The conditions for the target of the comprehensive real estate tax exemption for one household and one dwelling are eased from a publicly announced price of 300 million won to 400 million won. Homeowners acquiring unsold dwellings (with a usable area of 85 square meters and a purchase amount of 600 million won or less) in non-metropolitan areas after completion are also regarded as one dwelling owners.
The Ministry of Strategy and Finance announced on the 16th a revision of the "2024 tax law amendment follow-up enforcement ordinance." This enforcement ordinance specifies the concrete targets of the laws aimed at revitalizing local real estate transactions, which the government promoted last year.
First, the range of local low-priced dwellings excluded from the count of dwellings for the one household and one dwelling tax was increased to 400 million won, up 100 million won from the previous limit of 300 million won. With the criteria being eased, it is expected that more households will benefit from tax incentives.
For one household and one dwelling owners, a basic deduction applies for the comprehensive real estate tax up to 1.2 billion won, and seniors or long-term holders can receive a tax credit of up to 80%. The capital gains tax offers a tax exemption up to 1.2 billion won, and the special long-term holding deduction also applies up to 80%.
Details of the tax benefits for homeowners in population decline areas have also been clarified. The current special tax treatment law states that a homeowner who acquires dwellings in a population decline area from Jan. 4, 2024, to Dec. 31, 2026, will be recognized as a one dwelling owner, with specific requirements for the location and price of the dwellings delegated to the enforcement ordinance.
The government noted that the locations of population decline areas are generally excluded from the metropolitan area and large cities, but border areas within the metropolitan area and rural areas in large cities are included. Applying this, it is expected that 84 out of the 89 population decline areas nationwide will be eligible, excluding Daegu's Nam-gu and Seo-gu, and Busan's Dong-gu, Seo-gu, and Yeongdo-gu. Regions within the metropolitan area, such as Yeoncheon-gun and Gapyeong-gun, will have border area criteria applied, while Incheon's Ongjin-gun and Ganghwa-gun qualify as rural areas in large cities and can receive the special treatment.
The upper price limit for the one household tax exemption applied to dwellings in population decline areas has been set at a publicly announced price of 400 million won, the same as that for local low-priced dwellings. The tax exemption for the capital gains tax is based on the publicly announced price at the time of acquisition, while the comprehensive real estate tax is based on the publicly announced price on the tax assessment date.
Existing one dwelling owners can also apply the "one household and one dwelling" exemption when purchasing unsold dwellings after their completion. This applies to unsold dwellings acquired from Jan. 10, 2024, to Dec. 31, 2025, situated in areas outside the metropolitan area, with a usable area of 85 square meters and a purchase amount of 600 million won or less.