Prosecutors said Chen embezzled 600 million New Taiwan dollars (U S $177 million), took bribes, laundered money and illegally removed classified documents from the president's office.
Chen had to pay a fine of 200 million New Taiwan dollars (U S $61 million).
Last week, Wu Shu-chen, the president's wife was sentenced to a year in prison for lying to prosecutors in her husband's corruption case.
It was also alleged that she helped her son, daughter and son-in-law provide false testimony.
The others were each sentenced to six months in prison.
However, Chen denied the charges and said they were politically motivated by his successor, Ma Ying-jeou.
Chen's corruption trial, the first for a former head of state began in March 2009.
However, Chen maintained that the money was political donations.