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
Buying property in Busan as a foreigner involves several layers of costs beyond the purchase price, and understanding them upfront can save you from costly surprises.
We constantly update this blog post to reflect the latest tax rates, fee caps, and market conditions in Busan's real estate market.
This guide breaks down every cost, tax, and fee you should expect when purchasing residential property in Busan in 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Busan.
Overall, how much extra should I budget on top of the purchase price in Busan in 2026?
How much are total buyer closing costs in Busan in 2026?
As of early 2026, most foreign buyers purchasing residential property in Busan should expect total closing costs of around 3% to 6% of the purchase price, which translates to roughly KRW 15 million to 30 million (USD 10,200 to 20,400 or EUR 8,800 to 17,500) on a KRW 500 million apartment.
If you keep expenses to the bare minimum in Busan, handling paperwork yourself and negotiating agent fees down, you might get away with closing costs as low as 2% to 3% of the purchase price, or around KRW 10 million to 15 million (USD 6,800 to 10,200 or EUR 5,850 to 8,800) on that same property.
However, if you want to protect yourself from surprises in Busan, you should budget for a maximum of 7% to 10%, which means setting aside KRW 35 million to 50 million (USD 23,800 to 34,000 or EUR 20,500 to 29,200) to cover higher acquisition tax scenarios, full brokerage fees, and professional services.
The main factors that determine where you fall in this range in Busan include your acquisition tax category (which depends on property value, housing count, and specific policy rules), whether you negotiate your agent's fee below the legal cap, and how many professional services like lawyers or translators you choose to hire.
What's the usual total % of fees and taxes over the purchase price in Busan?
For most foreign individuals buying a residential home in Busan in 2026, the usual total percentage of fees and taxes sits around 3% to 6% of the purchase price.
The realistic range in Busan covers most standard transactions: you might pay as little as 2% in an ideal scenario, but complex situations involving higher acquisition tax brackets or full professional support could push you toward 7% to 10%.
Within that total, government taxes in Busan typically account for around 2% to 4% (mostly acquisition tax), while professional service fees like brokerage, legal review, and registration handling make up the remaining 0.5% to 2%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Busan.
What costs are always mandatory when buying in Busan in 2026?
As of early 2026, the mandatory costs when buying property in Busan include acquisition tax (the main purchase tax in Korea), stamp tax on contract documents (usually a small fixed amount), registration fees to record ownership, and typically a brokerage fee if you use a licensed real estate agent.
Optional but highly recommended costs in Busan include hiring a bilingual lawyer to review your contract and check title encumbrances, paying for professional translation services if you are not fluent in Korean, and getting an independent property valuation or condition inspection for older buildings.
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What taxes do I pay when buying a property in Busan in 2026?
What is the property transfer tax rate in Busan in 2026?
As of early 2026, Korea does not use a traditional "transfer tax" label, but the main purchase tax in Busan is acquisition tax, which typically ranges from 1% to 3% for standard residential purchases, though it can climb to 12% or higher in specific policy-defined situations like multiple home ownership.
There is no special "foreigner-only" acquisition tax in Busan, meaning foreign buyers pay the same rates as Korean nationals, but foreigners must complete additional reporting steps including filing with the local district office within 60 days and reporting foreign exchange transactions through their bank.
VAT in Busan applies at 10% on the building portion of some new-build purchases, but an exemption exists for homes of 85 square meters or smaller, and most resale transactions do not involve visible VAT charges for the buyer.
Stamp tax in Busan is applied when you sign the purchase contract, but it uses fixed amounts based on contract value bands (typically ranging from tens of thousands to a few hundred thousand Korean won) rather than a large percentage of the price.
Are there tax exemptions or reduced rates for first-time buyers in Busan?
Korea sometimes offers time-limited relief programs for first-time buyers in Busan, but these programs can change with annual policy packages, so you should treat any exemption as possible but not guaranteed in early 2026.
Buying through a company in Busan can change how acquisition tax and future income taxes apply, often triggering different calculation rules or additional taxes, which means corporate purchases are usually not simpler or cheaper than individual purchases for standard home ownership.
The main tax difference between new-build and resale properties in Busan relates to VAT visibility: new-build prices from developers may embed VAT-like treatment depending on unit size and classification, while resale transactions are generally cleaner from a tax structure standpoint.
To qualify for any first-time buyer exemptions in Busan, you typically need to meet conditions related to household income, property price caps, regional criteria, and proof of first-time buyer status, but since these rules change frequently, confirming your exact eligibility with a local tax professional before signing is essential.
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.
Which professional fees will I pay as a buyer in Busan in 2026?
How much does a notary or conveyancing lawyer cost in Busan in 2026?
As of early 2026, Korea does not require a traditional notary for residential purchases like some countries do, but buyers in Busan commonly pay for registration handling (around KRW 300,000 to 1,000,000 or USD 200 to 680 or EUR 175 to 585) and optional bilingual lawyer review (around KRW 1,000,000 to 3,000,000 or USD 680 to 2,040 or EUR 585 to 1,755).
These legal fees in Busan are typically charged as flat rates rather than as a percentage of the property price, with the exact amount depending on the complexity of the transaction and the scope of services you request.
Translation and interpreter services for foreign buyers in Busan typically cost around KRW 200,000 to 600,000 (USD 135 to 410 or EUR 115 to 350) per session for interpreting and KRW 300,000 to 1,500,000 (USD 200 to 1,020 or EUR 175 to 875) for written contract translation depending on document length and urgency.
A tax advisor in Busan is optional for straightforward owner-occupied purchases, but if you plan to rent out the property or have complex circumstances, expect to pay around KRW 150,000 to 500,000 (USD 100 to 340 or EUR 90 to 290) for a one-time consultation or KRW 500,000 to 2,000,000 (USD 340 to 1,360 or EUR 290 to 1,170) for ongoing support.
We have a whole part dedicated to these topics in our our real estate pack about Busan.
What's the typical real estate agent fee in Busan in 2026?
As of early 2026, real estate agent fees in Busan are legally capped by the government, with the cap ranging from around 0.4% to 0.9% of the purchase price depending on the transaction value, which means on a KRW 700 million apartment you might pay up to KRW 6.3 million (USD 4,285 or EUR 3,685) at the maximum cap.
In Busan, each party typically pays their own agent, so buyers should budget for their own brokerage fee rather than expecting the seller to cover it.
The realistic range for agent fees in Busan runs from below 0.4% if you negotiate well to the full 0.9% cap for higher-value properties, giving you some room to reduce costs through negotiation.
How much do legal checks cost (title, liens, permits) in Busan?
If you outsource comprehensive legal checks in Busan, including title search, liens verification, and permits review, expect to pay around KRW 500,000 to 2,000,000 (USD 340 to 1,360 or EUR 290 to 1,170) depending on how thorough the review needs to be.
Property valuation or appraisal fees in Busan typically cost around KRW 200,000 to 700,000 (USD 135 to 475 or EUR 115 to 410), and this service is especially useful if you need a formal valuation for mortgage purposes or peace of mind on older buildings.
The most critical legal check you should never skip in Busan is the title and encumbrance verification, because unresolved liens or ownership disputes can become your problem after purchase.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Busan.
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What hidden or surprise costs should I watch for in Busan right now?
What are the most common unexpected fees buyers discover in Busan?
The most common unexpected fees buyers discover in Busan include monthly apartment management fees (which can feel high in premium complexes), repair reserve fund contributions for older buildings, move-in coordination costs if the unit has an existing tenant, and last-minute translation or interpretation expenses that people tend to overlook until signing day.
Yes, there is a risk of inheriting unpaid property taxes or building charges in Busan, which is why you should always request written confirmation that all local taxes and common charges are settled before closing and specify in the contract who pays what up to the handover date.
Scams involving fake listings or fake fees do occur in Busan, with the main risks being paying "reservation deposits" to unauthorized parties, wiring funds without verifying the registered owner, or paying administrative fees that are not documented in the contract, but using a licensed agent and insisting on formal documentation greatly reduces these risks.
Fees that are usually not disclosed upfront in Busan include building-level charges like management fees and repair reserves, any tenant or lease complications that affect your cash flow, and certain document-related costs like stamp tax and certified copies.
In our property pack covering the property buying process in Busan, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Busan?
If the property in Busan has a tenant, you may not face direct "extra fees" in the traditional sense, but you could face significant cash flow requirements because you may need to ensure the tenant's security deposit (sometimes tens or hundreds of millions of won under Korea's Jeonse system) is returned properly at handover.
When purchasing a tenanted property in Busan, the buyer typically inherits the existing lease agreement and becomes the new landlord, which means you must honor the lease terms and handle the deposit according to the contract.
Terminating an existing lease immediately after purchase in Busan is generally difficult because tenant protections under Korean law require honoring the lease period, though specific circumstances like the tenant agreeing to leave early or the lease naturally expiring can allow for earlier possession.
A sitting tenant in Busan can affect market value and negotiating position in both directions: some buyers pay less because of the inconvenience of waiting for possession, while investors might pay a normal price if the tenant provides stable rental income.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Busan.
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Busan?
Which closing costs are negotiable in Busan right now?
The negotiable closing costs in Busan include the real estate agent's brokerage fee (which you can negotiate below the legal cap), the scope and price of lawyer or tax advisor services, and which party pays for small administrative items like contract drafting, certificate fees, and translation.
The closing costs that are fixed by law and cannot be negotiated in Busan include statutory taxes like acquisition tax and stamp tax, which are set by government regulations and must be paid in full regardless of negotiation.
On negotiable fees in Busan, buyers can realistically achieve reductions of 10% to 30% on brokerage fees by negotiating, especially in slower market conditions or for higher-value properties where agents may be more flexible to close a deal.
Can I ask the seller to cover some closing costs in Busan?
In Busan, asking the seller to cover some closing costs is possible, but it is more common in softer market conditions and sellers typically prefer to lower the purchase price rather than directly paying buyer fees.
The specific closing costs sellers in Busan are most commonly willing to contribute toward include minor items like certificate fees or document preparation costs, though direct payment of buyer taxes or brokerage fees is rare.
Sellers in Busan are more likely to accept covering closing costs or reducing price when market conditions favor buyers, such as when properties have been listed for a long time, need repairs, have tenant complications, or sit in areas with high inventory.
Is price bargaining common in Busan in 2026?
As of early 2026, price bargaining is common in Busan, though the amount of flexibility depends heavily on the specific neighborhood, building age, unit condition, and how long the property has been on the market.
In typical situations in Busan, buyers can often negotiate around 1% to 5% below the asking price, with more discount possible for properties that have been sitting on the market for a long time, need repairs, or have lease complications, and less flexibility in high-demand areas with limited inventory.
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What monthly, quarterly or annual costs will I pay as an owner in Busan?
What's the realistic monthly owner budget in Busan right now?
A realistic monthly owner budget in Busan for a typical apartment sits around KRW 300,000 to 750,000 (USD 200 to 510 or EUR 175 to 440) excluding mortgage payments, covering management fees and utilities combined.
The main recurring expense categories in Busan include apartment management fees (common charges for building maintenance, security, cleaning, and amenities) and utilities like electricity, gas, water, and internet.
The realistic range in Busan varies by property type: a modest older apartment might cost around KRW 200,000 to 400,000 (USD 135 to 270 or EUR 115 to 235) monthly, while a newer or larger unit in a premium complex could run KRW 500,000 to 900,000 (USD 340 to 610 or EUR 290 to 525) or more.
The monthly cost that varies most in Busan is utilities, especially heating gas in winter which can spike significantly during cold months, while management fees tend to stay relatively stable throughout the year.
You can see how this budget affect your gross and rental yields in Busan here.
What is the annual property tax amount in Busan in 2026?
As of early 2026, annual property tax in Busan for housing typically ranges from 0.1% to 0.4% of the assessed value (not necessarily the purchase price), which means a home with an assessed value of KRW 500 million might pay around KRW 500,000 to 2,000,000 (USD 340 to 1,360 or EUR 290 to 1,170) per year in basic property tax.
The realistic range in Busan depends on your property's assessed value: lower-value homes pay toward the low end of the range, while higher-value properties or those in premium locations may pay more, and owners above certain thresholds may also face the comprehensive real estate holding tax.
Property tax in Busan is calculated based on the statutory assessed value determined by local authorities, which is often lower than the actual market price, and the rate is applied progressively depending on the property category and value bracket.
Exemptions or reductions in Busan may be available for certain owner categories, but Korea's property tax relief programs tend to be targeted and time-bound, so you should verify your specific eligibility with local tax authorities rather than assuming you qualify.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Busan in 2026?
What tax rate applies to rental income in Busan in 2026?
As of early 2026, rental income in Busan is treated as taxable income in Korea and is subject to progressive income tax rates, meaning most individual landlords can expect an effective tax rate of around 15% to 30% on net rental profit depending on total income and deductions.
Yes, landlords in Busan can generally deduct eligible expenses from rental income, including property management costs, maintenance and repair expenses, certain professional fees, and depreciation, which reduces the taxable amount.
After deductions, the realistic effective tax rate for typical landlords in Busan ranges from around 10% to 25% of net rental profit, though this varies based on your overall income level, residency status, and how well you document deductible expenses.
Foreign property owners in Busan do not face a separate "foreigner" rental income tax rate, but how the income is taxed depends on your residency status and whether any tax treaties apply between Korea and your home country.
Do I pay tax on short-term rentals in Busan in 2026?
As of early 2026, short-term rental income in Busan is taxable and may trigger additional compliance obligations, including potential VAT registration and business licensing requirements depending on how the rental is operated.
Short-term rental income in Busan can be taxed differently than long-term rental income because it may be classified as business income rather than passive rental income, which can mean higher paperwork requirements and potentially different tax treatment.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Busan.
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If I sell later, what taxes and fees will I pay in Busan in 2026?
What's the total cost of selling as a % of price in Busan in 2026?
As of early 2026, the total cost of selling property in Busan typically ranges from around 1% to 4% of the sale price in ordinary cases, though this can increase significantly if you have a large taxable capital gain.
The realistic range for total selling costs in Busan spans from about 1% (if you have minimal capital gains tax exposure and negotiate agent fees down) to 10% or more if you realize a substantial taxable gain without qualifying for exemptions.
The specific cost categories that make up your selling expenses in Busan include real estate agent commission, capital gains tax (if applicable), minor legal and administrative fees, and potentially early mortgage repayment penalties if you have outstanding financing.
The single largest cost when selling in Busan is usually capital gains tax if you have made a significant profit and do not qualify for exemptions, otherwise the brokerage commission tends to be the biggest expense.
What capital gains tax applies when selling in Busan in 2026?
As of early 2026, capital gains tax rates on property sales in Busan vary significantly based on holding period and circumstances, with shorter holding periods often facing higher rates and longer-term owners potentially qualifying for lower rates or exemptions.
Exemptions to capital gains tax in Busan may be available if you meet certain conditions, such as the "one household, one home" rule which can exempt or reduce tax for owner-occupiers who sell their primary residence after meeting holding and residency requirements.
Foreigners in Busan do not pay a special "extra" capital gains tax surcharge, but how your gain is taxed depends on your residency status in Korea and whether a tax treaty with your home country affects the treatment.
Capital gain in Busan is generally calculated as the sale price minus the original purchase price, adjusted for documented improvement costs and certain allowable expenses, with the gain then subject to the applicable tax rate based on your specific circumstances.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Busan, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Invest KOREA - Applicable Taxes | Official Korean government trade and investment agency for foreign investors. | We used it to anchor the official list of property taxes and headline rate ranges. We verified these against more recent reviews to ensure accuracy. |
| Invest KOREA - Brokerage Commission | Government source publishing legally capped brokerage fee schedules. | We used it to explain realistic agent fee outcomes and what buyers can negotiate. We also clarified that fees are maximums, not fixed prices. |
| PwC Korea Tax Summaries | Continuously maintained professional tax reference reviewed in January 2026. | We used it as a recency check for tax rates and income categories. We paired it with primary Korean sources for cross-verification. |
| National Tax Service Korea | Primary national tax authority administering income and capital gains taxes. | We used it to explain when and where to file taxes and payment deadlines. We relied on official guidance rather than secondary blogs. |
| Korea Law Translation Center - Stamp Tax Act | Government-backed official translation portal for Korean statutes. | We used it to confirm that Korea uses a stamp tax system with fixed amounts. We translated this into practical cost guidance for buyers. |
| K-apt Apartment Management System | Official government system for apartment management fee disclosure. | We used it to support verifiable management fee estimates by building. We explained how buyers can check fees before purchasing. |
| Korea Real Estate Board | Official public institution for real estate data and apartment disclosures. | We used it to justify management fee statistics and verification methods. We grounded monthly cost estimates in disclosed data patterns. |
| Busan Metropolitan City | Official city government providing local foreigner compliance guidance. | We used it for Busan-specific reporting requirements and restricted zone rules. We treated this as the local compliance baseline. |
| Ministry of Economy and Finance | Finance ministry announcing tax policy changes and legislative updates. | We used it to understand that tax rules can shift with annual policy packages. We avoided making timeless claims where 2026 rules may differ. |
| PwC Korea Tax Update (Dec 2025) | Professional firm technical note summarizing recent tax law changes. | We used it to verify that housing surcharges depend on location and ownership. We framed worst-case versus typical scenarios accordingly. |
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