AMENDMENTS TO THE REGULATIONS GOVERNING THE ACQUISITION, ENCUMBRANCE OR TRANSFER OF REAL ESTATE IN TAIWAN BY PEOPLE FROM MAINLAND AREA

07/01/2009

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On 30 June 2009, the Ministry of the Interior (MOI) amended the Regulations Governing the Acquisition, Encumbrance or Transfer of Real Estate in Taiwan by People from Mainland Area. The amendments are summarized as follows:
	l	After acquiring a piece of real estate in Taiwan for residential use, people from Mainland Area cannot transfer their ownership in the real estate within the first three years of the registration of the acquisition. This restriction does not apply if the transfer results from an inheritance, compulsory execution, appropriation, or court order (Article 6-1).
	l	A Mainland person that makes qualified investments (i.e. those that can help boost the overall economy or the agricultural or livestock industry in Taiwan) may, after receiving approval from the central authorities in charge of the relevant industry, apply to acquire, encumber, or transfer real estate in Taiwan. The qualified investments cover the following areas: (1) hotels, tourist recreational facilities or stadiums or arenas; (2) residential houses or buildings; (3) industrial plants; (4) industrial areas or industrial and commercial areas; and (5) other areas to be announced by the competent authorities.
		An applicant should submit certain required documents together with the application to the relevant municipal or county government. The municipal or county government should, after approving the application, forward the application documents along with a brief report to the MOI for final confirmation (Article 9).
	l	The original Article 18 of the Regulations concerning the approval for Mainland persons to enter Taiwan and the length of stay was deleted. However, under the newly promulgated Regulations Governing the Entry into Taiwan for Engaging in Professional Activities by the Professionals from Mainland Area, mainland Chinese who have acquired real estate in Taiwan pursuant to the Regulations may stay in Taiwan for up to four months each year.
	l	Mainland investors intending to acquire, encumber or transfer real estate in Taiwan will no longer have to disclose the source of their funds in the new application form.