Transportation

Air Travel

Taiwan has international airports at Taoyuan (near Taipei) and Kaohsiung. You can fly to Taiwan from just about anywhere in the world except, ironically enough, mainland China. Ferries run between Okinawa in Japan and Keelung and Kaohsiung in Taiwan. There are also weekly boats between Kaohsiung and Macau. Flights go between all the major cities.

Bus

With buses you can choose between government and private (cheaper, faster but more dangerous).  Special deluxe express buses provide excursion services to those who would like to explore other major towns in Taiwan. Buses are regularly scheduled to travel between Taipei and Kaohsiung daily.

Bookings should be made a day or two in advance. Tickets may be purchased from the bus companies themselves, although most hotels and local travel agencies can make the necessary arrangements for you.

Train

A train line goes around the island and the service is good. There are four classes - the first three are more expensive than buses, the fourth is cheap, but slow.
Long-distance share taxis are expensive and will probably try to rip you off.
The trains are usually packed. Again, seat reservations should be made beforehand. Commuters are usually advised to book their tickets for first class travel a day or two in advance prior to departure. Round-trip tickets can be purchased at hand, but reservations for the return trip is made on arrival at your destination. The best way to get train tickets would be to go through a travel agent as getting tickets on your own would be time-consuming and difficult.

Three choices of trains are offered:
Fu Hsing (FH) - air-conditioned and limited express.
Chu Kuang (CK) - first class, air-conditioned, express.
Tsu Chiang (TC) - electrical multiple units and air-conditioned.

Car Hire

Cars can be rented at service counters in major airports as well as downtown locations. They may also be rented at international and tourist-class hotels, as well as from taxi companies.
When renting a car, be sure to pick a renowned car rental company such as Avis, Budget, or Hertz.
Tip: Do ensure that the car is in tip-top condition before renting it and tell the hiring company of any damage you notice on the car before you set out.
Limousines are available for those who do not have proper documents to drive a car. Chauffeurs, can also act as personal guides. Cost varies depending on the type of car you choose. If requested, hotels will be more than happy to make arrangements for a limousine.

By Sea

International passenger ships call at Keelung, Kaohsiung, and Hualien harbours. Passenger ships also support the airlines in offering passenger services between Taiwan and outer islands, including Kinmen and Mazu. 

Taxi

There are many taxis services in most of the towns in Taiwan. Stand on the curb and wave your arm in the street, within moments a taxi will glide to a halt by your feet. All taxi fares are calculated according to the meter.

Taiwan taxi meters calculate both time and distance to determine the fare. Small towns and villages have fixed rates for the use of a taxi within a certain area.

Beware that most of the taxi drivers tend to drive like maniacs and most of them speak or read very little English. Best to have your destination written down in Chinese.