Capital Gains Tax

How is the income criterion for children under 30 years old who become part of a separate household calculated?

• It must be above the minimum living cost level under the [National Basic Living Security Act], using the median income standard as the criterion.
• When calculating the median income standard, if it is 40% or more of the median income standard calculated over 12 months, it is considered that one can maintain an independent living, thus being recognized as a separate household from the parents.

What are the tax exemption requirements for holding one house and one development rights?

Is capital gains tax deferred upon the death of a spouse?

• If the spouse's marriage was dissolved at the time of transfer, it is included, but cases where the marriage was dissolved due to death are excluded.
• Therefore, the transfer income tax deferral does not apply in the event of death.

How is the capital gains tax calculated when selling an apartment?

• 1. Homeowners with one property held for over 2 years: Basic tax rate
• 2. Held for less than 1 year: 70%
• 3. Held for more than 1 year but less than 2 years: 60%
• 4. Multiple homeowners: +20% for 2 properties in regulated areas, +30% for 3 or more properties (Exemption from heavy taxation until May 9, 2026)
• The special long-term holding deduction applies when held for over 2 years, with a maximum deduction of up to 80%

What are the tax-exempt conditions for buying an apartment?

• 1. One house per household: The family can only own one house at the same address.
• 2. Holding period of more than 2 years: In non-regulated areas, simply holding for 2 years is sufficient, while properties acquired in regulated areas require 2 years of residence.
• 3. High-priced housing status: Houses with a transfer value of 1.2 billion won or less are fully exempt from tax, while any amount exceeding 1.2 billion won is taxable.
• It is important to note that the actual 2-year residence must be proven with resident registration and actual residency.

What documents are needed to issue a transfer report confirmation?

• 1. Foreign National and Foreigner Real Estate Transfer Report Confirmation
• 2. Capital Gains Tax Base Report and Payment Statement
• 3. Copy of Sales-related Contract
• 4. Proof Documents for Capital Expenditures, Transfer Costs, and Other Necessary Expenses
• 5. Other Documents Required for Capital Gains Tax Calculation