If you own an officetel and buy a flat, does the officetel count in the acquisition tax house count? Article 13-3(4) of Korea’s Local Tax Act adds “an officetel taxed as a home under Article 105” to the owner’s house count, so only officetels on which property tax is levied as a home count. Decree Article 28-4(6) then removes some of those again: a standard value of 100 million won or less, one inherited under 5 years ago, and small new-build purchases in 2024–2027. Capital gains tax uses a different test: Income Tax Act Article 88(7) treats a building in actual residential use, whatever its registered use, as a home. We added a checker for both taxes.
1. Acquisition tax: only officetels taxed as homes for property tax are added (Local Tax Act Art. 13-3(4)).
2. Still excluded: a standard value of 100 million won or less, inherited within 5 years, and the 2024–2027 small-unit relief for 60 m² or less (Decree Art. 28-4(6)).
3. Capital gains tax: a home if it has its own door, toilet and kitchen and is actually lived in (Income Tax Act Art. 88(7), Decree Art. 152-4).
Checker
Updates as you type. The acquisition tax side follows the order of the articles: the 2020 addendum, the property tax test, then the para. 6 exclusions. Items 8 and 9 need all their conditions; item 9 is lost if the rental is sold or deregistered in the mandatory period. Whether your property tax is levied as a home is on your property tax bill (our tip).
Acquisition tax — what is added to the count
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Local Tax Act Art. 13-3, main text | When applying Art. 13-2 (heavy rates for companies and multiple homes), the items listed are added to the household’s house count | The count decides the heavy rate |
| Item 4 | An officetel taxed as a home under Art. 105 is added to its owner’s count | Check the class on your property tax bill (our tip) |
| Decree Art. 28-4(1) | The count is of homes, redevelopment rights, pre-sale rights and officetels the household owns in Korea on the home purchase date, including the home being bought | The officetel counts on the “already owned” side |
| Art. 28-4(4) | One unit co-owned within a household counts as one | A couple’s joint officetel is one |
| Addendum (Act No. 17473, 12 Aug 2020) Arts. 3, 7 | Items 2–4 apply to officetels acquired after the Act took effect; not where a sale contract (including an officetel pre-sale contract) was signed before | Contracted by 11 August 2020: not counted |
The current page shows “amended 8 Sep 2026” and “effective 9 Sep 2027” under Art. 13-3. The wording of item 4 is the same as we read on 23 September for the rural special surtax; we did not compare old and new text to see which item the 8 September 2026 amendment changes.
Officetels taken out of the count — Decree Art. 28-4(6)
| Item | Excluded (summary) | Worth noting (ours) |
|---|---|---|
| 3 | An officetel inherited less than 5 years before | Counts again after 5 years |
| 4 | An officetel with a standard value of 100 million won or less on the counting date (for a share or land only, the value of the whole) | The counting date is the day you buy the new home |
| 8 | A new-build officetel approved 10 Jan 2024–31 Dec 2027 and bought in that period as the first paid purchase, 60 m² or less, price up to 300 million won (600 million in the capital region) | The first buyer after the developer |
| 9 | A paid purchase in the same period (not the first after the build), 60 m² or less, within 300/600 million, registered as a rental within 60 days | Lost if used otherwise, sold or deregistered in the mandatory term |
The current page notes that the rules adding items 8 and 9 stay in force until 31 December 2028 under the addendum to Decree No. 34353 (26 March 2024). Item 5 separately excludes land alone with a standard value of 100 million won or less.
Capital gains tax — it is about use
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Income Tax Act Art. 88(7) | A “house” is a building in actual residential use, with a structure for independent living set by decree, whatever its permit or registered use; where use is unclear, the registered use applies | A business-registered officetel you live in is a home |
| Decree Art. 152-4 | Each separate unit has its own door, toilet and kitchen | New on 29 Feb 2024 |
| Decree Art. 154(5) proviso | Where a non-residential building is lived in, or its registered use changed to housing, the holding period runs from the day of actual residential use (or the change of use if unclear) to sale | The 2-year clock starts later |
So the same officetel can stay out of the acquisition tax count (property tax as a building) yet be a home for capital gains tax, or the other way round, because the two laws look at different things (our reading). A household with one flat and one officetel it lives in, selling the flat, still has to meet the “one home in Korea on the sale date” test in Decree Art. 154(1) separately.
Three cases — our example
| Case (our example) | Acquisition tax count | Worth noting (ours) |
|---|---|---|
| Bought 2021, taxed as a home, standard value 150 million won | Counted | Item 4, no exclusion |
| Same officetel, standard value 90 million won | Excluded | Para. 6 item 4 — 100 million or less |
| Pre-sale contract 2019, taxed as a home | Not added | Addendum Art. 7 — contracted before |
In the third case the standard value doesn’t matter: the addendum is checked before the exclusions (the checker uses the same order). The tax rate on buying an officetel itself (a non-residential building) and the rural surtax are in the rural special surtax.
Checklist
- ☐ Does your property tax bill class the officetel as a home?
- ☐ Was the sale or pre-sale contract signed on or after 12 August 2020?
- ☐ Is the standard value above 100 million won on the day you buy the new home?
- ☐ If inherited, have 5 years passed since the inheritance began?
- ☐ For capital gains tax, is someone actually living there (door, toilet, kitchen)?
Questions that remain
How much does the rate change if the officetel counts?
Art. 13-3 only sets the count used for Art. 13-2 (heavy rates). Rates by count are in the acquisition tax calculator.
When does the holding period of a residential officetel start for capital gains tax?
Decree Art. 154(5) counts from the day it was actually used as a home. The 2-year holding and residence count is in the one-home holding and residence checker.
Sources
- Korean law database (law.go.kr) — Local Tax Act Art. 13-3 and Addendum (Act No. 17473) — source (current text, effective 1 July 2026, Act No. 21308; checked 29 October 2026). Items 1–4 added to the count (item 4, officetels taxed as homes); 2020 addendum Art. 3 (acquisitions from then) and Art. 7 (earlier contracts excluded).
- Korean law database — Local Tax Act Enforcement Decree Art. 28-4 — source (current text, effective 1 October 2026, Decree No. 36736; checked 29 October 2026). Counting date, co-ownership, inheritance, para. 6 exclusions 1–9 and validity notes.
- Korean law database — Income Tax Act Art. 88, Decree Arts. 152-4 and 154(5) — Act (current text, effective 1 July 2026, Act No. 21221) · Decree (current text, effective 1 October 2026, Decree No. 36737). Definition of a house, the structure, holding period after a change to residential use.
- Not read. The property tax classification rules under Art. 105; old-new comparison for the 8 Sep 2026 amendment; case law and rulings.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Local government tax office — the property tax class and standard value of your officetel.
- Tax office or tax accountant — disputes over residential use for capital gains tax.
Written on 29 October 2026. The content is from the source; the glosses are ours.
