According to Ministry of Interior statistics, 457 foreigners purchased a home in the first half of 2016, UDN reported. The total for the first six months of the year is near a four-year low.
If the trend continues, there will be fewer than 1,000 foreign homebuyers this year for the first time since 2006. Taiwan saw a record number of foreign homebuyers in 2007 with 1,706 properties sold as foreign individuals and companies sought to take advantage of preferential tax policies before they expired.
Foreign individuals or corporations used to only pay 20% on gains under the Land Value Increment Tax when selling property, while the tax varies from 20% to 40% for Taiwanese citizens depending on the value of the property. However, the tax laws have changed and soon everyone will have to pay between 35% and 45%.
Despite the high prices, Taipei is still the preferred choice for foreigners looking to buy real estate in Taiwan, followed by New Taipei and Taichung.