The following are the Korean real estate acquisition taxes for the purchase of real estate in Korea. These acquisition taxes are applicable to the purchase of an apartment, land or a commercial property.
Taxes in Korea change, often, when new administrations come into office. Thus, these taxes may change, thus, please consult with your real estate agent and/or accountant.
Foreigner may purchase property in Korea, certain restrictions do apply to the purchase of property by foreigners.
Basic Taxes Related to the Acquisition of Property in Korea.
Acquisition Tax (with surtax): 4.6% of Purchase Price
Recording Tax: Zero. Presently, incorporated into Acquisition Tax under recent amendments to Real Estate Tax Law.
Stamp Duty: KRW 350,000 Maximum
National Housing Bond: 5% of Purchase Price (Normally Resold at a Discount of 5% to 15% of Discount)
Security Transactions Tax: .5% (Seller of Securities – Real Estate or Non-Real Estate)
Yes taxes are high in Korea. However, with a proactive real estate agent, accountant and sometimes , when needed, a Korean Tax Lawyer, your total liability can be lowered. In most cases, a Korean tax real estate lawyers is not required. However, a good real estate agent and, typically, an accountant is required. Normally, good lawyers know good real estate agents.
Known for his street-smart advice & proactive advocacy. Sean works with senior retired Korean judges and leading attorneys in contentious and transactional matters. First non-Korean lawyer (NY) to work at Korean Courts and one of the first non-Korean law professors. Rated a top lawyer in Korea by major rating agencies.
- Proposed Amendment to Real Estate Development Business Act of Korea: Rating of Real Estate Development Projects
- Korea’s Real Name Transaction Act Strengthened: Korea’s Banking Law Basics
- Renouncing an Estate/Inheritance under Korean Law
- Constitutional Court of Korea Declares Real Name Verification Unconstitutional
- Establishing Business with Korea via an Agent: Korean Agency Law Basics
- Filing your U.S. Taxes as an Expat in Korea: Foreign Earned Income Tax Exclusion