In this article, we will delve into Taiwan’s economy, give you more details about the various Taiwan visa types available to investors and entrepreneurs, and weigh up the pros and cons of residence in Taiwan.
Taiwan is a country that’s very much on the sidelines when it comes to investment immigration.
Not many investors work their way for residency in Taiwan, despite many of its merits such as its highly-skilled workforce, a huge internal market, a well-respected foreign investment environment, and multiple Taiwan visa options.
Why is that?
One reason could be Taiwan’s close proximity to China. Even though Taiwan has virtually all the features of a sovereign state, its international status is convoluted.
Additionally, many high-net-worth individuals might be wary of the language barrier.
However, you’d be surprised just how comfortable living in Taiwan could be.
And even if you don’t plan to live there full-time, the world’s 21st biggest economy has a plethora of opportunities for entrepreneurs and investors alike.
We’ve helped our clients establish residency in 38 countries and acquire citizenship in 28 countries. Set up a call with us today to discover how Taiwan fits into your holistic offshore puzzle.
Taiwan- Country Overview
Officially known as Taiwan, Republic of China (ROC), Taiwan claims that it is a sovereign state. Meanwhile, China regards it as its province and a part of the country under the One-China Principle.
Taiwan has, in practical terms, been independent since 1950. But its position on the geopolitical map of the world remains unclear.
Although not entirely close, the Taiwanese-American relations and the American support for Taiwan’s democratically-elected leaders have been unwavering; America is Taiwan’s strongest ally.
Despite the international isolation, Taiwan has demonstrated just how strong it is.
It has grown to become one of the most powerful economies of the world with a robust foreign investment environment.
It’s also one of the most densely populated countries in the world – nearly 24 million people on one relatively small island. That’s a huge internal market for all kinds of services and goods.
Moreover, Taiwan is a real powerhouse when it comes to electronics. Many of Apple’s, Amazon’s, and Microsoft’s electronics and gadgets are manufactured here by the tech giant Foxconn.
In fact, Taiwan is considered the world’s most advanced computer microchip manufacturer in the world.
That, added to the fact that Taiwan has a democratically elected government, its own constitution and army, and a media environment that’s arguably the freest in Asia, and you’ve got a country that’s highly attractive to not just live in but do business in too.
So, if you can overlook the fact that the country is very close to China and is a contested Chinese territory, this is a very strong country in which you could reach your financial goals.
The Economy and Investment in Taiwan
Of course, political stability only means so much when it comes to investing in a country or getting its visa. Economic health is paramount as well.
Serious investors or entrepreneurs will be glad to know that Taiwan has a highly developed capitalist economy:
- It’s the 8th largest economy in Asia.
- It’s the 21st largest economy in the world by purchasing power parity.
- It’s part of the Advanced Economies Group, as classified by the IMF.
- It’s considered a high-income economy, as classified by the World Bank.
- It’s ranked 15th in the world in the World Bank’s Latest Doing Business report.
And the best news is that it’s a highly favorable country when it comes to foreign direct investment (FDI). Taiwan has retained its position as one of the top five destinations in the world to invest in, as well as its top position in Asia, as ranked by the US Business Environment Risk Intelligence.
And it shows.
All of these accolades wouldn’t be true if it weren’t for the government that has wholeheartedly embraced and spurred on foreign investment.
Foreign nationals can establish any type of legal entity in Taiwan, the preferred one being a public limited company. Sure, there is a list of industries that can’t accept foreign capital due to national security or environmental reasons, but the overall governmental strategy is largely motivated by FDI.
From tax incentives, exemptions, low-interest financing, and even governmental subsidies (for both individuals and companies), Taiwan is sure to be open for business.
To summarize, the pros of getting the Taiwan visa by investment are:
- A robust economy ranked among the top in the world.
- Your gateway to Asian markets.
- A world-class destination for IT manufacturing and R&D.
- A workforce that is highly educated and vast.
But don’t neglect to weigh up the cons of doing business in Taiwan too:
- It’s an export economy that’s highly dependent on the global economy.
- Strong dependency on China as its main trading partner
- Lack of economic diversity (i.e., a handful of industries are the main pillars)
Ultimately, it’s up to you to consider the pros and the cons, but don’t forget that if you feel you’re in too deep, you can always call on our help.
Your Taiwan Visa Options
There are a number of different Taiwan visa options available to entrepreneurs and investors, including the Taiwan permanent resident certificate or APRC.
You can easily enter Taiwan for a period of up to 90 days on a tourist visa, like many of the world’s countries.
However, if you’re planning on living in Taiwan for longer than six months to invest or to do business, you’ll need to apply for a Taiwan visa, such as a Taiwan permanent resident certificate.
Taiwan has long welcomed foreign nationals to take up residence through their Taiwan visa, which distinguishes the country as quite a liberal one in the region, especially when compared to isolationist countries like Japan.
It actually has multiple options in terms of resident visas, all of which are issued to foreign nationals who either invest or set up a business in the country.
Your plan of action depends on if you want to physically reside in Taiwan for at least 183 days a year, or not:
1. Temporary residence visitor visa – residence requirement of 183 days a year
- Invest $200,000 in a new or existing business
2. Permanent residence – no residence requirement
- Invest ~$500,000 (NT$15 million) in a for-profit business and create 5 full-time jobs for Taiwanese nationals for 3+ years
- Invest ~$1 million (NT$30 million) in government bonds for 3+ years.
Let’s talk about each of these options in more detail.
Obtain a Temporary Resident Taiwan Visitor Visa
If you wish to invest a lesser amount and actually reside in Taiwan, then your only option will be to apply for Taiwan’s temporary residence visitor visa (investing $200,000 in a new or existing business).
This Taiwan visa will be valid for two years and subsequently renewed for another two years. After three years (before the second renewal), you may switch to permanent residence, provided you meet the visa requirements.
If you would like to invest in a company that already exists, here’s the great news: Our partners in Taiwan have compiled a list of companies that could help you reach your investment targets, so you wouldn’t need to go scouring the internet for information (which would usually be presented in Mandarin Chinese anyway). Get in touch with us today to discover how you can expand your business in Taiwan while working on your residency.
Love startups and the vast opportunities that they present? Taiwan has a vibrant startup culture, where incubators and accelerators are plentiful.
You can also invest in giant tech companies or even start your own enterprise.
But the key for this route to a Taiwan visa is that it can’t be passively generated income. For instance, a company that gets income from its own real estate investments won’t cut it. The Taiwanese government also won’t let you invest in publicly traded stocks.
If you do want to take a more hands-off approach, then the government bonds option will probably be the best way forward. More on this in the section below.
Obviously, each of these options – a new company or an existing one, a startup or a well-established business – comes with its own pros and cons. We can help you make the right decision. Contact us today.
Generally, the process for temporary residence Taiwan visitor visa goes like this:
- Visit Taiwan.
- Open a bank account.
- Conduct a medical check.
- Leave Taiwan.
- Remit at least $200,000 in investment funds from abroad.
- Wait up to 4 weeks for capital inspection (every foreign investment must be vetted first).
- Once the inspection is finished, proceed with business registration – either yourself or via power of attorney.
- Once business registration is completed (usually after one week), apply for your Taiwan temporary residence card. You will need to fill out the application on the Ministry of Foreign Affairs’ website.
- Purchase health insurance and live in Taiwan for at least 183 days each year.
- After 2 years, renew your residency, showing your physical presence, maintenance of your investment, your monthly income (minimum twice the lowest legal wage as set by the government), and your net worth (minimum $180,000).
- After 3 years of legal residency, apply for permanent residency.
- After 5 years of legal residency, apply for Taiwanese citizenship (if you want to).
Obtain the Taiwan Permanent Resident Visa Card
If you want a Taiwan visa but don’t want to comply with the residence requirement of the temporary Taiwan visitor visa, you can do so by investing more money in Taiwan.
In other words, the more you invest, the sooner you gain permanent residence and the less stringent the requirement for physical residence will be. You won’t need to spend any time living in Taiwan at all if you don’t want to.
The Taiwan permanent resident visa card can be gained in two ways:
- Invest in a business and create jobs. The first way is to invest ~$500,000 (NT$15 million) in a for-profit business, as well as create 5 full-time jobs for Taiwanese nationals that last over 3 years.
- Invest in government bonds. If you’d like to just ‘set it and forget it,’ you need to take a look at government bonds. Sure, ~$1 million (NT$30 million) is no chump change. But provided that you’ll get all of it back in three years, it might be worth it for you to get a Taiwan permanent resident visa card.
The Taiwan Visa Application Process
The Taiwan visa application form process is pretty straightforward.
The Taiwan permanent resident visa card is called the APRC (Plum Blossom Card). You will need to submit your Taiwan visa application form at the local NIA Service Center if in Taiwan, or at your nearest embassy/consulate if you’re abroad. You will need to fill out the Taiwan visa application form on the Bureau of Consular Affairs, Ministry of Foreign Affairs website prior to your visit.
Here is the stack of documents that you should prepare for this Taiwan visa:
- An investment permission and reference business invitation letter issued by the Investment Commission, Science Park Administration, or Export Processing Zone Administration.
- A company registration or change form.
- A certificate of no tax arrears and financial statements for the enterprise for the period of the last 3 years (if applicable).
- A list of employees for the last four years (if applicable).
- A certificate of the purchase of Taiwan central government bonds (if applicable).
- Other supporting documents, if required.
- Proof of payment of approximately $400 (NT$10,000) for the Taiwan visa application form fee.
All of these documents should be translated to Mandarin Chinese and notarized. Some might need authentication by an apostille.
Once issued, your Taiwan permanent resident visa card will be valid for five years.
How to Obtain a Taiwan Entrepreneur Visa
There is another route to a Taiwan visa by investing absolutely nothing. This is geared towards entrepreneurs, but it is a route nonetheless.
So, do you want to set up an innovative company?
Then the Taiwan visa application form you’ll need to apply for will be called the Taiwan Entrepreneur Visa, and you can apply for one either individually or with a team of up to three people.
The Taiwan Entrepreneur Visa application form process is highly streamlined. Taiwan recognizes just how important innovation is, so it has made it extremely simple to apply.
You must meet at least one of the following conditions, in addition to being educated at least to the level of high school:
- Acquired approximately ~$70,000 (NT$2 million) in funding either domestically or abroad. You can obtain the money from venture capital firms, angel investors, or other funding platforms.
- Gotten accepted to become part of an entrepreneurship park or an incubation center that is run by the government.
- Acquired overseas or domestic patents.
- Received awards from entrepreneurs or design competitions.
This Taiwan visa will let you live in Taiwan for a year, during which you will need to set up your business and get it running.
How to Obtain Taiwanese Citizenship
It is possible to obtain Taiwanese citizenship after five years of living in Taiwan as a resident visa via a Taiwan visa like the Taiwan permanent resident certificate.
When it comes to investment immigration and residence programs, one of Taiwan’s lures is also the fact that foreign nationals can get Taiwanese citizenship after a set number of years. Taiwan extends foreign nationals the right to Taiwanese citizenship after five years of consecutive legal residency.
In other words, you need to have spent time living in Taiwan.
This also means that you must have been a tax resident for at least five years, so if you’ve applied and gotten your permanent residence status but have taken advantage of the no physical residence requirement, you won’t be accumulating the years needed to apply for citizenship.
Of course, it might not make sense to you, tax-wise. As with everything, you’ll need to weigh the pros and cons of Taiwanese citizenship.
Keep in mind that to obtain Taiwanese citizenship, you’ll also need to demonstrate that you have no criminal background, pass an exam in Mandarin Chinese and Taiwanese law, and prove that you’re able to support yourself financially.
Dual citizenship is permitted in Taiwan, but only Taiwanese-born citizens can hold dual citizenship.
If you acquired Taiwanese citizenship through naturalization, then the Nationality Act requires you to renounce your previous citizenship with very few particular exceptions:
- Those who cannot renounce due to the laws of their home country,
- Those who have made extraordinary contributions to Taiwan,
- Those who are recognized by the Taiwanese government as highly skilled senior professionals.
Another perk is that, regardless of Taiwan’s complicated international relations sphere, the passport ranks quite high – it’s one of the best passports in the world, and you’d be able to visit 130+ countries with it visa-free.
The list of countries with the visa waiver includes the United States. The Visa Waiver Program allows citizens of Taiwan, with other countries, to travel to the United States without a visa for up to 90 days or less when they meet all the requirements.
Add to that the fact that you’d get access to the best healthcare system in the world (as ranked by the Health Care Index), and Taiwanese citizenship might be a welcome addition to your passport portfolio indeed.
Also, if you’re a resident of Hong Kong or Macau, you will be able to obtain Taiwanese citizenship in just 18 months of being a resident of Taiwan.
Tax Implications of Taiwan Visas and Citizenship
Every international move that you make will have repercussions for your bottom tax line. Making an investment in Taiwan in exchange for residence is no different.
There are many ways to structure your investment and residence that would lessen the burden of tax legally, but that requires a holistic tax plan that the Nomad Capitalist team can put together only after evaluating your individual situation.
Here are the main tax implications that taking up residence and living in Taiwan will have.
If you have a domicile in Taiwan as an individual and spend at least 183 days in the country, you will be considered a tax resident. Your permanent domicile won’t matter.
Note that you will automatically become a tax resident if you apply for a temporary residence Taiwan visitor visa, as one of the visa requirements is to spend at least 183 days in the country.
So, what will be the ‘damage’?
Luckily, Taiwan is a territorial tax country, which means only the income you generate in the country will be subject to local taxation.
All Taiwanese-source income is taxed, and the country has steep personal income taxes of up to 45%. You’d best avoid those.
Obviously, if you own a local business, you will need to pay yourself a salary or dividends, which are taxed at a rate of 20%.
Don’t forget that there is also an estate and gift tax that will be imposed on your worldwide assets if you are domiciled in Taiwan.
And what if you’ve gained a permanent resident visa in Taiwan and are a non-resident in the country? You will need to pay tax on Taiwanese-sourced income, most likely.
If you have set up a company in Taiwan, you will need to account for sales tax (5%), and business profit tax (20%). The percentages are lower for lesser-earning companies.
Benefits of Acquiring a Taiwan Visa
- Multiple visa options. Having choices is great when it comes to a residence by investment. In Taiwan, you can choose to invest in starting a company or one that already exists. You can also up the ante and put money in government bonds. Whichever is your preferred asset class, there is a way for you to have a resident visa in Taiwan.
- World-class economy. Taiwan is a real powerhouse when it comes to its economy and the foreign direct investment environment. They’ve done it for decades and have been recognized by most of the global financial institutions as top-of-the-class.
- No residence requirement. If you opt to make a larger investment and gain permanent residence right away, there won’t be a physical residence requirement to adhere to. This means that you’ll be free to come and go as you please, while still keeping your investment or company active in Taiwan.
- Eventual Taiwanese citizenship. After five years of tax domicile, foreigners are able to apply for Taiwanese citizenship. Various requirements will need to be met, for example, you’d need to pass a Chinese Mandarin exam.
- Access to healthcare and education. If you bring your family along, rest assured that everyone will be taken care of. High-quality healthcare and education are available to every resident visa holder of Taiwan.
- A democratic country. Sure, the political status of Taiwan isn’t fully settled, but it has experienced 70 years without any sort of military action or intervention from mainland China. Taiwan has successfully been trading with most of the world’s countries, despite threats from China.
- High quality of life. Taiwan is extremely safe, modern, and highly livable too. The crime rates are at historical lows, and Taiwanese residents are a friendly bunch too. Expats consistently rank Taiwan as one of the best places to live.
- Vibrant startup community. If you have an innovative business idea and would like to grow it in Taiwan, you’ll be glad to know that there are many avenues that give you access to funding – internet entrepreneurs rejoice.
Despite the many hurdles, Taiwan has managed to become one of the world’s most robust economies without even being part of the United Nations or being allowed to foster open and friendly relationships with many of the world’s countries.
With a solid economy built on the IT sector, Taiwan has also made a point of welcoming foreign direct investment and offering residence to its foreign investors and entrepreneurs.
Even though you can dodge the physical residence requirement by upping your investment sum, it’s not uncommon to meet expats living in Taiwan who had initially arrived for a few months but stayed on for years.
That’s because Taiwan consistently ranks at the top of the charts when it comes to the quality of life, along with being the top-ranked health system in the world.
Could getting the Taiwan visa fit in your investment plans? Could you plant one or even multiple flags in this Asian powerhouse of a country?
If you can see yourself living in Taiwan or simply investing there to get the other benefits of these Taiwan visas, we can help you figure it all out – get in touch today.
Taiwan Visa and Citizenship – FAQs
The political status of Taiwan remains unclear. Although China claims that Taiwan is a province of its own, Taiwan has a democratically elected government, a constitution, and its own army.
Every investment carries risks, but Taiwan isn’t a country we would recommend shying away from simply because of its historical and geographic ties with China. Its strong economy offers plenty of opportunities for entrepreneurs and investors alike.
You will need to invest at least ~$500,000 in business and create five full-time jobs for local people for at least three years. Alternatively, you can also invest in government bonds for a period of at least three years. The biggest perk of this route to a residence in Taiwan is that you won’t be required to be physically present living in Taiwan. That said, you won’t be able to get Taiwanese citizenship if you aren’t a tax resident either.
The minimum amount is nearly $500,00 for the Taiwan permanent resident certificate.
No, only active income from companies would qualify you for residence in Taiwan as an investor. In other words, you won’t be able to invest in real estate or even publicly traded stocks. However, there is always the bond option for investors who want to lower their risk or take a hands-off approach.
Dual citizenship is permitted in Taiwan, but only Taiwanese-born citizens can hold dual citizenship.
If you acquired Taiwanese citizenship through naturalization, then the Nationality Act requires you to renounce your previous citizenship with very few particular exceptions.
Yes, Taiwan allows its investors and entrepreneurs to bring their family members along, including spouses and underaged children, under the same investment sum. They, however, will have to apply for their own visas and pay separate visa processing fees.