foreigners purchase real estate in Korea
When foreigners purchase real estate in Korea, the following taxes are applicable:
Foreigners acquiring domestic real estate are subject to the same taxes as residents, including acquisition tax, local education tax, rural development tax, and value-added tax (VAT). These taxes vary based on the price and size of the property.
However, VAT is exempted for residential properties with a floor area below 85㎡.
When foreigners acquire domestic real estate, there are no specific restrictions apart from the obligation to report to the market office or district office within 60 days from the contract date. They are free to buy and sell properties.
When foreigners sell domestic real estate, they need to pay capital gains tax (transfer income tax) as well as property tax and comprehensive real estate holding tax. Property tax and comprehensive real estate holding tax are assessed annually based on ownership as of June 1st and must be paid in two installments in July and September.
To remit sales proceeds from selling domestic real estate abroad, foreigners need to obtain a "Certificate of Confirmation for Real Estate Sales Proceeds." This requires submitting a previous registration certificate,
passport,
bank account information,
and sales contract to the local taxation office. The process takes approximately two weeks.
Tax matters related to foreigner's acquisition and sale of domestic real estate can be complex and diverse. It is advisable to seek assistance from professionals when engaging in such transactions.
https://www.rsokorea.org/about-us.html
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