Expansion of Comprehensive Real Estate Tax Burden for Non-Resident Single-Home Owners in Seoul

The government has indicated a direction to increase the property tax burden on nonresident singlehome owners through the 2026 tax reform plan. In particular, it appears to have a major impact on owners of highpriced apartments in socalled ‘Mayongseong’ areas such as Mapo, Yongsan, and Seongdong districts in Seoul. According to the reform plan, nonresidents who own a single home with a publicly assessed value exceeding 1.4 billion won may see a significant increase in their comprehensive real estate tax burden. According to estimates cited in the article, a nonresident singlehome owner of a house worth in the 2 billion won range at market price could see their comprehensive real estate tax increase several times over in two years compared with this year. Residents will also face higher tax burdens due to rising publicly assessed values and an increase in the fair market value ratio. However, the increase will be relatively smaller than for nonresidents. The government plans to submit revised bills to the Comprehensive Real Estate Tax Act and the Income Tax Act to the National Assembly next month.