Buying and owning property in Seoul as a foreigner

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

Yes, the analysis of Seoul's property market is included in our 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 Seoul. 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 Incheon. 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 legally buy and own property in Seoul, and are there any restrictions compared to locals or other nationalities?

Foreigners can legally buy and own property in Seoul, but as of August 2025, significant new restrictions apply specifically to nonresident foreigners.

The Seoul residential market now requires all nonresident foreign buyers to obtain government approval before purchasing any residential property. This approval process includes submitting a detailed financing plan with information about overseas remittances and current visa status to local authorities.

All foreign nationals face identical restrictions regardless of their country of origin - there are no preferential treatments based on nationality. Whether you're from the United States, Japan, or any other country, the same rules apply to your property purchase in Seoul.

The most significant restriction is the mandatory residency requirement: nonresident foreigners must move into the purchased property within four months and live there continuously for at least two years. During this two-year period, renting out the property is strictly prohibited.

Failure to comply with these requirements can result in substantial fines or complete nullification of the purchase contract.

Do you need to hold a specific visa or residency status to buy or keep property as a foreigner in South Korea?

No specific visa or permanent resident status is technically required to own property in South Korea, but the practical reality is more complex due to the new residency requirements.

The mandatory two-year residence requirement means that nonresident foreigners or temporary visitors cannot legally maintain property ownership without actually living in the purchased property. This effectively requires you to have or obtain a visa that allows you to stay in South Korea for at least two consecutive years.

For significant real estate investments in government-approved projects, you may qualify for an F-2 long-term residency visa, but this is a separate and complex process that doesn't automatically come with residential property purchases. The investment visa route requires substantial capital and approval from Korean immigration authorities.

Tourist visas or short-term business visas are insufficient for meeting the residency obligations, making property ownership practically impossible for those without longer-term visa arrangements.

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

Is it necessary to be physically present in Korea to complete the purchase process, or can it be done remotely?

Most of the property purchase process can be completed remotely by appointing a licensed attorney or judicial scrivener with proper power of attorney documentation.

The power of attorney must be notarized in your home country and typically requires apostille certification to be valid in South Korea. This document allows your representative to sign contracts, submit applications, and handle most legal procedures on your behalf.

However, certain critical steps may require your physical presence or that of a trusted representative. Opening a Korean bank account for the property transaction often requires in-person verification, though some international banks with Korean branches may offer alternatives.

The final ownership registration at the local registry office can usually be handled by your appointed representative, but some offices may require the buyer's presence for verification purposes.

Given the new mandatory move-in requirement within four months of purchase, you'll need to be physically present in South Korea regardless of how you complete the initial purchase process.

What are the exact steps and documents required in the buying process, from start to finish?

Step	Action Required	Timeline
1. Property Search	Use licensed local agent experienced with foreign clients	1-3 months
2. Preliminary Agreement	Negotiate terms, sign contract, pay 10% deposit	1-2 weeks
3. Government Approval	Submit permit application with financing details and residency plans	2-6 weeks
4. Land Acquisition Report	File required documentation with district office	Within legal timeframe
5. Final Payment	Transfer remaining balance through compliant Korean bank	Upon approval
6. Ownership Registration	Register title at local registry office	Within days of payment
7. Move-in Compliance	Relocate within 4 months, begin 2-year residency	4 months maximum

Is it mandatory to hire a lawyer or a licensed agent, and what role do they usually play in the transaction?

Hiring a lawyer or licensed agent is not legally mandatory, but it's highly recommended due to the language barriers and legal complexity of South Korean property transactions.

Licensed real estate agents typically charge 0.5-1% of the property value and handle property searches, price negotiations, and initial contract preparations. They're essential for navigating the local market and understanding neighborhood dynamics.

Judicial scriveners or lawyers manage the legal documentation, compliance checks, and registry filings. Their role includes conducting due diligence on the property title, ensuring all permits are properly obtained, and managing the complex approval process required for foreign buyers.

Given the new government approval requirements and residency obligations, professional legal guidance has become even more critical. Your representative will need to prepare detailed financing documentation and ensure full compliance with the move-in requirements.

The cost of professional services is typically offset by avoiding costly mistakes, contract nullifications, or compliance penalties that can result from attempting the process independently.

Can foreigners access mortgages in Korea, what are the typical interest rates and conditions, and what tips improve approval chances?

Foreigners can access mortgages in South Korea, but the process is significantly more difficult for nonresident foreigners compared to those with long-term residency status.

Most Korean banks require long-term residency visas such as F-2, F-4, or F-6 for mortgage approval. Tourist visas or short-term business visas are generally insufficient for loan qualification.

As of September 2025, mortgage interest rates average approximately 3.98% for qualified borrowers. Down payment requirements are typically 30-70% of the property value, with stricter requirements applied to foreign applicants compared to Korean nationals.

Banks usually require proof of local income in South Korea, making mortgage approval challenging for nonresidents who earn income abroad. Some international banks with Korean operations may offer more flexible terms for their existing customers.

Cash purchases are common among nonresident foreign buyers due to these mortgage barriers. If you're planning to finance your purchase, establish relationships with Korean banks well before beginning your property search.

What are the taxes, fees, and hidden costs involved in buying, owning, and reselling property as a foreigner?

1. **Acquisition Tax**: 1.1-3.5% of property value (varies by location and price range)2. **Registration Tax**: 0.2-2.4% plus additional registry and documentation fees3. **Agent Commission**: 0.5-1% of property value for real estate agent services4. **Legal Fees**: Fixed or hourly rates for attorney or judicial scrivener services5. **Annual Property Taxes**: Ongoing real estate tax and local administrative fees6. **Hidden Costs**: Notary fees, document translation and authentication, banking transfer fees for overseas funds7. **Compliance Penalties**: Potential fines for failing to meet residency requirements or proper reporting8. **Currency Exchange**: Costs associated with converting foreign currency for property purchase

Foreign buyers must also budget for the costs of relocating to Seoul to meet the mandatory residency requirement, including moving expenses, temporary accommodation, and setup costs for living in South Korea.

Overseas fund transfers require special disclosure and may incur additional banking fees or compliance costs depending on the amount and source country.

How do property prices currently break down across Seoul, other major cities, and regional areas?

Seoul commands the highest property prices in South Korea, with significant variations between districts based on location, amenities, and international accessibility.

Central Seoul districts including Gangnam, Seocho, and Yongsan represent the premium price tier, often commanding prices 2-3 times higher than outer districts. These areas are popular due to business centers, international schools, and transportation connections.

Other major cities like Busan, Incheon, and Daegu offer notably lower prices per square meter compared to Seoul, typically 40-60% less expensive than Seoul's central districts while still providing urban amenities and infrastructure.

Regional areas outside major metropolitan centers are considerably more affordable but may be subject to different or looser foreign ownership restrictions. However, these areas offer limited rental demand and lower capital appreciation potential.

The August 2025 restrictions specifically target Seoul, much of Gyeonggi Province, and most of Incheon, making these areas subject to the strictest foreign ownership rules currently in effect.

Which neighborhoods or districts are most popular among foreigners for living, renting out, or long-term capital appreciation?

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 latest figures on livability, rental yields, rental income potential, tourism demand, and growth forecasts in Seoul's housing market?

Seoul ranks highly for livability with excellent infrastructure, public transportation, healthcare, and educational facilities, making it attractive for long-term foreign residents.

Rental yields in Seoul's residential market typically range from 2-4% annually, but the new restrictions significantly impact investment potential since foreign buyers cannot rent out properties during the mandatory two-year residency period.

Tourism demand remains strong in Seoul, particularly in districts like Itaewon, Hongdae, and Myeongdong, but foreigners cannot capitalize on short-term rental income due to the residency requirements and rental prohibition.

Long-term capital appreciation in Seoul has historically been positive, driven by urban development, infrastructure improvements, and international business growth. However, the new foreign ownership restrictions may suppress investment-driven price growth over the near term.

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

What common mistakes or pitfalls should foreigners avoid when buying property in Korea?

1. **Violating Residency Requirements**: Failing to move in within four months or not maintaining continuous residence for two years results in fines or contract nullification2. **Inadequate Fund Reporting**: Not properly declaring the source of overseas funds or failing to file required foreign investment reports3. **Title and Encumbrance Issues**: Purchasing properties with unresolved ownership disputes, liens, or other legal complications4. **Ignoring Regulation Changes**: Not staying updated on evolving foreign ownership laws or permit requirement changes5. **Attempting Illegal Rentals**: Trying to lease the property during the mandatory residency period, which violates the new restrictions6. **Insufficient Legal Representation**: Attempting the complex process without qualified local legal assistance7. **Currency and Tax Planning**: Failing to plan for currency fluctuations or understand cross-border tax implications

The most critical mistake is underestimating the commitment required by the new residency rules - foreign buyers must be prepared to actually live in South Korea for at least two years, not just own property there.

What are the fiscal and tax implications for foreigners owning property in Korea, both locally and in their home country?

Foreign property owners in South Korea face the same local tax obligations as Korean nationals, including acquisition taxes, annual property taxes, and capital gains taxes upon sale.

Additional reporting requirements apply to foreign buyers, particularly regarding the source of funds used for purchase and any overseas remittances involved in the transaction. Korean tax authorities require detailed documentation of international fund transfers.

In your home country, South Korean property ownership typically triggers foreign asset reporting requirements. Many countries require citizens to declare overseas real estate holdings above certain thresholds on annual tax returns.

Double taxation may apply unless your home country has a tax treaty with South Korea. Capital gains from property sales may be taxable in both countries, requiring careful tax planning to minimize the overall burden.

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. IMI Daily - South Korea Imposes Conditional Ban on Foreign Property Purchases
2. Korea JoongAng Daily - Nonresident foreigners banned from purchasing homes in Seoul
3. One.uz - Restriction on foreigners buying property in South Korea
4. BambooRoutes - South Korea Real Estate for Foreigners
5. Chosun Ilbo - Foreign Property Purchase Restrictions
6. Korea Times - Foreigners must get approval to buy property in capital region
7. BambooRoutes - Moving to Korea to Buy Property
8. BambooRoutes - Moving to South Korea Buy Property