Communication Channels

Preferred Treatment Given to Hong Kong Chinese Relocating in ROC

To assist Hong Kong Chinese moving to the ROC, the government has adopted a series of measures to ease relocation, purchase of property, and transfer of assets.

1. To facilitate the purchase of property, the government has announced that local banks will offer Hong Kong Chinese housing loans. Those Hong Kong Chinese seeking to buy a domicile here may borrow up to NT$5 million (about HK$1 million) through the Land Bank of Taiwan or the United World Chinese Commercial Bank, which have already begun to implement the measure.

The Overseas Chinese Affairs Commission has announced that Hong Kong Chinese seeking to relocate in the ROC may use their name or that of their spouse or direct relative to establish a registered temporary domicile. Should they reside there for more than 183 days per year, it will be considered as a registered permanent domicile. If the residence is not sublet or used as a place of business, the owners may apply for preferential tax status. The property may be mortgaged to up to 80 percent of its value, and should its value be less than NT$5 million (about HK$1 million), no guarantor is required.

Because many overseas Chinese have resided abroad for an extended period and may not be familiar with the laws and regulations governing fixed assets, the Overseas Chinese Affairs Commission has established the Hong Kong Chinese Relocation Bureau to facilitate and ensure the security of housing purchases. In addition, the United World Chinese Commercial Bank has set up a special Overseas Chinese Service Bureau to handle exclusively the purchase of property by overseas Chinese and furnish materials on the subject.

The Hong Kong Chinese Relocation Bureau may be contacted on the 4th Floor, No. 30, Kung Yuan Rd., Taipei, while the United World Chinese Commercial Bank may be contacted at No. 65, Kuan Chien Rd., Taipei.

2. Hong Kong Chinese shall face no restrictions regarding the free flow of their deposits in and out of the ROC

3. To facilitate the flow of assets, Hong Kong Chinese may mortgage property and complete letter of credit procedures in Hong Kong and then obtain New Taiwan dollars from specified banks in the ROC

Important Information on Procedures for Short-Term Overseas Chinese Residents Seeking to Become Permanent Residents

1. Required documents

A. One application for residency in Taiwan.

a. If applicant's name, spouse's name, ages ancestral homes, and immigration data do not agreed with the original information, an explanation must be given with supplementary documentary proof.

b. Applicant must fill in information regarding parents' and spouse's names, ages, and whether they are living or deceased.

B. Three recent two-inch square photographs.

C. One guarantor's letter (from a registered resident of Taiwan with steady employment).

D. One copy of the applicant's entry certificate (passport holders should supply a facsimile of their passport).

E. One exit permit or one overseas Chinese reentry visa.

F. One copy of the registered temporary domicile (registration dates should be without interruption).

G. One written explanation (forms can be obtained at municipal or county police station).

H. NT$500 registration fee (collected by the police and then turned over to the Bureau of Entry and Exit).

I. The above materials should be turned over to the appropriate city or county police household registration section.

2. Procedures

A. After entering the country, the applicant should proceed to the local police station and complete registered temporary domicile procedures.

B. Permanent registration procedures should be completed at the municipal or county police household registration office.

New Opportunities Overseas for Small-Scale Investors

On April 1st, the Central Trust of China established the Trust Fund for Foreign Securities Investment. The minimum investment for each individual investor in the initial period has been set at US$10,000, with a minimum period of two years.

The fund is to be handled as a common trust fund, in which the investor purchases beneficiary certificates and signs an agreement to authorize the Central Trust to act on his or her behalf. The Central Trust is under no obligation to assure a minimum profit, meaning that the investment risk is to be borne by the individual. After the individual accounts are processed by the Central Trust, the International Commercial Bank of China and the Bank of Taiwan will invest the money in foreign securities. The investments may be used as collateral after approval by the Central Trust.

In its initial period, the fund will invest in U.S. treasury bonds, Eurodollar deposits, and other relatively simple items, though this policy may be changed in the future.

Taipei branches of foreign banks are also energetically assisting and providing information to companies and individuals seeking to invest overseas. Specific targets include companies and individuals with idle cash and pension funds.