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Acquisition
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Acquisition tax
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Standard tax rate
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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%
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Heavy taxation
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- 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%)
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Exemption
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Companies engaging in businesses accompanying new growth engine technologies, and companies operating in Foreign Investment Zones or Free Economic Zones are subject to exemption
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Surtaxes
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Special tax for rural areas, local education tax, etc.
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VAT
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- 10% of the building acquisition price (deductible as input tax when operating a business)
- Exempted when acquiring a house of 85m2 or smaller
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Holding
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Property tax
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Standard tax rate
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- 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)
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Exemption
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Same as for the exemption of acquisition tax
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Heavy taxation
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When a factory is newly built or expanded in overconcentration control areas: 5 times the standard tax rate for 5 years
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Comprehensive real estate tax
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- 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
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Other surtaxes
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- Local education tax (20% of property tax)
- Special tax for rural areas (20% of comprehensive real estate tax)
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Sales
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Individuals
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Transfer income tax
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- 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)
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Corporations
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Corporate income tax
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- 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
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Local income tax
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10% of transfer income tax or corporate income tax
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VAT
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10% of the transfer price of buildings (collected from the transferee)
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