Korea Real Estate Capital Gains Tax Guide 2026 — Exemptions and Calculations

Key Takeaways:

• Single-home exemption: Tax-free up to KRW 1.2B if owned & lived in for 2+ years
• Base tax rate: 6-45% progressive (surcharge for multi-property owners)
• Long-term holding deduction: Up to 80% (10+ years of ownership and residence)

What Is Capital Gains Tax on Real Estate?

Capital gains tax in Korea is levied on the profit from selling real estate. The taxable amount is calculated as: Sale Price - Purchase Price - Expenses (broker fees, renovation, etc.)

Single Homeowner Tax Exemption (2026)

The most important tax benefit: if you own one home per household, have held it for 2+ years and lived in it for 2+ years, gains up to KRW 1.2 billion (~$900K) are completely tax-free.

Tax Rates

Long-Term Holding Deduction

For single homeowners: up to 80% deduction (40% for holding + 40% for residence) after 10+ years.

Use our Real Estate Tax Calculator for accurate calculations.

FAQ

Q1. When must capital gains tax be filed?

A: Within 2 months from the end of the month in which the sale occurred.

Q2. Does joint ownership reduce the tax?

A: Yes, each owner's share is taxed separately, potentially applying lower progressive rates.

Q3. Is inherited property subject to capital gains tax?

A: Yes, the acquisition cost is based on the appraised value at the time of inheritance.

Q4. How is tax calculated for reconstructed apartments?

A: The holding period starts from the original apartment's acquisition date.

Q5. Can I pay capital gains tax in installments?

A: Yes, if the tax exceeds KRW 10 million, partial installment payment is allowed within 2 months.

Q6. What if I do not know the original purchase price?

A: A conversion formula using official assessed values at purchase and sale dates can be applied, though this is often less favorable.