SELIM

Tax Rates

Advisory & ConsultingTax RatesLocal Tax (Acquisition Tax Rate)

Local Tax (Acquisition Tax Rate)

Acquisition Tax Rate

1. Real Estate Acquisition Tax Rate

Type of real estate acquisition		Category	Acquisition tax	Special Agricultural tax	Education Tax	Total	Applicable Period
House (Acquisition for value)	600 million won or less	85㎡ or less	1.0%	-	0.1%	1.1%
	600 million won or less	more than 85㎡	1.0%	0.2%	0.1%	1.3%
	more than 600 million won	85㎡ or les	1.01~3.0%	-	0.2%	1.21~3.2%
	900 million won or less	more than 85㎡	1.01~3.0%	0.2%	0.2%	1.41~3.4%
	more than 900 million won	85㎡ or less	3.0%	-	0.3%	3.3%
	more than 900 million won	more than 85㎡	3.0%	0.2%	0.3%	3.5%	** Refer below for heavy taxation
Acquisition for value of real estate other than house		-	4.0%	0.2%	0.4%	4.6%
Farm land acquisition for value		-	3.0%	0.2%	0.2%	3.4%
Farm land acquisition for value	sales&purchase	new	3%	0.2%	0.2%	3.4%
Farm land acquisition for value	sales&purchase	subsistence over 2 years	1.5%	-	0.1%	1.6%
Initial Acquisition (Preservation Registration)		-	2.8%	0.2%	0.16%	3.16%
Acquisition through inheritance		Farm land	2.3%	0.2%	0.06%	2.56%
Acquisition through inheritance		Other than farm land	2.8%	0.2%	0.16%	3.16%
Acquisition through gift		-	3.5%	0.2%	0.3%	4%	**Refer below for heavy taxation
The acquisition through the transfer of ownership shares for the division of shared property or the dissolution of property rights in real estate		-	2.3%	0.2%	0.06%	2.56%
Acquisition through the division of jointly owned property or common property		-	2.3%	0.2%	0.06%	2.56%
preliminary registration		-	0.2%	-	0.04%	0.24%

2. Heavy Acquisition Tax for Multiple Property Owners (Heavy Acquisition Tax Rate)

Category	1 house	2 house	3 house	4 house~
areas subject to regulation	1 ~ 3%	8% ※ Temporarily excluding 2 houses	12%	12%
areas subject to non-regulation	1 ~ 3%	1 ~ 3%	8%	12%

Applies from registrations made after August 12, 2020

(*) Tax burden in the case of heavy taxation (for reference)

Category	8% heavy taxation	12% heavy taxation	Note
Acquisition tax (Acquisition tax)	6%	10%	Heavy acquisition taxation
Special Agricultural tax	0.6%	1.0%
Acquisition tax (registration tax)	2%	2%
Local Education tax	0.4%	0.4%
Acquisition tax (Total tax amount to be borne)	9.0%	13.4%

3. When multi-home owner gifts

Category	House gifted by multi-home owners	Note
areas subject to regulation	12%	heavy taxation
areas subject to non-regulation	1 ~ 3%	general taxation

Applies from registrations made after August 12, 2020

4. Heavy acquisition tax when a corporation acquires residential property (heavy acquisition tax rate)

Category	House acquired by corporation	Note
areas subject to regulation	12%	heavy taxation
areas subject to non-regulation	12%	heavy taxation

Applies from registrations made after August 12, 2020

5. When a corporation established for less than 5 years acquires commercial real estate within an over-congested control area:

Acquisition tax (registration tax) is tripled.

Local Tax Law Article 13 (Excess Taxation on Acquisition within Over-Congested Control Areas) paragraph 2
Article 11 (Tax Rates on Real Estate Acquisition) paragraph 1, sub-paragraphs 1 and 3

1) General acquisition (heavy taxation)

Category	General	Heavy taxation (3 times)	Note (double additional payment)
Acquisition tax (registration tax)	2.0%	6.0%	4.0%
Education tax	0.40%	1.20%	0.80%
Total	2.40%	7.20%	4.80% [1]

Acquisition tax (acquisition tax)	2.20%	2.20%	[2]
Acquisition tax (total tax amount to be borne)	4.60%	9.40%	[1] + [2]

2) New property (heavy taxation)

Category	General	Heavy taxation (triple)	Note (double additional payment)
Acquisition tax (registration tax)	0.8%	2.4%	1.6%
Education tax	0.16%	0.48%	0.32%
Total	0.96%	2.88%	1.92% [1]

Acquisition tax (acquisition tax)	2.20%	2.20%	[2]
Acquisition tax (total tax amount to be borne)	3.16%	5.08%	[1] + [2]

3) Gift (heavy taxation)

Category	General	Heavy taxation (triple)	Note (double additional payment)
Acquisition tax (registration tax)	1.5%	4.5%	3.0%
Education tax	0.30%	0.90%	0.60%
Total	1.80%	5.40%	3.60% [1]

Acquisition tax (acquisition tax)	2.20%	2.20%	[2]
Acquisition tax (total tax amount to be borne)	4.0%	7.60%	[1] + [2]

6. When a corporation relocates its main office or primary office to the capital region (over-congested control area):

Acquisition tax (registration tax) is tripled.

Local Tax Law Article 13 (Excess Taxation on Acquisition within Over-Congested Control Areas) paragraph 2
Article 11 (Tax Rates on Real Estate Acquisition) paragraph 1, sub-paragraphs 1 and 3.

When a corporation constructs or expands a building for the exclusive use of its main office or primary office within a major city
=> Only the portion acquired for use as the main office or primary office is subject to excess acquisition tax.

1) New property (heavy taxation) - If the establishment has been in existence for more than 5 years

Category	General	Heavy taxation (triple)	Note (double additional payment)
Acquisition tax (acquisition tax)	2.0%	6.0%	4.0%
Special agricultural tax	0.20%	0.60%	0.40%
Total	2.20%	6.60%	4.40% [1]

Acquisition tax (registration tax)	0.96%	0.96%	[2] no heavy taxation on registration
Acquisition tax (total tax amount to be borne)	3.16%	7.56%	[1] + [2]

2) New property (heavy taxation) - If the establishment has been in existence for more than 5 years

Category	General	Heavy taxation (triple)	Note (double additional payment)
Acquisition tax (acquisition tax)	2.0%	6.0%	4.0%
Special agricultural tax	0.20%	0.60%	0.40%
Total	2.20%	6.60%	4.40% [1]

Acquisition tax (registration tax)	0.96%	2.88%	[2] Heavy taxation on registration
Acquisition tax (total tax amount to be borne)	3.16%	9.48%	[1] + [2]