How the 2026 Real Estate Tax Reform Affects You
A clear summary of key changes in capital gains tax, property holding tax, and rental income tax. Single-home owners, multi-property holders, and business property owners are all affected.
The 2026 real estate tax reform introduced changes across three areas: capital gains tax, property holding tax, and rental income tax. Here is a case-by-case breakdown of the major changes.
Single-Home Owners — The long-term holding deduction rate was partially adjusted, while the non-taxable threshold for one household/one home (currently KRW 1.2 billion) was maintained. Residency period requirements remain important.
Multi-Property Holders — The basic deduction for the comprehensive real estate holding tax was raised slightly, but the tax burden for properties in regulated zones remains high. This may be the time to reassess your disposal priorities.
Registered Landlords — Some tax benefits for registered rental housing were reduced, decreasing the incentive for new registrations. Existing registrants are still better off completing the mandatory rental period.
Business Properties — VAT refund requirements for business-use purchases have been tightened. Prepare documentation that clearly demonstrates business-use intent from the point of acquisition.
Tax regulations can change annually. Always verify the latest information before major decisions, and have a tax professional review your situation.
Need a Deeper Conversation on This Topic?
GroundLink responds 1:1 tailored to your situation.