If a person without a home applies by May 9 for a gap investment (purchase with a jeonse tenant in place) transaction to buy a home with a tenant from a multiple-home owner within a land transaction permit zone, the buyer will not have to move in for actual residency until the existing monthly rent or jeonse contract ends. Originally, the obligation to move in was deferred only if the purchase contract was completed by May 9, but the government extended the period at the direction of President Lee Jae-myung.
The Ministry of Finance and Economy on the 9th announced a plan titled "Supplementary measures for the end of the heavy taxation deferral on capital gains tax for multiple-home owners." Earlier, the president said at a Cabinet meeting on the 6th, "We should keep the May 9 deadline (for deferring capital gains tax on multiple-home owners), but how about allowing cases that apply for a land transaction permit by the 9th."
Accordingly, the government decided not to impose heavy capital gains tax if a multiple-home owner completes only the land transaction permit application by May 9. It said even an application at the preliminary contract stage before paying the deposit would suffice. Previously, applicants had to obtain a land transaction permit and sign a purchase contract by May 9.
The ministry said, "After mid-month, even if you find a buyer and apply for a land transaction permit, whether it will be approved by early May is uncertain," adding, "We plan to provide the maximum opportunity to sell without uncertainty arising from the land transaction permit review process."
The government also decided that in land transaction permit zones, when a multiple-home owner sells a home with a tenant to a person without a home, if the transaction is applied for by May 9, the buyer's obligation to move in will be deferred until the monthly rent or jeonse contract ends. Originally, when buying a home in a land transaction permit zone, buyers are in principle required to move in within four months after the transaction permit is granted.
Meanwhile, the government did not announce the "plan to resolve reverse discrimination against non-resident single-home owners" requested by the president. The president said, "There is considerable merit to the claim, 'A single-home owner also wants to sell a home that has been leased out on jeonse, so why not allow it?'" and ordered a review of revising the enforcement decree. As multiple-home owners can sell homes with tenants to people without homes, the idea is to allow single-home owners to do the same. A government official said, "We will announce it once the direction of the policy under review is set."