Question 1

How is the income threshold determined for a child under 30 to qualify as a separate household?

Accepted Answer

The income must be at or above the minimum cost of living under the National Basic Living Security Act, using the Standard Median Income for the determination.

The Standard Median Income is annualized (12 months). If income is at least 40% of the Standard Median Income, the child is considered able to maintain an independent livelihood and is recognized as a separate household from the parents.

Question 2

What are the tax-exemption requirements for holding 1 house and 1 presale right?

Accepted Answer

Exemption applies if any of the following:

(1) A household that owns 1 house acquires a presale right before selling that house, temporarily holding 1 house + 1 presale right, provided the presale right is acquired at least 1 year after the previous house was acquired, and the previous house is sold within 3 years of acquiring the presale right

(2) If the presale right is acquired at least 1 year after acquiring the previous house, and the previous house cannot be sold within 3 years because the new construction is incomplete, the entire household moves into the newly completed house within 3 years of completion, resides there for at least 1 year continuously, and the previous house is sold within 3 years before or after the new house is completed

Question 3

Does capital gains tax carry-over taxation apply if a spouse dies?

Accepted Answer

1. Dissolution of marriage at the time of transfer is included, but dissolution by death is excluded
2. Therefore, carry-over taxation does not apply in the case of death

Question 4

How is capital gains tax calculated when selling an apartment?

Accepted Answer

1. Single-home owner holding 2+ years: base rate
2. Holding less than 1 year: 70%
3. Holding 1 to under 2 years: 60%
4. Multiple-home owners: +20% for 2 homes in an adjustment target area, +30% for 3 or more (heavy tax suspended until May 9, 2026)

The long-term holding special deduction applies from 2 years of holding, up to 80%

Question 5

What are the tax-exemption requirements when selling an apartment?

Accepted Answer

1. Household owns only 1 home: the family holds just one home at the same registered address
2. Holding period of 2 or more years: 2 years of holding for non-adjustment areas; properties acquired in adjustment target areas require 2 years of residency
3. High-value home: fully exempt up to KRW 1.2 billion transfer price; above KRW 1.2 billion, the excess is taxable

For the 2-year residency requirement, proof of both the resident registration and actual residence is essential.

Question 6

What documents are needed to issue a transfer confirmation certificate?

Accepted Answer

1. Transfer confirmation certificate for real estate transfer by overseas Koreans or foreigners
2. Capital gains tax base return and payment calculation statement
3. Copy of the sales contract

Frequently Asked Questions (FAQ)

Frequently Asked Questions