South Korea's 2026 tax reform will double property taxes for non-resident owners of high-value apartments within two years [1].
The policy shift aims to curb real estate speculation and foreign ownership in Seoul's luxury market. By increasing the financial burden on those who do not live in their properties, the government intends to prioritize actual residents and stabilize the housing market.
Under the new regulations, the tax burden for non-resident owners of a 5 billion-won apartment is projected to double by 2028 [1]. Currently, the tax for such a property stands at 13,548,000 KRW [1].
In contrast, the reform provides relief for resident single-home owners by raising basic deductions. For a resident living in a 3 billion-won apartment, the current combined property tax is 5,734,000 KRW [1]. This figure is projected to decrease slightly to 5,584,000 KRW by 2028 [1].
Reporters noted that while the burden for resident owners is shrinking, it is surging for non-residents and owners of multiple properties. A reporter for YTN said that for non-resident single-home owners or those with multiple homes, taxes could spike by more than two times [1].
The government's approach focuses on the concept of the "smart one home" — encouraging ownership of a single primary residence while penalizing those who treat high-end real estate as an investment vehicle. This strategy utilizes a tiered system where the tax rate is heavily influenced by the owner's residency status [2].
This reform represents a significant shift in how the state manages the luxury apartment sector in Seoul. By decoupling the tax benefits from property value and tying them to residency, the administration seeks to reduce the number of vacant high-end units used primarily for capital gains [2].
“Property taxes for non-resident owners of a 5 billion-won apartment will double within two years.”
This reform signals a strategic move by the South Korean government to decouple luxury real estate from speculative investment. By creating a stark tax divide between resident and non-resident owners, the state is attempting to force non-residents to either sell their holdings or commit to living in the properties, which could potentially increase the supply of high-end housing and lower price volatility in Seoul.
