The South Korean government has announced a temporary capital gains tax exemption for owners of multiple homes, provided they file for sales permits by May 9. This crucial update, shared by the finance ministry on Thursday, offers a significant window for real estate owners navigating Seoul’s property market.
This measure follows a directive from President Lee Jae Myung earlier this week, aiming to introduce supplementary provisions. These provisions grant multiple home owners additional time to sell their properties before the current capital gains tax exemption period concludes. The stricter law, imposing higher taxes, is scheduled to take effect on May 9.
According to the ministry, while the grace period for multiple home owners in designated speculative zones will officially end on May 9 as planned, individuals who successfully apply for land transaction permits by the same deadline will be exempt from the heavier tax burden. This offers a last-minute opportunity for property sellers.
For properties located within Seoul’s long-established speculative zones – specifically the highly sought-after Gangnam, Seocho, Songpa, and Yongsan districts – all sales transactions must be completed by September 9. Furthermore, owners of properties in the remaining 21 districts across Seoul, which were newly designated as speculative zones in October, have an extended period of up to six months, until November 9, to finalize their transactions.
