Detached local 2-family property tax 3.41 million → 250,000 won… Sejong is missing

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Sejong City Apartment View

As the government decided to drastically cut the comprehensive real estate tax for first-generation and second-family homeowners who purchased a house with a published price of less than 300 million won in a local area, it was decided to add Sejong City to the exclusion zone. It was initially announced that only the metropolitan area, special cities, and metropolitan cities would receive benefits, but Sejong City decided it would be appropriate to exclude it due to regional characteristics, so it was decided to include it in the revision process of the enforcement ordinance.

According to related ministries such as the Ministry of Strategy and Finance on the 22nd, the government plans to start revising laws and regulations, including enforcement ordinances, after further reviewing the detailed issues of the real estate measures announced the day before.

In the case of purchasing a house in a provincial area, it is added that Sejong City is excluded from the location standard among the requirements to be considered as one house per household. Initially, it was announced that only the metropolitan area, special cities (excluding eup/myeon areas), and metropolitan cities (excluding county areas) would be excluded. An official from the Ministry of Strategy and Finance said, “For the purpose of the system, it would be right to add Sejong City to the excluded area.

It is estimated that the tax rate for a single householder who is 65 years old and has owned an apartment worth 1.5 billion won for five years is estimated to be about 150,000 won this year. As a single householder, a basic deduction of KRW 1.4 billion and a tax credit for the elderly and long-term possession (50%) are applied.

However, if this person purchases an additional 100 million won house in the province, the tax amount will increase to 3.41 million won under the existing system. This is because two-homeowners in areas subject to adjustment, such as Seoul, pay a higher tax rate (1.2-6.0%) than single-homeowners (0.6-3.0%) and cannot receive various tax benefits given to single-homeowners. The combined publicly announced price will increase by 100 million won, but the tax amount will increase by more than 20 times.

The government judged that the tax burden was excessive, so in this real estate measure, if a second house is purchased in a local area, it has come up with a measure to maintain the benefits of one house per household. With the lower tax rate and deductions applied, the end-to-end tax burden will be greatly reduced to 250,000 won.

Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho presides over the first meeting of real estate-related ministers under the Yoon Seok-yeol administration at the government complex in Seoul on the 21st.  photo = Yonhap News

Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho presides over the first meeting of real estate-related ministers under the Yoon Seok-yeol administration at the government complex in Seoul on the 21st. photo = Yonhap News

There are three conditions to receive this benefit. First of all, it must be a two-family house. Multi-family dwellings with three or more houses are not eligible. This is the case where the housing in the provincial area is located outside the metropolitan area, special city (excluding eup/myeon area), or metropolitan city (excluding county area) and meets the requirements for the published price of 300 million won or less. Sejong City, which was omitted in the original announcement, will be added to this requirement. If you purchase a house with a publicly announced price of 100 million won in Sejong City, you will have to pay 3.41 million won as tax on the property as in the previous system.

The standard for inherited housing, which is regarded as a permanent one-family, one-family house, is also controversial. The government announced that it would give tax benefits to those who inherited houses with an official price of 600 million won in the metropolitan area and 400 million won or less in the local area, and will treat them as one-family-one-houses permanently. However, it is pointed out that this is not determined by the announced price at the time of inheritance, but is a requirement that is not easy to achieve as the publicly assessed value on the tax base day every year must be kept below the relevant standard.

Real estate sales information is attached to a real estate agent's office in downtown Seoul.  photo = news 1

Real estate sales information is attached to a real estate agent’s office in downtown Seoul. photo = news 1

Those who inherit 40% of the shares (equivalent to 3.6 billion won) of Nine One Hannam (announced price of 9.1 billion won) are considered to be one house per household permanently, while the heirs of Nowon-gu Sanggye Jugong 10 Complex (700 million won) are subject to heavy tax with two houses after 5 years There are also criticisms that it is against the level of equity to bite the

By Kang Jin-gyu, staff reporter josep@hankyung.com

ⓒ Hankyung.com, unauthorized reprinting and redistribution prohibited

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