Non-resident single-home owners to pay up to 4.29 million won more in comprehensive real estate tax

A non-resident who owns a single apartment worth about 4.3 billion won is estimated to pay 4.291 million won more in comprehensive real estate tax next year than this year. The figure was disclosed by the Ministry of Finance and Economy on the 13th in materials for the National Assembly confirmation hearing of Lee Hyeong-il, nominee for Deputy Prime Minister and Finance Minister. If the government's tax reform bill passes the National Assembly, the tax due on the apartment next year will rise sharply to 12.038 million won from 7.747 million won this year. The estimate assumes the owner is under 60 years old and that no tax credits or the tax burden cap (150%) apply.

The increase stems from an adjustment to the comprehensive real estate tax system for non-resident single-home owners. In the original tax reform plan announced on the 3rd of last month, the government had proposed cutting the basic deduction for non-resident single-home owners to 900 million won, projecting a tax liability of 15.365 million won for next year. It later revised the plan to keep the basic deduction at the current 1.2 billion won, reducing the tax by 3.327 million won from the original proposal.

According to the same materials, the tax due on a home with an official price of 1.5 billion won (market value of about 2.2 billion won) is projected to rise from 691,000 won this year to 806,000 won next year, while a home with an official price of 2 billion won (market value of about 2.9 billion won) is expected to increase from 2.275 million won to 2.774 million won. However, actual tax burdens may vary depending on the home's price, the owner's age, and the period of ownership and residence, and the increase will only take effect if the tax reform bill passes the National Assembly.