Business · Economy · 21 hrs ago
Two-year deadline applies to some temporary two-home tax exemptions in South Korea
South Korea has shortened the deadline for some homeowners who buy a new home before selling their old one.
If both homes are in designated regulated areas when the new home is bought, the old home must be sold within two years to qualify for the temporary two-home tax exemption.
The previous deadline was three years.
The rule applies when the owner bought the old home at least one year before the new one and meets the other requirements for the exemption.
The exemption means no capital gains tax is charged on a qualifying home sale of up to 1.2 billion won; tax may apply to gains above that value.
People who signed a contract and paid a deposit before August 3 can use the previous three-year deadline, so homeowners should check the applicable rules and the areas’ status when they bought the new home.
South Korea has shortened the deadline for selling an old home under a temporary two-home tax exemption from three years to two in some cases.
The two-year deadline applies when both homes are in designated regulated areas at the time the new home is acquired.
Contracts made and deposits paid before August 3 remain subject to the previous three-year rule.
The exemption can apply when the old home is sold within the deadline and other conditions are met.
The broader single-home exemption applies to sale proceeds of up to 1.2 billion won.
- Who
- Homeowners who temporarily own two homes while moving.
- What
- Some homeowners must sell their old home within two years to qualify for the temporary two-home capital gains tax exemption.
- When
- Within two years of acquiring the new home. Contracts made and deposits paid before August 3 follow the previous three-year deadline.
- Where
- South Korea.
- Why
- The income tax decree was amended to shorten the deadline when both homes are in designated regulated areas at the time the new home is acquired.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
This story does not have a timeline yet.
- New deadline
- 2 years to sell the old home
- Previous deadline
- 3 years
- Regulated-area condition
- Both homes must be in designated regulated areas when the new home is acquired
- Prior-rule cutoff
- Contracts made and deposits paid before August 3
- Single-home exemption threshold
- 1.2 billion won in sale proceeds
Sources
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