Can foreigners invest in Taiwan stocks and ETFs?
Yes. Foreign residents holding a valid ARC (Alien Resident Certificate) can invest in Taiwan's stock market, including individual stocks and ETFs, through a local brokerage account.
What you need to get started:
- A valid ARC (or APRC)
- A Taiwan bank account (in NTD)
- A brokerage account (證券帳戶) at a registered securities firm
- A tax ID number (your ARC number serves as your tax ID)
Taiwan's stock exchange (TWSE, 台灣證券交易所) is one of Asia's major markets, home to companies like TSMC, MediaTek, and many more. ETFs listed on the TWSE are fully accessible to ARC holders.
Non-residents (without ARC): Foreigners without an ARC can also invest through a Foreign Institutional Investor (FINI) or Foreign Individual Investor (FIDI) registration, but this process is more complex and typically used by those living outside Taiwan. If you live in Taiwan with an ARC, use the standard local account route.
How to open a brokerage account as a foreigner?
Most major Taiwan brokerages accept foreign ARC holders. Here is the standard process:
Documents required:
- ARC (original + photocopy)
- Passport (original + photocopy)
- Taiwan bank account details (bankbook + passbook first page)
- A Taiwan mobile phone number
- A personal seal (印章) — some brokerages allow a signature instead
Step-by-step:
-
Choose a brokerage — major options include Yuanta Securities (元大證券), Fubon Securities (富邦證券), KGI Securities (凱基證券), and SinoPac Securities (永豐金證券). Most have English-language online platforms or apps.
-
Visit a branch in person — most brokerages require a physical visit for the initial account opening (due to KYC/AML regulations). Some newer fintechs are moving toward online-only, but check in advance.
-
**Open a stock trading account (證券帳戶) and a fund settlement account (交割帳戶) — these are linked together. Trades are settled from your linked bank account.
-
Activate your account — you may receive a one-time password (OTP) or need to verify your identity before trading begins.
-
Fund your account — transfer NTD from your bank account to the settlement account before placing orders.
Timeline: Account opening typically takes 1–3 business days after submitting documents. Some branches can process same-day.
What are the best ETFs for beginners in Taiwan?
Taiwan's ETF market has grown significantly and offers beginner-friendly options:
| ETF Code | Name | Description |
|---|---|---|
| 0050 | Yuanta Taiwan 50 (元大台灣50) | Tracks Taiwan's top 50 companies by market cap; dominated by TSMC (~50%). Low-cost, most liquid Taiwan ETF. Management fee: ~0.32%/year |
| 006208 | Fubon Taiwan 50 (富邦台50) | Also tracks the Taiwan Top 50 index; slightly lower management fee (~0.09%/year) than 0050. Less liquid but cheaper to hold. |
| 0056 | Yuanta High Dividend (元大高股息) | Focuses on high-dividend yield stocks. Popular among income-oriented investors. Pays dividends quarterly. Fee: ~0.34%/year |
| 00878 | CTBC ESG Sustainable High Dividend (國泰永續高股息) | ESG-screened, high dividend ETF. Very popular with younger investors. Monthly dividends. Fee: ~0.19%/year |
For beginners: 0050 or 006208 are the simplest choice — they give you broad exposure to Taiwan's economy at low cost. If you prefer dividend income, 0056 or 00878 are popular options.
Note: ETF prices fluctuate daily. Past performance does not guarantee future returns. Do your own research before investing.
How are investment gains taxed for foreigners in Taiwan?
Taiwan's tax treatment of investment income depends on your residency status for tax purposes:
Capital gains (stock price appreciation):
- Generally NOT taxed in Taiwan for either residents or non-residents
- Taiwan abolished its capital gains tax on securities transactions in 2016
- This makes Taiwan relatively attractive compared to many other markets
Dividends (stock cash distributions):
| Status | Tax Treatment |
|---|---|
| Tax resident (183+ days in Taiwan per year) | Dividends are included in your annual income tax return. You can choose between: (a) adding to income at full rate, or (b) paying a flat 28% final tax on dividends. Most people choose whichever is lower. |
| Non-resident (under 183 days per year) | A 21% withholding tax is automatically deducted from dividends before you receive them. No need to file a tax return for dividends. |
Securities Transaction Tax (證券交易稅):
- Automatically deducted on every sell transaction
- Rate: 0.1% for ETFs, 0.3% for individual stocks
- This is separate from income tax and is charged per trade
Summary for most expats living in Taiwan (183+ days): Capital gains are tax-free. Dividends are taxed at your marginal income tax rate (or 28% if you elect the flat rate — whichever you prefer). Use the calculator on this page to estimate your long-term investment growth.
What fees should I know about?
Understanding all fees helps you estimate your net returns accurately:
| Fee Type | Rate | Who Charges |
|---|---|---|
| Brokerage commission (buy) | 0.1425% of transaction value | Brokerage |
| Brokerage commission (sell) | 0.1425% of transaction value | Brokerage |
| Securities Transaction Tax (sell only) | 0.1% for ETFs / 0.3% for stocks | Government |
| ETF management fee | 0.09%–0.60%/year | ETF fund company |
| Bank transfer fee | NT$0–30 per transfer | Bank |
Minimum commission: Most brokerages charge a minimum of NT$20 per trade, so very small transactions (under ~NT$14,000) will cost proportionally more.
Discounted commissions: Brokerages often offer discounts of 30–60% on the standard 0.1425% commission for online trading. Ask your brokerage about their online/app trading rates.
Example calculation for buying NT$100,000 of 0050:
- Commission: NT$100,000 × 0.1425% = NT$142.5 (or minimum NT$20)
- Transaction tax on sell: NT$100,000 × 0.1% = NT$100
- Total round-trip cost: approximately NT$243 (0.24%)
Dollar-cost averaging in Taiwan: how to start?
Dollar-cost averaging (DCA, 定期定額) is a strategy of investing a fixed amount at regular intervals, regardless of market price. It reduces the impact of market volatility and is ideal for long-term investors.
How DCA works in Taiwan:
- Most major brokerages offer a regular investment plan (定期定額) feature in their apps
- Minimum investment: as low as NT$1,000 per month
- You choose the ETF or stock, the amount, and the frequency (monthly, bi-weekly)
- The brokerage automatically purchases fractional shares on your behalf on the scheduled date
- Commissions still apply per transaction, so some brokerages offer reduced fees for DCA plans
Popular DCA choices among expats:
- 0050 or 006208 — for broad Taiwan market exposure
- 00878 or 0056 — for dividend income
- Combination — some investors split between Taiwan ETFs and global ETFs (though global ETF options on TWSE are more limited)
Getting started:
- Open your brokerage account (as described above)
- Navigate to the "定期定額" or "Regular Investment" section in the app
- Select the ETF, set your monthly amount, and choose the purchase date
- Ensure your linked bank account has sufficient funds each month
Use the investment calculator on this page to see how different monthly amounts and return assumptions could grow your portfolio over time.