Taiwan Real Estate Financing Guide

Published on October 3, 2025 and written by Cyril Jarnias

Taiwan real estate is attracting more and more foreign investors, drawn by the island’s economic dynamism and growth prospects. However, obtaining real estate financing in this country can prove complex for non-residents. This article will guide you through the intricacies of the Taiwanese mortgage system and give you all the keys to materialize your investment project.

The Accessible Dream: Can Foreigners Really Get a Mortgage in Taiwan?

The good news is yes, foreigners can obtain real estate financing in Taiwan. However, you should be aware that the process can be more complex and the conditions stricter than for local residents.

Taiwanese banks are generally open to lending to foreigners, but they apply more rigorous assessment criteria. The main reason is the perceived higher risk when lending to non-residents. Financial institutions particularly fear that the foreign borrower might leave the country in case of repayment difficulties.

Despite these reservations, several factors work in favor of foreign investors:

• Taiwan’s economic stability and its dynamic real estate market reassure banks
• The Taiwanese government encourages foreign investment in real estate to stimulate the economy
• Some banks have specialized in loans for expatriates and have developed tailored offers

It’s important to note that loan conditions vary considerably from one bank to another. Therefore, it’s highly recommended to compare offers from several institutions before making your choice.

The Solid Application: What Documents Do You Need to Gather to Convince Taiwanese Banks?

To maximize your chances of obtaining real estate financing in Taiwan, it’s crucial to present a complete and well-structured application. Here’s the list of documents generally required by Taiwanese banks:

• Valid passport and residence visa (ARC – Alien Resident Certificate) if you have one
• Proof of income for the last two years (pay stubs, tax returns)
• Bank statements for the last 6 months showing stable savings
• Employment contract or proof of professional activity in Taiwan
• Employer certificate confirming your seniority and salary
• Proof of assets (real estate, financial investments)
• Detailed description of the property you wish to acquire
• Precise financing plan including personal contribution

The quality and completeness of your application will be decisive in convincing the bank to grant you a loan. Don’t hesitate to provide additional documents that could strengthen your application, such as recommendation letters from previous employers or proof of your financial stability in your home country.

It’s also recommended to have all documents that are not in Chinese (or at least in English) translated. This will greatly facilitate the bankers’ work and show your seriousness and commitment to the project.

Keys to Success: What Are the Essential Conditions to Secure Your Loan?

To significantly increase your chances of obtaining real estate financing in Taiwan as a foreigner, it’s essential to meet certain conditions. Here are the main criteria on which Taiwanese banks will base their decision:

1. A Stable Professional Situation

Banks place great importance on the stability of your employment. Ideally, you should: – Work for a recognized company in Taiwan for at least 2 years – Have a permanent contract – Hold a managerial or qualified specialist position

2. Comfortable Income

Your repayment capacity is a crucial criterion. Generally, banks require that: – Your monthly income be at least 3 times higher than the loan installment – Your overall debt ratio does not exceed 30-35% of your income

3. A Substantial Personal Contribution

Taiwanese banks are generally more demanding with foreign borrowers in terms of personal contribution. Expect to need to finance: – At least 30% of the property price for a first purchase – Up to 40-50% for a rental investment

4. Solid Savings

In addition to the contribution, banks will appreciate that you have precautionary savings, ideally: – Equivalent to at least 6 months of loan installments – Placed in a Taiwanese bank account

5. An Impeccable Credit History

If you’ve already taken out loans in Taiwan, a repayment history without incidents will be a major asset. Otherwise, bank references from your home country can be useful.

6. Life Insurance

Most banks will require you to take out life insurance covering the loan amount. This protects them in case of the borrower’s death.

7. A Quality Property

The property you wish to acquire also plays a role in the bank’s decision. They will favor: – Properties located in sought-after urban areas – Recent constructions or those in good condition – Properties with good resale potential

Winning Strategies: How to Optimize Your Chances of Obtaining Financing?

To maximize your chances of securing a mortgage in Taiwan, here are some effective strategies to implement:

1. Build a Local Banking Relationship

Open an account in a Taiwanese bank as soon as possible and use it regularly. A banking relationship established for several months, or even years, will be a considerable asset when you apply for a loan.

2. Get Professional Assistance

Hire a mortgage broker or financial advisor familiar with the Taiwanese market. Their expertise and network can greatly facilitate your process and help you get the best conditions.

3. Prioritize “Expat-Friendly” Banks

Some banks in Taiwan, like HSBC or Citibank, have developed specific offers for expatriates. Their conditions may be more flexible and their staff more accustomed to dealing with foreign clients.

4. Consider Additional Guarantees

If your application has weaknesses, offer additional guarantees such as: – A property in your home country – A guarantee from a relative residing in Taiwan – A pledge of financial investments

5. Opt for a Variable Rate Loan

Taiwanese banks generally offer more advantageous rates on variable rate loans. If you’re comfortable with some fluctuation in your installments, this option can facilitate obtaining your financing.

6. Start with a Small Investment

If this is your first purchase in Taiwan, initially aim for a modest-sized property. A smaller loan will be easier to obtain and will allow you to build a positive credit history for future investments.

7. Prepare a Solid Business Plan for a Rental Investment

If you’re buying for rental purposes, present the bank with a detailed market study and realistic financial projections. This will demonstrate the seriousness of your project and its economic viability.

Pitfalls to Avoid: What Could Make Your Loan Application Fail?

Despite careful preparation, some pitfalls can compromise your chances of obtaining real estate financing in Taiwan. Here are the main traps to avoid:

1. Underestimating the Importance of Professional Stability

Frequently changing jobs or having uncertain professional activity can seriously handicap your application. Taiwanese banks place great importance on the stability of your income.

2. Neglecting Your Banking History

Frequent overdrafts or payment incidents, even minor ones, can be deal-breakers. Make sure your bank accounts are impeccable before applying for a loan.

3. Overestimating Your Borrowing Capacity

Requesting a loan that’s too large relative to your income risks making you appear as an imprudent borrower. Be realistic in your financing request.

4. Ignoring the Specifics of the Local Real Estate Market

Buying an overvalued property or in an unpopular area may worry the bank about the value of its collateral. Research the local market well before making your choice.

5. Presenting an Incomplete or Poorly Organized Application

A sloppy application or one missing essential documents will give a bad impression. Be meticulous in preparing your loan application.

6. Neglecting Mandarin Learning

Although many bankers speak English, basic knowledge of Mandarin will be an asset. This will show your commitment to the country and facilitate your procedures.

7. Underestimating Additional Costs

Don’t forget to include notary fees, taxes, and potential renovations in your financing plan. A request for additional financing mid-process could be poorly perceived.

Conclusion: Real Estate Investment in Taiwan, an Accessible Challenge with Proper Preparation

Obtaining real estate financing in Taiwan as a foreigner is a challenge, but not an impossible mission. With careful preparation, solid documentation, and a good understanding of local banks’ expectations, you can significantly increase your chances of success.

The Taiwanese real estate market offers beautiful opportunities, particularly in large cities like Taipei or Kaohsiung. Real estate prices, although high, remain competitive compared to other Asian metropolises, and the potential for long-term capital appreciation is interesting.

Remember that each situation is unique. What works for one investor may not be suitable for another. That’s why it’s crucial to surround yourself well, inquire with several banks, and don’t hesitate to call on local professionals to guide you in your procedures.

Finally, keep in mind that obtaining a mortgage is only the first step of your real estate adventure in Taiwan. Once financing is obtained, you’ll need to navigate the subtleties of local real estate law, manage your property remotely if you’re not a permanent resident, and perhaps even familiarize yourself with the role of property owner in a different cultural context.

With patience, perseverance, and good preparation, your real estate investment project in Taiwan can become a rewarding reality, both financially and personally.