Homeless tenants who meet certain requirements may qualify for a monthly rent tax credit of up to 15%.
The government held a meeting of ministers related to real estate today (21st) presided over by Deputy Prime Minister and Minister of Strategy and Finance Choo Kyung-ho and announced a plan to stabilize the rental market.
-‘Co-prosperity lessor’, exempted from two-year real residence requirement for transfer tax exemption
The government has decided to ease the transfer tax exemption requirements for ‘win-win lessors’ who have raised the rental price by 5% or less compared to the previous contract.
After August 3, 2017, when you transfer a house in an area subject to adjustment, you must have lived there for more than two years to receive tax-free benefits.
We also expand the scope of mutually beneficial lessor recognition.
In the past, win-win rental status was recognized only for single-family homeowners with a standard market price of 900 million won or less at the time of commencement of rental.
This benefit is effective until the contract signed on December 31, 2024.
-Raised the monthly rent tax credit rate to the maximum of 15%..Increased the limit of income deduction for Jeonse loan
The government also decided to raise the tax credit rate for the monthly rent paid by homeless householders from the current maximum of 12% to the maximum of 15%.
Accordingly, non-homeowner householders with a gross salary of KRW 55 million or less can deduct 15% of their monthly rent (up to KRW 7.5 million per year) from tax.
Even if the total salary exceeds KRW 55 million and is less than KRW 70 million, the monthly rent tax deduction rate will increase from 10% to 12%.
Income deduction limit for Jeonse loan or monthly rent deposit loan is also increased.
Previously, a 40% income deduction was possible with a limit of 3 million won per year on the repayment of the loan principal and interest.
– Renters who have expired leasehold loan contracts, raise the loan limit
Jeonse loan support will be expanded for tenants whose lease contract expires for one year from August 1st.
Currently, the government provides low-interest ‘supporting jeonse loans’ to lessees aged 19-34, with annual income of 50 million won or less, and married couple’s combined net assets of 325 million won or less. .
In the metropolitan area, the deposit will be raised from 300 million won to 450 million won, and the loan limit will be raised from 120 million won to 180 million won.
-Relief of real residence obligations. Inducing an increase in the supply of rental properties
The government has decided to extend the period of disposition of existing houses from six months to two years when receiving a mortgage loan for the purpose of purchasing a house in a regulated area.
It also plans to abolish the obligation to dispose of existing houses and move into new houses so that new houses can be supplied for rental.
In the case of a house to which the sale price cap applies, the requirement for the adoptee to live for up to five years from the first possible move-in date is also relaxed.
From now on, you will only have to complete the period of real residence before the transfer, inheritance, or gift of the house.
At the same time, it was decided to extend the guarantee for the jeonse loan until the time of moving out if the owner of a high-priced house due to the increase in market price after receiving a jeonse loan by easing the regulations that restricted the use of the jeonse loan guarantee to owners of one house with a market price of more than 900 million won.
