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Land Incentives

¾ Land Incentives for Industrial Parks ¾ Science Park Rent Incentive
To prioritize leasing out industrial estates, the The establishment of science parks in Taiwan
Preferential Land-lease Program for Industrial Estates has sought to promote the development of high-
provides rent-free leasing for the first two years for tech industries. Science park land may only be
land in industrial zones and industrial parks developed leased, and not sold, and science park rents are Advantageous Environment
under the jurisdiction of the Ministry of Economic Affairs assessed on the basis of land rent plus public
(including the Changhua Coastal Industrial Park, Yunlin infrastructure cost. Land rent is calculated by
Offshore Industrial Park, Yunlin Technology-based multiplying the announced price of science park
Industrial Park, Chiayi Zhongpu Industrial Park, Chiayi land by the annual rental rate, and may be adjusted
Shuishang Industrial Park, Tainan Industrial Park and when new land prices are announced by county
North Kaohsiung Industrial Park). According to the and city governments once every two years.
schedule stipulated in the announced leasing guidelines, However in order to ensure that major fluctuations
leasees must pay two years of rent in advance, which in announced land prices do not exceed the figures
can be pledged in the form of cash, bank guarantees, in tenant companies' financial plans, and affect
or negotiable certificates of deposit. Leasees that fulfill their operations, the amount of upward adjustment
use according to approved plans within the first two shall be limited to a maximum of 10% of the
years of their lease will be eligible for rent-free land use announced land price. Public infrastructure costs
for the first two years. Leasees who have paid their two shall be set by the science park administrations on
years of rent in cash can opt for a interest-free refund or the basis of actual park infrastructure development
to use the paid rent to offset future rent payments. Fulfill costs amortized over a period of 20 years. When
use, mentioned above, is determined in accordance development expenses have been obtained for
with the announced leasing instructions requiring that public facilities for a full 20 years, such expenses
the building coverage ratio shall be at least 30% of shall no longer be included in calculations.
the leased land area and 50% of the roof area shall
be equipped with solar photovoltaic power generation
equipment.

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