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
If you're a foreigner planning to buy residential property in South Korea in 2026, understanding the extra costs beyond the purchase price is essential to avoid surprises.
South Korea has a unique system of acquisition taxes, regulated brokerage fees, and ongoing apartment management costs that differ significantly from what you might expect in other countries.
We constantly update this blog post to reflect the latest tax rates, fee caps, and market conditions in South Korea.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in South Korea.
Overall, how much extra should I budget on top of the purchase price in South Korea in 2026?
How much are total buyer closing costs in South Korea in 2026?
As of early 2026, total buyer closing costs in South Korea typically range from 3% to 6% of the purchase price, which means on a 1 billion won home (about $715,000 USD or €670,000 EUR), you should expect to pay roughly 30 to 60 million won ($21,500 to $43,000 USD or €20,000 to €40,000 EUR) in extra costs.
The minimum extra budget possible when keeping expenses to the bare legal minimum is around 2% to 2.8% of the purchase price, translating to about 20 to 28 million won ($14,300 to $20,000 USD or €13,300 to €18,700 EUR) on a 1 billion won property.
On the high end, buyers should realistically plan for 7% to 12% or more of the purchase price if they trigger heavy taxation scenarios, which could mean 70 to 120 million won ($50,000 to $86,000 USD or €47,000 to €80,000 EUR) on that same 1 billion won home.
The main factors that determine whether your closing costs fall at the low or high end in South Korea include your acquisition tax bracket (which depends on property value and whether you own multiple homes), how much you negotiate on the capped brokerage fee, and whether you need extensive legal or translation services as a foreigner.
What's the usual total % of fees and taxes over the purchase price in South Korea?
The usual total percentage of fees and taxes over the purchase price in South Korea for most foreign individual buyers purchasing one home is around 3% to 5% all-in.
The realistic low-to-high percentage range that covers most standard property transactions in South Korea spans from about 2% for very lean purchases to 6% for more comprehensive service packages, with outliers going higher in special tax situations.
Of that total percentage, government taxes (primarily acquisition tax and stamp duty) typically account for 1.5% to 3.5%, while professional service fees (brokerage, legal, and administrative costs) make up the remaining 0.5% to 2%.
By the way, you will find much more detailed data in our property pack covering the real estate market in South Korea.
What costs are always mandatory when buying in South Korea in 2026?
As of early 2026, the mandatory costs when buying property in South Korea include acquisition tax (plus related surtaxes like local education tax and rural special tax), stamp tax on the signed contract, registration-related filing fees to perfect ownership, and brokerage commission if you use an agent.
Costs that are optional but highly recommended for foreign buyers in South Korea include professional title and encumbrance checks, contract review by a lawyer who reads Korean, translation or interpreter services for signing appointments, and a formal property valuation if you are financing the purchase.
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What taxes do I pay when buying a property in South Korea in 2026?
What is the property transfer tax rate in South Korea in 2026?
As of early 2026, the main transfer tax paid by buyers in South Korea is the acquisition tax (취득세), which ranges from 1% to 3% of the purchase price for residential houses, plus surtaxes that can add another 0.1% to 0.5%.
There are generally no extra transfer taxes specifically for foreigners buying property in South Korea, as the tax rates depend on the property type, value, and your ownership situation rather than your nationality.
Buyers typically do not pay VAT on standard residential property purchases in South Korea, but VAT at 10% of the building value may apply when buying from a VAT-registered business (such as certain new-build transactions), with an exemption commonly available for homes 85 square meters or smaller.
Stamp duty in South Korea is paid on the sale contract document itself, with fixed amounts set by law: for example, contracts over 1 billion won require a stamp tax of 350,000 won (about $250 USD or €230 EUR).
Are there tax exemptions or reduced rates for first-time buyers in South Korea?
South Korea occasionally offers tax relief measures for first-time buyers, but these are typically time-limited and eligibility-heavy, so you should treat any first-time buyer exemption as "possible but not automatic" and verify your qualification at signing time.
Buying property through a company in South Korea can result in significantly different tax treatment, including potential surcharges and additional corporate tax burdens that make individual ownership simpler for most residential buyers.
The main tax difference between new-build and resale properties in South Korea relates to VAT, as purchasing from a taxable seller (like a developer) can introduce VAT mechanics that do not apply to most individual-to-individual resales.
To qualify for first-time buyer exemptions in South Korea, you typically need to provide documentation proving you have not previously owned residential property, meet income or property value thresholds, and ensure the relief program is still active at the time of your purchase.
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.
Which professional fees will I pay as a buyer in South Korea in 2026?
How much does a notary or conveyancing lawyer cost in South Korea in 2026?
As of early 2026, legal handling costs for contract review, registry filings, and coordination in South Korea typically range from 1 million to 5 million won ($715 to $3,570 USD or €670 to €3,330 EUR), with complex cross-border transactions potentially costing more.
Lawyer fees in South Korea are typically charged as flat rates or scope-based packages rather than as a fixed percentage of the property price, which gives buyers some flexibility to negotiate based on the complexity of their purchase.
Translation and interpreter services for foreign buyers in South Korea generally cost between 200,000 and 800,000 won ($140 to $570 USD or €130 to €530 EUR) for basic appointment support, rising to 1 million won or more ($715+ USD or €670+ EUR) if you need document translation plus in-person assistance across multiple meetings.
A tax advisor is not strictly necessary for simple one-home purchases in South Korea, but if you are a non-resident planning to rent out the property or sell soon, professional tax advice typically costs 300,000 to 1.5 million won ($215 to $1,070 USD or €200 to €1,000 EUR) and can be well worth it.
We have a whole part dedicated to these topics in our our real estate pack about South Korea.
What's the typical real estate agent fee in South Korea in 2026?
As of early 2026, real estate agent fees in South Korea are legally capped and typically range from 0.3% to 0.6% of the purchase price, meaning on a 1 billion won property you would pay roughly 3 to 6 million won ($2,140 to $4,290 USD or €2,000 to €4,000 EUR) to your agent.
In South Korea, each party (buyer and seller) pays their own agent's commission, so the buyer pays their agent and the seller pays theirs, with both fees subject to the same legal caps.
The realistic low-to-high range for agent fees in South Korea depends on the property price bracket: for homes between 600 million and 1.2 billion won the cap is 0.4%, while properties over 1.5 billion won have a cap of 0.6%, and you can negotiate within these limits.
How much do legal checks cost (title, liens, permits) in South Korea?
Legal checks including title search, liens verification, and registry extracts in South Korea typically cost between 50,000 and 300,000 won ($35 to $215 USD or €33 to €200 EUR) for basic document fees, or 500,000 to 2.5 million won ($360 to $1,790 USD or €330 to €1,670 EUR) when packaged into lawyer-led due diligence.
Property valuation fees in South Korea start from a few hundred thousand won and scale with complexity, so you should confirm pricing directly with the appraiser or your bank if you are financing the purchase.
The most critical legal check that should never be skipped in South Korea is the registry and encumbrance search through the official IROS system, because changes in real property rights are fundamentally tied to registration and this is where you discover any claims against the property.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in South Korea.
Get the full checklist for your due diligence in South Korea
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What hidden or surprise costs should I watch for in South Korea right now?
What are the most common unexpected fees buyers discover in South Korea?
The most common unexpected fees buyers discover in South Korea include surtaxes on top of headline acquisition tax (like local education tax and rural special tax), higher-than-expected brokerage fees when buyers do not know the legal cap table, and ongoing apartment management fees (관리비) that can run 150,000 to over 1 million won monthly.
Unpaid property taxes or building-level debts are something you can protect yourself against in South Korea by checking registry encumbrances and requiring proof of tax payment status before completing the transaction.
Real estate fraud does occur in South Korea, particularly around rental systems like jeonse, and buyers can avoid scams by never paying deposits to unverified parties, insisting on official documentation, and being wary of "extra admin charges" that are not on published fee schedules.
Fees that are usually not disclosed upfront by sellers or agents in South Korea include move-in costs at apartment complexes (key replacement, facility card issuance), one-off maintenance fund adjustments, and the true scale of monthly management fees for amenity-heavy buildings.
In our property pack covering the property buying process in South Korea, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in South Korea?
Extra fees when buying a tenanted property in South Korea are mostly practical rather than tax-related, and can include 500,000 to 2 million won ($360 to $1,430 USD or €330 to €1,330 EUR) in additional legal costs to review tenant documents and manage lease handover complexities.
When purchasing a tenanted property in South Korea, you inherit the existing lease obligations, including the responsibility to return the tenant's deposit (which can be very large under the jeonse system) when the lease ends.
Terminating an existing lease immediately after purchase is generally not possible in South Korea, as tenants have strong legal protections and you must honor the lease terms until they expire or negotiate a mutual agreement.
A sitting tenant typically affects a property's market value in South Korea by making it less attractive to owner-occupiers, which can give buyers more negotiating leverage, but you must carefully account for deposit return obligations in your financial planning.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in South Korea.
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in South Korea?
Which closing costs are negotiable in South Korea right now?
The closing costs that are negotiable in South Korea include the brokerage fee (within the legal cap), legal and administrative fees (which are scope-based), and who pays for minor items like certificate issuance and office handling.
Closing costs that are fixed by law and cannot be negotiated in South Korea include acquisition tax and its surtaxes, stamp tax amounts set by statute, and mandatory registration filing fees.
Buyers can typically negotiate 10% to 30% off the maximum brokerage fee in South Korea, especially on higher-value properties, and can often get competitive quotes from multiple law firms for legal services.
Can I ask the seller to cover some closing costs in South Korea?
Asking a seller to cover some closing costs in South Korea is possible but relatively uncommon, with success depending heavily on how motivated the seller is and how long the property has been listed.
The specific closing costs sellers are most commonly willing to cover in South Korea include partial brokerage fees, minor legal or administrative handling, or providing credits and repairs that functionally offset buyer expenses.
Sellers in South Korea are more likely to accept covering closing costs when the property has sat on the market for a while, when they need a quick sale, or when the local market segment is softer than average.
Is price bargaining common in South Korea in 2026?
As of early 2026, price bargaining is common in South Korea but highly dependent on the neighborhood and market conditions, with hot Seoul districts like Gangnam-gu (Apgujeong, Daechi, Samseong) or Songpa-gu (Jamsil) offering less room than areas like Mapo-gu (Mangwon, Yeonnam) or Seongdong-gu (Wangsimni).
Buyers in South Korea typically negotiate 1% to 5% below the asking price in normal conditions, translating to 10 to 50 million won ($7,150 to $35,700 USD or €6,700 to €33,300 EUR) on a 1 billion won property, with discounts of 5% or more possible when listings have sat or sellers need speed.
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What monthly, quarterly or annual costs will I pay as an owner in South Korea?
What's the realistic monthly owner budget in South Korea right now?
A realistic monthly owner budget in South Korea for most apartment owners ranges from 150,000 to 450,000 won ($107 to $320 USD or €100 to €300 EUR), rising to 450,000 to over 1 million won ($320 to $715+ USD or €300 to €670+ EUR) for larger units or buildings with premium amenities.
The main recurring expense categories that make up this monthly budget in South Korea include apartment management fees (관리비), utilities not fully covered by the management fee, and the mental amortization of annual property taxes.
The realistic low-to-high range for monthly owner costs in South Korea spans from about 100,000 won ($70 USD or €67 EUR) for a modest unit with minimal services to over 1.5 million won ($1,070 USD or €1,000 EUR) for a large apartment with high heating loads and luxury amenities.
The monthly cost that tends to vary the most in South Korea is the apartment management fee, because it depends on building size, amenities (elevators, security, parking, heating systems), and seasonal factors like winter heating.
You can see how this budget affect your gross and rental yields in South Korea here.
What is the annual property tax amount in South Korea in 2026?
As of early 2026, annual property tax in South Korea for residential housing ranges from 0.1% to 0.4% of the assessed value, plus surtaxes like local education tax, meaning a property assessed at 500 million won would typically owe 500,000 to 2 million won ($360 to $1,430 USD or €330 to €1,330 EUR) annually in property taxes.
The realistic low-to-high range for annual property taxes in South Korea spans from a few hundred thousand won for modest homes to several million won for high-value properties, with an additional comprehensive real estate holding tax (종부세) potentially applying to owners whose total holdings exceed certain thresholds.
Property tax in South Korea is calculated based on officially assessed values (which are often below market value) using progressive rates that increase with property value, not a simple flat rate.
Certain property owners in South Korea may qualify for exemptions or reductions, but these are typically policy-driven and eligibility-heavy, so you should verify your specific situation with a tax professional rather than assume any relief applies.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in South Korea in 2026?
What tax rate applies to rental income in South Korea in 2026?
As of early 2026, rental income in South Korea is taxed under the progressive income tax system at rates ranging from 6% to 45% depending on your total income, with non-residents taxed on Korea-source income through withholding or filing mechanisms.
Landlords in South Korea can generally deduct expenses from rental income taxes, including repairs, property management costs, and certain financing costs, though the exact deductibility depends on how the rental activity is classified and your residency status.
The realistic effective tax rate after deductions for typical landlords in South Korea is often in the 6% to 24% range for modest rental incomes, climbing higher as total taxable income increases.
Foreign property owners in South Korea do not necessarily pay a different rate, but non-residents face withholding-style mechanics where tax may be collected at source (for example, the lesser of 10% of proceeds or 20% of gain for certain categories), with limited deduction options compared to residents.
Do I pay tax on short-term rentals in South Korea in 2026?
As of early 2026, short-term rental income in South Korea is generally taxable and can trigger additional compliance requirements, including potential VAT obligations and business registration depending on the scale and structure of your rental activity.
Short-term rental income is not necessarily taxed at a different rate than long-term rental income in South Korea, but the classification of your activity (business versus passive rental) can affect which taxes and reporting obligations apply.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in South Korea.
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If I sell later, what taxes and fees will I pay in South Korea in 2026?
What's the total cost of selling as a % of price in South Korea in 2026?
As of early 2026, the total cost of selling a property in South Korea (excluding capital gains tax) typically ranges from 0.5% to 1.5% of the sale price, covering brokerage commission and administrative costs.
The realistic low-to-high percentage range for total selling costs in South Korea is 0.5% for a minimal transaction up to 1.5% or more if you need extensive legal or marketing support, with capital gains tax potentially adding a much larger amount on top.
The specific cost categories that make up the total selling expenses in South Korea include seller-side brokerage commission (capped like buyer fees), legal and administrative handling, and any mortgage prepayment costs if you are paying off a loan early.
The single largest contributor to selling expenses in South Korea is almost always capital gains tax when there is an appreciable gain, as this can dwarf all other selling costs combined.
What capital gains tax applies when selling in South Korea in 2026?
As of early 2026, capital gains tax on property sales in South Korea is progressive and depends heavily on holding period, property count, and policy designations, with rates that can range from around 6% to over 70% in heavy taxation scenarios for short-term or multiple-home sellers.
Exemptions to capital gains tax in South Korea may be available for certain owner-occupied primary residences held for extended periods, but these exemptions are eligibility-heavy and policy-driven, so you must verify your specific situation at the time of sale.
Foreigners in South Korea do not necessarily pay a higher capital gains rate just because they are foreign, but non-residents face withholding at source (commonly the lesser of 10% of sale proceeds or 20% of capital gain, plus local surtax) that must be settled against final tax obligations.
Capital gain in South Korea is generally calculated as the sale price minus the acquisition cost and certain recognized expenses (like transfer costs and qualifying improvements), with the calculation method and applicable rates depending on your holding period and ownership situation.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about South Korea, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| InvestKOREA (KOTRA) - Applicable Taxes | Korean government investment agency publishing official tax guidance. | We used it as our baseline for acquisition tax ranges, property tax rates, and surtax explanations. We cross-checked these figures against other professional sources for 2025-2026 accuracy. |
| Seoul Metropolitan Government - Brokerage Fees | Official Seoul city government publishing legally binding commission caps. | We used it for the most actionable brokerage fee caps by price bracket. We translated those caps into realistic budget ranges for foreign buyers. |
| Korea Legislation Research Institute - Stamp Tax Act | Official statute translation portal for Korean laws in English. | We used it for exact stamp tax amounts on property contracts. We incorporated these fixed amounts into our minimum and maximum closing cost calculations. |
| National Tax Service (NTS) | Korea's national tax authority and source of truth for filing procedures. | We used it to anchor tax filing timelines, especially for capital gains. We combined it with rate information from professional tax guides. |
| PwC Korea - Individual Tax Summaries | Major global audit firm with frequently updated local tax guidance. | We used it to confirm the progressive income tax framework affecting rental and capital gains. We triangulated it with InvestKOREA and non-resident guidance. |
| BDO Korea - Non-resident Income Taxation | International accounting network member firm specializing in cross-border tax. | We used it to explain non-resident withholding mechanics at source. We clarified the difference between withholding and final tax obligations. |
| K-apt (Apartment Management Information System) | Official government platform disclosing apartment management fees. | We used it to justify why monthly management fees are a major ongoing cost. We combined it with press reporting to provide realistic monthly budget ranges. |
| IROS (Korea Internet Registry) | Official e-registry portal operated under the judiciary for property records. | We used it to explain where title and encumbrance documents come from. We anchored our legal check recommendations in this official system. |
| Korea Real Estate Board (REB) | Statutory public institution running national transaction reporting systems. | We used it to highlight Korea's document-heavy transaction reporting reality. We explained why small admin costs appear in real closings. |
| PwC Korea - December 2025 Tax Update | In-country tax practice summarizing enacted and pending 2026 changes. | We used it to verify that housing tax relief measures were extended into 2026. We flagged eligibility requirements rather than assuming benefits apply automatically. |
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