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If you're a foreigner considering buying residential property in Daegu, you'll want to know exactly what extra costs, taxes, and fees you should expect beyond the purchase price.
This guide breaks down every expense you'll face, from acquisition taxes to brokerage fees, so you can budget accurately and avoid surprises.
We constantly update this blog post with the latest figures for 2026, so the information you find here reflects current market conditions in Daegu.
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 Daegu.
Overall, how much extra should I budget on top of the purchase price in Daegu in 2026?
How much are total buyer closing costs in Daegu in 2026?
As of early 2026, the estimated total buyer closing costs in Daegu typically range from 3% to 6% of the purchase price, which means for a 300 million KRW apartment (about 207,000 USD or 176,000 EUR), you should budget an extra 9 to 18 million KRW (roughly 6,200 to 12,400 USD or 5,300 to 10,600 EUR) for all buyer-side expenses.
If you keep expenses to the bare legal minimum by negotiating brokerage fees down, skipping optional professional services, and qualifying for the lowest acquisition tax bracket, your minimum extra budget in Daegu could be around 2.5% to 3.5% of the purchase price.
On the other hand, if you account for all potential fees including higher acquisition tax brackets, near-cap brokerage fees, full legal checks, translations, and valuations, the maximum extra budget you should realistically plan for in Daegu rises to about 6% to 7% of your purchase price.
Your closing costs in Daegu will fall at the low end if you're buying a modest apartment as your first home, successfully negotiate brokerage fees, and handle some paperwork yourself, whereas costs hit the high end when you face a higher acquisition tax bracket, use multiple professional services, or buy a complex property requiring deeper due diligence.
What's the usual total % of fees and taxes over the purchase price in Daegu?
The usual total percentage of fees and taxes over the purchase price in Daegu for a standard foreign individual buyer in 2026 is around 4% to 5% all-in, making this the best single planning number if you want a quick estimate.
This realistic range of 3% to 6% covers most standard residential property transactions in Daegu, with the exact percentage depending on your specific tax bracket, brokerage negotiation skills, and how many professional services you choose to use.
Of that total percentage in Daegu, roughly 60% to 70% typically goes to government taxes (mainly acquisition-related taxes), while the remaining 30% to 40% covers professional service fees like brokerage, legal support, and registration costs.
By the way, you will find much more detailed data in our property pack covering the real estate market in Daegu.
What costs are always mandatory when buying in Daegu in 2026?
As of early 2026, the mandatory costs when buying property in Daegu include acquisition-related local taxes (the biggest expense), stamp tax on your contract (small but unavoidable), registration and administrative costs to complete ownership transfer, and brokerage fees if you use a licensed real estate agent (which most buyers do).
Beyond the mandatory costs, optional but highly recommended expenses in Daegu include independent legal support for title and registry checks (even though not legally required), certified translation or interpreter services if you're not fluent in Korean, an independent property valuation if you're unsure about pricing, and deeper due diligence for older buildings to check permits, illegal alterations, or unpaid management fees.
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What taxes do I pay when buying a property in Daegu in 2026?
What is the property transfer tax rate in Daegu in 2026?
As of early 2026, Korea doesn't use a single "property transfer tax" label, but the main buyer tax in Daegu is called acquisition tax, which typically ranges from 1% to 4% for individual residential purchases, plus local education tax and rural special tax surtaxes that bring the total to roughly 1.1% to 4.6% depending on your property type and price.
There are generally no extra transfer taxes specifically targeting foreigners buying property in Daegu, as Korea's acquisition and local taxes are based on the property itself and ownership situation rather than the buyer's nationality.
VAT on residential property purchases in Daegu is usually not a separate line item you need to budget for in standard resale transactions, but VAT may appear on your invoice if you're buying a new-build property directly from a business seller registered for VAT purposes.
Stamp duty in Daegu applies when you prepare your purchase contract, with stamp tax ranging from 50 KRW to 350,000 KRW (roughly up to 240 USD or 205 EUR) depending on the document type, and it's paid at the time of document preparation through Korea's electronic stamp system.
Are there tax exemptions or reduced rates for first-time buyers in Daegu?
Daegu has publicly referenced acquisition tax benefits for first-time home buyers, with the city's official English website mentioning broadened eligibility criteria for reduced acquisition tax, though the exact reduction amount depends on your specific circumstances and you should verify eligibility at your local district office.
Buying property through a company instead of as an individual in Daegu dramatically changes your tax burden, as corporations acquiring residential houses in Korea face a heavy 12% acquisition tax rate compared to the typical 1% to 4% for individuals.
The tax difference between new-build and resale properties in Daegu is mostly about how VAT appears on your invoice rather than acquisition tax rates, meaning new-builds from business sellers may show VAT separately while resales between individuals typically don't have this complication.
To qualify for first-time buyer tax exemptions in Daegu, you generally need to prove you haven't owned residential property in Korea before, meet income or household criteria set by current policy, and submit the required documentation to the local tax office before or during the acquisition process.
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 Daegu in 2026?
How much does a notary or conveyancing lawyer cost in Daegu in 2026?
As of early 2026, legal and registration support in Daegu typically costs between 500,000 and 2,000,000 KRW (roughly 345 to 1,380 USD or 295 to 1,175 EUR) depending on whether you need basic document handling or more comprehensive checks and filings.
These fees in Daegu are usually charged as flat rates rather than percentages, though more complex transactions or properties requiring extensive due diligence may be quoted on a custom basis.
Translation or interpreter services for foreign buyers in Daegu typically cost between 200,000 and 600,000 KRW (roughly 140 to 415 USD or 120 to 355 EUR) for a half-day to full-day of support during contract signing and key meetings.
A tax advisor in Daegu is often optional for straightforward purchases, but if you plan to rent out the property or have cross-border tax questions, expect to budget 300,000 to 1,500,000 KRW (roughly 205 to 1,035 USD or 175 to 880 EUR) for a scoped consultation.
We have a whole part dedicated to these topics in our our real estate pack about Daegu.
What's the typical real estate agent fee in Daegu in 2026?
As of early 2026, the typical real estate agent fee in Daegu ranges from about 0.4% to 0.7% of the purchase price for the buyer's side, meaning for a 300 million KRW apartment you'd pay roughly 1.2 to 2.1 million KRW (about 830 to 1,450 USD or 705 to 1,235 EUR) to your agent.
In Daegu and across Korea, both buyers and sellers typically pay their own brokerage fees, so as a buyer you'll pay your agent and the seller pays theirs, with each fee calculated within the legally capped maximum.
The realistic range for agent fees in Daegu is 0.3% to 0.9% depending on the property price band, with lower percentage caps applying to higher-value properties and room to negotiate within these legal maximums.
How much do legal checks cost (title, liens, permits) in Daegu?
Legal checks in Daegu including basic title search, liens verification, and permits review typically cost between 200,000 and 800,000 KRW (roughly 140 to 550 USD or 120 to 470 EUR) for standard due diligence, rising to 800,000 to 2,000,000 KRW (roughly 550 to 1,380 USD or 470 to 1,175 EUR) for deeper investigations on older buildings or complex situations.
The property valuation fee in Daegu typically costs between 150,000 and 500,000 KRW (roughly 105 to 345 USD or 90 to 295 EUR) for a standard residential valuation, though complex or urgent valuations may cost more.
The most critical legal check you should never skip in Daegu is the registry and title verification, because Korea's property ownership system is based on registration, and confirming there are no hidden liens, encumbrances, or ownership disputes protects you from inheriting serious legal problems.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Daegu.
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What hidden or surprise costs should I watch for in Daegu right now?
What are the most common unexpected fees buyers discover in Daegu?
The most common unexpected fees buyers discover in Daegu include unpaid building management fees or special assessments in apartment complexes, repair reserve contributions for older buildings, last-minute translation or document certification costs, and bank administration fees if you're arranging a mortgage.
Yes, there is a risk that unpaid property taxes, management fees, or building debts could be attached to the property you're buying in Daegu, which is why verifying these with the building management office before closing is essential to avoid inheriting someone else's financial obligations.
Scams involving fake listings or fake fees do occur in Daegu's real estate market, so you should always work with licensed agents, use official government systems like MOLIT's electronic contract platform when possible, and never pay "holding fees" or deposits to unverified parties.
Fees not usually disclosed upfront by sellers or agents in Daegu often include building special assessments for upcoming repairs, utility arrears, parking system maintenance costs, and elevator modernization contributions that the building management may have already approved.
In our property pack covering the property buying process in Daegu, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Daegu?
If the property has a tenant in Daegu, you may not face a direct "fee" but often encounter cash-flow burdens, including coordinating the return of large jeonse deposits (which can be tens of millions of KRW), contract novation steps, and extra legal review costs typically adding 200,000 to 500,000 KRW (roughly 140 to 345 USD or 120 to 295 EUR) to your transaction.
When purchasing a tenanted property in Daegu, you legally inherit the existing lease agreement and must honor the tenant's rights, including respecting the remaining lease term and any deposit return obligations, as Korean tenancy law strongly protects renters.
Terminating an existing lease immediately after purchase in Daegu is generally not possible unless the tenant voluntarily agrees or the lease naturally expires, because Korean law gives tenants significant protections and renewal rights.
A sitting tenant in Daegu typically affects the property's market value by creating a discount opportunity (since you can't use it immediately) but also gives you negotiating leverage with a motivated seller, making tenant-occupied properties a trade-off between lower entry price and delayed personal use.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Daegu.
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Which fees are negotiable, and who really pays what in Daegu?
Which closing costs are negotiable in Daegu right now?
The closing costs that are negotiable in Daegu include brokerage fees (within the legal cap), legal and registration service quotes, interpreter and translation pricing, and the scope of optional services like valuations and extra due diligence.
Closing costs fixed by law and completely non-negotiable in Daegu include acquisition tax and related local surtaxes, stamp tax, and mandatory government registration fees, as these are statutory obligations that cannot be reduced regardless of your negotiating skills.
For negotiable fees in Daegu, buyers can typically achieve a 10% to 30% reduction from initial quotes on professional services, while brokerage fees often end up 10% to 20% below the legal cap if you negotiate politely and compare multiple agents.
Can I ask the seller to cover some closing costs in Daegu?
In Daegu's market, it's uncommon for sellers to directly pay the buyer's closing costs, but not impossible, as the standard practice is for each party to cover their own taxes and fees with some flexibility on ancillary costs.
The closing costs sellers are most commonly willing to cover or offset in Daegu are minor items like certain documentation fees, or more often, they'll agree to reduce the sale price slightly rather than literally paying your tax bill.
Sellers in Daegu are more likely to accept covering some closing costs during a buyer's market when properties are sitting longer, when the unit has been listed for many months, or when the seller is motivated by personal circumstances like relocation or financial pressure.
Is price bargaining common in Daegu in 2026?
As of early 2026, price bargaining is common and expected in Daegu, with most sellers anticipating some negotiation and building a small buffer into their asking prices.
Buyers in Daegu typically negotiate around 2% to 6% below the asking price, which translates to roughly 6 to 18 million KRW (about 4,140 to 12,400 USD or 3,530 to 10,600 EUR) off a 300 million KRW apartment, with bigger discounts possible for older units, buildings with many competing listings, or sellers needing a quick sale.
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What monthly, quarterly or annual costs will I pay as an owner in Daegu?
What's the realistic monthly owner budget in Daegu right now?
The realistic monthly owner budget in Daegu, excluding mortgage payments and usage-based utilities, ranges from roughly 150,000 to 600,000 KRW (about 105 to 415 USD or 90 to 355 EUR) depending on your property type and building amenities.
The main recurring expense categories making up this monthly budget in Daegu are building management fees (the biggest consistent cost for apartments), basic maintenance contributions, and insurance if you choose to carry it.
The realistic range for monthly owner costs in Daegu is 150,000 to 350,000 KRW (about 105 to 240 USD or 90 to 205 EUR) for standard apartments, rising to 350,000 to 600,000 KRW or more (about 240 to 415 USD or 205 to 355 EUR) for complexes with premium amenities or aging infrastructure requiring special maintenance.
The monthly cost that varies most in Daegu is the building management fee, because it depends heavily on the complex's age, amenities like gyms or pools, security features, and whether major repairs or upgrades have been recently assessed.
You can see how this budget affect your gross and rental yields in Daegu here.
What is the annual property tax amount in Daegu in 2026?
As of early 2026, the annual property tax for a typical apartment in Daegu ranges from roughly 300,000 to 1,200,000 KRW (about 205 to 830 USD or 175 to 705 EUR), with the exact amount depending on your property's officially assessed value and the applicable tax brackets.
The realistic range for annual property taxes in Daegu spans from under 300,000 KRW for modest apartments with lower assessed values to over 1,200,000 KRW for higher-value properties, with luxury or high-value homes potentially triggering an additional national comprehensive real estate holding tax.
Property tax in Daegu is calculated based on the official statutory value of your property (not necessarily market value), with rates ranging from 0.1% to 0.5% for residential property depending on value brackets, plus a local education tax surtax of 20% on the base property tax.
Exemptions or reductions for property tax in Daegu may be available for certain categories like owner-occupied primary residences under specific value thresholds, though these benefits depend on current policy and your individual circumstances.
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 Daegu in 2026?
What tax rate applies to rental income in Daegu in 2026?
As of early 2026, rental income in Daegu is taxed under Korea's progressive individual income tax system, with rates ranging from 6% to 45% depending on your total taxable income bracket, plus a local income tax of 10% on top.
Yes, landlords in Daegu can deduct legitimate expenses from rental income including repairs, agent fees, certain maintenance costs, depreciation, and insurance, though all deductions must be properly documented.
The realistic effective tax rate after deductions for typical landlords in Daegu ranges from roughly 10% to 25% of net rental income, depending on your income level, eligible deductions, and whether you have other Korean-source income pushing you into higher brackets.
Foreign property owners in Daegu are generally taxed on their Korean-source rental income at the same progressive rates as residents, but non-residents may face different filing mechanics, potential withholding requirements, and fewer deduction or credit options in practice.
Do I pay tax on short-term rentals in Daegu in 2026?
As of early 2026, short-term rental income in Daegu is taxable and may be classified as business income rather than passive rental income, which can mean different tax treatment, additional compliance requirements, and potentially higher effective rates if the activity is deemed commercial.
Short-term rental income in Daegu may be taxed differently than long-term rentals if the frequency and nature of your hosting activity looks more like a business operation, requiring business registration, different expense deduction rules, and potentially VAT considerations.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Daegu.
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If I sell later, what taxes and fees will I pay in Daegu in 2026?
What's the total cost of selling as a % of price in Daegu in 2026?
As of early 2026, the total cost of selling a residential property in Daegu typically ranges from about 1% to 3% of the sale price, excluding any capital gains tax which varies based on your profit and holding period.
The realistic range for total selling costs in Daegu is 1% on the low end if you negotiate brokerage fees down and handle most paperwork yourself, up to 3% or more if you use full professional services, have complex documentation needs, or face early mortgage repayment penalties.
The specific cost categories making up that total in Daegu include the seller's brokerage commission (capped but negotiable), legal and administrative fees for preparing transfer documents, any early mortgage prepayment charges if applicable, and registration-related costs for removing your ownership.
The single largest contributor to selling expenses in Daegu is usually the real estate agent commission, which at the legal cap can reach 0.4% to 0.7% of the sale price just for your side of the transaction.
What capital gains tax applies when selling in Daegu in 2026?
As of early 2026, capital gains tax on property sales in Daegu follows Korea's progressive income tax rates ranging from 6% to 45%, with additional surtaxes possible for certain situations like short holding periods or multiple property ownership.
Exemptions to capital gains tax available in Daegu include reductions for long-term holding (with deductions increasing the longer you hold), potential exemptions for owner-occupied primary residences meeting specific criteria, and standard deductions of 2.5 million KRW per year held.
Foreigners don't pay an automatic surcharge on capital gains in Daegu just for being foreign, but non-residents are taxed at either the standard progressive rates or a flat rate on gross proceeds (whichever results in lower tax), and they face fewer deduction options and different filing mechanics than residents.
Capital gains in Daegu are calculated by taking the sale price, subtracting your original purchase price plus documented improvement costs plus transfer expenses, then applying long-term holding deductions and the 2.5 million KRW annual standard deduction before calculating tax on the remaining gain.
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 Daegu, 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 |
|---|---|---|
| Korean Law Information Center - Local Tax Act | Official government portal for Korea's statutes in English. | We used it to anchor what taxes exist at purchase, especially acquisition-related local taxes. We cross-checked with investor guidance to turn legal text into practical budgets. |
| KLRI - Stamp Tax Act | Official English translation of Korea's contract stamp tax law. | We used it to confirm stamp tax applies to purchase contracts. We translated that into a small-but-real line item for your budget. |
| InvestKOREA - Applicable Taxes | Government-backed foreign investment agency providing reliable guidance. | We used it to validate the practical flow of taxes around acquisition, holding, and sale. We cross-referenced it with statutes for rates and edge cases. |
| Seoul Metropolitan Government - Brokerage Fees Guide | Major city government summary of legally capped fee schedules. | We used it to express brokerage costs as clear percentage caps by price band. We treated it as a readable translation of national rules applying to Daegu. |
| PwC - Korea Corporate Other Taxes | Top-tier professional firm with regularly updated tax summaries. | We used it to sanity-check acquisition tax, property tax, and holding tax rates. We also used it for practical notes like registration tax inclusion. |
| PwC - Korea Individual Taxes on Personal Income | Professional-grade summary of individual taxation including non-residents. | We used it to budget rental income taxation and frame resident vs non-resident treatment. We cross-referenced it with InvestKOREA for completeness. |
| KLRI - Comprehensive Real Estate Holding Tax Act | Official statute for Korea's national high-value holdings property tax. | We used it to explain when owners face extra annual holding tax beyond regular property tax. We highlighted how non-residents are handled in payment rules. |
| Daegu Metropolitan City Official Website | Daegu's official city website, the most local and primary source. | We used it to add Daegu-specific context on first-time buyer acquisition tax benefits. We translated it into a "check if you qualify" budgeting step. |
| MOLIT - Real Estate E-Contract System | Official national system run by Korea's housing ministry. | We used it to explain a practical cost-and-risk reducer for paperwork and scam prevention. We flagged it as a helpful option for foreign buyers. |
| Multilaw - Real Estate Guide South Korea | Professional legal guide from an international law firm network. | We used it to understand Korea's registration-based ownership system and legal check importance. We referenced it for due diligence cost context. |
| Global Property Guide - South Korea | Established property investment research platform with tax details. | We used it to cross-check property tax rates and capital gains calculations. We validated our holding cost estimates against their data. |
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