Property Tax Overview in South Korea Confirm the cited source.

South Korea's property tax system has three distinct layers touching ownership at purchase, during holding, and on sale. Each layer has its own legislation, administering authority, and compliance calendar. This overview describes the rules in force as of June 2026 based on materials published by the National Tax Service (NTS) of Korea, the Seoul Metropolitan Government, PwC's Korea Tax Summaries, and reporting from the Korea Herald and Korea Times.

01What is the annual local Property Tax (jaesan-se) and how is it calculated?

The local Property Tax (jaesan-se, 재산세) is an annual levy administered by municipal governments under the Local Tax Act. It falls on land, buildings, houses, vessels, and aircraft as of the assessment date. For residential houses the tax base is the publicly announced price (gongsi-gagyeok) multiplied by a 60% fair-market-value ratio, and the resulting figure is taxed at a four-bracket progressive schedule: 0.1% on the portion of assessed value up to KRW 60 million, 0.15% on the KRW 60-150 million band, 0.25% on the KRW 150-300 million band, and 0.4% on assessed value above KRW 300 million. Standard non-residential buildings are taxed at a flat 0.25%, while vacant land subject to aggregate taxation is taxed at 0.2-0.5%. The Seoul Metropolitan Government confirms that annual increases are capped, with residential-home bills limited to 105-130% of the prior year's bill depending on value, preventing sudden spikes. Notices arrive in July for residential property and September for land and commercial buildings, with payment due within 60 days. The Seoul ETAX portal (etax.seoul.go.kr) publishes an online calculator. As the Korea Herald reported in October 2025, policymakers are actively debating whether to raise holding-tax rates toward the 1% level more common in OECD peers; no legislation had been enacted as of June 2026.

02How does the Comprehensive Real Estate Holding Tax (jonghap budongsan-se) work?

The Comprehensive Real Estate Holding Tax (CRET; jonghap budongsan-se, 종합부동산세) is a national tax administered by the NTS. It applies each year to individuals and corporations whose total residential-property holdings exceed a threshold as of June 1. For single-home households (one owner, one property) the exempt floor is KRW 1.2 billion of publicly announced value. For owners of two or more homes the floor is KRW 900 million of aggregate publicly announced value. Amounts above the threshold are taxed at progressive rates ranging from 0.5% to 5%, depending on the number of homes owned and the extent of the excess; the former Moon-administration peak rates (up to 6% for multi-home holders) were reduced by the Yoon administration's 2022-2023 reforms, and these lower rates remain in place. CRET uses the publicly announced price (gongsi-gagyeok) set annually by the Ministry of Land, Infrastructure and Transport, which typically runs 70-90% of market value. The NTS issues CRET assessment notices in November-December with payment due by December 15. A local income tax surcharge of 20% of the CRET liability is applied on top of the national rate. The Korea Times reported in December 2024 that the ruling party proposed abolishing the CRET entirely for single-home owners; no bill had passed as of June 2026, and the Korea Times further reported in April 2026 that corporate-owned residential properties above KRW 900 million face heightened NTS scrutiny under the Lee Jae-myung administration.

03What acquisition tax applies when purchasing property?

Acquisition tax (chwi-deuk-se, 취득세) under the Local Tax Act is a one-time levy payable at the time of purchase or other acquisition. For individual buyers of residential homes the standard rates are graduated by purchase price: 1% for homes priced at KRW 600 million or less, 2% for homes priced between KRW 600 million and KRW 900 million, and 3% for homes priced above KRW 900 million. Commercial property and land face rates in the range of 4% to 4.6% including mandatory surtaxes. A flat 12% acquisition tax rate applies to corporations acquiring residential houses, with limited exemptions for low-value properties, employee rental housing, and senior-welfare housing. Multi-home individuals in designated regulated areas face surcharges: 8 percentage points on top of the standard rate for a second home, and 12 percentage points for a third or further home, pushing total acquisition cost to as high as 15-16% in worst-case scenarios. As reported by Asia Economy in October 2025, the government formed an inter-ministerial task force in late 2025 to study easing multi-home acquisition surcharges, citing frozen supply; however, no rate change had been legislated as of June 2026. A registration tax and administrative costs add a further 0.6-2% at settlement.

04How are capital gains from selling Korean property taxed?

Real-estate capital gains are reported under the individual income tax return (hometax, due May 31 following the tax year) and taxed at progressive rates matching the general income tax schedule: 6% on the first KRW 14 million of gain, scaling to 45% on gains above KRW 1 billion, plus a 10% local income tax surcharge at each band. Short-term disposals are penalised: property held less than one year faces a 70% rate; property held one to two years faces 60%. Long-term holding deductions reduce taxable gain by 6% after three years and up to 30% after ten years. Multi-home-owner surcharges of 20 percentage points (two homes) or 30 percentage points (three or more homes) are added on top of the base rate in designated regulated areas. Crucially, the Moon-era suspension of those surcharges expired on May 9, 2026: President Lee Jae-myung confirmed in January 2026 that no further extension would be granted, meaning multi-home owners who sold after that date are subject to the full surcharge schedule. Non-resident sellers face Korean capital-gains tax at the lower of 10% of gross sale proceeds (11% including local surtax) or 20% of net gain (22% including local surtax). Refer to the South Korea country overview for the broader residency and income-tax framework.

05What is the single-household, single-home capital gains exemption?

The principal-residence exemption under Article 89 of the Income Tax Act provides a full capital-gains exclusion for gains up to KRW 1.2 billion on qualifying disposals. Eligibility requires: (a) the property was the seller's principal residence and the seller lived there for at least two years; (b) the seller's household owns no other Korean residential property at the date of disposal; and (c) the sale price does not exceed KRW 1.2 billion in certain high-value cases where additional conditions apply. Gains above KRW 1.2 billion are taxable at standard progressive rates after deductions. Even briefly holding a second property during a transitional overlap can disqualify the exemption, so timing of concurrent ownership is a frequent practitioner concern in the Seoul and Gangnam markets where gains routinely approach the threshold.

06What does the full property tax picture look like by scenario?

The table below illustrates approximate tax exposure across common ownership scenarios, using rounded figures for illustration. All figures in Korean won (KRW). Publicly announced prices (gongsi-gagyeok) run approximately 70-80% of typical Seoul market prices; the table uses published values, not market prices. Exact liability depends on location, household composition, prior ownership history, and current-year published values; a qualified local tax professional should be consulted for individual calculations.

Property owners who believe an assessment is inaccurate may file an objection with the issuing local government or NTS within 90 days of the notice. The Korea Research Institute for Local Administration publishes annual statistics on assessment accuracy and taxpayer outcomes.

For matters involving the interaction of Korean property taxes with a foreign home-country tax system, treaty relief for double taxation, or the implications of owning Korean property through a foreign corporate structure, consult a qualified tax professional with Korean and international real-estate experience. The South Korea country overview links to related pages on capital gains, inheritance, and residency rules.