Since the question keeps appearing, I thought I would pipe up.
You can legally teach English in Taiwan provided you meet two criteria:
(1) You have an Associate Degree or a two year Diploma.
(2) You have a recognized TEFL certificate (e.g. Oxford).
I have both and work here legally. I am also able to save money (about US$800/month) for completing my degree by correspondence.
There are several places one can get a TEFL certificate; I earned mine online for under US$400, and that was three years ago. If you are not working and knowledgeable about teaching, you can obtain the certificate in a few weeks; it was six weeks from regisration and payment to receiving the certificate.
Full time wages are slightly less than Korea or Japan and the income taxes are slightly higher (10%), but legal work and visa is better than illegal work with no visa. The quality of life is also about the same, and the Taiwanese smoke less.
