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
Buying property in Seoul involves multiple taxes and fees that can significantly impact your total investment cost.
From acquisition taxes that can reach up to 12% for multiple-home buyers to annual property taxes and eventual capital gains taxes, the total cost extends far beyond the purchase price. Professional fees, brokerage commissions, and registration costs add another layer of expenses that foreign investors must carefully calculate before making their decision.
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For a ₩1,000,000,000 apartment purchase in Seoul, expect total upfront costs of ₩70-150 million including all taxes and fees.
Annual property taxes will cost approximately ₩3-4 million per year, while capital gains tax on sale can range from 15-45% of profits depending on holding period and property use.
| Tax/Fee Type | Rate | Amount (₩1B property) |
|---|---|---|
| Acquisition Tax | 1-12% | ₩10-120 million |
| Registration Tax | 0.8% | ₩8 million |
| Court Registration Fee | 3.1% | ₩31 million |
| Professional Fees | 0.3-0.5% | ₩3-5 million |
| Brokerage Commission | 0.5-0.7% | ₩5.5-7.7 million |
| Annual Property Tax | 0.15-0.5% | ₩2.5-4 million/year |
| Capital Gains Tax | 6-45% | Varies on profit |
What property types can you buy in Seoul and what's a typical purchase price?
In Seoul, you can purchase apartments (the most common type), detached houses, officetels (office-residential units), or land parcels.
Apartments dominate the Seoul market and range from small studio units to luxury penthouses. Detached houses are less common in central Seoul but available in suburban areas. Officetels serve dual purposes as office space and residence, popular among young professionals and investors.
As of September 2025, a typical apartment purchase price in Seoul averages around ₩1,000,000,000 for a mid-range unit. Premium apartments in Gangnam or other affluent districts can cost ₩2-5 billion, while smaller units in outer districts start around ₩500-700 million.
Your intended use significantly impacts tax calculations - primary residence receives more favorable treatment than second homes or rental properties. Foreign buyers face additional restrictions and higher tax rates in certain districts.
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What acquisition tax rate applies to your property purchase?
Acquisition tax in Seoul ranges from 1% to 12% depending on your buyer profile, property type, and location.
For a first-time homebuyer purchasing a ₩1 billion apartment as their primary residence, the base rate is typically 1-3%, resulting in ₩10-30 million in acquisition tax. However, multiple-home owners face significantly higher rates of 8-12%, translating to ₩80-120 million on the same property.
Seoul's designation as a speculative zone triggers additional surcharges. Corporate buyers and non-residents often face the maximum 12% rate regardless of the number of properties owned. The progressive structure means luxury properties above certain thresholds automatically incur higher rates.
Anti-speculation measures introduced in recent years have made acquisition taxes particularly punitive for investment properties and multiple-home ownership. Foreign buyers should expect to pay closer to the higher end of these ranges.
The tax is calculated on the actual purchase price, not assessed value, making it one of the most significant upfront costs in Seoul property transactions.
What registration and title transfer costs should you expect?
Registration and title transfer costs include registration tax, court registration fees, and government stamp duties.
| Fee Type | Rate | Amount (₩1B property) |
|---|---|---|
| Registration Tax | 0.8% | ₩8,000,000 |
| Court Registration Fee | 3.1% | ₩31,000,000 |
| Government Stamp Duty | Fixed rate | ₩350,000 |
| Local Education Surtax | 20% of registration tax | ₩1,600,000 |
| Document Processing | Various | ₩200,000-500,000 |
Court registration fees are particularly high in Seoul, calculated at 3.1% of market value for properties over ₩600 million. This means a ₩1 billion property incurs ₩31 million in court registration fees alone.
Registration tax at 0.8% adds another ₩8 million, while government stamp duty is ₩350,000 for properties over ₩1 billion. The Local Education Tax adds 20% to the registration tax, contributing an additional ₩1.6 million.
These costs are mandatory and non-negotiable, totaling approximately ₩41 million for a ₩1 billion property transaction before considering professional service fees.
What mortgage registration taxes apply if you finance the purchase?
Mortgage registration requires separate taxes and fees calculated on your loan amount.
Mortgage registration tax ranges from 0.24% to 0.48% of the secured loan amount, varying by region within Seoul. For a ₩500 million loan, expect ₩1.2-2.4 million in registration taxes. The Local Education Surtax adds another 20%, contributing ₩240,000-480,000 to your total.
Court application fees for mortgage registration typically cost ₩30,000-50,000 per filing. Additional document processing and verification fees can add ₩100,000-200,000 to the total.
Banks often require mortgage insurance, which while not a tax, represents an additional cost of 0.1-0.3% annually on the loan amount. Some lenders may also charge loan origination fees of 0.1-0.2% of the loan value.
Total mortgage-related taxes and fees typically range from ₩1.5-3 million for a ₩500 million loan, representing a significant additional cost beyond the property transfer taxes.
How much is the contract stamp tax on your purchase agreement?
Contract stamp tax applies to your sales agreement based on the purchase price.
For a ₩1 billion property purchase, the contract stamp tax is ₩150,000. Properties purchased for over ₩1 billion incur a higher stamp tax of ₩350,000. This tax must be paid when signing the purchase contract, before the actual property transfer.
The stamp tax is relatively minor compared to other transaction costs but represents a mandatory government fee. Both buyer and seller typically share this cost, though the exact split can be negotiated as part of your purchase agreement.
Additional stamp duties may apply to supplementary agreements or contract modifications. Electronic contracts may qualify for reduced stamp tax rates in some cases, though physical contracts remain the standard in Seoul property transactions.
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What additional surtaxes are added to your property taxes?
Several surtaxes are automatically added to your base property taxes.
The Local Education Tax represents the largest surtax, calculated at 20% of your property tax amount. For a property with ₩2.5 million annual property tax, the Local Education Tax adds ₩500,000 annually. This surtax funds local education infrastructure and is unavoidable for all property owners.
Agriculture and Fishery Special Tax applies at 0.15% to certain capital transactions and property transfers. This can add ₩1.5 million to a ₩1 billion property purchase. The tax supports rural development programs despite applying to urban real estate.
Some Seoul districts impose additional local development taxes or infrastructure improvement fees. These vary by district and specific location, typically ranging from ₩200,000-500,000 annually for residential properties.
Multiple-home owners face additional surtaxes on both acquisition and annual property taxes. These penalty rates can increase total tax liability by 10-20% beyond standard rates.
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What professional fees should you budget for the transaction?
Professional services are essential for Seoul property transactions and include several mandatory fees.
Judicial scriveners handle property registration and legal documentation, charging 0.1-0.2% of the property value. For a ₩1 billion purchase, expect ₩1-2 million for these services. Their expertise ensures proper title transfer and compliance with Korean property law.
Notary services cost ₩200,000-400,000 and are often required for document authentication and translation. Foreign buyers typically need additional translation services for contracts and legal documents, adding ₩300,000-500,000 to professional fees.
Escrow and settlement services range from ₩1-2 million depending on transaction complexity. These services protect both buyer and seller during the transfer process and are particularly important for foreign buyers unfamiliar with Korean procedures.
Due diligence services, including property inspections and legal reviews, typically cost ₩500,000-1,000,000. While not legally mandatory, these services are highly recommended for foreign investors to avoid costly mistakes.
Total professional fees typically range from ₩3-5 million for a standard ₩1 billion property transaction in Seoul.
How much are brokerage commissions and are there legal caps?
Seoul real estate brokerage commissions are regulated by law with maximum rates based on property value.
| Property Value Range | Maximum Commission Rate | Commission on ₩1B | With 10% VAT |
|---|---|---|---|
| Up to ₩500M | 0.4% | ₩4,000,000 | ₩4,400,000 |
| ₩500M - ₩1.2B | 0.5% | ₩5,000,000 | ₩5,500,000 |
| ₩1.2B - ₩3B | 0.7% | ₩7,000,000 | ₩7,700,000 |
| Over ₩3B | Negotiable | Varies | Plus 10% VAT |
For a ₩1 billion apartment, the maximum commission is 0.5%, totaling ₩5 million plus 10% VAT, for a total of ₩5.5 million. Both buyers and sellers pay commission to their respective agents, though rates are often negotiable below the legal maximum.
VAT at 10% is always added to brokerage commissions, significantly increasing the total cost. Some brokers offer reduced rates for cash transactions or repeat clients, but the legal maximums provide consumer protection.
Foreign buyers often require specialized brokers with English language capabilities, who may charge premium rates within the legal limits. These brokers provide valuable services including translation, legal guidance, and cultural navigation.
What annual property tax rates apply after purchase?
Annual property taxes in Seoul are calculated based on official assessed values and vary by property type and value.
Property tax rates range from 0.15% to 0.5% of the official assessed value (jeongaega), which typically represents 70-85% of market value. For a ₩1 billion market value property with ₩850 million assessed value, annual property tax ranges from ₩1.275 million to ₩4.25 million.
The progressive rate structure means higher-value properties face higher tax rates. Properties assessed above ₩600 million face rates of 0.3-0.5%, while lower-value properties enjoy the minimum 0.15% rate.
Property taxes are due annually in July, with payment deadlines strictly enforced. Late payments incur penalties of 3% per month, making timely payment essential. The Local Education Tax automatically adds 20% to your property tax bill.
For a typical ₩1 billion Seoul apartment, expect annual property taxes of approximately ₩2.5-3 million plus ₩500,000-600,000 in Local Education Tax, totaling ₩3-3.6 million annually.
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Does your property trigger Comprehensive Real Estate Tax?
The national Comprehensive Real Estate Tax (CRET) applies to high-value property holdings above specific thresholds.
Individual property owners face CRET when their combined official property values exceed ₩1.2 billion for residential properties. Multiple-home owners face a lower ₩600 million threshold, making CRET more likely to apply.
CRET rates range from 0.5% to 2.7% on the value exceeding the threshold, calculated progressively. Multiple-home owners face penalty rates up to 3.2%, significantly increasing tax liability. The tax is calculated on official assessed values, not market prices.
For a single ₩1 billion market value property with ₩850 million assessed value, CRET likely does not apply if it's your only property. However, if you own multiple properties or additional properties push your total over ₩1.2 billion assessed value, expect CRET of ₩2-10 million annually depending on total holdings.
CRET includes local surtaxes that add approximately 10% to the base tax amount. Multiple-home owners in speculative zones face the highest rates, making property accumulation strategies expensive in Seoul.
What taxes apply if you rent out your Seoul property?
Rental income from Seoul property faces either flat-rate withholding or comprehensive income tax filing.
The flat-rate option applies 14% national income tax plus 1.4% local surtax to gross rental income, totaling 15.4%. For monthly rent of ₩3 million (₩36 million annually), this results in ₩5.544 million annual tax with minimal paperwork requirements.
Comprehensive filing allows deduction of expenses but subjects rental income to progressive rates of 6-45% plus local surtax. This option benefits property owners with significant mortgage interest, maintenance costs, or other deductible expenses.
Foreign property owners must file annual tax returns regardless of the chosen method. Rental income exceeding ₩20 million annually requires comprehensive filing in most cases. Professional tax preparation services typically cost ₩300,000-500,000 annually for rental property owners.
VAT registration is required if annual rental income exceeds ₩48 million, adding 10% VAT to rent charges but allowing deduction of property-related VAT expenses.
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What capital gains tax applies when you sell your Seoul property?
Capital gains tax on Seoul property sales varies dramatically based on holding period, property use, and owner profile.
Primary residence sales after 2+ years enjoy a ₩900 million capital gains exemption, with remaining gains taxed at 6-45% progressive rates. Non-primary residences face the full 6-45% progressive rates on all gains, plus local surtax of 10% of the capital gains tax.
Short-term holdings (under 1 year) face punitive 70% capital gains tax rates. Properties held 1-2 years are taxed at 60%, making short-term speculation extremely expensive. Multiple-home owners face additional 10-20% surtax rates regardless of holding period.
For a ₩1 billion purchase sold for ₩1.5 billion after 5 years as a primary residence, the ₩500 million gain falls within the ₩900 million exemption, resulting in zero capital gains tax. The same property as a rental or second home would incur ₩75-125 million in capital gains tax.
Tax filing must be completed by the end of the month following the sale. Late filing incurs significant penalties, and foreign sellers face additional compliance requirements including tax clearance certificates for fund repatriation.
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.
Seoul property taxes and fees represent a significant portion of your total investment cost, often reaching 15-20% of the purchase price when including all upfront costs.
Annual holding costs and potential capital gains taxes can substantially impact your investment returns, making careful tax planning essential for foreign property investors in Seoul.
Sources
- BambooRoutes - Moving to South Korea Property Guide
- Global Property Guide - South Korea Taxes and Costs
- BambooRoutes - Average House Prices South Korea
- BambooRoutes - Moving to Korea Property Guide
- Korean Government Legal Portal
- PwC Tax Summaries - Republic of Korea
- Lloyds Bank Trade - South Korea Taxes
- Invest Seoul - Property Investment Guide
- EY - Korea 2025 Tax Reform Proposals
- Invest Korea - Real Estate Investment Guide