South Korea — Property: Property Taxes

Key facts

• The standard acquisition tax is 4% of the acquisition price, houses acquired by inheritance or gift are taxed at 1% to 3%, and a corporation buying a house pays 12%; heavier rates apply in overconcentration zones.
• The comprehensive real estate holding tax is 0.5% to 2.7% for two or fewer houses (assessed above KRW 600 million) and 0.6% to 3.2% for three or more.
• The tax base is 60% to 100% of public notified prices after deductions of KRW 900 million, or KRW 1.2 billion for a one-home household.
• Sources disagree on the overall acquisition tax range (1% to 7% or 12%), so confirm with the National Tax Service.

Steps

1. Step 1: Determine the Type of Property Tax — Determine if you own a residential or commercial property, as taxes and regulations may vary.
2. Step 2: Calculate the Annual Property Value — The annual property value is typically assessed by the local government, but you may need to calculate it yourself for tax purposes.
3. Step 3: Pay Property Taxes — Typically, property taxes are paid annually, and the payment deadline is usually in March.