Government Overhauls Property Tax Rules, Tightening Levy on Homeowners

The government has announced its '2026 Tax Reform Plan,' which will differentiate tax burdens based on home prices and actual residency periods starting in 2026. This measure transitions the existing criteria, which were centered on the number of homes owned and ownership duration, to a focus on asset value and actual residency. The government stated that price indicators, which reflect the actual value of an asset, are more aligned with tax justice than the outward metric of home count.

With the shift to price-based taxation, homeowners who occupy their moderately priced single-family homes for residency purposes will see their tax burdens eased or maintained. Conversely, taxes will be strengthened for owners of non-resident properties or multiple high-value homes. Under this reform, individuals owning high-priced homes that meet the official valuation criteria but do not meet residency requirements will face increased property tax burdens.

The government finalized this reform plan at a Tax Development Review Committee meeting held on the 3rd. Through this reform, the government has prepared subsequent supplementary measures for managing housing market liquidity and stabilizing the tax revenue structure. The reform plan will be submitted to the National Assembly after a legislative preview and approval by the State Council.