Proposal to Lift Restrictions on Mainland Chinese to Purchase Real Estate in Taiwan

There have been talks for Taiwan government to liberate current restrictions on Mainland Chinese persons to purchase real estate in Taiwan. Under the current regulations, Mainland Chinese persons must provide sufficient proof to substantiate the funds (including its source) to cover the purchase price of the property to be purchased. Furthermore, the restrictions on using the purchased property to secure financing would be partially lifted to allow up to 50% of the purchase price to be financed by onshore banks. In addition, under the current regulations a prospective purchaser must apply to various government agencies for review and approval including the Mainland Affairs Council, National Security Council and the municipal government where the property is located. These burdensome and time-consuming procedures reportedly would be largely simplified in the future resulting in significant time savings. However, the types of real estate that are available for purchase by Mainland Chinese persons would remain unchanged and would be limited to various types of commercial properties.