South Korea Property Tax Guide 2026

Local Property Tax (재산세)

Property tax (재산세) is levied annually by local governments (시·군·구) on the value of land, buildings, and other fixed assets. The tax is based on the standard market value (시가표준액) determined by the local government, generally 60–80% of the market price. The progressive rates for residential property are:

• Up to KRW 60 million: 0.1%
• KRW 60M to 150M: 0.15%
• KRW 150M to 300M: 0.25%
• Above KRW 300M: 0.4%

Land and buildings are assessed separately. Commercial and industrial properties have different rate schedules. A property tax surcharge of 10–20% of the base property tax is added as a local education tax (지방교육세).

Comprehensive Real Estate Tax (종합부동산세, CRET)

The comprehensive real estate tax (종합부동산세) is a national-level tax introduced to curb real estate speculation and address wealth inequality. It applies to high-value property holdings exceeding certain thresholds:

• Residential property: Holdings exceeding KRW 900 million in aggregate standard market value (KRW 1.4 billion for single-homeowners)
• Land: Holdings exceeding KRW 500 million (general land) or KRW 800 million (residential land separately taxed)

CRET rates are progressive (2026):

• Up to KRW 3B in excess of threshold: 0.5%
• KRW 3B to 6B: 0.7%
• KRW 6B to 12B: 1.0%
• KRW 12B to 25B: 1.3%
• KRW 25B to 50B: 1.5%
• KRW 50B to 94B: 2.0%
• Above KRW 94B: 2.7%

A 10% resident surtax applies to CRET. Multi-homeowners face a surcharge of 20–100% on the calculated CRET, phased in depending on the number of properties owned. For single-homeowners, a preferential rate reduction of up to 50% may apply, subject to ownership period and value conditions.

Acquisition Tax (취득세)

Acquisition tax is a one-time tax levied on the acquirer of real estate, vehicles, or other specified assets. For residential property, rates are:

• Standard rate: 1% (for properties valued under KRW 600M)
• Properties valued KRW 600M to 900M: 2%
• Properties valued above KRW 900M: 3%
• High-value or multi-home purchases: up to 4% plus additional surcharges
• For non-residential real estate: 4% (including agricultural, commercial, industrial)

Additional local education tax (0.2–0.4%) and agricultural rural tax (0.1–0.3%) may apply. The total effective acquisition tax can reach 4.6% depending on the property type and value. The tax base is the acquisition price or the standard market value, whichever is higher.

Capital Gains Tax on Property (양도소득세)

Capital gains from the sale of real estate are taxed separately under the transfer income tax (양도소득세) at rates of 6–45% (same IIT brackets). Key features include:

• Holding period relief: A deduction of 2–30% of the gain depending on the holding period (2% per year for the first 15 years). For properties held 10+ years, the deduction is significant.
• Long-term holding special deduction: For one-household homeowners, rates are more generous.
• Multi-homeowner surcharge: An additional 10–30% penalty tax rate applies for owners of multiple properties in certain cases.
• Unregistered property: A 70% penalty rate applies for gains on unregistered land.

Gains are calculated as the selling price minus the acquisition price, incidental costs, and the special long-term holding deduction. The tax is self-assessed and must be declared within two months of the sale.

Property Tax Reduction for One-Homeowner Families

One-household homeowners (1세대 1주택) receive substantial property tax relief. The standard market value threshold for CRET is KRW 1.4 billion (vs KRW 900M for multi-homeowners). Local property tax rates are also capped for one-homeowner families. Senior homeowners aged 60+ receive additional CRET reductions of 10–40% depending on age.

FAQs

What is the difference between property tax and CRET?

Property tax (재산세) is a local tax on the market value of all real estate at progressive rates up to 0.4%. CRET (종합부동산세) is a national tax that applies only to total property holdings exceeding certain thresholds (KRW 900M for residential, KRW 500M for land), with rates up to 2.7%.

Do I pay CRET if I own one apartment worth KRW 1.5 billion?

If the aggregate standard market value exceeds KRW 1.4 billion (for single-homeowner), CRET applies on the excess. You would pay CRET on KRW 100M at the applicable marginal rate.

How do I calculate capital gains tax on property?

Gain = (selling price − acquisition price − incidental costs − long-term holding deduction). The tax rate applies based on the IIT bracket (6–45%) plus applicable surcharges. The return must be filed within 2 months of the sale date.

Are foreign buyers subject to the same property taxes?

Yes, foreign residents and non-residents owning Korean property are subject to the same property tax, CRET, acquisition tax, and capital gains tax rules as Korean nationals.

Disclaimer

This guide provides general information about South Korean property taxes for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Korean tax advisor (세무사) or the NTS directly for advice specific to your situation. InvestmentKit does not provide tax advice.