What are all the property taxes and fees in Daejeon?

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

Everything you need to know before buying real estate is included in our South Korea Property 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 Daejeon. 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 Seoul, Busan, and Daejeon. 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 types of property taxes apply in Daejeon?

Daejeon property owners pay several distinct taxes throughout the ownership cycle.

The main taxes include property tax (annual holding tax), acquisition tax (when purchasing), registration tax (on title transfer), and local education tax (typically 20% of your property tax). These form the core tax structure for all property types in the city.

For high-value properties, you'll also encounter the comprehensive real estate holding tax, which targets owners of multiple or luxury properties. Additional local surtaxes may apply depending on your property's classification and value.

All these taxes are assessed primarily on the government-appraised value rather than market price, which can significantly impact your calculations.

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

How much is the property tax rate for residential properties in Daejeon?

Residential property tax rates in Daejeon range from 0.15% to 0.50% of the government-appraised value, depending on your property's value and classification.

Basic housing types like standard apartments and villas typically fall on the lower end of this range, around 0.15% to 0.25%. Higher-value residential properties face rates closer to 0.50% of their assessed value.

The government-appraised value usually sits below market value, with assessments using 40-80% of the published value for housing. This means your effective tax rate on market value is often lower than the stated percentage.

As of September 2025, these rates remain stable, but they're reviewed annually by local authorities and can change based on municipal budget requirements.

Do commercial properties face different tax rates in Daejeon?

Commercial properties attract different tax rates, typically ranging from 0.25% to 0.50% of the statutory value for standard commercial buildings and land.

The broader official range for commercial properties extends from 0.07% up to 5%, with luxury, high-value, or speculative commercial land potentially taxed at substantially higher rates. Special-use commercial properties may face the upper end of this range.

Commercial property assessment follows similar principles to residential, using 50-90% of the published value for land assessments. This creates some predictability in tax calculations for commercial investors.

The actual rate you pay depends heavily on your property's usage classification, location within Daejeon, and current value assessment by local authorities.

How is property tax assessed in Daejeon?

Property tax in Daejeon is assessed on the government-appraised value, known as the public announced price, which is officially published and reviewed annually by local government.

For land, the assessment typically uses 50-90% of this published value, while housing assessments use 40-80% of the government-appraised value. This system creates consistency across the city's tax assessments.

The government-appraised value often sits below actual market value, providing some relief compared to market-value-based taxation systems. Local authorities update these valuations annually to reflect changing market conditions.

Property owners receive official notices showing their assessed value and can appeal assessments if they believe the valuation is incorrect or inconsistent with similar properties.

What is the standard property tax rate for land ownership in Daejeon?

Land Type	Tax Rate	Notes
Standard Land	~0.2%	Most common rate
High-Value Land	0.5% or more	Depends on classification
Farmland	As low as 0.07%	Agricultural use
Forest Land	As low as 0.07%	Conservation areas
Commercial Land	0.25% - 0.5%	Business districts
Residential Land	0.15% - 0.5%	Varies by value
Industrial Land	0.2% - 0.4%	Manufacturing zones

Are there additional taxes for owning multiple properties in Daejeon?

Multiple property ownership in Daejeon triggers the Comprehensive Real Estate Holding Tax (CRET), with rates typically between 0.5% to 2% but potentially reaching 5% for luxury holdings.

CRET rates and thresholds increase progressively if you own more than one residential property, with sharp increases in speculative zones or when anti-speculation rules apply. The tax can become quite substantial for high-value property portfolios.

Additional surtaxes may also apply to multiple property owners, particularly those holding properties in designated speculation zones or areas with overheating concerns. These measures aim to cool speculative investment activity.

The CRET applies to both residential and commercial properties, making it crucial for investors to calculate these costs when building property portfolios in Daejeon.

How often are property taxes due in Daejeon?

Property tax is assessed annually as of June 1st each year, with payment split into two installments for most property types.

For houses and land, you'll pay half the tax in July and the remaining half in September. Buildings and certain other assets follow the same July and September payment schedule.

Property owners receive annual notices detailing their tax obligations, assessment values, and payment due dates. Missing these deadlines can result in penalties and interest charges.

Local education tax, calculated as 20% of your property tax, follows the same payment schedule and is collected alongside the main property tax installments.

What are the fees for transferring property ownership in Daejeon?

1. **Acquisition Tax**: 1-4% of the purchase price (typically 4% for standard real estate, 1-3% for inherited properties)2. **Registration Tax**: 1-3% of the assessed value, paid when registering ownership transfer3. **Stamp Duty**: KRW 50,000-350,000 depending on documents required4. **Agent/Legal Fees**: ~0.2-0.9% of purchase price as agent commission, plus 0.25-1% for legal fees5. **National Housing Bonds**: Sometimes mandated, approximately 5% of purchase price6. **Administrative Fees**: Various small fees for document processing and government services

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.

Are there registration fees when purchasing property in Daejeon?

Yes, buyers must pay registration tax ranging from 1-3% of the property's assessed value when registering ownership transfer.

You'll also pay stamp duty on various documents, typically ranging from KRW 50,000 to 350,000 depending on the complexity and number of documents required for your transaction.

A mandatory National Housing Bond purchase sometimes applies, adding approximately 5% of the purchase price to your costs. Real estate agent commissions are also standard, though these are negotiable.

These registration fees are separate from acquisition taxes and must be paid to complete the legal transfer of property ownership in Daejeon.

Is there capital gains tax on selling property in Daejeon?

Capital gains tax applies to profits from real estate sales in Daejeon, with rates varying dramatically based on holding period and property type.

Standard rates range from 10% to 30% depending on how long you've held the property and whether it's your primary residence. Long-term ownership typically receives more favorable treatment.

For properties held less than one year, rates can reach as high as 77% under anti-speculation measures designed to discourage short-term property flipping. This punitive rate makes quick property turnaround extremely expensive.

Primary residence sales often receive preferential treatment or exemptions, while investment properties face the full capital gains tax rates based on the holding period and profit margins.

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

Do foreign buyers face different property tax rates in Daejeon?

Foreign buyers pay the same property tax rates and acquisition/registration fees as Korean nationals in Daejeon for most property transactions.

However, foreign buyers must comply with additional registration and reporting requirements, including detailed documentation of fund sources and ongoing compliance with Korean foreign investment regulations.

Some incentives or exemptions may exist for foreign investment companies purchasing property in designated investment zones, potentially offering reduced rates or temporary exemptions.

Individual foreign buyers don't face discriminatory higher rates, but they may encounter more complex compliance requirements that can increase transaction costs and processing time.

Are there exemptions or deductions available for property taxes in Daejeon?

Several exemptions and deductions can reduce your property tax burden in Daejeon, particularly for certain types of ownership and investment.

Foreign-invested companies in designated zones may qualify for up to 15-year exemptions from certain property taxes. Long-term ownership and senior citizens often receive reductions, especially for comprehensive real estate holding tax and capital gains calculations.

Primary residences and lower-value properties qualify for special lower rates and deductions compared to investment properties. Educational and rural development taxes may be reduced for qualifying cases.

Single-home owners and buyers in population-reduced areas can access additional deductions, with specific eligibility and rates defined annually by local authorities.

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. Invest Korea - Property Tax Guide
2. PWC Tax Summaries - Korea Other Taxes
3. Invest Korea - Tax Information
4. World Bank - Korea Land Price Assessment
5. MultiLaw - South Korea Real Estate Guide
6. Daejeon Metropolitan City - Tax Information
7. IBA - Korea Real Estate Tax
8. Global Property Guide - South Korea Taxes