Buying and owning property in Incheon as a foreigner

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 Incheon. 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, Incheon, and Busan. 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.

Can foreigners buy property in Incheon, and are there restrictions compared to locals or other nationalities?

Foreigners can buy property in Incheon, but as of September 2025, they face significant restrictions that don't apply to Korean citizens.

The most important restriction is that foreign buyers must obtain local government approval before purchasing property in all areas of Incheon except for Dong, Ganghwa, and Ongjin Districts. This approval process requires disclosing your visa status, financing plans, and source of funds to Korean authorities.

Unlike locals who can buy property purely for investment purposes, foreigners are now prohibited from making investment-only purchases in designated permit zones, which include most of Incheon. You must prove your intent to actually live in the property rather than use it as a rental investment or under Korea's jeonse lease system.

Once you purchase a property, you must move in within four months and maintain residence there for at least two years. Korean citizens have no such occupancy requirements and can buy multiple properties without residency obligations.

Violations of these new rules can result in repeated fines of up to 10% of the property's value and potential cancellation of your ownership rights - penalties that don't exist for Korean buyers.

What residency or visa requirements must foreigners meet to buy property in Incheon?

No specific visa type or residency status is required to buy property in Incheon, but you must disclose your visa information during the government approval process.

The new regulations as of September 2025 require that you actually reside in the purchased property for at least two years, regardless of your visa status. Non-residents cannot buy property unless they can prove their intent to live in South Korea, effectively ending investment-only purchases.

If you're planning to make a larger property investment, South Korea offers investment visas (F-2 or F-5) for those purchasing eligible properties worth at least KRW 1 billion. These investment visa holders typically receive better terms when applying for mortgages and may face fewer restrictions in the approval process.

The key requirement isn't your current residency status, but your commitment to actually live in the property you purchase. You'll need to register your residency address with Korean authorities and maintain that address for the mandatory two-year period.

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

Do you need to be physically present in South Korea to purchase property?

Physical presence in South Korea is not strictly required to purchase property in Incheon.

You can complete the entire property purchase remotely by granting a notarized power of attorney to a local agent or lawyer who can act on your behalf. This power of attorney must be properly notarized and may require apostille certification depending on your home country.

However, certain steps in the process benefit significantly from being present in person. Opening a Korean bank account, completing final transfer procedures, and handling the government approval documentation can be more straightforward when you're physically in the country.

Since the new regulations require you to move into the property within four months of purchase and register your residency, you'll need to be physically present at that stage anyway. Many buyers find it practical to be present for the final stages of the purchase process and the mandatory move-in period.

Remote transactions are common and well-established in the South Korean property market, but given the new compliance requirements, having trusted local representation becomes even more critical for foreign buyers.

What are the fiscal implications of buying property as a foreigner in Incheon?

Foreign buyers face significant fiscal reporting requirements and tax obligations when purchasing property in Incheon.

Tax/Fee Type	Rate	When Applied
Acquisition Tax	1-4% of property value	At time of purchase
Annual Property Tax	0.15-0.5% typically	Annually
Capital Gains Tax	Varies by holding period	Upon resale
Transaction Costs	2-14% total	During purchase process
Registration Fees	0.08% of property value	At ownership transfer
Agent/Legal Fees	1-3% typically	During purchase process

You must report your financing plan and disclose all sources of funds to Korean authorities as part of the approval process. This includes detailing whether you're using savings, loans from your home country, Korean bank financing, or other funding sources.

Annual property taxes increase for higher-value properties, and you'll need to fulfill tax filing obligations in both South Korea and your home country. Capital gains taxes apply when you eventually sell the property, with rates depending on how long you've owned it.

The total transaction costs including taxes, agency fees, legal fees, notarization, and registration typically range from 2-14% of the property's purchase price.

What is the step-by-step process for buying property in Incheon, and what documents are required?

The property purchase process in Incheon involves seven main steps with specific documentation requirements at each stage.

1. **Find property and confirm eligibility** - Verify the property is in an area where foreigners can buy and meets the new regulations2. **Sign purchase contract and pay deposit** - Provide passport, residence certificate if available, and signed contract3. **File acquisition notification and financing plan** - Submit detailed disclosure of fund sources and visa status to authorities4. **Obtain government approval** - Wait for official authorization, which can take several weeks5. **Move in and register residency** - Must occupy the property within four months and register your address6. **Complete final payment and ownership registration** - Transfer remaining funds and complete legal ownership transfer7. **Maintain residency compliance** - Live in the property for the required two-year minimum period

Required documents include your passport, proof of visa status, detailed financing statements, the purchase contract, and a notarized power of attorney if using an agent. All foreign documents must be translated into Korean and properly notarized or apostilled.

The government approval step is new as of 2025 and adds significant time and complexity to the process. You'll need to demonstrate your intent to live in the property and provide detailed financial information.

Korean translations and notarizations are required for most foreign documents, and the entire process typically takes 2-3 months from contract signing to final ownership registration.

Is it mandatory to hire a lawyer when buying property in Incheon, or can you manage the process independently?

Hiring a lawyer is not legally mandatory when buying property in Incheon, but professional legal assistance has become highly recommended due to the new regulations introduced in 2025.

While you can technically manage the process independently, the complexity of the government approval requirements, documentation needs, and compliance obligations make professional assistance valuable. The new rules require precise handling of visa disclosures, financing documentation, and residency commitments that can have serious consequences if handled incorrectly.

Many transactions involve language barriers, complex Korean legal procedures, and detailed contract reviews that benefit significantly from expert assistance. A lawyer or qualified agent can help navigate the government approval process, ensure all translations are accurate, and handle the detailed compliance requirements.

The cost of professional assistance typically ranges from 1-3% of the property value, but this investment can prevent costly mistakes that could result in fines up to 10% of the property value or even cancellation of your ownership rights.

Given the severe penalties for non-compliance with the new regulations, most foreign buyers choose to work with experienced legal professionals rather than risk managing the complex process alone.

Where do most foreigners prefer to settle in Incheon?

Songdo International City is overwhelmingly the most popular area for foreigners buying property in Incheon.

Songdo attracts foreign residents because of its international schools, modern hospitals, well-maintained parks, and infrastructure specifically designed to accommodate international residents. The area offers English-language services, international dining options, and a significant expatriate community that makes daily life easier for non-Korean speakers.

The district provides high-value properties suitable for both living and investment, with quality homes and apartments ranging from KRW 500 million to KRW 2 billion depending on size and specific location within Songdo.

Other areas popular with foreigners include neighborhoods near business centers with easy access to Seoul, districts close to Incheon International Airport for frequent travelers, and areas with established expat communities around international companies and universities.

Songdo's appeal also comes from its strong potential for capital appreciation, modern amenities, and the fact that it was specifically planned as an international business and residential hub, making it naturally more foreigner-friendly than traditional Korean residential areas.

Which areas in Incheon are the best for living, renting out, or capital appreciation based on factors like liveability index, gross rental yields, and rental income?

Songdo International City ranks highest across all three categories - livability, rental yields, and capital appreciation potential.

For livability, Songdo offers the best international amenities, healthcare facilities, educational institutions, and modern infrastructure. The area scores highest on foreigner-friendly services, English-language accessibility, and overall quality of life for international residents.

Rental demand in Songdo remains strong due to the concentration of international businesses, expatriate workers, and students attending international schools. The area's proximity to Incheon International Airport and Seoul business districts makes it attractive to both short-term and long-term renters.

Capital appreciation potential is strongest in Songdo because of continued development, increasing international business presence, and the area's designation as a special economic zone. Property values have shown consistent growth as the district matures and attracts more international companies.

Other areas with good investment potential include neighborhoods near metro stations with direct connections to Seoul, districts around major universities that provide steady rental demand, and areas near business parks with growing international company presence.

However, remember that under current regulations, foreign buyers cannot purchase solely for investment purposes and must actually live in the property for at least two years, which limits pure rental investment strategies.

What are the price breakdowns for properties in different cities and regions within Incheon?

Property prices in Incheon vary significantly by district and property type, with Songdo commanding the highest prices.

District	Property Type	Price Range (KRW)
Songdo International City	High-end apartments/condos	500M - 2B
Songdo International City	Standard apartments	300M - 800M
Yeonsu District	Residential apartments	200M - 600M
Namdong District	Standard housing	150M - 400M
Jung District	Older properties	100M - 350M
Dong/Ganghwa/Ongjin	Various (no approval needed)	80M - 300M

Songdo International City represents the premium market with the highest prices, reflecting its international amenities, modern infrastructure, and strong appreciation potential. Quality properties suitable for international buyers typically range from KRW 500 million to KRW 2 billion.

Other districts within Incheon offer more affordable options, but remember that foreign buyers need government approval for purchases in most areas except Dong, Ganghwa, and Ongjin Districts, which tend to have the lowest prices but may offer fewer international amenities.

Price variations also depend heavily on proximity to transportation hubs, age and condition of the building, floor level, and specific amenities available in the building or neighborhood.

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

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.

What are the most common mistakes and pitfalls when purchasing property in Incheon as a foreigner?

The most critical mistake foreign buyers make is failing to understand and comply with the new government approval and residency requirements introduced in 2025.

1. **Attempting investment-only purchases** - Many foreigners still try to buy property purely for investment without understanding they must actually live in it for two years2. **Incomplete government approval documentation** - Failing to properly disclose visa status, financing sources, or provide required translations and notarizations3. **Missing the four-month move-in deadline** - Not arranging to occupy the property within the mandatory timeframe, which can result in significant penalties4. **Underestimating total costs** - Focusing only on purchase price without accounting for the 2-14% in additional taxes, fees, and transaction costs5. **Choosing unreliable representation** - Working with unqualified agents or avoiding professional legal assistance to save money, leading to compliance failures6. **Inadequate due diligence** - Skipping proper property inspections, title searches, or verification of building permits and legal status7. **Currency and financing issues** - Not properly planning for currency exchange costs, financing approval delays, or Korean mortgage requirements

Many buyers also make the mistake of buying in restricted districts without realizing they needed government approval, or failing to maintain proper residency registration during the mandatory two-year period.

Language barriers compound these issues, with buyers signing contracts or documents they don't fully understand, leading to unexpected obligations or costs.

The penalty for violations can be severe - fines up to 10% of the property value and potential ownership cancellation - making these mistakes extremely costly.

Is it possible for foreigners to get a mortgage in Incheon, and what are the rates, conditions, and tips for securing one?

Mortgages for foreign buyers in Incheon are possible but challenging, with most Korean banks requiring specific conditions and offering limited financing.

Most banks will finance 30-70% of the property purchase price for foreigners, though this is typically lower than the financing available to Korean citizens. Banks generally require proof of residency status, stable income documentation, and may prefer borrowers with investment visas (F-2 or F-5) who often receive better lending terms.

Interest rates for foreign borrowers tend to be higher than those offered to Korean citizens, and approval conditions are stricter. Banks typically require substantial documentation including income verification, credit history from your home country, and detailed information about your employment or business activities.

Tips for securing better mortgage terms include working with banks that have experience with foreign clients, having a significant down payment ready (typically 30-50%), and using an established mortgage broker who understands the foreign buyer market.

Investment visa holders generally have access to better financing options and may qualify for rates closer to those offered to Korean residents. Some banks also prefer foreign borrowers who have existing banking relationships in South Korea or can demonstrate long-term commitment to living in the country.

Given the complexity of mortgage approval for foreigners, many buyers find it helpful to get pre-approval before starting their property search to understand their realistic budget and financing options.

What taxes, fees, and costs should be considered when buying and reselling property in Incheon?

Property transactions in Incheon involve multiple taxes and fees that can total 2-14% of the property value, depending on the specific circumstances.

1. **Acquisition tax**: 1-4% of property value paid at purchase, with rates varying based on property type and value2. **Registration tax**: 0.08% of property value for ownership transfer registration3. **Annual property tax**: 0.15-0.5% typically, but increases for higher-value properties and may be higher in premium areas like Songdo4. **Stamp duty**: Minimal cost for contract and document processing5. **Agent fees**: Typically 1-3% of property value for real estate agent services6. **Legal and notarial fees**: Usually 0.5-1% for lawyer services, document preparation, and notarization7. **Translation costs**: For converting foreign documents to Korean and apostille services8. **Capital gains tax**: Applied upon resale, with rates depending on how long you've owned the property and your residency status

When reselling property, capital gains tax rates vary significantly based on holding period. Properties held for longer periods typically face lower tax rates, while short-term ownership (less than 2 years) faces higher rates.

Foreign sellers may face different capital gains tax treatment than Korean citizens, and you'll need to consider both Korean tax obligations and potential tax implications in your home country.

Additional costs during ownership include property management fees if buying in a managed building, insurance costs, utilities, and any property improvement or maintenance expenses.

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. KED Global - Foreign Property Purchase Regulations
2. Korea Times - Foreign Property Approval Requirements
3. Yonhap News Agency - Property Purchase Restrictions
4. Korea JoongAng Daily - Nonresident Purchase Ban
5. BambooRoutes - Moving to South Korea Property Guide
6. IMI Daily - South Korea Investment Visa
7. Relocation Korea - Real Estate Investment Immigration
8. BambooRoutes - Americans Buying Property in South Korea