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Applicable Taxes

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Applicable Taxes : State,Tax,Note
State Tax Note
Acquisition Acquisition tax Standard tax rate 4% of the acquisition price (acquisition of real estate other than farmland [3%] by succession for value)
※ Houses acquired by succession for value (acquired on or after August 28, 2013): 1 to 3%
Heavy taxation
  • Acquisition of real estate for the construction and expansion of factories in overconcentration control areas in the Seoul metropolitan area: 3 times the standard tax minus 2 times the heavy tax rate (2%)
  • Acquisition of real estate for use as the headquarters of companies in overconcentration control areas in the Seoul metropolitan area (limited to construction and expansion): Standard tax plus 2 times the heavy tax rate (2%)
  • Luxury assets such as vacation houses, golf clubs, luxury recreation facilities, luxury vessels and mansions: Standard tax rate plus 4 times the heavy tax rate (2%)
Exemption Companies engaging in businesses accompanying new growth engine technologies, and companies operating in Foreign Investment Zones or Free Economic Zones are subject to exemption
Surtaxes Special tax for rural areas, local education tax, etc.
  • 10% of the building acquisition price (deductible as input tax when operating a business)
  • Exempted when acquiring a house of 85m2 or smaller
Holding Property tax Standard tax rate
  • Housing: 0.1 to 0.4% (4% for vacation houses)
  • Buildings: 0.25 to 0.5% (4% for buildings in golf clubs or luxury recreation facilities, 1.25% for factories newly built or expanded in overconcentration control areas over 5 years)
  • Land: 0.2 to 0.5% for land subject to general aggregate taxation, 0.2 to 0.4% for land subject to separate aggregate taxation, 0.07 to 0.2% for land subject to separate taxation (4% for land used for private membership golf clubs and luxury recreation facilities)
Exemption Same as for the exemption of acquisition tax
Heavy taxation When a factory is newly built or expanded in overconcentration control areas: 5 times the standard tax rate for 5 years
Comprehensive real estate tax
  • 2 or fewer houses (officially assessed land price exceeding KRW 600 million): 0.5 to 2.7% of the tax base, 3 or more houses: 0.6 to 3.2%
  • For land (general aggregate price exceeding KRW 500 million or separate aggregate price exceeding KRW 8 billion), general aggregate: 1.0 to 3.0% of the tax base, separate aggregate: 0.5 to 0.7% of the tax base
Other surtaxes
  • Local education tax (20% of property tax)
  • Special tax for rural areas (20% of comprehensive real estate tax)
Sales Individuals Transfer income tax
  • Unregistered assets: 70%
  • Less than one year after registration: 50% (40% for houses)
  • One year or longer and less than two years after registration: 40% (basic tax rates for houses, etc.: 6 to 38%)
  • Two years or longer after registration: 6 to 42% (progressive tax rate applied)
Corporations Corporate income tax
  • Corporate income tax imposed on gains as included in non-operating income
  • An additional 10% corporate income tax (40% if not yet registered) is charged on the transfer income from the sale of houses (excluding rental housing, certain company-owned houses provided by employers) or non-business purpose land
Local income tax 10% of transfer income tax or corporate income tax
VAT 10% of the transfer price of buildings (collected from the transferee)