Real Estate Taxes

입력 2018.01.08 (14:54) 수정 2018.01.08 (16:50)

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[Anchor Lead]

Starting in April this year, owners of multiple homes will have to pay a higher real estate sale tax in 40 regions across Korea, including Seoul. But there will be some exceptions. Here’s more.

[Pkg]

A new law mandating owners of multiple homes to pay up to 62 percent in capital gains tax will soon be enacted. The Ministry of Strategy and Finance has said that the revised bill will take effect as early as next month after being discussed at the vice ministerial and cabinet meetings. Once the amended bill is enacted, starting in April owners of multiple homes in 40 regions including Seoul, Gwacheon and Busan will have to pay a higher real estate sales tax when selling their properties. Owners of two homes will have to pay 10 percentage points more in addition to the basic sales tax, which ranges from 6 to 42 percent. Owners of three or more homes will have to pay 20 percentage points more. However, the new regulation will not apply when owners of two homes need to sell their properties in regions subject to a higher capital gains tax, excluding the Seoul metropolitan area, because of their children's school location, work or disease. But this is only valid when home owners have lived in properties costing less than 300 million won for over a year and have sold them within three years after they no longer needed two homes. Couples who ended up with two homes after marriage can sell one of their homes within five years after getting married without getting taxed at a higher rate. Couples who live together with their parents and decide to sell one of their properties within ten years will also be excluded.

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  • Real Estate Taxes
    • 입력 2018-01-08 14:54:35
    • 수정2018-01-08 16:50:21
    News Today
[Anchor Lead]

Starting in April this year, owners of multiple homes will have to pay a higher real estate sale tax in 40 regions across Korea, including Seoul. But there will be some exceptions. Here’s more.

[Pkg]

A new law mandating owners of multiple homes to pay up to 62 percent in capital gains tax will soon be enacted. The Ministry of Strategy and Finance has said that the revised bill will take effect as early as next month after being discussed at the vice ministerial and cabinet meetings. Once the amended bill is enacted, starting in April owners of multiple homes in 40 regions including Seoul, Gwacheon and Busan will have to pay a higher real estate sales tax when selling their properties. Owners of two homes will have to pay 10 percentage points more in addition to the basic sales tax, which ranges from 6 to 42 percent. Owners of three or more homes will have to pay 20 percentage points more. However, the new regulation will not apply when owners of two homes need to sell their properties in regions subject to a higher capital gains tax, excluding the Seoul metropolitan area, because of their children's school location, work or disease. But this is only valid when home owners have lived in properties costing less than 300 million won for over a year and have sold them within three years after they no longer needed two homes. Couples who ended up with two homes after marriage can sell one of their homes within five years after getting married without getting taxed at a higher rate. Couples who live together with their parents and decide to sell one of their properties within ten years will also be excluded.

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