Cost of Living in Taiwan

The cost of living in Taiwan varies depending on an expat’s lifestyle and the area they choose to live in. Although rural living and life in the south of Taiwan are much less expensive, most foreign nationals relocate to Taipei. The 2024 Mercer Cost of Living Survey ranked Taipei 69th out of 226 cities, making it pricier than Melbourne, Australia and Madrid, Spain, but cheaper than Sydney, Australia and Milan, Italy.

While Taipei may inspire the highest cost of living in Taiwan, it is still significantly cheaper than regional competitors like Beijing in China, Seoul in South Korea, Singapore, or Hong Kong. That said, life in Taiwan is based on consumerism, and if you’re living in Taipei, in particular, you will have to battle the constant onslaught of trends, merchandise, and entertainment if you wish to save money.

One silver lining is that Taiwan’s overall tax burden is lower than in many Western countries, potentially offsetting some of these costs. Additionally, the cost of electronics in Taiwan is quite low due to Taiwan’s prominent role in electronics manufacturing.

Cost of accommodation in Taiwan

Accommodation in Taipei is expensive, and homes are small and only have basic amenities. Affordable studio apartments will most likely lack a kitchen. Buildings tend to suffer under the humid climate, and cheaper accommodation is often plagued by mould and mildew.

Utilities are affordable, although electricity bills increase significantly during the hot summer months when it is all but impossible to live without air conditioning. Stoves and geysers are usually powered by gas, which helps minimise costs. Initially, the most exorbitant household cost will seem to be the rubbish bags, which are sold at a premium to encourage recycling. Internet access in Taiwan is both affordable and extremely reliable.

Cost of transport in Taiwan

Taipei has fantastic public transport. The vast majority of both locals and expats in the city use public transport, as it’s possible to get anywhere at any time without a car.

Owning a car is a significant expense as the monthly costs include the car repayments and fuel, insurance, maintenance and extremely expensive parking fees.

Many locals (and some brave foreigners) have small motorcycles, which are cheap and convenient but can be a somewhat dangerous way to get around. Those without motorcycles often have bicycles, which are easy to ride on Taipei’s flat streets.

Cost of groceries in Taiwan

The cost of groceries and clothing in Taiwan varies hugely, and it’s up to the individual how much they want to spend, but it’s fair to say that the quality of clothing is determined by price. Therefore, quality clothing tends to be limited to big-name brands and is expensive. You’ll find that many expats prefer buying clothes when they visit their home countries or shop online.

Night markets have cheap food and clothes, which are typically made from poor-quality, synthetic fabrics. Day markets sell large amounts of affordable fresh vegetables, and fruit is also readily available and relatively inexpensive.

Taiwan does not have a strong drinking culture, and alcohol is expensive. Spirits are the most affordable, followed by beer and wine.

Cost of entertainment and eating out in Taiwan

The cost of entertainment and eating out in Taiwan can fluctuate based on preferences. For those who relish local Taiwanese food, the numerous night markets and street food stalls across Taipei offer an abundance of low-cost and delicious options. Traditional Taiwanese meals are both sumptuous and very economical, making eating out an affordable pastime.

On the other hand, Western dining and high-end restaurants are more expensive, reflecting prices akin to those in European cities. As for entertainment, there are various options ranging from budget to high-end. Cinemas, karaoke bars, and cultural events such as operas and concerts are all popular, but prices can vary significantly. Outdoor activities, like hiking or visiting the numerous free parks and temples around the city, provide cost-effective entertainment alternatives.

Cost of education in Taiwan

There are world-class English education schools in Taipei, but you should be prepared to pay high fees. International school fees are typically pricey, and additional expenses such as textbooks, uniforms, and bus service are not always included.

While international schools can be steep, they frequently offer excellent facilities and teaching standards. Students at these schools also have access to a wider variety of extracurricular facilities, making the cost well worth it.

Cost of healthcare in Taiwan

The healthcare system in Taiwan is extremely advanced and low cost. If you’re an employee in Taiwan, your employer is legally required to subsidise your health insurance. Foreign employees will be placed on the National Health Insurance and receive the same benefits as Taiwanese locals. In this system, you’ll pay a small stipend to access Western doctors, Chinese doctors, hospitalisation, dentistry, prescription medicine and more.