2026 Korea Real Estate Capital Gains Tax Strategy — One-Household One-Home Exemption Conditions

Key Summary For 2026, the one-household one-home capital gains tax exemption generally requires 2+ years of ownership, plus 2+ years of actual residence if the home was acquired in a regulated zone. If the sale price is KRW 1.2 billion or less, the gain is fully exempt. If the sale price exceeds KRW 1.2 billion, only the portion above KRW 1.2 billion is taxable. In non-regulated zones, 2 years of ownership is enough; there is no residency requirement. The long-term deduction for one-household one-home sellers can reach up to 80% with 8+ years of ownership and 8+ years of residence. Under the temporary two-home rule, your original home can still be treated as a single-home sale if you sell it within 3 years of acquiring the second home. ## Capital Gains Tax Basics ### How Capital Gains Tax Is Calculated ```

Capital gain = Sale price - Acquisition price - Necessary expenses Taxable income = Capital gain - Long-term deduction - Basic deduction (KRW 2.5M) Tax = Taxable income × Rate + 10% local income tax

|---|---|---|
| Under 1 year | **70%** | 77% |
| 1 year to under 2 years | **60%** | 66% |
| 2 years or more | **6–45%** (progressive) | 6.6–49.5% | **Progressive rates (2+ year holding, general tax):** | Taxable income | Rate | Deduction |
|---|---|---|
| ≤ KRW 14M | 6% | — |
| KRW 14M–50M | 15% | KRW 1.26M |
| KRW 50M–88M | 24% | KRW 5.76M |
| KRW 88M–150M | 35% | KRW 15.44M |
| KRW 150M–300M | 38% | KRW 19.94M |
| KRW 300M–500M | 40% | KRW 25.94M |
| KRW 500M–1B | 42% | KRW 35.94M |
| Over KRW 1B | 45% | KRW 65.94M | ## One-Household One-Home Exemption Requirements (2026) | Requirement | Details |
|---|---|
| Basic condition | The household owns only 1 home on the transfer date |
| Ownership period | **2 years or more** |
| Residency (regulated zone) | **2+ years actual residence** during the ownership period |
| Residency (non-regulated zone) | No residency requirement; 2-year ownership only |
| Sale price ≤ KRW 1.2 billion | **Fully exempt** from capital gains tax |
| Sale price > KRW 1.2 billion | Only the portion above KRW 1.2B is taxable | ### Tax Calculation When Price Exceeds KRW 1.2 Billion ```
Example: Acquired at KRW 500M → sold at KRW 1.5B → gain KRW 1.0B Taxable gain = KRW 1.0B × (1.5B - 1.2B) / 1.5B = KRW 1.0B × 0.2 = KRW 200M → Tax is calculated only on the KRW 200M proportional gain

• Family members who share the same address and living expenses
• Unmarried children under 30 → same household
• Children 30+ or financially independent under-30s → may be treated as a separate household ## Regulated vs Non-Regulated Zones | Zone | Residency Requirement | Ownership Requirement |

• Sale price: KRW 1.5B, acquisition price: KRW 500M, gain: KRW 1.0B
• 10-year ownership + 10-year residency, regulated zone
• Taxable gain (proportional): KRW 1.0B × 300M/1,500M = KRW 200M
• Long-term deduction 80%: KRW 200M × 20% = KRW 40M taxable
• Basic deduction: KRW 40M - KRW 2.5M = KRW 37.5M
• Tax at 15% bracket: ~KRW 4.365M + local tax KRW 436K = ~KRW 4.8M total tax on KRW 1.0B gain ## Temporary Two-Home Special Provision If you buy a new home before selling your existing one, you may still qualify for the one-home exemption if you meet the required conditions. | Condition | Requirement |

The holding period starts from the earlier of the balance payment date or the registration date. A wrong date can change the holding period by years. Strategy 5 — Use joint ownership with spouse: A 50:50 ownership split divides the gain between two tax filers. Each person receives the KRW 2.5M basic deduction, and each half may fall into lower progressive tax brackets, potentially saving several million won. ## FAQ Q1. Does price under KRW 1.2B guarantee exemption? A. No. You must also meet the 2-year ownership requirement, plus 2-year residency if the home is in a regulated zone. Full exemption applies only when both the time and price conditions are satisfied. Q2. How is the holding period calculated for redevelopment/reconstruction properties? A. The pre-redevelopment holding period and the post-management disposal plan period are combined. However, reconstruction association membership units have additional rules that make this complicated, so it is best to consult a tax accountant. Q3. If I receive a home as a gift, does my holding period restart? A. Yes. The holding period resets from the gift receipt date, regardless of how long the donor owned the property. The recipient must hold and reside in the property for 2+ years after the gift to qualify for exemption. Q4. What if the new home in a temporary two-home situation was acquired as a pre-sale unit? A. A pre-sale unit is not counted as home ownership until construction is complete and move-in occurs. The home count increases when the unit becomes a completed home. Pre-sale units also have separate tax treatment, so verify the details with a tax professional. Q5. Are there special deductions for registered rental housing providers? A. Long-term registered private rental housing with 8+ year obligations previously offered enhanced deductions of 50–70%. However, the registration system was significantly revised in July 2020, and apartment registration for new entrants is now restricted. Existing registered providers must continue to meet their obligations. Confirm the current rules with a tax accountant. Q6. Can non-residents (Koreans living abroad) claim the one-home exemption? A. Non-residents are generally excluded from the one-household one-home exemption. Some exceptions may apply for temporary overseas postings or assignments. Because NTS interpretations can be complex, consult a tax accountant before transferring the property. Q7. When must I file the preliminary capital gains tax return? A. Within 2 months from the end of the month of transfer. Example: transfer in May 2026 → deadline July 31, 2026. There is no longer a tax credit for early filing because that incentive was removed, but failure to file triggers a 20% penalty on the tax due. Q8. If I own farmland or commercial property in addition to my home, does that count as "two homes"? A. No. Only residential properties count toward the household home count for capital gains tax purposes. Farmland, commercial property, and business-use officetels are not counted. However, residential-use officetels can be classified as residential and may count, so verify the usage designation of any officetel you own. --- This post contains affiliate marketing and commissions may be earned.