South Korea property tax will rise on high-value homes, non-resident-owned properties and multiple homeowners in phases starting next year, according to the Ministry of Economy and Finance. Owner-occupied single-home owners will pay no comprehensive real estate tax on properties valued up to 2 billion won, while a non-resident single-home owner aged 60 with 10 years of ownership could see their tax bill roughly quadruple by 2028.
The Ministry unveiled the South Korea Tax Reform 2026 on Sunday, the first comprehensive overhaul of the country’s real estate tax system in around four years. The basic deduction for the Comprehensive Real Estate Tax will rise from 1.2 billion won to 1.4 billion won for owner-occupied single-home owners, while falling to 900 million won for non-resident single-home owners.
The tax system will shift from a structure based on the number of homes owned to one based more directly on property value. Rates for single and dual-home owners in the 1.2 billion to 2.5 billion won bracket will climb from 1.3% to 1.5% next year and to 2% by 2028, matching the rate applied to multiple-home owners.
The fair market value ratio used to calculate the tax, lowered to 60% under the previous administration, will rise to 70% for single-home owners and to 80% by 2028 for multiple-property owners. Owner-occupied single-home owners in sought-after Seoul districts such as Mapo, Yongsan and Seongdong are expected to largely avoid increased burdens, while non-resident owners face significantly higher South Korea Housing Tax bills, a move aimed at curbing speculative “gap investment” purchases.
Separately, long-term capital gains tax deductions will shift toward owner-occupiers, with ownership-based deductions phased out by 2029 and a new cap introduced on long-term holding deductions from 2028. The government will also temporarily ease heavy capital gains tax on multiple-home owners in regulated areas through 2028.
Deputy Prime Minister and Finance Minister Koo Yun-cheol said the reform was designed around the principle that homes should be for living rather than buying, aiming to normalise excessive benefits under the new High-Value Property Tax structure. Hanyang University professor Kang Sung-hoon said the direction was appropriate but noted that leaving the separate property tax unchanged limited the reform’s scope.
The reform plan will proceed through legislative notice and a Cabinet meeting before being submitted to the National Assembly as a bill. The broader wave of national economic policy changes comes as other countries also adjust industrial and business strategies, including GSK’s recent decision to close its Stevenage site.
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