Can foreigners buy an apartment or house in Korea? What is the process and what taxes apply?
I am from the Philippines and have lived in Korea for ten years. Instead of renewing my jeonse, I am considering buying. Can foreigners freely purchase property here, and are there visa-based restrictions?
Are there extra taxes for foreign buyers, foreign investment reporting obligations, and what about mortgage availability?
1 Answer
Yes, foreigners can buy an apartment or house in Korea, and the purchase itself is open regardless of visa type. The process differs a bit from Koreans: after signing, you file a foreigner property acquisition report with the local district office, and you pay acquisition tax within 60 days of the transaction. Acquisition tax is the same as for Koreans, ranging roughly 1 to 12 percent depending on the price and how many homes you own, and being a foreigner does not automatically add tax, though the heavier rates for multiple homes apply equally. On the foreign-exchange side, if you bring funds from abroad you may need a foreign exchange transaction report, so check with your bank in advance. Mortgages are available to foreigners, but stable statuses like permanent residence (F-5), marriage (F-6), or residence (F-2) get better limits and terms, while short-term visas may face low LTV or rejection. Since you have lived here ten years, working with a foreigner-experienced agent and a judicial scrivener will make the reporting and registration much smoother.