Comprehensive Real Estate Tax Reform at a Glance: Single-Home Comprehensive Real Estate Holding Tax Exempted Up to Market Value of 2 Billion Won
Key summary of the real estate tax reform plan and how the burden of the Comprehensive Real Estate Holding Tax and capital gains tax will change Quickly check the impact on ultra-high-priced homes, multi-home owners, and single-home owners who do not reside in the property, as well as reduction benefits
The government announced a real estate tax reform plan on the 3rd. This reform plan focuses on increasing the comprehensive real estate holding tax burden on ultrahighend homes, nonowneroccupied singlehome owners, and multihome owners, while reducing deductions related to capital gains tax.
According to the article, the threshold for imposing the comprehensive real estate holding tax will be raised from over 1.2 billion won in officially assessed value to over 1.4 billion won. If a singlehome owner does not actually live in the home, the deduction amount will be reduced from 1.2 billion won to 900 million won, which could increase the tax burden. The basic deduction and fair market value ratio for multihome owners will also be adjusted, and the difference in tax amounts is expected to widen further depending on the type of ownership.
The longterm ownership special deduction for capital gains tax will be gradually reduced, and the deduction for nonresidents will be abolished. However, support measures are also included, such as expanded capital gains tax reductions and deferrals of comprehensive real estate holding tax payments, in cases where seniors aged 65 or older meet certain requirements, sell a home in the Seoul metropolitan area, and move to a nonmetropolitan area.