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Foreigners can purchase property in Daegu, but significant regulatory changes in 2025 have made the process more complex with new residency requirements and approval processes. The buying process involves more bureaucracy than most Western countries, requiring government permission and mandatory residency commitments for at least two years after purchase.
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Foreigners can buy houses and apartments in Daegu but must obtain government approval, move in within 4 months, and maintain residency for at least 2 years.
The process typically takes 1-3 months and involves more paperwork than Western countries, with costs ranging from 2-8% of the property value in taxes and fees.
| Aspect | Requirement/Details | Timeline/Cost |
|---|---|---|
| Government Approval | Mandatory for all foreign buyers | Part of 1-3 month process |
| Residency Requirement | Must move in within 4 months, stay 2+ years | Ongoing obligation |
| Property Types Allowed | Apartments, houses, townhouses for personal use | Investment purchases restricted |
| Down Payment | Cash purchase common due to mortgage difficulties | 100% upfront typical |
| Total Costs | Acquisition tax 1.1-4.6%, registration 0.2-2.0% | 2-8% of property value |
| Physical Presence | Not required - can use power of attorney | Remote completion possible |
| Mortgage Availability | Limited for foreigners, 30-50% LTV typical | 3-7% interest rates |
Can foreigners actually buy property in Daegu, and what types are allowed?
Yes, foreigners can buy property in Daegu as of September 2025, but new restrictions make the process significantly more regulated than before.
You can purchase apartments, houses, townhouses, and land, but only if you plan to use the property as your personal residence. "Officetel" units (mixed-use business apartments) are typically exempt from the strict residency requirements that apply to other property types.
The major restriction is that you cannot buy property purely for investment purposes - meaning you cannot purchase with the intention to rent it out or flip it quickly for profit. If authorities discover you're violating the residency requirement, your purchase can be invalidated and you may face substantial fines.
You must obtain government permission before completing any purchase, move into the property within 4 months of buying, and maintain it as your primary residence for at least 2 years. These rules apply to all major urban areas in South Korea, including Daegu, not just Seoul.
It's something we develop in our South Korea property pack.
How does the Daegu buying process compare to Western countries?
The buying process in Daegu involves more bureaucracy and government oversight than most Western countries, making it generally more complex but still manageable with proper guidance.
The process follows seven main steps: finding a property through a local agent, signing a purchase contract with earnest money, filing a government notification within 60 days, obtaining official local government approval, transferring funds with bank documentation, registering ownership within 60 days, and finally moving in within 4 months.
Unlike many Western countries where you can often complete purchases with minimal government involvement, South Korea requires foreign buyers to notify authorities, obtain permissions, and prove their residency intentions throughout the process.
The documentation requirements are also more extensive, with multiple government forms, foreign fund acquisition notices, and ongoing residency verification that most Western buyers aren't accustomed to handling.
What documents are mandatory versus optional for the purchase?
Several documents are absolutely mandatory for any foreign property purchase in Daegu, while others depend on your specific situation.
| Document Type | Specific Requirements | When Required |
|---|---|---|
| Signed purchase contract | Official agreement with deposit terms | Always mandatory |
| Foreigner registration card & passport | Copies with official translation | Always mandatory |
| Land acquisition notification forms | Government filing within 60 days | Always mandatory |
| Property registration certificate | Updated land registry documents | Always mandatory |
| Government approval permit | Local authority purchase permission | Always mandatory |
| Foreign funds transfer approval | Bank documentation for large transfers | If using foreign funds |
| Power of attorney | Legal representation for remote purchase | If buying remotely |
Do you need to be physically present to buy a house in Daegu?
Physical presence in South Korea is not absolutely required to complete a property purchase in Daegu, but it can complicate certain steps of the process.
You can handle most of the buying process remotely by appointing a local real estate agent or lawyer with a properly executed power of attorney. This allows your representative to sign documents, submit government notifications, and complete the ownership registration on your behalf.
However, some financial institutions may require you to appear in person for initial bank account opening or to verify large fund transfers, especially if you're establishing your first banking relationship in South Korea.
Even if you complete the purchase remotely, remember that you must still fulfill the residency requirement by moving into the property within 4 months and living there for at least 2 years after the purchase.
What are the total taxes, fees, and costs for buying property?
The total cost of buying property in Daegu typically ranges from 2-8% of the purchase price in additional fees and taxes, depending on the property value and type.
Acquisition tax is your largest expense at 1.1-4.6% of the purchase price, varying based on property type and value. Registration fees add another 0.2-2.0% of the property value to officially record your ownership.
Real estate agent fees are legally capped at 0.2-0.9% of the property value and are often negotiable. Legal and documentation fees typically run 1-2 million KRW for standard transactions.
You'll also face ongoing annual property tax of 0.07-5% of the property value, plus a 20% education tax surcharge for luxury properties or if you own multiple properties. When you eventually sell, expect capital gains tax of 10-22%, especially if the property wasn't your primary residence or you held it for a short period.
It's something we develop in our South Korea property pack.
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Can you buy a house in Daegu with all cash?
Yes, buying property in Daegu with all cash is completely allowed and is actually the most common approach for foreign buyers.
Many foreigners choose cash purchases because obtaining mortgages as a non-resident can be extremely difficult and often comes with unfavorable terms. Korean banks typically require extensive documentation and may only offer 30-50% loan-to-value ratios to foreign buyers.
When making large cash transfers from abroad, you'll need to provide documentation proving the source of your funds to comply with anti-money laundering regulations. Your bank will file a foreign funds acquisition notice with Korean authorities.
Cash purchases can actually speed up the buying process since you won't need to wait for mortgage approval, which can add several weeks or months to the timeline.
Are mortgages available to foreigners, and what are the conditions?
Mortgages are technically available to foreigners in Daegu, but the conditions are challenging and many buyers find them impractical.
Korean banks typically offer loan-to-value ratios of only 30-50% for foreign buyers, meaning you'll need to provide 50-70% as a down payment. Interest rates for non-residents usually range from 3-7%, which is higher than rates offered to Korean citizens.
Banks require extensive documentation including proof of income, employment verification, tax returns, and often prefer borrowers who have established credit history in South Korea. Some international-friendly banks like Citibank Korea or HSBC may be more accommodating to foreign applicants.
To improve your approval chances, consider establishing a banking relationship in South Korea before applying, maintaining higher cash reserves than the minimum required, and working with a mortgage broker who specializes in foreign buyer transactions.
The mortgage approval process can extend your overall purchase timeline by 1-2 months, which is why many foreigners opt for cash purchases instead.
How long does the entire buying process take?
The complete property purchase process in Daegu typically takes 1-3 months from finding a property to final ownership transfer, assuming all paperwork is prepared correctly.
The timeline can extend to 3+ months if you encounter delays with government approvals, banking processes, or property registry updates. Government approval for foreign buyers is a new requirement that can add several weeks to the process.
Key time factors include the 60-day deadline to file your land acquisition notification after signing the purchase contract, and the separate 60-day deadline to register ownership after completing the purchase.
You can potentially shorten the timeline by having all your documentation prepared in advance, working with experienced local agents familiar with foreign buyer requirements, and choosing cash payment over mortgage financing.
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.
How reliable are real estate agents in Daegu?
Real estate agents in Daegu are generally reliable and professional, but due diligence is essential to ensure you're working with a qualified and trustworthy representative.
Look for agents who hold a valid license as "현직공인중개사" (certified realtor) and can provide their official license number for verification. Licensed agents are required to follow strict professional standards and maintain errors and omissions insurance.
Reliable agents should provide you with an official fee schedule upfront, never pressure you into quick decisions, and be willing to show you multiple properties that match your criteria. They should also be familiar with the new foreign buyer requirements and government approval processes.
Red flags include agents who demand unusual payment terms, refuse to provide proper documentation, or seem unfamiliar with foreign buyer regulations that changed in 2025.
Consider working with agencies that have experience serving international clients, as they'll be better equipped to handle the additional paperwork and government approvals required for foreign purchases.
Does Korean law protect property buyers effectively?
South Korean property law provides strong buyer protection when proper legal procedures are followed, but foreign buyers need to be especially careful about compliance with new regulations.
The legal system requires thorough documentation at every step, including property registration checks, title verification, and lien searches that protect against fraud or undisclosed debts. Property registration in South Korea is highly reliable and provides clear ownership records.
Key precautions include always verifying the property registration certificate before signing any contracts, obtaining an independent legal review of all documents, and never paying the full purchase price upfront before completing ownership transfer.
Watch out for properties with unregistered titles, unpaid liens or debts, and incomplete government notifications that could invalidate your purchase later. The new foreign buyer regulations also mean that failing to comply with residency requirements can result in purchase invalidation and significant financial penalties.
Working with a qualified Korean real estate lawyer is highly recommended, especially for your first property purchase in the country.
What common mistakes should foreign buyers avoid?
Foreign buyers frequently make several costly mistakes when purchasing property in Daegu, most of which relate to the new regulatory requirements implemented in 2025.
The most serious mistake is failing to secure proper government approval before completing the purchase, which can result in the transaction being invalidated. Many buyers also miss the strict deadlines for property registration and government notifications, which can create legal complications.
Documentation errors are extremely common, especially with the land acquisition notification forms and registry transfers that must be completed within specific timeframes. Rushing through the process without properly verifying your agent's credentials or the property's legal status is another frequent problem.
Financial mistakes include overpaying on taxes and fees due to lack of local knowledge, not accounting for ongoing property tax obligations, and underestimating the total cost of ownership beyond the purchase price.
Many foreign buyers also fail to properly plan for the residency requirement, not realizing they must actually live in the property for at least 2 years after purchase, which can conflict with their original investment or vacation home intentions.
It's something we develop in our South Korea property pack.
Does owning property in Daegu lead to residency or citizenship?
Owning property in Daegu does not automatically grant you residency rights or provide any direct path to South Korean citizenship.
Property ownership is completely separate from immigration status in South Korea. You'll still need to obtain appropriate visas or residency permits through other means, such as employment, marriage, investment visas, or other immigration programs.
However, the new 2025 regulations do require you to establish actual residency in your property, meaning you must live there as your primary residence for at least 2 years. This residency requirement is about property use compliance, not immigration status.
Popular areas where foreigners choose to buy in Daegu include Suseong District for its upscale residential character, Buk District for proximity to universities and cultural amenities, and areas near the central business district for convenience and accessibility.
These districts offer good infrastructure, international schools, and established expat communities that can make the mandatory 2-year residency period more comfortable for foreign property owners.
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 is now more complex than before due to 2025 regulatory changes, but it remains achievable with proper planning and professional guidance.
The key to success is understanding the new residency requirements, obtaining proper government approvals, and working with experienced local professionals who understand foreign buyer regulations.
Sources
- Zamin - South Korea Restricts Home Purchases for Foreigners
- One.uz - Foreign Property Purchase Restrictions
- Invest Korea - Real Estate Investment Guide
- BambooRoutes - Americans Buying Property in South Korea
- InvestAsian - South Korea Real Estate Guide
- Buch Dein Visum - Property Purchase in South Korea
- InterNations - South Korea Housing Guide
- Seoul Law Group - Housing Deposits in Korea