Home acquisition tax (취득세)
Everything you owe at closing when buying a home in Korea: acquisition tax plus its two surtaxes. The rate is 1% up to KRW 600M, 3% above 900M, and slides between.
How it works
For a first home (or a second home outside a regulated area) the rate is 1% up to KRW 600M, 3% above 900M, and between them (price × 2/300M − 3)% — a KRW 700M home pays 1.67%.
A second home in a regulated area or a third home elsewhere pays 8%; a third home in a regulated area or any fourth home pays 12%.
Local education tax is 10% of the standard rate (0.4% under heavy rates). Rural special tax of 0.2% (0.6% or 1.0% under heavy rates) applies only to homes over 85㎡.
Foreign buyers pay exactly the same rates. Until 25 Aug 2027, buying a home anywhere in Seoul, in 23 Gyeonggi cities or 9 Incheon districts requires a prior foreigner land-transaction permit (move in within 4 months, live there 2 years); elsewhere you report within 60 days of signing.
Assumptions
- Purchase by sale only (gifts and inheritance excluded)
- First-time-buyer and newlywed reductions not applied
- Current heavy-rate rules applied; proposed relief not yet enacted as of Sep 2026
- Temporary two-home exceptions not modeled
FAQ
What do taxes and fees add up to when buying a home in Korea?
For a KRW 700M first home under 85㎡ in Seoul: acquisition tax and surtaxes 12.83M, agent fee cap 3.08M, housing-bond loss ~1.53M, stamp tax 150k, registration and legal ~0.52M — about KRW 18.1M, or 2.6% of the price. First homes above 900M run about 3.6%; a second home in a regulated area exceeds 10%.
What does the seller pay?
The seller pays no acquisition tax. They pay capital gains tax (6–45% on the gain, plus 10% local income tax) and their own agent's fee. Non-residents cannot use the one-home exemption.
Can foreigners buy property in Korea?
Yes, at the same tax rates as Koreans. Until 25 Aug 2027 a home in all of Seoul, 23 Gyeonggi cities or 9 Incheon districts needs a prior foreigner land-transaction permit with a 4-month move-in and 2-year residence commitment; elsewhere you report the purchase within 60 days.
What else do I pay besides acquisition tax?
Agent fee (0.4% cap for KRW 200M–900M, plus 10% VAT), housing bond discount loss (~0.2–0.4% of the price), stamp tax of 150,000–350,000, a 15,000 registration fee and a legal fee of 300k–700k. For a KRW 700M first home the extras total about KRW 18M, or 2.6%. The total cost calculator adds it all up.
When is it due?
Within 60 days of the acquisition date (usually the final payment date).
Every tax and fee a buyer pays, at a glance
The calculator above shows both halves — taxes and fees — and the last line, "Taxes + fees, all in", is what you need on top of the price.
| Item | Rate / amount | KRW 700M first home, Seoul | Paid to | When |
|---|---|---|---|---|
| Acquisition tax | 1–3%; 8–12% for extra homes | 11,666,667 | District office | Within 60 days; in practice at closing |
| Local education tax | 10% of the rate (0.4% if heavy) | 1,166,667 | District office | With acquisition tax |
| Rural special tax | Only over 85㎡: 0.2% (0.6–1% if heavy) | 0 | District office | With acquisition tax |
| Agent fee | 0.4% cap for 200M–900M, +10% VAT | 3,080,000 | Agent | Closing day |
| Housing bond loss | Buy bonds worth 1.3–3.1% of official value, resell at a discount | ≈ 1,528,800 | Bank | Registration day |
| Stamp tax | 150k (100M–1B), 350k above 1B | 150,000 | Government | Contract or registration |
| Registration fee | 15,000 (e-filing) | 15,000 | Registry | Registration day |
| Legal fee | 300k–700k | ≈ 500,000 | Judicial scrivener | Registration day |
| Total | ≈ 2–3.6% of price (first home) | ≈ 18,107,000 (2.6%) |
Worked examples
The sliding band between KRW 600M and 900M is what surprises most buyers. The formula is (price × 2 ÷ 300,000,000 − 3)%, so 650M pays 1.33%, 750M pays 2.00%, 850M pays 2.67%. A KRW 10M difference in price can move the tax by about KRW 100k at those levels — worth knowing when negotiating a round number.
| Case | Rate | Acquisition tax | Surtaxes | Total |
|---|---|---|---|---|
| KRW 500M, first home, 84㎡ | 1.00% | 5,000,000 | 500,000 | 5,500,000 |
| KRW 700M, first home, 84㎡ | 1.67% | 11,666,667 | 1,166,667 | 12,833,333 |
| KRW 700M, first home, 110㎡ | 1.67% | 11,666,667 | 2,566,667 | 14,233,333 |
| KRW 1.2B, first home, 84㎡ | 3.00% | 36,000,000 | 3,600,000 | 39,600,000 |
| KRW 1.2B, second home, regulated area | 8.00% | 96,000,000 | 4,800,000 | 100,800,000 |
| KRW 1.2B, third home, regulated area | 12.00% | 144,000,000 | 4,800,000 | 148,800,000 |
The 2026 rate table
As of October 2025 all of Seoul and 12 Gyeonggi cities are regulated areas again, so a second Seoul home now pays 8%. Homes worth KRW 100M or less by official value, and homes in designated non-metropolitan 'depopulation' areas, are excluded from the home count under 2024–26 relief rules; the calculator does not model those exclusions.
A temporary two-home situation — you buy before selling the old home — keeps the 1–3% rate if the old home is sold within 3 years. Declare it as one home in the calculator and note the deadline.
| Homes owned after purchase | Non-regulated area | Regulated area (조정대상지역) |
|---|---|---|
| 1 | 1–3% sliding | 1–3% sliding |
| 2 | 1–3% sliding | 8% |
| 3 | 8% | 12% |
| 4 or more | 12% | 12% |
| Corporation | 12% | 12% |
Surtaxes explained
Local education tax is always charged with acquisition tax: 10% of the standard rate (0.1–0.3%), or a flat 0.4% under the heavy 8%/12% rates. Rural special tax applies only to homes with exclusive area above 85㎡ (the 'national housing size'): 0.2% normally, 0.6% under the 8% rate and 1.0% under the 12% rate. For a 110㎡ apartment that adds about KRW 1.4M on a KRW 700M price.
Reliefs the calculator does not apply
- First-time buyer: up to KRW 2M off, home ≤ KRW 1.2B, any income (since 2023). Foreigners qualify if they have never owned a home in Korea.
- Newlyweds and families with newborns: additional reductions on new-build purchases in some years — check the district office.
- Small new-build 'non-apartment' homes (villas, officetels ≤ 60㎡, ≤ KRW 600M in Seoul) bought 2024–2025: 50% reduction, and excluded from the home count.
- Gifts and inheritance: different rates (3.5% and 2.8% base) — use the gift or inheritance calculators for the tax on the transfer itself.
Common mistakes
Counting homes wrongly: shares in a home, homes owned by your spouse, and 'membership rights' to a new apartment all count. Officetels count only if used as a residence and taxed as housing. Forgetting the 60-day deadline: late payment adds a 20% penalty plus 0.022% per day. Paying on the contract price rather than the higher of contract and official value: for a family purchase below market, the tax office substitutes the official value.
Foreign buyers: the tax is identical, but in the permit zones the permit certificate must be attached to the acquisition-tax return, and the district office cross-checks the funding plan against the price declared. Declare exactly what the contract says.