Urban Renewal vs Dangerous Old Building Rebuild Guide

Old home reconstruction in Taiwan follows two primary statutory routes: Urban Renewal (都市更新, Urban Renewal Act) and Dangerous Old Building Rebuild (危老重建, Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings). Dangerous Old Building Rebuild imposes zero minimum site footprint limits and features rapid administrative reviews, but strictly requires 100% unanimous consent from all land and building owners, offering a floor area ratio (FAR) bonus capped at 30% of base volume (reaching up to 40% when combined with site scale bonuses); Urban Renewal requires designated minimum urban renewal unit footprints, operates under democratic majority rule (typically 3/4 or 4/5 consent), and caps FAR bonuses at 1.5 times base volume (50% bonus). Both routes grant complete Land Value Tax exemptions during construction, followed by 2 years of 50% reductions on Land Value Tax and House Tax, extendable up to 12 years (最長 12 年) of 50% House Tax reductions for original non-transferring owners.

Important Reminder: The Dangerous and Old Buildings Statute was originally enacted to run through May 31, 2027 (民國 116 年 5 月 31 日); its initial timeline bonus phased out to zero in May 2025 (114 年 5 月), transitioned into site scale bonuses (beginning from lots of 200 square meters; 滿 200 平方公尺, up to 10%). Qualifying for dangerous old building rebuild requires completing preliminary structural seismic assessments.

Six Core Differences: Urban Renewal vs Dangerous Old Rebuild

The Urban Renewal Act (都市更新條例) and Dangerous Old Buildings Statute (危老條例) diverge across site requirements, consent thresholds, and resolution mechanisms:

Comparison Factor	Dangerous Old Building Rebuild (Dangerous Old Statute)	Urban Renewal (Urban Renewal Act)
Statutory Legal Basis	Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings.	Urban Renewal Act.
Minimum Lot Area Threshold	Zero site footprint limit (single standalone townhouses or small-lot apartments qualify).	Must meet municipal renewal unit thresholds (e.g., Taipei City generally requires at least 1,000 square meters or full street blocks; 302.5 ping).
Building Age and Safety Criteria	Legal non-monument buildings in urban planning zones that are: (1) structurally hazardous; or (2) failed seismic checks; or (3) aged 30+ years without elevators or lacking seismic capacity.	Located in officially designated renewal areas, or meeting municipal self-demarcated renewal unit standards (evaluating aging, fire hazards, or road bottlenecks).
Statutory Owner Consent Threshold	100% Unanimous Consent (Absolute Consensus); even 1 dissenting owner halts the entire project.	Majority Consent: Expedited zones over 1/2; standard designated units over 75% (3/4); self-demarcated units over 80% (4/5) (consent reaching 90% unlocks simplified review procedures).
Floor Area Ratio (FAR) Bonus Cap	Base bonus up to 30% (1.3x base FAR or 1.15x original building volume; 1.15 倍); combined with site scale bonuses (lots over 200 m²), total bonus reaches maximum 40% (1.4x).	Up to 1.5 times base FAR (50% bonus), or 1.3 times original volume plus 0.2 times base FAR (0.2 倍基準容積).
Review Timeline and Dispute Mechanisms	Streamlined review (typically approved within 1 to 2 months); zero statutory government demolition powers.	Requires hearings, urban planning reviews, and rights transformation plans (taking 2 to 5 years); government holds statutory expropriation/demolition authority under Art. 57.

Check property age using our old house checkup tool, inspect subsidies via our seismic assessment subsidy guide, examine tax rates (including self-use 1.2% rates; 自住 1.2%) in our House Tax 2.0 guide, and verify payment dates via our Land Value Tax guide.

Tax Incentives: Land Tax, House Tax, Deed Tax, and Land Value Increment Tax

Both renewal routes provide statutory tax remissions under the Urban Renewal Act and Dangerous Old Buildings Statute:

Tax Type	During Construction Period	Post-Completion Preferential Tax Reduction
Land Value Tax	100% Exempt (NT$0) during construction where lands cannot be used.	50% Reduction (Halved) for 2 years following project completion.
House Tax	Old buildings demolished (demolition deregistration results in NT$0 tax).	50% Reduction (Halved) for 2 years; original individual owners holding without resale receive up to 12 years of 50% House Tax reductions.
Land Value Increment Tax	Deferred (zero immediate payment upon rights transformation assignment).	40% Reduction on first transfer after reconstruction under rights transformation allocations.
Deed Tax	Zero tax incurred during construction.	100% Exempt for original owners reclaiming units within original entitlement; 40% reduction on excess deed transfers.

Should Your Building Pursue Dangerous Old Rebuild or Urban Renewal?

Choosing the optimal redevelopment framework depends on community scale and consensus:

When to Choose Dangerous Old Rebuild: Small lot footprints under 1,000 square meters (e.g., 4-to-5-story walk-ups with 8 to 12 households) where 100% of owners agree on rebuilding; enables drafting plans and securing permits within months.
When to Choose Urban Renewal: Large blocks exceeding 1,000 square meters (300+ ping) with 30 to 100+ co-owners, where reaching 100% consensus is impossible due to missing heirs, dispute holdouts, or commercial shopfronts; majority rule allows proceeding with 80% consent.

Frequently Asked Questions

Does Reaching 30 Years of Age Automatically Qualify Buildings for Dangerous Old Rebuild?

No. In addition to being aged 30 or older, buildings must undergo initial structural seismic performance assessments confirming seismic scores fail standard safety benchmarks, or R-values between 30 and 45 points (30 至 45 分) without elevators.

If Exactly One Owner Dissents, Does It Completely Paralyze Dangerous Old Rebuild?

Yes. The Dangerous Old Buildings Statute strictly enforces 100% unanimous consent; a single holdout prevents Dangerous Old Rebuild, forcing communities to incorporate adjacent lots into Urban Renewal.

Do Reconstructed Homes Truly Receive 50% Off House Tax for 12 Consecutive Years?

Yes. Under Article 67 of the Urban Renewal Act and Article 10 of the Dangerous Old Statute, if the original natural person owner maintains ownership without selling, 50% House Tax discounts extend up to 12 years.

Can Unauthorized Rooftop Additions Be Exchanged for Legal Indoor Living Ping?

No. Floor area ratio allocations and rights transformations are calculated strictly based on registered title deed square meters; unauthorized rooftop additions receive demo subsidies but zero legal indoor title ping.

Last updated: 2026-11-01.

Sources

Laws and Regulations Database: Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings (verified 2026-11-01): Article 3 qualifications, Article 6 30% and 40% FAR bonus caps, Article 8 tax concessions.
Laws and Regulations Database: Urban Renewal Act (verified 2026-11-01): Article 37 majority consent ratios (75% and 80%), Article 65 50% FAR bonus limits, and Article 67 12-year House Tax reductions.