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Everything you need to know before buying real estate is included in our South Korea Property Pack
Buying property in Daegu as a foreigner is completely legal and follows a structured process with specific documentation requirements and tax obligations. The South Korean government allows foreign nationals to purchase apartments, houses, and land in most areas of Daegu, though some restricted zones near military installations require additional government approval.
If you want to go deeper, you can check our pack of documents related to the real estate market in South Korea, based on reliable facts and data, not opinions or rumors.
Foreigners can legally buy property in Daegu with proper documentation and government notification.
The process involves due diligence, deposits of around 10%, and various taxes totaling 2-5% of the purchase price.
| Step | Requirement | Timeline |
|---|---|---|
| Property Search | Licensed real estate agent recommended | 1-4 weeks |
| Due Diligence | Title check, registration certificate | 1-2 weeks |
| Preliminary Contract | 10% deposit payment | 1 day |
| Government Notification | Foreign investment report (if required) | 1-2 weeks |
| Final Contract | Remaining balance payment | 1 day |
| Registration | Property registration at court | 1-2 weeks |
| Total Costs | 2-5% of purchase price in fees/taxes | - |
Can foreigners legally buy property in Daegu?
Yes, foreigners can legally purchase property in Daegu without restrictions in most areas.
The South Korean government allows foreign nationals to buy apartments, houses, villas, officetels, and land in Daegu. As of September 2025, there are no nationality restrictions or minimum investment requirements for most property types.
However, properties located in restricted zones near military installations or other sensitive areas may require additional government approval through the Ministry of National Defense. These restricted zones are clearly marked and represent a small percentage of available properties in the Daegu market.
Foreign buyers must notify the relevant government authorities about their property purchase within 60 days of completion, but this is a reporting requirement rather than a request for permission.
It's something we develop in our South Korea property pack.
What types of properties can I buy in Daegu?
Foreign buyers can purchase all major property types available in the Daegu residential market.
Apartments are the most common property type in Daegu and represent about 70% of the residential market. These range from small studio units to large family apartments in high-rise complexes with amenities like parking, security, and community facilities.
Villas, which are low-rise residential buildings typically 4-5 stories high, offer more space than apartments and are popular among families. Single-family houses and townhouses are less common but available, particularly in suburban areas of Daegu.
Officetels, which combine residential and office use, are increasingly popular among young professionals and offer flexibility for those who work from home. Land purchases are also permitted but may require additional documentation and approval processes depending on the intended use and location.
What documents do I need to prepare before starting?
You'll need several key documents to complete a property purchase in Daegu as a foreigner.
- Valid passport or Alien Registration Card (ARC) if you're a resident
- Taxpayer identification number (essential for all transactions)
- Bank statements proving sufficient funds for the purchase
- Real estate acquisition contract (prepared during the transaction)
- Official land appraisal or notified land price certificate
- Certified copy of real estate registration from the local registry
- Certificate of completion of land acquisition notification (obtained after purchase)
Some documents will be prepared by your real estate agent or lawyer during the transaction process, while others must be obtained beforehand. If you're buying with financing, additional documents like income verification and credit history may be required by Korean banks.
How do I verify the property has a clean title?
Title verification is crucial and involves checking multiple official documents and records.
Start by obtaining a certificate of land registration from the local district registry office, which shows the complete ownership history, any liens, mortgages, or other encumbrances on the property. This document also confirms the current legal owner and property boundaries.
Request all building permits and completion certificates to ensure the property was constructed legally and meets safety standards. Check for any outstanding utility bills, property taxes, or maintenance fees that could become your responsibility after purchase.
A licensed real estate agent or lawyer can help verify these documents and identify potential red flags. They can also check court records for any ongoing legal disputes involving the property or previous owners.
The Korean property registration system is reliable and computerized, making title verification relatively straightforward compared to other countries.
Do I need a real estate agent in Daegu?
While not legally required, using a licensed real estate agent is highly recommended for foreign buyers.
Korean real estate agents (called "budongsan") are licensed professionals who understand local market conditions, legal requirements, and can provide translation services. They typically charge 0.3-0.9% of the purchase price as commission.
Choose an agent who has experience working with foreign clients and can provide references from previous international transactions. Look for agents listed on reputable platforms like Naver Real Estate or those recommended by expat communities in Daegu.
A good agent will help you navigate the complex paperwork, negotiate prices, arrange property inspections, and ensure all legal requirements are met. They also have access to properties that may not be listed on international websites.
Interview multiple agents before making a decision, and ensure they can communicate effectively in your preferred language.
What's the step-by-step buying process?
The Daegu property purchase process follows a structured sequence with specific milestones.
| Step | Action Required | Documentation |
|---|---|---|
| 1. Property Search | Find suitable property with agent | Property listings, market analysis |
| 2. Due Diligence | Verify title, inspect property | Registration certificate, permits |
| 3. Preliminary Agreement | Sign initial contract, pay deposit | Preliminary contract, deposit receipt |
| 4. Government Notification | Report foreign investment (if required) | Foreign investment report |
| 5. Financing (if needed) | Secure mortgage approval | Bank documents, loan agreement |
| 6. Final Contract | Sign final purchase agreement | Final contract, payment proof |
| 7. Registration | Register property at district court | Registration application, all documents |
The entire process typically takes 4-8 weeks from initial offer to final registration, depending on financing requirements and government approvals needed.
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How do deposits and payments work?
Daegu property purchases typically require a 10% deposit when signing the preliminary contract.
The deposit demonstrates serious intent to purchase and secures the property while final arrangements are completed. This amount is held in escrow and applied toward the final purchase price.
The remaining 90% balance is paid at the final contract signing, either through cash transfer or mortgage financing. If you're using a Korean mortgage, banks typically finance up to 70-80% of the property value for foreign buyers.
All payments above 10 million KRW (approximately $7,500) must be made through bank transfers and properly documented for tax purposes. Cash transactions are heavily regulated and discouraged by Korean authorities.
Payment timing is negotiable but usually occurs within 30-60 days of the preliminary contract signing.
What taxes and fees should I expect?
Property purchase costs in Daegu typically range from 2-5% of the purchase price in addition to the property cost.
| Fee Type | Rate | When Paid |
|---|---|---|
| Real Estate Agent Commission | 0.3-0.9% | At contract signing |
| Acquisition Tax | 1-3% | Within 60 days of purchase |
| Registration Tax | 0.2-0.8% | At property registration |
| VAT (new properties only) | 10% | At purchase |
| Legal/Notary Fees | $1,000-$3,000 | During transaction |
| Property Inspection | $200-$500 | Before purchase |
| Translation Services | $300-$800 | As needed |
Acquisition tax rates vary based on property value, location, and whether it's your primary residence. First-time homebuyers may qualify for reduced rates.
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Do I need a Korean bank account?
Opening a local Korean bank account is highly recommended and often required for property transactions.
Korean banks require local accounts for mortgage applications, automatic utility payments, and compliance with the Foreign Exchange Transaction Act. Most major banks in Daegu, including KB Bank, Shinhan Bank, and Woori Bank, offer services for foreign residents.
To open an account, you'll need your passport or ARC, proof of address in Korea, and an initial deposit (usually 10,000-50,000 KRW). Some banks may require a Korean phone number or employment verification.
Having a local account also simplifies ongoing property ownership costs like maintenance fees, property taxes, and utility bills. International wire transfers for property purchases must be properly documented and reported to Korean tax authorities.
It's something we develop in our South Korea property pack.
What mistakes do buyers commonly make?
Foreign buyers in Daegu often make preventable errors that can be costly or cause legal complications.
- Failing to register their property purchase with the district office within 60 days, resulting in potential fines
- Choosing real estate agents without proper credentials or references from other foreign clients
- Skipping thorough title checks, leading to discoveries of hidden debts or ownership disputes
- Not understanding contract terms due to language barriers, especially regarding penalties and cancellation clauses
- Underestimating total transaction costs and running short on funds during the purchase process
- Confusing different contract types (jeonse vs. wolse vs. purchase contracts)
- Not obtaining proper insurance before taking ownership
- Failing to budget for ongoing costs like maintenance fees and property taxes
Working with experienced professionals and taking time for due diligence prevents most of these issues.
How do I avoid confusion with contract types?
Korean real estate has distinct contract types that serve different purposes and payment structures.
Purchase contracts (매매계약) involve buying property outright with full ownership transfer. These contracts specify the purchase price, payment schedule, and transfer date with no ongoing rental obligations.
Jeonse contracts require a large upfront deposit (typically 60-80% of property value) with little to no monthly rent. The deposit is returned at the end of the lease term, but this system is primarily used for rentals, not purchases.
Wolse contracts involve smaller deposits plus monthly rental payments, similar to traditional Western rental agreements. These are also rental arrangements, not purchase contracts.
Always clarify with your agent whether you're discussing a purchase (매매) or rental agreement (임대) before reviewing any contracts. Purchase contracts should explicitly state ownership transfer and registration procedures.
What should I verify before final payment?
Conduct a comprehensive final review before transferring the remaining purchase balance.
Verify that all signed documents match the originally agreed terms, including purchase price, property description, and transfer date. Ensure any requested repairs or modifications have been completed to your satisfaction.
Confirm that the property title remains clean with no new liens or encumbrances since your initial title search. Double-check that all required government notifications have been filed and acknowledged by the relevant authorities.
Verify that your funds are ready in the correct account and that the legal transfer process is confirmed with your bank. Review all utility connections and ensure bills are current with no outstanding debts.
Complete a final property walkthrough to document the condition and identify any last-minute issues that need resolution before ownership transfer.
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.
Buying property in Daegu as a foreigner involves straightforward legal processes but requires careful attention to documentation and government notification requirements.
Working with experienced local professionals and conducting thorough due diligence ensures a smooth transaction and helps avoid common pitfalls that can complicate foreign property purchases.
Sources
- Daegu Property Market Analysis - BambooRoutes
- South Korea Real Estate for Foreigners - BambooRoutes
- South Korea Property Buying Guide - Global Property Guide
- South Korea Real Estate Comprehensive Guide - Life Abroad Hero
- Korea Real Estate Acquisition Guide - BehalfKR
- Foreign Investment in Korea Real Estate - Invest Korea
- Korea Investment Guide - InvestAsian
- South Korea Real Estate Country Guide - InvestAsian