Article 167-10 (Scope of Housing Subject to Increased Capital Gains Tax for a Household Owning Two Homes)

In 「Statute on Tax Reduction and Exemption」 Article 104(7)1, "housing that falls under a household owning two homes" refers to housing owned by a household that owns two homes in Korea (housing falling under subparagraph 1 or 12 shall not be included in the calculation of the number of homes), which does not fall under any of the following subparagraphs. <Amended by 2018.10.23, 2020.2.11, 2021.2.17, 2022.5.31, 2023.2.28, 2024.2.29, 2025.2.28, 2025.12.30, 2026.2.27, 2026.4.23> 1. Housing located in areas other than the Seoul Metropolitan Area and Metropolitan Cities/Special Self-Governing Cities (excluding areas corresponding to counties belonging to metropolitan cities, towns and villages pursuant to 「Local Autonomy Act」 Articles 3(3) and (4), and towns and villages pursuant to 「Special Act on the Establishment of Sejong Special Self-Governing City」 Article 6(3)), where the sum of the standard market values of the housing and the land incidental thereto does not exceed 300 million won at the time of transfer of such housing or other housing. 2. Housing falling under any of subparagraphs 2 through 8 and 8-2 of Article 167-3(1). 3. In cases where a household has come to own two homes due to some members of the household moving their residence to a different city (including special cities, metropolitan cities, special self-governing cities, and administrative cities established pursuant to 「Special Act on the Establishment of Jeju Special Self-Governing Province and the Creation of International Free City」 Article 10(2). Hereinafter the same applies in this subparagraph) or county for reasons of attending school, work-related circumstances, medical treatment, or other unavoidable circumstances as prescribed by the Ministry of Economy and Finance, the housing acquired in order to move the residence (limited to housing located in the same city or county as the school's location, workplace, or place of medical treatment/care, and whose total standard market value pursuant to Article 99 at the time of acquisition does not exceed 300 million won) (limited to cases where residence has been established for at least one year after acquisition and not more than three years have passed since the date the reason was resolved). 4. Housing located outside the Seoul Metropolitan Area pursuant to Article 155(8). 5. Deleted <2023.2.28> 6. Deleted <2023.2.28> 7. Housing subject to ongoing litigation regarding ownership of the housing, or housing acquired as a result of such litigation (limited to cases where not more than 3 years have passed from the date of the final judgment due to the lawsuit). 8. Deleted <2023.2.28> 9. Housing whose standard market value pursuant to Article 99 is 100 million won or less at the time of transfer of the housing. Provided, however, that housing located in an area designated and announced as a redevelopment district pursuant to 「Act on the Improvement of Urban Areas and Dwelling Conditions for Residential and Commercial Areas」 (including the business site of a reconstruction association whose establishment approval was obtained under the former 「Housing Construction Promotion Act」) or an implementation district pursuant to 「Act on Special Measures for the Improvement of Small-Scale Housing」 (excluding housing transferred to the implementer in the case of residential environment improvement projects) shall be excluded. 10. In cases where a household owns only one home, excluding housing falling under subparagraphs 1 through 7, that home. 11. Housing for which a sales contract was entered into and a down payment was received for the purpose of transferring housing in a regulated target area prior to the date of announcement of such designation, as confirmed by supporting documents. 12. Housing falling under Article 167-3(1)12. 12-2. Housing whose holding period pursuant to Article 95(4) is 2 years or more (in the case of a member of a project implementation association that carries out redevelopment projects, reconstruction projects, or small-scale reconstruction projects, etc., transferring newly constructed housing and its appurtenant land acquired in accordance with the management disposition plan, etc. after providing the existing building and its appurtenant land to the association, the holding period shall be calculated from the date of acquisition of the existing building and its appurtenant land), and which falls under any of the following categories: a. Housing transferred by May 9, 2026. b. Housing established on land appurtenant to housing that is subject to permission pursuant to Article 11 of the 「Act on Registration of Real Estate Transactions, etc.」 (hereinafter referred to as "land transaction permit" in this subparagraph), which satisfies all of the following requirements: 1) A land transaction permit for the transaction of land appurtenant to the housing must have been applied for by May 9, 2026, for the purpose of transferring the housing. 2) A land transaction permit for the application pursuant to 1) must have been obtained for the purpose of transferring the housing. 3) A sales contract must have been concluded and a down payment must have been received for the purpose of transferring the housing, as confirmed by supporting documents. 4) The transfer must be made within 4 months (6 months for housing located in the areas listed in the table below) from the date of conclusion of the sales contract pursuant to 3). Provided, however, that if a sales contract is concluded on or after May 10, 2026, the transfer must be made by September 9, 2026 (by November 9, 2026, for housing located in the areas listed in the table below). <img src="http://www.law.go.kr/flDownload.do?flSeq=161845183" alt="img161845183" > ┌─────┬─────────────────────┐ │1. Seoul │Seongdong-gu, Mapo-gu, Gangdong-gu, Yeongdeungpo-gu, Yangcheon-gu, │ │Special │Dongjak-gu, Gwangjin-gu, Jung-gu, Jongno-gu, Seodaemun-gu, Gangseo-gu,│ │City │Nowon-gu, Seongbuk-gu, Guro-gu, Dongdaemun-gu, Gwanak-gu, Eunpyeong-gu,│ │ │Jungnang-gu, Geumcheon-gu, Gangbuk-gu, Dobong-gu │ ├─────┼─────────────────────┤ │2. Gyeonggi│Suwon-si Jangan-gu, Paldal-gu, Yeongtong-gu; Seongnam-si Sujeong-gu, Jungwon-gu, Bundang-gu; │ │Province│Anyang-si Dongan-gu; Gwacheon-si; Yongin-si Suji-gu; Gwangmyeong-si; Hanam-si; Uiwang-si │ └─────┴─────────────────────┘ </img> c. Housing established on land appurtenant to housing that is not subject to a land transaction permit, which satisfies all of the following requirements: 1) A sales contract must have been concluded and a down payment must have been received for the purpose of transferring the housing by May 9, 2026, as confirmed by supporting documents. 2) The transfer must be made within 4 months (6 months for housing located in the areas listed in the table under subparagraph b.4) from the date of conclusion of the sales contract pursuant to 1). 13. Deleted <2023.2.28> 14. Deleted <2023.2.28> 15. Housing that is considered as one home in Korea by a household, or for which Article 154(1) is applied as a single-home household pursuant to Article 155 or 「Restriction of Special Taxation Act」, and which satisfies all the requirements of the same paragraph.