Reasons for Proposal
The current Act provides special taxation for long-term rental housing units and unsold housing units to not just individuals who have an address in Korea or have lived for 6 months or more but also non-residents living overseas.
However, non-residents owning real estate in Korea recently have been buying real estate for speculative purposes and receiving special tax benefits, which some say can cause harm to Korean people who buy houses purely for their residence, forcing them to buy houses at higher prices because of increased demand by such speculative non-residents.
In this regard, this Act aims to exclude non-resident foreigners without Korean nationality from non-resident requirements in special taxation for long-term rental housing units and unsold housing units to prevent unreasonable special tax benefits, which will discourage speculative house buying by non-resident foreigners (Article 97-4 paragraph 1).
Major Provisions
Article 97-4
