Can a Tenant End a Lease Early in Taiwan? What “May Terminate” vs. “May Not Terminate” Really Means

One of the most common rental disputes is whether a tenant can end the lease early.
Tenants often ask:

   “Can I cancel before moving in?”
   “I changed my mind. Can I withdraw from the lease?”

Landlords, on the other hand, wonder:

   “Is it reasonable for the tenant to simply say they’re not renting anymore?”
  “Can I claim compensation?”

To answer these questions, there is one essential principle:

👉 Whether early termination is allowed depends entirely on what the contract says—not on what either party wants.

Below is a clear, structured explanation of how early termination works.

What Does the Law Say?

Civil Code Article 114:

“A juridical act that has been rescinded shall be deemed void from the beginning.”
 ✨ Plain explanation: Rescission only applies to special situations like fraud, coercion, or significant mistake. Simply regretting or changing one’s mind is not a lawful reason.

⚖️ Legal Source: Civil Code Article 114 – Law.moj.gov.tw

Civil Code Article 153:

“A contract is constituted when the parties have mutually expressed their assent, whether expressly or impliedly.”
 ✨ Plain explanation: Once rent, term, deposit, and address are agreed upon, the lease is established. Moving in, paying, or signing a physical document is not required for contract formation.

⚖️ Legal Source: Civil Code Article 153 – Law.moj.gov.tw

Civil Code Article 450:

“For leases with a fixed term, the lease relationship terminates when the term expires.”
 ✨ Plain explanation: A one-year lease must be fulfilled for one year. Unless the contract explicitly allows early termination, neither party may exit halfway.
 Simply regretting or changing one’s mind is not a lawful reason.

⚖️ Legal Source: Civil Code Article 450 – Law.moj.gov.tw

Required and Prohibited Lease Terms & Mandatory and Prohibited Clauses:

“If early termination is permitted under contract, the party terminating shall notify the other at least 30 days in advance. If not notified, the breaching party shall compensate up to one month’s rent.”
 ✨ Plain explanation:  If the contract has a checked box for “may terminate early,”
 → Tenant must give at least 30 days’ notice
 → No prior notice = penalty up to one month’s rent

 ⚖️ Legal Source: Ministry of the Interior – Residential Lease Standard Contract Regulations

Early Termination Depends Entirely on the Contract

Here are the three most common contract scenarios:

1️⃣ Contract states “may terminate early” = tenant can exit (must follow procedure)

👉 If the contract clearly states that the tenant may terminate early, it means:

✅ The tenant has the right to end the lease early
✅ At least 30 days’ written notice is required
✅ No advance notice → penalty up to one month’s rent

In this case, both parties simply follow the contract.

2️⃣ Contract states “may not terminate early” = cannot exit (except legally permitted reasons)

This means:

❌ Tenant may not withdraw for personal reasons
❌ Early exit is a breach of contract
❌ Landlord may claim “actual damages,” including:

• Rent loss during vacancy
   
• Costs of finding a new tenant
   
• Agent/broker fees
   
• Rent difference if the next tenant pays less
   

Also note:

📌 Compensation must be based on actual losses, not arbitrary demands.
📌 Even if the contract states “may not terminate early,” tenants may still terminate without compensation if they qualify under legally permitted conditions in the Standard Residential Lease Clauses.
 (Details can be covered in a separate article.)

3️⃣ Contract does not mention early termination = treated as “may not terminate early”

Many tenants mistakenly believe “no clause = can leave.”
In fact:

👉 No clause → treated as no early termination → lease must be completed

If the tenant exits due to personal reasons, they are usually liable for actual damages.

Also remember:

📌 Even without an early-termination clause, tenants may still legally terminate without compensation if they meet the statutory conditions under the Standard Lease.

Common Misunderstandings (All Incorrect)

❌ “The lease hasn’t started because I haven’t moved in.”
 → Wrong. The lease is formed once both parties agree.

❌ “I didn’t pay the deposit, so I can back out.”
 → Wrong. Deposits are not required for contract formation.

❌ “I’ll just rescind the contract.”
 → Wrong. Rescission requires legal grounds.

❌ “Just take the deposit as penalty.”
 → Wrong. Deposits cannot automatically be used as compensation.

👹 Related Read: Is a Rental Agreement Always Necessary in Taiwan?

🦴 Related Read: What’s the Difference Between a Security Deposit and a Reservation Deposit in Taiwan?

Summary Chart

Conclusion

Early termination is always possible if both parties agree.
But once one party disagrees, the question is no longer about personal preference—it must be resolved based on the contract, the required notice period, the existence of actual damages, and whether the process follows legal requirements.

Understanding these principles helps both tenants and landlords handle early termination more smoothly, avoid unnecessary disputes, and maintain a transparent and predictable rental relationship.

租哥小編

Published on 2025-11-23