What are all the property taxes and fees in Busan?

Authored by the expert who managed and guided the team behind the South Korea Property Pack

Yes, the analysis of Busan's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Busan. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the South Korean real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Busan, Seoul, and Incheon. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What exactly are you buying in Busan and at what price?

Most property buyers in Busan purchase high-rise apartments due to land scarcity in this coastal city.

The typical price bands for apartments range from approximately ₩300 million in older districts to ₩600 million for mainstream 3-bedroom units. Premium apartments in sought-after areas like Haeundae or Seomyeon can exceed ₩1 billion.

You can also purchase officetels (mixed-use units), villas (low-rise buildings), or land plots. New builds from developers and resale properties are both readily available in Busan's active market. The property type and whether it's new or resale affects your tax obligations and fees.

Your purchase agreement should specify the exact district, property type, and agreed price in Korean Won (KRW) since these details determine your tax calculations.

Does VAT apply to your Busan property purchase?

VAT does not apply to standard residential apartments or houses in Busan.

If you're buying a residential property (apartment, villa, or house) or land, you won't pay any VAT. This exemption applies to both new and resale residential properties.

However, if you purchase a newly built officetel for commercial use, you'll pay 10% VAT calculated only on the building portion, not the land. Resale officetels and those registered for residential use are VAT-exempt.

For a new commercial building worth ₩600 million with a ₩500 million building value, you'd pay ₩50 million in VAT (₩500M × 10%).

How do buyer profile and intended use affect your taxes?

Your tax rates depend on whether you're a Korean resident or foreign buyer, and whether this is your first home, additional home, or investment property.

Single-home owners (buying their first residential property) pay standard acquisition tax rates. Multi-home owners face significantly higher acquisition taxes and holding costs, though some punitive multi-home taxes have been suspended until mid-2026.

Foreign buyers pay the same base tax rates as Korean residents but may face stricter mortgage approval requirements and additional compliance documentation. Non-residents must register with Korean tax authorities.

Investment properties may face tighter loan-to-value limits compared to primary residences. The government closely monitors speculative buying and applies higher taxes to discourage property flipping.

What acquisition tax rates apply in Busan?

Acquisition tax rates for apartments in Busan follow a tiered structure based on property value and buyer profile.

For first-time homebuyers purchasing apartments, the rates are: 1.1% for properties up to ₩600 million, 2.2% for properties between ₩600-900 million, and 3.3% for properties between ₩900 million to ₩1.5 billion.

Multi-home buyers face much higher rates of 8-12% on their additional properties, though these punitive rates are currently suspended until 2026 for most cases.

For a ₩600 million apartment as your first home, you'd pay ₩6.6 million in acquisition tax (₩600M × 1.1%). For a ₩1.2 billion luxury apartment, the tax would be ₩39.6 million (₩1.2B × 3.3%).

It's something we develop in our South Korea property pack.

What additional surtaxes apply to acquisition tax?

Two main surtaxes are added to your acquisition tax in Busan: Local Education Tax and Special Rural Development Tax.

Surtax Type	Rate	When Applied
Local Education Tax	10% of acquisition tax	All properties
Special Rural Development Tax	10% of acquisition tax	Properties over ₩900M or certain districts
Example: ₩600M property	₩660,000	Local Education Tax only
Example: ₩1.2B property	₩3.96M each	Both surtaxes apply
Payment timing	Due at registration	Same as main tax

These surtaxes are calculated as percentages of your acquisition tax amount, not the property value. Both are paid simultaneously with the main acquisition tax during the registration process.

What are the title transfer and registration costs?

Registration costs in Busan include several mandatory government fees paid during the title transfer process.

Registration License Tax is 0.2% of the property price. For a ₩600 million apartment, this equals ₩1.2 million. Registry fees, government stamps, and documentation typically add another ₩200,000 to ₩350,000 depending on the property value.

Legal and attorney fees for contract review and transaction support typically range from ₩1 million to ₩2 million for standard residential purchases. These fees are paid directly to your legal representative and are separate from government costs.

All registration costs must be paid at the time of title registration, usually within 60 days of the purchase contract signing. The total registration package typically costs 0.4-0.6% of your property value.

Are bond purchases mandatory at registration?

Yes, you must purchase National Housing Bonds as part of the registration process in Busan.

The bonds are purchased at face value equivalent to 1-2% of your property price but can be immediately resold at a significant discount of 30-50%. This means your net cost is typically 40-60% of the face value.

For a ₩600 million property, you'd purchase bonds worth ₩12 million face value but immediately resell them for approximately ₩7.2 million, creating a net cost of ₩4.8 million. However, market conditions can affect the actual discount rate.

The bond purchase and resale process is handled by your real estate agent or legal representative as part of the registration procedure. This cost is unavoidable and must be factored into your closing expenses.

What mortgage-related costs should you expect?

Mortgage costs in Busan include lender fees, registration taxes, and mandatory insurance premiums.

Bank origination fees typically range from 0.5% to 1% of the loan amount. For a ₩300 million mortgage, expect ₩1.5 million to ₩3 million in origination costs.

Mortgage registration tax is 0.2% of the secured amount, plus a 10% local education surtax and potential rural development surtax. Property appraisal costs ₩300,000 to ₩500,000, and mandatory fire insurance runs ₩200,000 to ₩500,000 annually.

For a ₩300 million mortgage on a ₩600 million property, total mortgage-related costs typically sum to ₩2.5 million to ₩4 million upfront, plus annual insurance premiums. These costs are paid to the lender before loan disbursement.

What are the broker commission rates and caps?

Broker commissions in Busan are capped by law based on property price tiers.

Property Value	Commission Cap	Example Amount
Up to ₩600M	0.4%	₩2.4M (on ₩600M property)
₩600M - ₩900M	0.5%	₩4M (on ₩800M property)
₩900M - ₩1.2B	0.6%	₩6.6M (on ₩1.1B property)
Over ₩1.2B	0.7%	₩8.4M (on ₩1.2B property)
Payment responsibility	Negotiable	Often buyer pays full amount

While the commission is technically negotiable between buyer and seller, market practice in Busan typically sees the buyer paying the full commission amount. Payment is due at closing when the property title transfers.

What one-time building charges apply at closing?

New building purchases in Busan involve several mandatory developer charges paid at move-in.

1. **Maintenance Reserve Fund**: ₩2 million to ₩10 million depending on apartment size and building amenities2. **Move-in Fee**: Typically ₩1 million or more for administrative processing3. **Parking Device Fee**: ₩500,000 to ₩1 million for electronic parking systems4. **Utility Meter Setup**: ₩300,000 to ₩500,000 per utility connection5. **Administrative Processing**: Various small fees totaling ₩200,000 to ₩500,000

Resale properties typically have lower or no developer charges, though HOA onboarding fees of ₩200,000 to ₩500,000 may apply.

These charges are collected by the building developer or management company and are separate from government taxes and registration fees. Budget ₩3 million to ₩12 million for new constructions, depending on the building's luxury level.

What are the ongoing annual holding costs?

Property owners in Busan face several recurring annual costs that must be budgeted for long-term ownership.

Annual property tax ranges from 0.1% to 0.5% of assessed property value. For a ₩600 million apartment, expect approximately ₩2.4 million yearly (0.4% rate). The Local Education Surtax adds another 20% of the property tax amount, or ₩480,000 in this example.

Monthly HOA fees typically range from ₩100,000 to ₩400,000 depending on building amenities, with ₩250,000 being typical for newer apartments. This creates an annual cost of ₩3 million for management and maintenance.

Properties exceeding ₩1.2 billion in value (for primary residences) or ₩900 million (for additional homes) may trigger Comprehensive Real Estate Tax at rates of 0.5% to 5% on the excess value, payable annually.

It's something we develop in our South Korea property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Can you show worked examples for typical purchase scenarios?

Here are detailed cost breakdowns for two common Busan property purchase scenarios as of September 2025.

**Example 1: ₩600 Million Apartment with 50% Mortgage (First-time buyer)**

Cost Item	Amount (KRW)	Timing
Purchase Price	₩600,000,000	At closing
Acquisition Tax (1.1%)	₩6,600,000	Within 60 days
Local Education Tax	₩660,000	At registration
Registration License Tax	₩1,200,000	At registration
Bonds (net cost)	₩2,900,000	At registration
Broker Commission	₩2,400,000	At closing
Legal Fees	₩1,500,000	As invoiced
Mortgage Fees	₩3,600,000	At loan disbursement
Building Setup Costs	₩3,000,000	At move-in
**Total Upfront Costs**	**₩621,860,000**	Various

**Annual Holding Costs**: Property tax (₩2.4M) + Education surtax (₩480,000) + HOA fees (₩3M) + Insurance (₩300,000) = **₩6.18 million yearly**

**Example 2: ₩1.2 Billion Luxury Apartment, Cash Purchase**

Upfront costs total ₩1.273 billion including ₩39.6 million acquisition tax (3.3%), ₩7.92 million in surtaxes, ₩7.2 million broker fee, and ₩9.6 million net bond cost. Annual holding costs reach ₩11.3 million including higher property taxes and luxury HOA fees.

Capital gains tax at exit ranges from 6% to 45% depending on holding period and gain amount, plus 10% local surtax. For a ₩100 million gain, expect approximately ₩20-22 million in total exit taxes.

It's something we develop in our South Korea property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. BambooRoutes - Busan Real Estate Trends
2. Maeil Business Newspaper - Real Estate News
3. InvestAsian - Busan Property Investment Guide
4. Haeon Tax - Acquisition Tax Guide
5. InvestKorea - Real Estate Investment Guide
6. BambooRoutes - South Korea House Prices
7. Lee & Lee Law Firm - Real Estate Law Korea
8. MultiLaw - South Korea Real Estate Guide
9. Korea Herald - Real Estate Commission Rates
10. Deloitte - Korea Tax Highlights 2025