A non-resident single-household, single-home owner with an apartment worth 4.3 billion won (officially assessed at 3 billion won) is expected to pay 4.29 million won more in comprehensive real estate tax next year than this year.
According to materials the Ministry of Strategy and Finance submitted to the National Assembly on the 15th, the comprehensive real estate tax for a single-home owner who does not live in the property and has an apartment with an official price of 3 billion won is currently 7.747 million won. However, if next year's tax reform plan that the government submitted to the National Assembly is finalized and implemented as is, the comprehensive real estate tax will be 12.038 million won. That is an increase of 4.291 million won from this year. The change stems from switching the deduction basis from "holding" period to "residency" period.
However, it is 3.327 million won lower than the original plan that would have reduced the basic deduction for non-resident single-home owners from the current 1.2 billion won to 900 million won. The government had announced it would cut the basic deduction for non-resident single-home owners under the comprehensive real estate tax from 1.2 billion won to 900 million won, but as public backlash grew, it reversed course on the 1st of this month and said it would keep the current level.
The comprehensive real estate tax on an apartment with an official price of 1.5 billion won (market value about 2.2 billion won) is expected to rise from 691,000 won this year to 806,000 won next year. An apartment officially priced at 2 billion won (market value about 2.9 billion won) will go from 2.275 million won this year to 2.774 million won next year. All figures are estimated before applying tax credits and the tax burden cap (150%), assuming the owner is under age 60. The actual tax burden may vary depending on the dwelling price, age, and holding and residency periods.
Meanwhile, ahead of the confirmation hearing on the 15th, Deputy Prime Minister for the Economy and Minister of Strategy and Finance Lee Hyeong-il reportedly bought an apartment in Gwacheon, Gyeonggi Province, in Feb. 2009 and held it for 17 years, but actually lived there for a total of four months based on move-in registration records. Because of this, criticism arose that while creating a system to increase the tax burden on non-resident single-home owners, Lee in fact bought and sold the apartment for investment rather than residential purposes. The nominee's side said, "Since 2009, there were moves due to reasons such as the Ministry of Economy and Finance (MOEF) Sejong City transfer."