain up to NT$4,000,000 is exempt; the excess is taxed at 10%.
How are the 6 years counted?
Registration, ownership and residence must all run continuously for 6 years together, per the deed, the household register and actual residence. If in doubt, take your documents to the tax bureau.
I let the home out once. Can I still claim?
Letting, business or professional use in the 6 years before sale generally fails condition (2). Check leases, house tax records and usage history before signing rather than hoping the bureau will not look.
What if the gain exceeds NT$4,000,000?
The exemption stays at NT$4,000,000 and the excess is taxed at 10%. On a NT$5,400,000 gain, about NT$140,000 with the relief against about NT$1,080,000 without, subject to the bureau’s assessment.
Do I still file if exempt?
Yes. File within 30 days of the day after transfer registration whether or not tax is due. Assuming “exempt means no return” is one of the most common mistakes.
Can I use it with the repurchase refund?
Yes, planned together but under separate conditions: the exemption covers this sale’s gain, the refund covers a purchase within 2 years. Check the two refund tracks separately.
Does it apply to property acquired under the old regime?
The exemption belongs to the new regime and in principle applies to property acquired on or after 1 January 2016 and taxed under it. If part of the property is under the old regime and part under the new, the exemption is prorated to the new-regime share. The acquisition date and the bureau’s assessment decide.
What should I check before applying?
Continuous registration and residence for 6 years, any letting or business use in the past 6 years, and any recent family use of the relief. Then estimate the net figure, and only then fix the signing and handover dates.
Conclusion
Meet all three conditions and claim the relief; if one is unclear, check before you sign. A tax planning error usually costs more than any argument over the agent fee. Fusheng Realty can check the conditions, estimate the net figure and plan the timing of your next purchase. Contact us to find out whether your sale qualifies.