Part 16 of 20 · Local & National ownership taxes

Taxes on Assets (Part 2): Property Tax and Comprehensive Real Estate Tax

Own land or housing in Korea? Learn how the local Property Tax and the national Comprehensive Real Estate Tax work together each year.

Contents 1) Overview—owning vs. acquiring 2) Property Tax (local): who, when, how 3) Property Tax base & rates 4) Comprehensive Real Estate Tax (national): scope 5) C-RET thresholds & base 6) Property Tax credit against C-RET 7) Key payment dates 8) Common mistakes & quick checks 9) Summary & next topic 10) Disclaimer

1) Overview—owning vs. acquiring

Acquisition Tax is one-time (when you buy). Property Tax and, for high totals, Comprehensive Real Estate Tax (C-RET) recur annually just for owning real estate.

Two collectors: Property Tax = local government; C-RET = national tax office.

2) Property Tax (local): who, when, how

• What’s taxed? Housing, buildings, land, vessels, aircraft.
• Taxpayer snapshot date: Owner as of June 1 each year.
• Aggregation: Housing/buildings are taxed per asset; land is aggregated per owner within a municipality.

3) Property Tax base & rates

Tax base = Standard Market Price × Fair Market Price Ratio (FMPR).

Category	Tax base reference	FMPR (typical)
Housing	Publicly announced housing price	43%–60%
General building	Municipal assessed price	60%
Land	Official land price × area (㎡)	70%

Illustrative rates (typical framework):

• Housing: progressive ~0.1% → 0.4% (higher bands for higher bases).
• Country house: 4%.
• General buildings: around 0.25%.
• Golf/luxury facility land: 4%.

4) Comprehensive Real Estate Tax (national): scope

C-RET taxes the nationwide aggregate value of your housing and land—only when it exceeds thresholds. Base date is also June 1.

Layering: C-RET is a second layer on top of local Property Tax for high-value holdings.

5) C-RET thresholds & base

Category (nationwide aggregate)	Deductible amount (per person)
Housing (general)	KRW 900 million (or KRW 1.2 billion for 1 household-1 home)
Comprehensively aggregated land (e.g., vacant lots)	KRW 0.5 billion
Separately aggregated land (e.g., land attached to general buildings)	KRW 8 billion

Corporations owning housing: deductible amount is generally KRW 0.

Tax base steps: (1) Aggregate by category → (2) Subtract threshold → (3) Apply Fair Market Price Ratio.

6) Property Tax credit against C-RET

To avoid double taxation, the local Property Tax paid on the same taxable property is credited against the C-RET amount.

7) Key payment dates

• Property Tax:
  • Buildings + (½) housing: pay July 16–31.
  • Land + (½) housing: pay Sep 16–30.
• C-RET: Typically Dec 1–15 self-assessment & payment (or pay based on tax office notice).

8) Common mistakes & quick checks

• June 1 snapshot ignored: Transfers around the date still leave you the taxpayer.
• FMPR/rate mix-ups: Housing vs. building vs. land ratios applied incorrectly.
• Aggregation errors: Missing nationwide totals for C-RET threshold testing.
• Credit missed: Not netting Property Tax when computing C-RET payable.

Quick doc pack: ownership registry, public price notices, municipal assessments, prior Property Tax bills.

9) Summary & next topic

• Property Tax: local, per asset (housing/buildings) or aggregated (land), base date June 1.
• C-RET: national, only if your nationwide total exceeds thresholds; credit for Property Tax.
• Pay windows: Property Tax in Jul & Sep, C-RET in Dec.

Next (Part 17): Cross-border dividends—Korean withholding tax and how tax treaties change the rate.

10) Disclaimer

This post is for general information only and not legal/tax advice. Rates, ratios, thresholds, and credits can change by year and municipality. Confirm current rules or consult a professional.

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Property Tax Comprehensive Real Estate Tax Local Tax National Tax Fair Market Price Ratio Real Estate Taxation KRTaxPolicy Korean Taxation Series

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