When a one-home household buys a new home before selling the old one, it briefly owns two. If the new home is in a regulated area, buying a second home is surcharged at 8% (Local Tax Act Art. 13-2(1)2), but a “temporary two-home case set by Presidential Decree” is excluded. The test is Enforcement Decree Article 28-5: dispose of the old home within 3 years of buying the new one. From 1 October 2026 the period is 2 years if both homes are in regulated areas (Presidential Decree No. 36736). Enter the dates and areas to get the last day to dispose and whether 8% applies. The capital gains side is in temporary two-home exemption deadline calculator.
1. Dispose of the old home within 3 years — no 8% surcharge; the standard 1–3% applies.
2. 2 years if both are in regulated areas — for liabilities arising from 1 October 2026 (Addendum Art. 2(1)).
3. Contract signed and deposit paid by 26 August 2026: 3 years as before (Addendum Art. 2(2)).
4. Miss the period and you report and pay the difference (8% tax minus tax paid) within 60 days of the day the period has passed (Art. 20(2); Decree Art. 34 item 9).
Checker
Updates as you type. We treat the acquisition date as the date the tax liability arises and count the period with the Civil Act method (the day after acquisition counts as day one). Weekends are not moved. Whether the new home is in a regulated area, and the house count, are for you to check.
The provisions
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Local Tax Act Art. 13-2(1)2 | Buying a home that makes one household own 2 homes (excluding temporary two-home cases set by Decree) in a regulated area, or 3 homes outside one: the rate in Art. 11(1)7(b) (40/1,000) as the standard rate plus 200% of the surcharge base rate | 4% + 2% × 2 = 8% (our sum). The base rate is 20/1,000 (Art. 6 item 19) |
| Decree Art. 28-5(1) | A household owning one home, redevelopment right, presale right or officetel (the “old home etc.”) buys another home for moving, study, work, a job transfer or similar reasons, and disposes of the old home etc. within 3 years (2 years if both are in regulated areas) | If either side is a right or presale, disposing of the new home also counts |
| Decree Art. 28-5(2) | If the household owned a right or presale when it bought the new home, the period runs from the day it acquires the home built from that right | The “if a right” field |
| Decree Art. 28-5(3) | If the old home has redevelopment approval and the household living there buys and moves into the new home, the old home is treated as disposed of on the day it moves | Redevelopment relocation |
What changed on 1 October 2026
In the version effective 18 September 2026 (Decree No. 36586), Article 28-5(1) said only “3 years”. The 30 September 2026 amendment (Decree No. 36736, effective 1 October 2026) added “2 years if the old home etc. and the new home are both in regulated areas”. The addendum adds two points.
| Addendum (Decree No. 36736) | What it says | Worth noting (ours) |
|---|---|---|
| Art. 1 | Effective 1 October 2026 | Start date |
| Art. 2(1) | The amended Art. 28-5(1) applies where the tax liability arises on or after that date | The checker treats the acquisition date as that day (our reading) |
| Art. 2(2) | Where a household signed a contract for another home (including a flat presale contract) on or before 26 August 2026 and paid the deposit, shown by documents, the previous rule applies | 3 years even if acquired after 1 October |
Three sums — our example
| Case (our example) | Last day to dispose | Worth noting (ours) |
|---|---|---|
| New home in a regulated area bought 2 Nov 2026; old home also in one | 2 November 2028 | 2 years, counted from the next day |
| Same date; old home outside regulated areas | 2 November 2029 | Not both regulated, so 3 years |
| Old home finally sold 1 Dec 2028 (first case) | 8% | 3 Nov 2028 is the day the period has passed; difference due by 2 Jan 2029 on our 60-day count |
We read “within 3 years after acquiring” with Civil Act Arts. 157 and 160: counting from the day after acquisition, the period ends on the same date 3 years on. The 60 days are counted the same way. We did not read whether a deadline on a weekend or holiday moves; ask the local office.
When 8% does not apply anyway
The two-home surcharge in Art. 13-2(1)2 applies only when the new home is in a regulated area; outside regulated areas the surcharge starts at three homes. So if the new home is outside a regulated area, the checker says it is not a two-home surcharge case even after the period. Homes are counted under Decree Art. 28-4 (officetels, rights and presales included), so see officetel house count checker for the count.
The standard rate is the home purchase rate in Art. 11(1)8: 10/1,000 up to KRW 600 million, 30/1,000 above KRW 900 million, and a formula rate in between — 1–3% in percentage terms (our conversion). Work out amounts with the acquisition tax calculator.
Checklist
- ☐ Date you acquired the new home (check the acquisition-time rules separately)
- ☐ Whether each home is in a regulated area at acquisition
- ☐ Documents for a contract and deposit by 26 August 2026
- ☐ Diary the last day to dispose — a sale takes time to complete
- ☐ If missed, report and pay the difference within 60 days
Questions that remain
Do I have to prove the reason for moving?
The article says “for moving, study, work, a job transfer or similar reasons” but sets no proof rule. The checker does not ask.
Can the old home be an officetel?
Yes. Para. 1 includes homes, redevelopment rights, presale rights and officetels in the old home etc. The new one must be “another home”.
Is the capital gains period the same?
Capital gains are governed separately by Income Tax Decree Art. 155(1). From 1 October 2026 both use 2 years between regulated areas, but the provisions and addenda differ.
Sources
- Korean law database (law.go.kr) — Local Tax Act Enforcement Decree Arts. 28-5, 34 item 9 — source (current text, effective 1 October 2026, Presidential Decree No. 36736; checked 2 November 2026). Temporary two-home test (3 years, 2 if both regulated), start date for rights (para. 2), deemed disposal on relocation (para. 3), Addendum Arts. 1–2, Art. 34 item 9.
- Korean law database — Local Tax Act Arts. 6 item 19, 11(1), 13-2(1), 20(2) — source (current text, effective 1 July 2026, Act No. 21308; checked 2 November 2026). Base rate, home rates, two-home surcharge and the temporary exclusion, 60-day report.
- Korean law database — Decree Art. 28-5 (version effective 18 Sept 2026) — source (Decree No. 36586; checked 2 November 2026). Previous wording “3 years”.
- Not read. Decree Art. 28-4 in full, deadline extensions in the Framework Act on Local Taxes, regulated-area notices, acquisition-time rules (Decree Art. 20).
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- The local tax office where the home is — regulated area, house count, acquisition date.
- Wetax — filing and paying acquisition tax.
Written on 2 November 2026. The content is from the source; the glosses are ours.
