Buying property in Korea as a foreigner

Can foreigners buy? Yes — but the Seoul area needs a permit until August 2027

There is no nationality restriction on owning Korean real estate. Non-residents, residents on any visa, and foreign companies can all hold title. The only general obligation used to be a report to the district office within 60 days of signing under the Foreigner's Land Acquisition provisions.

Since 26 August 2025 that changed for the capital region. All 25 districts of Seoul, 23 cities and counties in Gyeonggi and 9 districts in Incheon are a Foreigner Land Transaction Permit Zone, renewed on 26 August 2026 through 25 August 2027. Buying any housing there — apartments, villas, row houses, detached homes — requires a permit from the district office before you sign a binding contract, and the permit carries a promise to move in within 4 months and live there for 2 years.

Outside those areas the old rule applies: sign, then report within 60 days. Officetels are classed as commercial buildings, so they fall outside the housing permit even inside Seoul; that is why many foreign buyers looked at them in 2026.

Step 1 — Budget: the price plus about 2–3% extra

Before looking at listings, know the all-in number. On a first home the extras are acquisition tax (1–3% of the price plus two small surtaxes), the agent's fee (0.4% cap between KRW 200M and 900M, plus VAT), a housing-bond discount loss, stamp tax and registration fees. For a KRW 700M apartment in Seoul that comes to roughly KRW 18M, or 2.6%. A second home in a regulated area pays 8% acquisition tax and the total jumps above 10%.

If you need a mortgage, the 2025–26 rules cap loans hard in Seoul: 40% loan-to-value and a KRW 600M ceiling below 1.5B, 400M up to 2.5B, 200M above. Foreign borrowers also need an Alien Registration Card and Korean income; non-residents are rarely approved. Plan on bringing most of the money from abroad.

Step 2 — Find the property and check the register

Listings live on Naver Real Estate, Zigbang and Dabang; English-language brokers exist in Seoul but charge the same capped fee (any extra 'service fee' is negotiable and not a legal brokerage charge). Once you have a target, pull the property register (등기부등본) from iros.go.kr for about KRW 700 — it shows the owner, mortgages and any seizures. A serious agent will show it to you unasked.

Also check the building register (건축물대장) for unpermitted alterations and, for apartments, the management-fee history. For officetels confirm the unit is registered for residential use if you intend to live there.

Step 3 — Permit application (Seoul, Gyeonggi, Incheon zones)

Apply at the district office (구청) with the land transaction permit form, a draft contract or letter of intent, proof of funds and a self-certified funding plan stating the source of overseas money and your visa status. Processing takes up to 15 days. You cannot sign a binding sale contract before the permit is issued; agents in Seoul now write a conditional pre-agreement instead.

The permit binds you to move in within 4 months of acquisition and to live in the home for 2 years. The district office runs inspections; a breach can bring an enforcement order and repeated fines of up to 10% of the acquisition price.

Step 4 — Contract and deposit

Korean sale contracts run in three payments: a deposit (계약금, usually 10%) at signing, an optional interim payment (중도금) and the balance (잔금) on the closing date, typically 1–3 months later. Walking away after signing costs the deposit; if the seller walks, they repay double.

Foreign buyers sign with their passport (and ARC if they have one). If you are abroad, a Korean-law power of attorney notarised at a Korean consulate lets a representative sign for you. The contract is in Korean; ask for a translation but understand the Korean text governs.

Step 5 — Bringing the money in

Non-residents must report the real-estate acquisition to a foreign-exchange bank before the funds arrive, under the Foreign Exchange Transactions Act. Keep that report: it is the document that lets you take the sale proceeds out of Korea later. Residents with an ARC transferring their own savings are not required to file it, but banks will still ask for the source of funds on large inbound wires.

Wire costs matter at this size. A bank-to-bank transfer of KRW 500M typically loses 1–3% to exchange-rate markup and correspondent fees — several million won. Specialist transfer services price at the mid-market rate and usually beat that, though they have per-transfer limits, so many buyers split the amount over several days.

Step 6 — Closing day and registration

On the closing date you pay the balance, the seller hands over keys and the deed documents, and a judicial scrivener (법무사) files the ownership transfer at the registry the same day. The scrivener also pays the acquisition tax, buys and immediately resells the National Housing Bond, and pays stamp tax on your behalf; expect a fee of KRW 300k–700k for the service.

Acquisition tax must be paid within 60 days of the acquisition date; in practice it is paid at closing because the registry will not record the transfer without the receipt. Within 60 days you also file the transaction report (부동산거래신고) — the agent does this — and, outside the permit zones, the foreigner acquisition report.

After you own: annual and exit taxes

Property tax (재산세) is billed in July and September on the official assessed value; the comprehensive real estate holding tax (종부세) applies only above KRW 1.2B of assessed value for a single home. Rental income is taxable in Korea whether or not you live here. On sale, capital gains tax applies at 6–45% progressive rates; the one-home exemption that Koreans use requires residence and is not available to non-residents, and if the buyer is a company it withholds part of the price at source.

None of this is exotic — it is the same schedule Koreans face. The one foreign-specific item is remitting the proceeds: with the foreign-exchange report from Step 5 and the tax clearance, the bank sends the money out; without it, expect weeks of paperwork.

Checklist

• Confirm whether the address is in a foreigner permit zone (all Seoul, 23 Gyeonggi, 9 Incheon).
• Run the total-cost calculator; add the mortgage cap if borrowing.
• Pull the property register and building register.
• Permit application with funding plan (zones only) — up to 15 days.
• Contract: 10% deposit, balance date, POA if signing from abroad.
• Foreign-exchange acquisition report at the bank before wiring (non-residents).
• Closing: scrivener files title, pays acquisition tax and bond.
• Move in within 4 months, keep residence 2 years (zones only).