When buying property in South Korea, there are quite a few taxes and transaction costs you need to pay, including legal fees, stamp duty and property registration tax. You can expect to pay around 22% of the purchase price in additional fees.
Stamp duty (land tax) is around 0.20% of the property value.
Acquisition tax is a standard rate of 2% of the purchase price.
You will need to pay 10% of the property purchase price as Value Added Tax (VAT).
Registration tax is a standard rate of 3% of the purchase price. This is paid when you register the transfer of ownership.
Expats buying property in South Korea are advised to use an estate agent. Fees range between 0.2 and 0.9% of the property purchase price.
You will need to hire a lawyer to prepare the sales contract. It is also wise to use a lawyer to help you register your property. Lawyer fees typically range from 0.25% to 1% of the property purchase price.
You are required to buy National Housing Bonds at 5% of the property purchase price. You can then sell these bonds on if you wish. Talk to your lawyer for advice on how to do this.
Annual property tax ranges between 0.15 and 0.50% of the property value. The value is determined by location, size, building type, etc.
If you decide to rent out your property, you will need to pay annual rental income tax. This is a progreesive tax that ranges between 6 and 40% of your rental income.