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
Yes, US citizens can legally buy residential property in South Korea in 2026, including apartments, villas, officetels, and detached houses.
However, the buying process involves specific reporting requirements and, in some designated zones, you may need permission or extra documentation to complete your purchase.
We constantly update this blog post to reflect the latest rules 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.
Can a US citizen legally buy residential property in South Korea right now?
Can I buy a home in South Korea as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in South Korea, including apartments, villas, officetels, and detached houses, under the Foreigner's Land Acquisition Act.
The standard buying process requires you to sign a purchase contract, report the transaction to local authorities within a set deadline, and provide documentation such as your passport and proof of funds, especially in designated permission zones where extra paperwork is now required.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in South Korea.
Are there many Americans buying property and living in South Korea in 2026?
As of early 2026, Americans own approximately 22,000 residential properties in South Korea, making them one of the largest non-Chinese foreign owner groups in the country.
American expats and property owners in South Korea tend to concentrate in Seoul neighborhoods like Itaewon, Hannam-dong, and Yongsan, as well as in Busan's Haeundae district and areas near US military bases such as Pyeongtaek.
The top three reasons Americans choose to buy property in South Korea are career opportunities with global companies and the US military, the high quality of life in Korean cities, and growing interest in Korean culture and lifestyle.
The American expat community in South Korea is slowly growing, driven by strong job markets in tech and education, continued US military presence, and the popularity of Korean culture worldwide.
Do foreigners have the same buying rights as locals in South Korea?
Foreign buyers, including US citizens, have largely similar buying rights as locals in South Korea, but foreigners face extra procedural steps like transaction reporting and, in some zones, must obtain permission and submit funding source documents.
Most residential property types are open to foreign buyers, but certain land in military zones, border areas, and other sensitive locations may be restricted or require special approval, and rules tightened in late 2025 for some Seoul-area purchases.
We cover all these things in length in our pack about the property market in South Korea.
Can I buy property in South Korea without a residence permit?
You do not need a residence permit to buy property in South Korea, and non-residents living abroad can legally purchase residential real estate in most areas.
The process for buying property while living abroad involves signing a purchase contract, reporting the transaction to local authorities, and providing required documents such as your passport and proof of funds, which can often be handled through a local representative or attorney.
Buying a home in South Korea does not automatically grant you a visa or residency rights, as immigration status is governed by separate rules from property ownership.
The main practical challenge for non-resident buyers is opening a Korean bank account remotely, since most banks prefer in-person verification and FATCA compliance for American clients can slow down the process.
Can US citizens own land in South Korea?
Yes, US citizens can legally own land in South Korea, including the land underneath apartments and houses, though you must report the acquisition to local authorities within the required deadline.
Property ownership in South Korea is typically freehold, meaning you own the unit and a share of the land outright, rather than the leasehold system common in some other countries.
Certain geographic zones in South Korea restrict foreign land ownership, including military protection areas, border regions near North Korea, and some designated cultural or ecological preservation zones where permission may be required or denied.
Please note that we have a dedicated blog article about the land buying process in South Korea here.
What documents will I need to buy in South Korea?
To purchase property in South Korea, US citizens typically need a valid passport, the purchase contract, transaction reporting documents, and proof of funds, especially in designated zones where funding source documentation became mandatory in late 2025.
A local tax identification number is often required for paying property taxes in South Korea, and you can obtain one through the local tax office or National Tax Service, which handles foreigner tax administration.
A local bank account is not strictly mandatory to complete a purchase, but it is highly practical for paying taxes, utilities, management fees, and mortgage payments if you finance the property.
Foreign buyers in South Korea are typically required to show proof of funds and provide a local contact address for official notices, with additional documentation now required in certain regulated zones.
We have a whole section dedicated to all the documents you need in our South Korea property pack.
Can a foreign-owned company buy property in South Korea?
Yes, a foreign-owned company can legally purchase residential property in South Korea, though this approach adds complexity with more documentation requirements and potentially different tax treatment.
Americans do sometimes use corporate structures to hold property in South Korea, but it is not common for simple residential purchases, and Korean company forms have their own rules and tax consequences.
Owning property through a company structure does not typically lower taxes for a single residential home in South Korea, and in some cases, corporate ownership can trigger higher acquisition tax rates.
The main drawback of company ownership is increased administrative burden, including extra US reporting requirements under FATCA if you hold property through a foreign entity, which can add significant accounting costs.
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What taxes and fees will I pay in South Korea in 2026?
What are buyer taxes in South Korea in 2026?
As of early 2026, the total buyer tax on a residential property purchase in South Korea is typically around 1% to 3% of the purchase price for most single-home buyers, which on a 500 million KRW apartment (about $360,000 USD or €330,000 EUR) would be roughly 5 to 15 million KRW ($3,600 to $10,800 USD or €3,300 to €9,900 EUR).
The main component is acquisition tax, which varies based on property value, type, and how many homes you already own, with additional local education tax and rural development tax adding small percentages on top.
Buyer tax rates in South Korea are generally the same for foreigners and locals, but multi-homeowners and buyers in certain policy zones can face significantly higher rates, sometimes reaching 8% to 12% for additional properties.
If you want to go into more details, we also have a page detailing all the property taxes and fees in South Korea.
What are other closing costs in South Korea in 2026?
As of early 2026, total closing costs excluding taxes in South Korea typically run about 0.8% to 1.5% of the purchase price for a cash purchase, which on a 500 million KRW apartment would be roughly 4 to 7.5 million KRW ($2,900 to $5,400 USD or €2,600 to €5,000 EUR).
The main closing cost categories include brokerage fees (usually 0.4% to 0.9% depending on price, capped by law), registration fees (around 0.2% to 0.5%), judicial scrivener or legal fees for paperwork (200,000 to 500,000 KRW or $145 to $360 USD), and bank fees if you get a mortgage.
Brokerage fees in South Korea are somewhat negotiable within legal ceilings, and you can sometimes reduce costs by choosing a more basic service level from your agent.
The closing cost that most surprises foreign buyers in South Korea is the currency conversion spread when transferring funds from abroad, which can quietly add 1% to 2% to your total cost if you use unfavorable exchange rates.
Are there hidden fees foreigners miss in South Korea right now?
Foreign buyers in South Korea commonly overlook about 2 to 5 million KRW ($1,450 to $3,600 USD or €1,300 to €3,300 EUR) in unexpected fees beyond the standard closing costs.
The top three hidden fees that catch foreign buyers off guard are currency conversion spreads when moving money to Korea (often 1% to 2% of the amount), building move-in deposits and elevator reservation fees (typically 200,000 to 1,000,000 KRW or $145 to $720 USD), and legal or translation costs for extra documentation in permission zones (300,000 to 1,000,000 KRW or $215 to $720 USD).
After purchase, foreign owners often underestimate ongoing annual costs like building management fees (typically 150,000 to 400,000 KRW per month or $110 to $290 USD), property tax (usually 0.1% to 0.4% of assessed value annually), and the comprehensive real estate holding tax if you own high-value or multiple properties.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in South Korea.
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.
Can I get a mortgage as a US citizen in South Korea in 2026?
Do banks lend to US citizens in South Korea in 2026?
As of early 2026, Korean banks do lend to US citizens, but approval typically requires you to have stable, documentable income (preferably Korean-sourced), an established Korean banking relationship, and the ability to meet strict debt-to-income (DSR) requirements.
US citizens generally receive similar treatment to other foreign nationals when applying for mortgages in South Korea, with no special advantage or disadvantage based on American citizenship alone.
The main reason some Korean banks hesitate to lend to Americans specifically is the extra compliance burden from FATCA reporting requirements, which adds administrative work and risk for the bank.
The typical approval rate for US citizens applying for property loans in South Korea is lower than for local residents, with many foreigners finding that without strong local income documentation, banks either decline the application or offer less favorable terms.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in South Korea.
What down payment do American people need in South Korea in 2026?
As of early 2026, US citizens typically need a minimum down payment of 30% to 45% to obtain a mortgage in South Korea, which on a 500 million KRW apartment (about $360,000 USD or €330,000 EUR) means preparing at least 150 to 225 million KRW ($108,000 to $162,000 USD or €99,000 to €148,500 EUR) upfront.
The typical down payment range for foreign buyers in South Korea runs from 30% in the best cases (strong local income, residency, bank relationship) up to 60% or even 100% cash if you lack local documentation or are buying in tighter regulated zones.
A larger down payment does improve your mortgage terms in South Korea, as banks view lower loan-to-value ratios as less risky and may offer slightly better interest rates or more flexible approval for well-capitalized borrowers.
You can also read our latest update about mortgage and interest rates in South Korea.
What interest rates do US citizens get in South Korea in 2026?
As of early 2026, US citizens can expect mortgage interest rates in South Korea ranging from about 4.2% to 5.6% annually, with a typical rate around 4.8% for foreign borrowers at commercial banks.
Interest rates for foreign buyers in South Korea tend to be slightly higher than rates offered to local residents, as banks price in additional documentation risk and the smaller pool of comparable foreign borrowers.
Variable-rate mortgages are more common in South Korea, though fixed-rate options exist through policy lenders like Korea Housing Finance Corporation, with typical terms ranging from 10 to 30 years.
The single factor with the biggest impact on the interest rate a US citizen will be offered in South Korea is the strength and verifiability of your income documentation, as banks focus heavily on repayment ability under DSR rules.
Can I use US income to qualify in South Korea right now?
Korean banks sometimes accept US-sourced income for mortgage qualification, but they often discount or scrutinize it more heavily than local income because it is harder to verify and less predictable for Korean lenders.
To document US income, banks in South Korea typically require official tax returns (like IRS Form 1040), W-2 statements, employment verification letters, and several months of bank statements showing consistent deposits.
If standard US documentation is insufficient, some banks may accept alternative verification such as CPA-certified income statements, contracts showing ongoing payments, or a larger down payment to offset the documentation gap.
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How do US taxes interact with owning property in South Korea?
Do I have to declare the property to the IRS from South Korea?
Owning residential property directly in South Korea does not itself trigger a separate IRS reporting requirement, because the IRS explicitly states that foreign real estate is not a "specified foreign financial asset" for Form 8938 purposes.
However, if you earn rental income from your South Korea property, you must report that income on your US tax return using forms like Schedule E, and if you sell the property, you report any capital gain.
Simply owning the property does not trigger reporting, but generating income from it or holding it through a foreign entity changes your obligations significantly.
Will I pay tax twice in the US and South Korea in 2026?
As of early 2026, US citizens owning property in South Korea can face tax obligations in both countries, but the goal is to avoid true double taxation through treaty protections and tax credits.
The US and South Korea have an income tax treaty that provides protections for property owners, and the treaty documents are maintained by both the IRS and US Treasury.
The Foreign Tax Credit allows you to offset taxes paid to South Korea against your US tax liability, so if you pay Korean taxes on rental income or capital gains, you can typically claim a credit on your US return to reduce or eliminate double taxation.
Property taxes paid in South Korea may be deductible on US returns, but the treatment depends on whether the property is a personal residence (subject to SALT limits) or a rental (deductible as a business expense against rental income).
Do I need FATCA reporting when buying in South Korea?
FATCA reporting for US citizens buying property in South Korea is typically triggered by your Korean bank accounts or foreign entity structures, not by owning the property itself.
Form 8938 thresholds for FATCA reporting depend on your filing status and residence, starting at $50,000 for US residents and $200,000 for those living abroad, but remember that directly owned real estate is not included, only financial assets like bank accounts or entity interests.
FBAR (FinCEN 114) is separate from FATCA and requires reporting if your aggregate foreign financial account balances exceed $10,000 at any point during the year, which commonly applies if you open Korean bank accounts for your property purchase.
Consulting a US CPA before buying property in South Korea is strongly recommended if you plan to rent the property, hold it through a company, maintain significant Korean bank balances, or expect to sell within a few years, and you should ask specifically about Form 8938 thresholds, FBAR requirements, Foreign Tax Credit mechanics, and depreciation rules for foreign rental property.
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.
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 |
|---|---|---|
| Korea Ministry of Land, Infrastructure and Transport (MOLIT) | This is the Korean government ministry that publishes official foreign ownership statistics. | We used it to quantify how many homes foreigners and Americans own in South Korea. We also used it to ground our section on American buyers in official totals. |
| Foreigner's Land Acquisition Act (KLRI) | KLRI is Korea's official legal portal for statutes in English. | We used it to explain that foreigners can acquire property but must follow reporting procedures. We also clarified that land ownership is legally possible for US citizens. |
| Local Tax Act (National Law Information Center) | This is the government's official text where acquisition and property tax rules are defined. | We used it to explain what buyer taxes mean in South Korea. We then translated the legal rates into a practical budgeting checklist. |
| Financial Services Commission (FSC) | FSC is Korea's top financial regulator overseeing mortgage lending rules. | We used it to explain why foreigners face stricter borrowing limits under DSR policy. We converted that into realistic down payment estimates. |
| Bank of Korea (BOK) | BOK is the central bank whose policy rate drives the interest rate environment. | We used it to establish the early 2026 interest rate backdrop. We then linked that to the mortgage rate ranges foreign buyers can expect. |
| Korea Housing Finance Corporation (KHFC) | KHFC is the policy mortgage institution publishing official fixed-rate loan ranges. | We used it to show what good-borrower mortgage rates look like in South Korea. We contrasted those with typical rates foreigners receive from commercial banks. |
| IRS Korea Tax Treaty Documents | This is the US government's official repository for US-Korea tax treaty texts. | We used it to confirm the treaty framework exists and supports the double taxation discussion. We translated it into practical advice about Foreign Tax Credits. |
| IRS Form 8938 FAQ | This is the IRS's plain-language guidance on foreign asset reporting under FATCA. | We used it to clarify that directly owned foreign real estate is not reported on Form 8938. We explained the exception when holding through a foreign entity. |
| IRS FBAR Guidance | This is the IRS's official guidance on reporting foreign bank accounts. | We used it to explain that reporting triggers come from Korean bank accounts, not the property itself. We turned that into a simple rule about checking FBAR thresholds. |
| Financial Supervisory Service (FSS) | FSS is the supervisory body providing consumer help for foreigners in Korea. | We used it to point buyers toward credible support if banking issues arise. We also used it to confirm that foreigner-friendly banking is an active regulatory topic. |
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