South Korea will significantly reduce the comprehensive real-estate holding tax deduction for married couples who jointly own a single non-resident home [1].
The policy shift targets a perceived imbalance in tax burdens between those who live in their properties and those who do not. By narrowing the tax gap, the government intends to increase tax revenue and ensure greater equity compared to owners of multiple properties [1].
Under the new regulations, the basic deduction for non-resident single-home owners will drop to 400 million won per person [1]. This results in a total couple's deduction of 800 million won [1].
In contrast, married couples who jointly own and reside in their single home will maintain their current benefits. These resident owners will continue to receive a deduction of 900 million won per person [1], totaling 18 billion won for the couple [1].
"The basic deduction for comprehensive real-estate holding tax for non-resident single-home owners jointly owned by couples will be significantly reduced," a YTN narrator said [1].
Beyond the deduction cuts, the government will apply a fair-market-value ratio of 80% to jointly owned single homes located in designated adjustment target areas, such as Seoul [1]. This differs from the 70% ratio applied to single-household single-home owners [1].
"Non-resident single-home owners jointly owned by couples will receive a basic deduction of 400 million won per person, totaling 800 million won," the YTN narrator said [1].
The changes are scheduled to take effect starting next year [1].
“The basic deduction for non-resident single-home owners will drop to 400 million won per person.”
This policy represents a strategic move by the South Korean government to discourage the use of joint ownership as a tax avoidance tool for investment properties. By maintaining high deductions for resident owners while slashing them for non-residents, the state is explicitly prioritizing homeownership for living purposes over real estate speculation in high-value areas like Seoul.
