Foreign nationals who sell real estate in Korea must pay capital gains tax under the Income Tax Act — the same rules that apply to Korean residents.
Tax Rates (2026)
| Holding Period | Tax Rate |
|---|---|
| Under 1 year | 70% |
| 1–2 years | 60% |
| 2+ years | General rate (6%–45%) |
1-Household Exemption for Foreigners
Foreign nationals may also qualify for the 1-household tax exemption if they meet:
- Holding period of 2+ years
- Residency requirement (2 years in adjusted-price zones)
- Sale price under KRW 1.2 billion for full exemption
Filing Deadline
Within 2 months from the end of the month in which the property was sold.
Withholding Tax
The buyer must withhold 10% of the sale price and remit it to the tax office. The seller later files a return to reconcile the final tax liability.
Tax Treaty Benefits
Korea has tax treaties with many countries (US, Japan, China, Germany, etc.) that may reduce or eliminate double taxation. Consult a tax professional for your specific situation.