Contributed By Lee and Li Attorneys-at-Law
Main Sources of Planning And Zoning Laws in Taiwan
In Taiwan, the legal framework governing planning and zoning is primarily established by the Urban Planning Act (都市計畫法) for urban areas and the Regional Planning Act (區域計畫法) for non-urban areas, as well as relevant municipal ordinances and local zoning regulations promulgated under the two acts, and the applicable building management regulations. These statutes collectively provide the foundation for regulating land use, zoning, and urban development, ensuring that growth is managed in an orderly and sustainable manner.
Constitutional Protection on Property Rights
Property rights in Taiwan are constitutionally protected under the Constitution of the Republic of China (ie, Taiwan), including rights to own title to land and other real properties. These rights may be subject to reasonable restrictions such as in the public interest, including those provided by the planning and zoning regulations. In accordance with the legal principles of equal protection and due process, any decisions regarding land use must be made in a transparent and legal manner. This includes providing opportunities for public participation in accordance with due procedure, such as public hearings and consultations, and ensuring that affected parties have access to fair and impartial hearings.
Governing Bodies of Planning and Zoning Laws in Taiwan
The governance of planning and zoning involves both central and local (municipal) authorities. The Ministry of the Interior is responsible for formulating national policies and standards, while local governments, including city and county planning committees, are tasked with implementing and enforcing these regulations and setting detailed rules. Local authorities review development applications, issue permits, and monitor compliance with zoning and building requirements.
In some cases, community groups, neighbourhood associations and professional organisations may also participate in the planning and/or enforcement process. While their opinions are mostly not legally binding, their involvement in public consultations may significantly influence decision-making outcomes.
Scope of Planning and Zoning Laws
Typical zoning regulations address key issues such as land zoning (residential, commercial, industrial, etc), and building management (building height and density limits, floor area ratio, setback requirements). Developers must also consider cultural heritage and environmental protection laws (such as environmental impact assessment requirements) where applicable.
Over the past few years, Taiwan has prioritised urban renewal and sustainable development in planning and zoning. Amendments to zoning regulations have enabled higher-density developments, in turn supporting population growth and public transport integration. Additionally, there is an increasing focus on energy development, with new policies facilitating renewable energy projects and the conversion of land zoning for energy infrastructure. Large-scale industrial land development has also expanded, reflecting higher demand for data centres as well as logistics and fulfilment centres. These initiatives demonstrate Taiwan’s commitment to modernising urban spaces while transforming industries for environmental sustainability.
Within the same period, the most notable development deals in Taiwan have generally involved large-scale urban renewal projects in local areas. These include the redevelopment of former industrial zones or agricultural lands into commercial and residential complexes, sometimes through public-private partnerships. Such projects have attracted domestic and foreign investment, highlighting the market’s confidence in Taiwan’s real estate sector.
Rising inflation and higher interest rates have significantly increased both construction and financing costs for real estate development projects in Taiwan. In response, developers are strategically extending project timelines, renegotiating terms with contractors and financiers, and actively pursuing alternative financing sources, such as joint ventures and private equity.
In Taiwan, market participants, including developers, investors and lenders, are commonly seen to adapt by prioritising flexible workspace solutions, integrating advanced building technologies, and emphasising ESG (environmental, social, and governance) standards in project planning and execution. The shift toward hybrid work models has directly influenced office design, with a focus on adaptable layouts and enhanced health and safety features. In addition, investors may consider adopting more conservative risk assessments, diversifying their portfolios to face any potential policy changes. Despite these challenges, Taiwan’s real estate sector remains agile, with stakeholders proactively adjusting strategies to navigate evolving economic, regulatory, and geopolitical landscapes.
Recent Changes in Relevant Laws and Regulatory Scheme in Taiwan
Overhaul of land planning under new regime
The Spatial Planning Act (國土計畫法) was adopted into legislation on 1 May 2016 and will be fully implemented no later than 2031. It replaces the Regional Planning Act, and represents a significant policy change at national level affecting real estate development in Taiwan. The legislation introduces a comprehensive overhaul of the framework for land use, aiming to balance development with environmental protection and disaster prevention. The Spatial Planning Act establishes clear zoning regulations and stricter land classification, which may restrict certain types of development in ecologically sensitive or high-risk areas. While this may limit some development opportunities, it also aims to provide greater legal certainty and promotes sustainable urban growth in the long run. Overall, the Spatial Planning Act is expected to positively influence long-term real estate stability in the near future, although it may pose short-term challenges for developers adapting to new compliance requirements.
Other local regulatory developments
At municipal and county level, several local governments, such as Taipei City and New Taipei City governments, are actively reviewing urban planning regulations to encourage urban renewal and increase residential housing supply. Proposals include relaxing floor area ratios (FAR) and streamlining the approval process for urban renewal projects.
On a more local scale, some districts within the area are piloting small-scale redevelopment with simplified procedures. While they may face opposition from the existing residents with concerns, which may make consensus-building and project implementation particularly challenging, these initiatives are designed to revitalise aging neighbourhoods and improve living conditions.
Political issues impacting real estate development
Broader political issues, such as geopolitical relations, debates over housing affordability, land speculation, and environmental protection continue to influence real estate development. Public pressure has led to stricter regulations and more cautious planning approvals, especially in environmental sensitive land areas. Changes in government priorities may also create challenges for developers regarding future regulatory trends.
Development Activities Subject to Planning or Zoning Approvals
In Taiwan, any new construction, significant redevelopment, change of land use, or major alteration of existing structures within urban planning areas would generally require planning or zoning or building approval(s). This includes residential, commercial, industrial, and public infrastructure projects. On the other hand, activities such as land consolidation or subdivision, and changes in building height or density, typically need separate approvals from the relevant authorities.
Required approvals may include land use permits, building permits, environmental impact assessments, and, in some cases, urban design or architectural review. The specific approvals depend on the nature and scale of the proposed activity and the zoning classification of the land as well as the location and the governing authority of the project.
Certain approvals regarding planning or zoning are discretionary. For example, applications for rezoning, variances, or special use permits are subject to the discretion of the competent authority, which may consider factors such as public interest, urban development policies, and input from public hearings before granting approval.
Approvals in Relation to Change in Land Ownership
In Taiwan, a change in land ownership is completed upon registration of real estate transfer with the land authority, which generally has no discretion in the process. In the event of a change in land ownership, separate planning or zoning approval is only required if the new owner intends to change the use of or redevelop the property. In other words, a mere change in property ownership per se does not require planning or zoning approval. If the new owner intends to change the use of the property, redevelop, or otherwise alter the land or buildings to a certain extent, the usual planning or zoning approvals must be obtained before proceeding.
In summary, most significant land use activities in Taiwan require planning or zoning approvals, while ownership changes alone do not. Some approvals, especially those involving exceptions to existing plans, are discretionary.
Under Taiwanese law, governmental taking of land, commonly referred to as expropriation (徵收), is possible if required for public development projects. The legal basis for expropriation is primarily found in the Land Expropriation Act (土地徵收條例). Expropriation is permitted only when it is necessary for public interest purposes, such as for the development and construction of infrastructure, urban development, or other projects serving the public good. The expropriation process requires the government to demonstrate expropriation being the last resort, ie, that the relevant project cannot be accomplished without acquiring the private land in question by expropriation.
The expropriation process generally involves several key steps, as follows.
In summary, expropriation is legally permissible in Taiwan for public interest projects, subject to strict procedural safeguards and compensation, as statutorily provided by law.
Land use authorities in Taiwan are required by the relevant rules to evaluate the external impacts of proposed development projects. This evaluation may be conducted through several mechanisms, as follows.
In Taiwan, land use authorities systematically assess external impacts through environmental and urban planning reviews, ensuring that development projects align with legal requirements and community interests.
In Taiwan, authorities address entitlements for large-scale or multi-phase projects through a staged or phased approval process across different regulatory regimes and different authorities. When a developer applies for entitlements but lacks detailed plans for future phases, the key governing authority typically requires a master plan outlining the overall development concept, land use, and infrastructure.
For subsequent phases of review by different authorities, developers are required to submit more detailed plans for specific purposes as these become available. Each phase undergoes a separate review and approval process, thereby ensuring that evolving project details continue to satisfy all legal and regulatory requirements. Authorities may impose specific conditions or require supplemental studies, such as those mandated under the Environmental Impact Assessment Act, prior to granting approvals for later phases.
This approach allows balancing the necessity of regulatory oversight with the practical realities inherent in long-term, complex developments. It provides developers with a degree of initial certainty, while preserving the government’s authority to enforce compliance as project specifics are refined. The process could be governed by statutes including, but not limited to, the Urban Planning Act, the Building Act, and the Environmental Impact Assessment Act, which collectively ensure that both current and future phases of development adhere to Taiwan’s legal framework.
Regulatory authorities also recognise that developers often require preliminary approvals to secure project financing. To accommodate this, authorities may sometimes issue preliminary approvals (such as an “establishment permit”) or conditional or staged approvals, enabling developers to demonstrate project viability to investors while retaining the right to review and approve detailed plans at a later stage. Public hearings and community consultations could be mandated by law, such as under the Environmental Impact Assessment Act, to ensure transparency and facilitate public participation. This staged approval process thus balances the developer’s need for certainty with ongoing regulatory oversight and community engagement.
Under Taiwanese law, land use approvals such as zoning changes, construction permits, or urban planning permissions may be subject to various conditions. These requirements typically include compliance with zoning regulations, building ordinances, environmental impact assessments and infrastructure standards. Authorities may also require the provision of public facilities (eg, roads, green belt or parks, open spaces), adherence to urban design guidelines, and measures to mitigate negative impacts on the environment or neighbouring properties.
Taiwanese authorities may lawfully impose monetary, land, or facility contributions as conditions for land use approval on a case-by-case basis, provided these are grounded in statutory authority and specified by-laws, and serve a legitimate public interest. For example, under the Urban Planning Act and related regulations, developers may be required to dedicate a portion of land for public use (such as roads, green spaces or public spaces) or pay fees for infrastructure improvements. Such requirements must be proportionate to the impact of the proposed development and are subject to administrative review to prevent arbitrary or excessive demands.
Although not as formalised as in some other jurisdictions, land use authorities in Taiwan may encourage or require developers to enter into agreements that provide community benefits, particularly for large-scale or high-impact projects. Such agreements may include commitments to construct public amenities, provide affordable housing, or implement environmental improvements. However, these agreements are generally negotiated on a case-by-case basis and are not uniformly mandated by law. The legal enforceability of these agreements depends on their clear incorporation into the official approval documents.
Under Taiwan’s legal framework, the right to appeal against a relevant authority’s action, including a decision to deny an application for development permission or designated use, is generally protected. If an application for land development or a specific land use is denied by a competent authority (such as a local government or urban planning committee), the applicant may file an administrative appeal (訴願). The Administrative Procedure Act (行政程序法) and Administrative Appeal Act (訴願法) apply in this regard.
As a general rule, the administrative appeal must be submitted to the superior administrative authority of the agency that made the original decision. For example, if a city government denies a development permit, the appeal is typically filed with the relevant county or municipal government’s appeal committee.
An administrative appeal must usually be filed within 30 days from the day the applicant receives the written decision. Failure to file within this period generally results in the loss of the right to appeal, unless the applicant can demonstrate a legitimate reason for the delay, in which case a late appeal may be considered under exceptional circumstances.
Administrative appeal decisions are generally appealable via the administrative litigation process under the Administrative Litigation Act (行政訴訟法) before the courts.
Under Taiwanese law, the rights of third parties to participate in planning and zoning approval processes are generally limited to participation via certain statutory process. Specifically, third parties, such as neighbouring landowners or community groups, may be notified or become aware of certain large-scale or potentially impactful land use applications, especially if public hearings are required by law. In such cases, third parties have the right to express opinions or raise objections during the public consultation phase. However, their participation is typically consultative rather than determinative.
Regarding appeals, third parties are not automatically entitled to appeal a decision by the relevant authorities to approve or deny a land use application. Only parties who can demonstrate a direct and legally protected interest, such as those whose property rights or living environment may be adversely affected, may have the right to file an administrative appeal or initiate an administrative litigation. The threshold for establishing such an interest is relatively high, and general public interest alone may be deemed insufficient.
The influence of objecting or supporting third parties on the outcome of a land use application depends on the specific circumstances and the regulatory framework. While authorities are required to consider third-party opinions submitted during public consultations, in the absence of a direct and legally protected interest of the third-party these views are not binding. Decisions are primarily based on compliance with statutory requirements and planning objectives, although sometimes strong and well-organised third-party opposition may prompt authorities to impose additional conditions or reconsider certain aspects of an application.
Finally, regulatory authorities in Taiwan may respond to third-party requests for community benefits agreements, but there is no statutory obligation to negotiate or conclude such agreements except in certain development activities (eg, fishery compensation agreement requirements in offshore wind farm development regulations). Authorities may facilitate discussions between developers and community representatives, especially for major projects, but any resulting agreements are typically voluntary and not legally enforceable unless incorporated into the project’s approval conditions.
Agreements With Government Authorities
Private participation in infrastructure projects
In Taiwan, entering into agreements with government authorities or agencies is not uncommon in development projects, such as the projects developed under the Act for Promotion of Private Participation in Infrastructure Projects (促進民間參與公共建設法) (“PPP Act”) or the National Property Act (國有財產法). These government agreements, depending on different approaches available under these laws, may include concession agreements or investment agreements, which outline project developments rights and obligations, and/or land use contracts, such as land use agreements or superficies agreements, granting rights to use government-owned land.
Specifically, government authorities in Taiwan are commonly seen to enter into development agreements under the PPP Act, and related regulations. Local governments are empowered to negotiate and execute such agreements to implement facilitate public infrastructure, or promote specific development projects. The legal basis is sometimes found in the relevant municipal ordinances or administrative rules, which authorise the government to collaborate with private entities for public interest and urban development.
Development agreements in Taiwan may typically address various aspect of the project requirements, such as:
These agreements aim to clarify responsibilities, ensure compliance with regulations, and facilitate smooth project execution.
Agreements for Utility Supply
Additionally, agreements with utility suppliers (eg, electricity, water, gas) which are often government-owned entities in Taiwan, are required to ensure service provision. These are generally standard supply contracts. Coordination with local authorities may also involve urban planning or construction permits. Each agreement must comply with relevant laws and regulations.
Under Taiwanese law, the land use rights, such as those granted by urban planning, generally “run with the land” as long as the underlying zoning or regulations and the intended uses remain unchanged.
On the other hand, some land use approvals such as construction permits are generally not granted in perpetuity; rather, most approvals are valid for a specified period or are subject to project-specific conditions. For example, a building permit is typically valid for six months and may be extended for another three months once. If construction does not commence within this period, the permit expires.
If a land use application is denied, the applicant may re-apply. There is no statutory waiting period for re-application, but authorities may reject repetitive applications that do not resolve previous issues. Additionally, applicants may file administrative appeals or litigation to challenge the denial, as explained above.
Once the applicant has obtained a legally protected right to proceed with the approved land use, it usually remains effective even if regulations change later. In Taiwan, the legal right under the relevant permit typically takes effect when the permit is lawfully issued and the applicant has relied on it in good faith, such as by commencing construction. If the law changes after this point, the principle of non-retroactivity of laws would protect the permit holder from retroactive application of new restrictions, subject to certain exceptions (eg, extremely important and/or unforeseeable public interest).
Under Taiwan laws, there are specific statutes of limitation and procedural timeframes for challenging land use approvals or denials, as follows.
Failure to file within these statutory periods will usually result in the loss of the right to challenge the decision. In summary, challenges to land use approvals or denials in Taiwan are subject to strict time limits which may be stayed only for limited causes. It is crucial to act promptly to preserve legal rights.
In Taiwan, land use decisions, such as zoning changes, construction permits, or urban planning approvals, are administrative acts subject to administrative appeal process before subjecting further to judicial review in an administrative litigation. Courts review these decisions subject to the Administrative Litigation Act. The standard of review is generally one of legality, not substituting the court’s judgement for that of the administrative agency. Courts generally examine whether the decision followed proper procedures, respected legal requirements, and did not exceed the agency’s discretion (ie, whether it is arbitrary or clearly unreasonable).
Overturning a land use decision is generally considered relatively difficult in Taiwan. Courts generally grant substantial deference to administrative agencies, particularly in technical or policy-driven areas such as urban planning. To succeed, applicants must demonstrate clear legal violations or procedural errors; mere dissatisfaction with the outcome without substantiated rationale is insufficient.
In Taiwan, judicial review of land use decisions is not uncommon. Developers may challenge denials, while local residents or environmental groups may contest approvals. Nevertheless, litigation is typically a last resort due to the time, cost, and complexity involved in judicial review procedures.
On the merits, successful challenges are not very common. Courts tend to act against overturning land use decisions unless there is a clear legal or procedural defect. However, even unsuccessful lawsuits can delay projects, increase costs, or prompt agencies to reconsider or to more thoroughly justify their decisions. Therefore, while outright victories are uncommon, legal challenges can still significantly affect development timelines and outcomes.
In Taiwan, developers, lenders, and investors may face risks regarding the following.
When a land use approval is challenged, developers, lenders, and investors often employ several strategies to proceed with their projects despite ongoing legal disputes.
In Taiwan, government authorities may employ a variety of incentive mechanisms in terms of land development, a key area of which is urban development and renewal. The Urban Renewal Act (都市更新條例) establishes several measures, including increased floor area ratio (FAR) bonuses for construction and development projects, such as incentives for structural safety, incentives for assistance in the provision of public facilities, green building and intelligent building incentives, and incentives for barrier-free environment design. The Urban Renewal Act also provides for tax reductions, such as applications for exemptions or reductions of land value increment tax, land value tax, and deed tax, with the specific details of such reductions subject to the regulations of the respective local governments.
In addition, local governments may, on a case-by-case basis and within their authority, offer expedited permitting processes, infrastructure support, or exemptions from certain obligations. Collectively, these incentives are designed to encourage private investment in land development, urban renewal and infrastructure projects.
Authorities typically assess the project’s compliance with urban planning regulations, financial feasibility, and public interest, which also applies to the granting of incentives. Key review criteria may include: (i) the project’s alignment with urban plans and zoning regulations; (ii) the developer’s financial capacity and track record; (iii) risk assessment, including the likelihood of project completion; (iv) requests for the submission of detailed project proposals, financial statements, and impact assessments before the granting of incentives; and (v) anticipated social, economic, and environmental benefits.
On the other hand, the authorities often impose conditions to ensure public benefit and project accountability. Common requirements may include: (i) completion of the construction or project implementation within a specified timeframe; (ii) provision of public facilities (eg, parks, roads, green spaces) or to provide open/public spaces accessible to the community; (iii) compliance with green building certification standards or accessibility requirements for persons with disabilities; (iv) regular submission of progress reports and accept audits or inspections to ensure transparency and proper use of incentives.
Failure to meet these requirements may result in revocation of permits or withdrawal of incentives or imposition of administrative fines.
Development incentives may include tax reductions or exemptions, such as those provided under the Statute for Industrial Innovation (產業創新條例), the Urban Renewal Act, or relevant local government regulations. For example, developers may be eligible for reductions or exemptions on land value tax, house tax, or business income tax for a specified period, provided that certain investment or operational requirements are satisfied. The scope and duration of such tax benefits are generally limited; for instance, under the Urban Renewal Act, exemptions from land value tax and house tax may be granted for several years, contingent upon full compliance with statutory requirements. Additionally, some incentives may require public consultation or community engagement as a condition for approval, particularly those related to urban renewal or social housing projects under the Urban Renewal Act.
Clawback provisions may also be imposed, allowing authorities to revoke incentives and retroactively recover tax benefits if the developer fails to meet prescribed conditions, such as project completion deadlines, usage restrictions, or employment commitments. In addition, government grants, subsidies, or tax incentives would typically be required to be accurately recorded and disclosed in financial statements, with non-compliance potentially resulting in penalties or affecting future eligibility for incentives.
Furthermore, the receipt of such incentives may correspond to legal implications for property rights, including restrictions on transfer or use of the property during the incentive period, and may obligate developers to maintain certain community or public facilities. Upon expiration of the incentive period, standard tax rates and obligations resume, which should be factored into the project’s long-term financial planning.
Legal Schemes on Enforcement
In Taiwan, land use and development are primarily regulated by the Urban Planning Act, the Regional Planning Act, the Building Act, and related zoning and/or building regulations. Restrictions on development and designated use are enforced through a permit system. Prior to any construction or change of use, owners are required to obtain the relevant permits from the local competent authorities. Unauthorised developments or uses are subject to administrative inspections. If violations are identified, the authorities may issue orders to suspend work, restore the land or building to its original state, or impose fines. Persistent non-compliance may result in compulsory demolition or the imposition of further administrative penalties.
The principal enforcement bodies are local government agencies, such as the urban development bureaus or construction management offices of municipal or county/city governments. These agencies are authorised to conduct site inspections, issue administrative orders, and impose penalties. In certain cases, the Ministry of the Interior or its subordinate agencies may also have jurisdiction, particularly with respect to larger or cross-jurisdictional projects.
Generally, third parties (such as neighbours or local residents) do not have direct standing to enforce land use regulations. However, if a third party’s legal interests are adversely affected by illegal development or use (eg, causing nuisance or environmental harm), they may file civil lawsuits for damages or seek an Injunction under the Civil Code (民法). Additionally, third parties may report suspected violations to the competent authorities, who are then generally obliged to investigate.
Government authorities may order cessation of illegal activities, impose administrative fines, mandate restoration of the land/building, or carry out compulsory demolition at the violator’s expense. In severe cases, authorities may revoke permits or licenses. For third parties, civil remedies such as claims for damages or injunctions are available if their rights are infringed. However, only government authorities can directly enforce land use or building management regulations or compel compliance through administrative means.
Local authorities may impose additional requirements on practitioners and applicants. For example, local governments often have their own detailed implementation rules, technical standards, and public hearing procedures beyond national laws. Applicants may need to submit environmental impact assessments, traffic analyses, or obtain approvals from multiple agencies (eg, fire, environmental, and cultural authorities) depending on the project’s nature and location.
Taiwan has a Lobbying Act (遊說法) that requires individuals or groups seeking to influence policies or legislation to register with the relevant authority and disclose their activities. In practice, however, the lobbyist registration regime is rarely utilised. Instead, the “petition (陳情)” mechanism under the Administrative Procedure Act (行政程序法) is more commonly used. Although these two mechanisms may serve similar purposes, they have distinct legal functions and procedures. On the other hand, public officials are subject to the Anti-Corruption Act (貪污治罪條例) and the Act on Property–Declaration by Public Servants (公職人員財產申報法), which require transparency and prohibit improper influence. An attempt to improperly influence officials may result in criminal liability.
The Political Donations Act (政治獻金法) regulates campaign finance, setting limits on donations and requiring disclosure of donors. While there is no direct prohibition on applicants or related parties making political donations, any donation intended to influence a land use decision could be considered bribery under the Anti-Corruption Act (貪污治罪條例). Therefore, applicants must exercise caution to avoid any appearance of impropriety or conflict of interest when seeking approvals.
Under Taiwanese law, government authorities are generally required to protect the confidentiality of sensitive documents. The Freedom of Government Information Law (政府資訊公開法) stipulates that information involving national security, trade secrets, personal privacy, or other legally protected interests must not be disclosed to the public. Authorities are required to review and classify documents accordingly, ensuring sensitive information is shielded from public access.
Records and documents submitted by land use approval applicants, such as site plans, environmental impact assessments, and application forms, are typically considered public information. However, if these documents contain trade secrets, personal data, or other confidential information, the applicant may request that such sections be kept confidential. The reviewing authority will assess these requests based on the Freedom of Government Information Law and related regulations.
The Freedom of Government Information Law applies to land use applications, meaning the public has the right to request access to government-held information, including land use records. Government agencies must respond to such requests unless the information falls under statutory exemptions, which include national security, trade secrets, personal privacy, and other statutorily-protected interests. Applicants or third parties may request confidentiality by providing justification when submitting documents.
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