South Korea Cabinet Approves Tax Exemption Grace Period for Multi-Home Owners Until May 9
Owners of multiple homes in designated speculative areas can avoid higher capital gains taxes by filing for sales permits by deadline
L'essentiel
- South Korea's Cabinet approved revisions to exempt multiple-home owners from higher capital gains taxes if they file for sales permits by May 9.
- The grace period for owners in designated speculative areas, mostly in the wider capital region, will end as scheduled but those who apply for land transaction permits by the deadline will avoid the heavier taxation.
- The maximum tax rate of up to 75% will resume after nearly four years since being postponed under the previous Yoon administration.
Résumé généré par IA
Pourquoi c'est important
South Korea has implemented various measures to curb speculative home buying, particularly in the Seoul metropolitan area where housing prices have been consistently rising. The previous Yoon administration had temporarily postponed the heavier taxation on multiple-property holders.
SEOUL, April 21 (Yonhap) -- The Cabinet on Tuesday approved revisions to enforcement decrees that will exempt owners of multiple homes from higher capital gains taxes if they file for sales permits by May 9. Under the revisions to the enforcement decrees of the Income Tax Act and the Real Estate Transaction Reporting Act, the grace period for owners of multiple homes in designated speculative areas will end as scheduled on May 9, but those who apply for land transaction permits by the same day will be excluded from the heavier tax. The move comes as President Lee Jae Myung proposed measures to allow extra time for owners of multiple homes to sell their properties before the exemption ends, considering the time needed to obtain a land transaction permit. The heavy taxation, which was temporarily postponed under the previous President Yoon Suk Yeol administration, will resume after nearly four years. A maximum tax rate of up to 75 percent will apply to capital gains from the sale of homes owned by multiple-property holders in designated speculative areas, mostly in the wider capital region, as part of the government's push to stabilize rising housing prices.
À surveiller
Perspective IA — des possibilités, pas des certitudes
Surge in property listings before May 9 deadline as multiple-home owners rush to avoid higher taxes
Très probable · En quelques semaines
Housing prices may experience short-term volatility in the Seoul metropolitan area
Probable · En quelques mois
Questions ouvertes
- How many multiple-home owners are expected to take advantage of the May 9 deadline
- What will be the exact impact on housing prices after the tax resumes
- How will the government handle properties that don't sell before the deadline
