Taiwan Opens Doors: 5 Major Benefits for Foreign Investors in its 2025 FDI Reform
Taiwan has updated its foreign direct investment (FDI) review framework in 2025. At first glance, regulatory reform often sounds restrictive. But in this case, the new rules introduce clear advantages for international investors—making Taiwan a more attractive and accessible destination for foreign capital.
Here are the five key benefits for investors like you:
🔑 1. Faster, Easier, Lower-Cost Applications
- Digital submission is now accepted for certain filings that once required paper originals.
- Duplicate copy requirements have been removed.
👉 Your benefit: Less paperwork, lower compliance costs, and significantly shorter approval timelines.
🔑 2. Reduced Legal Uncertainty
- Companies with complex or mixed shareholder structures may now apply to be classified as foreign investors, instead of being misclassified as “Chinese capital.”
👉 Your benefit: Greater certainty in how your investment is treated, lowering regulatory and reputational risk.
🔑 3. A Market with Momentum
- In the first half of 2025, approved foreign investment in Taiwan totaled USD 7.46 billion.
- Capital is flowing into green energy, offshore wind, ESG, biotech, AI, and ICT.
👉 Your benefit: You’re entering a market where other global players are actively investing—evidence of stability and growth potential.
🔑 4. More Options for Institutional Investors
- From February 2025, FINIs can appoint one main custodian bank and up to three sub-custodians.
👉 Your benefit: More flexibility in fund management, smoother capital allocation, and enhanced ability to diversify risk.
🔑 5. Clearer Signals on Where to Invest
- Sensitive technologies (e.g., semiconductors, defense) remain tightly controlled.
- But general industries and new growth sectors now enjoy streamlined approval processes.
👉 Your benefit: You can plan expansion in areas like renewable energy and startups with greater confidence and speed.
📊 What This Means for You
Taiwan’s approach is not blanket restriction. Instead, it’s a dual-track model:
- Strict oversight of critical technologies,
- Paired with openness and efficiency for broader sectors.
For foreign investors, this translates into reduced risk, more predictable rules, and a smoother path to market entry.
🌐 Taiwan Connect: Your Partner in Taiwan
At Taiwan Connect (株式会社台湾コネクト), we help international companies:
- Set up entities in Taiwan (subsidiary, branch, representative office)
- Manage tax, accounting, and compliance
- Obtain visas (Business Manager Visa, Employment Gold Card, etc.)
- Navigate the local market with expert consulting in English, Japanese, and Chinese
📩 Get in Touch Looking to expand into Taiwan with confidence? Our team is ready to support you every step of the way.
