Ending a Taiwan Lease Early: Penalty Cap and Notice
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Ending a Taiwan Lease Early: Penalty Cap and Notice

This article is general information for reference only and is not legal, tax, medical or engineering advice. Rules, fees and subsidies change; check the latest notice from the responsible authority before acting. For electrical, gas, structural or health risks, consult a licensed professional.

This is the English edition of a Chinese article, adapted with AI assistance and checked against the original. Where the two differ, the Chinese version and the official sources it cites prevail.

Whether you owe anything for ending a lease early depends on three things: whether you have a statutory ground, whether the contract is ticked "may" or "may not" (得 / 不得) terminate at will, and whether you gave one month's notice. Where the contract allows termination at will, a party must give notice at least one month ahead; ending the lease without notice means a penalty of up to one month's rent. With a statutory ground, the tenant only has to give 30 days' written notice, and the landlord may not demand any compensation.

Note: The "penalty of at most one month" applies only where the contract allows termination at will and no advance notice was given. If the contract is ticked "may not" terminate at will, the mandatory provisions announced by the Ministry of the Interior set no penalty cap, so the two sides have to agree; if the agreed amount is too high, you can ask the court to reduce it under Article 252 of the Civil Code. What actually governs is the contract you signed.

The three situations at a glance

SituationHow much noticeDo you pay?Basis
Statutory ground (tenant side)30 days before termination, in writing with supporting evidence. If the home has a defect that endangers safety or health and the situation is urgent, no advance notice is neededNo; the landlord may not demand any compensationArticle 11 of the tenancy act; point 18 of the mandatory provisions
Contract ticked "may" terminate at willNotify the other party at least one month before terminationWith notice: no. Terminating without notice: a penalty of up to one month's rent, which can be deducted from the security depositPoint 14 of the mandatory provisions
Contract ticked "may not" terminate at willNo rule announcedNegotiate; the mandatory provisions set no cap, and if an agreed penalty is too high, you can ask the court to reduce itPoint 14, item 1 of the mandatory provisions; Article 252 of the Civil Code

These rules come from the "mandatory and prohibited provisions for standard residential lease contracts" (住宅租賃定型化契約應記載及不得記載事項, "mandatory provisions" below) announced by the Ministry of the Interior. Article 5 of the rental housing act (租賃住宅市場發展及管理條例, "tenancy act" below) provides that the landlord and tenant are treated as being in a consumer relationship and subject to the Consumer Protection Act, and Article 17 of the Consumer Protection Act provides that mandatory provisions not written into the contract still form part of the contract. So even if you signed a contract you printed yourself, the early-termination grounds and notice periods in points 17 and 18, and the cap of one month's rent in point 14 where no notice is given, still apply.

Five situations where the tenant can end early without paying

Point 18 of the mandatory provisions (amended April 18, 2025) lists five items. They are similar to Article 11 of the tenancy act, with one added item for "a defect that endangers safety or health":

  1. The home does not fit the agreed residential use and needs repair; the tenant set a reasonable deadline in a demand notice, and the landlord still did not repair within the deadline.
  2. Through a cause not attributable to the tenant, part of the home is lost, and the remaining part cannot serve the purpose of the lease.
  3. The home has a defect that endangers the safety or health of the tenant or the people living with them; the tenant may terminate even if they knew of it when signing or had waived the right to terminate (the same idea as Article 424 of the Civil Code).
  4. The tenant needs long-term care because of illness or an accident.
  5. A third party asserts a right over the home, so the tenant cannot live in or use it.

In all these situations, the tenant must give the landlord written notice 30 days before termination, with the relevant evidence attached; in urgent cases under item 3, no advance notice is needed. If the tenant dies, the heirs can also invoke termination, with the notice method applying by analogy. Item 1 requires first "setting a reasonable deadline in a demand notice to repair"; for how to write that notice and what to do if the landlord does not repair, see What to do when the landlord will not fix plumbing and electrical problems.

When can the landlord take the home back early

Article 10 of the tenancy act lists five items, which point 17 of the mandatory provisions breaks down into ten. When the landlord terminates early on one of these grounds, the tenant may not demand any compensation, but the landlord must attach evidence and give written notice:

Grounds on which the landlord may terminate earlyNotice period
Needing the home back to rebuild itThree months before termination
Late rent totaling two months' rent, still unpaid after a demand with a reasonable deadline30 days before termination
Unpaid management fees or other charges the tenant must bear reaching two months' rent, still unpaid after a demand30 days before termination
Changing the use of the home without permission, and continuing after being told to stop30 days before termination
Unlawful use, or storing explosive or flammable items, and continuing after being told to stopMay terminate without advance notice
Subletting or transferring the lease rights without consent30 days before termination
Damaging the home or equipment, and still not repairing or compensating after a demand30 days before termination
Renovating the interior without consent or not in accordance with the law, and continuing after being told to stop30 days before termination
Interior renovation that damages the original structural safety of the buildingMay terminate without advance notice

Note: neither Article 10 of the tenancy act nor point 17 of the mandatory provisions has an item for "the landlord taking the home back for their own use" or "the landlord wants to sell." For a fixed-term lease, a landlord who wants to end early to live in the home must have a contract that already allows termination at will (which likewise needs one month's notice, and a penalty is owed if no notice is given), or must reach an agreement with the tenant. If the home is sold, under Article 425 of the Civil Code ("a sale does not break the lease," 買賣不破租賃), the lease in principle continues to bind the new owner.

The "youth marriage and childbearing rental assistance program" (青年婚育租屋協助專案) announced by the Executive Yuan on September 12, 2025 says the tenancy act will be reviewed and amended, with directions including a lease protection of 3 years in total for signing plus renewal, and allowing the landlord to take the home back only for their own use or on a statutory ground. As of 2026-10-31, the tenancy act in the national laws and regulations database (全國法規資料庫) is still the version amended on February 8, 2023, so these directions are not yet law.

What to settle on the day you terminate

  • Prepaid rent must be refunded: under point 14, item 4 of the mandatory provisions, rent the landlord has already collected in advance must be returned when the lease is terminated at will; Article 454 of the Civil Code also provides that prepaid rent falling due after termination must be returned.
  • The penalty is deducted from the deposit: point 14, item 3: the penalty the tenant owes can be set off against the security deposit, and the landlord can claim the shortfall. For what can be deducted from the deposit and when it must be returned, see How many months' rent can a rental deposit be.
  • Handover and moving out your household registration: point 15: when the tenancy ends, both sides do the handover inspection together, and the tenant must return the home and move out the household registration or other registrations.
  • If you receive a rent subsidy: recipients of the NT$30 billion (300 億) rent subsidy must submit a new lease within 3 months after the lease ends early, or the subsidy is stopped as the rules provide; for details see How to apply for the rent subsidy.

This article suggests sending every notice by a post-office certified-content letter (存證信函) or in a text message you can keep, stating the termination date and the clause or ground you rely on, and attaching evidence such as photos and a medical certificate.

FAQ

With no written contract, only a verbal agreement, can I move out at any time?

For a lease with no agreed term, under Article 450, paragraph 2 of the Civil Code each party may terminate at any time; paragraph 3 of the same article provides that notice must be given in advance according to custom, and for real property with rent paid monthly, the lessor must set the end of a calendar month as the termination date and give at least one month's notice. On the landlord's side, Article 100 of the land act (土地法) also applies: a lease of a building with no fixed term can be taken back only on statutory grounds such as taking it back for own use or rebuilding, rent arrears of two months or more, or unlawful subletting. For the tenant, this article suggests giving one month's notice as well and keeping a written record.

My landlord says I must pay two months' rent for ending early. Is that lawful?

It depends on the contract. If the contract is ticked "may" terminate at will, point 14 of the mandatory provisions provides that where no advance notice is given, the penalty may not exceed one month's rent, and any larger amount agreed is void; with one month's advance notice, nothing is owed. If it is ticked "may not" terminate at will, the announced provisions set no cap, so it can be negotiated, and if the amount is too high, you can ask the court to reduce it under Article 252 of the Civil Code.

The lease expired and was not renewed, but I kept living there. What is this?

Article 451 of the Civil Code: if the tenant keeps using the home after the term ends and the lessor does not object at once, the contract is deemed to continue for an indefinite term. Point 15 of the mandatory provisions requires that when the tenant has not returned the home, the landlord must promptly state expressly that the contract does not continue for an indefinite term.

Who can I turn to for a dispute?

Under Article 16 of the tenancy act, you can apply for mediation (調處) to the special municipality or county (city) government at no fee; you can also apply for mediation (調解) to the mediation committee of the district office (區公所).

Last updated: 2026-10-31

This article is compiled by SOSfix editors from public information and is for general reference only; for your own case, contact the land administration unit of the special municipality or county (city) government where the rental is located.

Sources