On December 29, 2016, an act to cut taxes and offer other incentives for property owners to encourage urban renewal was approved by the Executive Yuan.
“There are many residential buildings that are more than 30 years old in the nation, with up to 40,000 buildings rated as dangerous that house thousands of people,” Deputy Minister of the Interior Hua Ching-chun said.
The legislation was introduced because owners of aging buildings are reluctant to participate in urban renewal projects, due primarily to current construction codes being stricter than earlier regulations, or because renewal projects often fail due to a lack of government assistance.
In addition to the floor space incentives, the legislation offers preferential housing and land taxes for homeowners participating in urban renewal projects.
Participants in urban renewal projects who do not sell their new properties are entitled to a 50 percent reduction in housing and land taxes for two years after the completion of the project.
The ministry proposed extending the preferential tax rates indefinitely, allowing participants to enjoy the tax breaks until they sell the properties.
Photo of Taipei via Adobe Stock.