Korean Real Estate Acquisition Taxes for Purchase of Real Estate in Korea

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 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.

Foreigners 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 real estate lawyer is not required. However, a good real estate agent and, typically, an accountant are required. Normally, good lawyers know good real estate agents.

Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. He assists clients in their contentious, non-contentious and business development needs in Korea and China. He has, recently, been ranked as one of only two non-Korean attorneys as a Top Attorney working in Korea by AsiaLaw.