When you’re thinking of retiring, one of the first things that you will consider are your finances. In case you are planning to move to another place after retirement, understanding the costs there becomes a priority. Taiwan is one of the chosen destinations by many to settle peacefully. If Taiwan is your pick, then look no further. We have all the details for you right here.
Finance in Taiwan
Here’s an overview of everything related to finance in Taiwan:
Currency in Taiwan
The people of Taiwan deal in New Taiwanese dollar, also known as NT$, NTD, TWD, or NT dollar.
- 1 NT$ equals 100 cents.
- The currency is issued by the Bank of Taiwan and the Central Bank of the Republic of China.
- In common usage, the currency is called yuan (different from the Chinese mainland yuan).
Banking in Taiwan
There are several banks in Taiwan that are popular with foreigners who come to stay –
- Taichung Bank
- China Trust Bank
- International Commercial Bank of China
- Bank of Taiwan.
The services of a local bank of a foreign branch like Citibank, Standard Chartered, or HSBC can also be availed.
Internet banking is not a popularly-used option in Taiwan and the few banks that do offer this option do not have websites in English.
Banking hours are usually from 9 a.m.- 3.30 p.m. between Monday and Friday, and 9 a.m.-12.30 p.m. on Saturdays.
ATMs in Taiwan
Just as in your own country, ATMs work for 24 hours a day in Taiwan.
- You can use foreign credit cards and debit cards with Plus symbols or Cirrus symbols at these ATMs, but you will be charged extra.
- If you use a Taiwanese ATM card at a machine belonging to a different bank, you will be charged around US$0.23 for every transaction.
- You can also pay bills and transfer money using the ATMs.
Cash is preferred in Taiwan, so it is recommended that you pay by cash wherever possible. Larger hotels and retail outlets may accept credit cards.
Opening a Bank Account in Taiwan
Taiwanese law allows you to open only one account with a Taiwanese bank.
As a foreigner, you must have the following documents in order to open a bank account:
- Alien Registration Card (ARC)
- Passport, copies of information and visa pages
- First deposit of US$3.28
- It is recommended that you locate somebody who can fill out your full name, contact information, and address in Mandarin. This helps the bank record your information more easily.
- You will get a “demand deposit” account opened under your name.
- You will either receive an ATM card via post after a week of opening the bank account, or you will be asked to wait while an ATM card is processed for you right away.
Taxes in Taiwan
This section is most useful for people who will continue to earn a salary while in Taiwan.
Foreigners are required to pay 20% tax on their income during the first 183 days of their stay in Taiwan. After this period, they are required to pay tax according to the following slabs:
- US$ 0 – US$ 16,397.74 = 5% tax
- US$16,397.78 – US$37,058.90 = 12%
- US$37,058.94 – US$74,117.81 = 20%
- US$74,117.84 – US$1,38,724.92 = 30%
- US$1,38,724.96 and above = 40%
After 183 days, if you land on a tax slab that is lower than 20%, your money is refunded once you file your tax returns. After your stay for 183 days, you are also eligible for a tax exemption of US$2,689.23.
As per Taiwan laws, you will not be required to pay tax for your income all over the world.
Knowing the finer details of finance in Taiwan should help you plan your retirement better.