Taxes Related to Buying Property

Information about the taxes that have to be paid when purchasing a property in South Korea...

Taxes related to properties depend on various factors. If property is inherited in South Korea, inheritance tax, in addition to other taxes must be paid. Taxes related to property are divided into three categories, based on when and why the tax is imposed:

  1. Purchasing-related taxes.
  2. Possession-related taxes.
  3. Transfer-related taxes.

Purchasing-related taxes mainly consist of an acquisition tax and possibly a special tax for rural areas.

After property is purchased, possession-related taxes on individual properties or multiple property holdings must be paid annually. Property tax must be paid on each property owned. The general property tax is only paid if the total value of all the owner's property in South Korea is over KRW 600 million, or KRW 900 million if property is owned by one family.

Transfer-related taxes are the Korean equivalent of capital gains taxes. Individuals pay transfer-income tax based on the balance between the purchase price and the sale price on their properties. Corporations pay transfer-related taxes through their corporation tax.

Note: If any discrepancies are found between the information on this page and the current Korean Codes, especially the Tax Code, the terms of the current Korean Codes prevail.

Further Information

  • For detailed information on the Foreigner Land Acquisition Procedure: Click here
Information provided by Yun Je Lee, Associate Professor at Ajou University School of Law Attorney at Law in South Korea/California  ccsnu4@gmail.com