{"id":1590,"date":"2025-07-08T13:57:30","date_gmt":"2025-07-08T03:57:30","guid":{"rendered":"https:\/\/jddaddy.com\/?p=1590"},"modified":"2025-07-10T21:50:12","modified_gmt":"2025-07-10T11:50:12","slug":"%ed%95%b4%ec%99%b8-%ed%98%b8%ec%a3%bc-%ec%8b%9c%eb%af%bc%ea%b6%8c-%ec%96%91%eb%8f%84%ec%84%b81590-2","status":"publish","type":"post","link":"https:\/\/jddaddy.com\/en\/%ed%95%b4%ec%99%b8-%ed%98%b8%ec%a3%bc-%ec%8b%9c%eb%af%bc%ea%b6%8c-%ec%96%91%eb%8f%84%ec%84%b81590-2\/","title":{"rendered":"Transfer tax on Korean apartments when acquiring overseas (Australian) citizenship"},"content":{"rendered":"<div style=\"font-family: 'Malgun Gothic', 'Apple SD Gothic Neo', sans-serif;\">\n<p><span style=\"font-size: 14pt; line-height: 1.8;\">Among permanent residents who have settled overseas, there are probably many who have left their real estate, including apartments, in Korea.<br \/>\nI have been living in Australia for over 10 years and acquired permanent residency 5 years ago. As the renewal of permanent residency is approaching, I am applying for RRV (<\/span><span class=\"edit-text\" style=\"font-size: 14pt;\" title=\"\">I received an email asking me to apply for a Resident Return Visa or citizenship or both.<\/span><span style=\"font-size: 14pt;\">\u00a0Suddenly, this question arises.<br \/>\n<b class=\"\">&#039;If I acquire foreign citizenship, what will happen to the tax when I sell my apartment in Korea later? Will it be different from now?&#039;<\/b><\/span><\/p>\n<p style=\"font-size: 14pt; line-height: 1.8; margin-bottom: 1.6em;\">In this article, I would like to clarify this question: how does acquiring foreign citizenship affect capital gains tax when selling real estate in Korea?<\/p>\n<p style=\"font-size: 14pt; line-height: 1.8; margin-bottom: 1.6em;\">Many people think of it as a simple matter of changing nationality, but it is an important issue that can lead to a &#039;tax bomb&#039;. Therefore, I will explain the core principles of tax law that you must know before planning to acquire citizenship or sell real estate. Please read the article carefully to the end and I hope it will help you make a wise asset plan.<\/p>\n<div style=\"background-color: #f8f9fa; border-radius: 8px; padding: 1.5em; margin-bottom: 2em;\">\n<h3 style=\"font-weight: bold; margin-top: 0;\">index<\/h3>\n<ul style=\"list-style-type: none; padding-left: 0;\">\n<li style=\"margin-bottom: 0.8em;\"><span style=\"font-size: 14pt;\"><a style=\"text-decoration: none; color: #0056b3; font-weight: 500;\" href=\"#section-1\">1. Core Concepts: &#039;Resident&#039; vs. &#039;Non-Resident&#039;, the Beginning of All Problems<\/a><\/span><\/li>\n<li style=\"margin-bottom: 0.8em;\"><span style=\"font-size: 14pt;\"><a style=\"text-decoration: none; color: #0056b3; font-weight: 500;\" href=\"#section-2\">2. Korean Taxes: The Huge Benefits You Lose by Being a \u2018Non-Resident\u2019<\/a><\/span><\/li>\n<li style=\"margin-bottom: 0.8em;\"><span style=\"font-size: 14pt;\"><a style=\"text-decoration: none; color: #0056b3; font-weight: 500;\" href=\"#section-3\">3. Australian Tax: Australian citizens are liable to pay tax on their worldwide income.<\/a><\/span><\/li>\n<li style=\"margin-bottom: 0.8em;\"><span style=\"font-size: 14pt;\"><a style=\"text-decoration: none; color: #0056b3; font-weight: 500;\" href=\"#section-4\">4. Double Taxation Problems and Solutions (feat. Korea-Australia Tax Treaty)<\/a><\/span><\/li>\n<li><span style=\"font-size: 14pt;\"><a style=\"text-decoration: none; color: #0056b3; font-weight: 500;\" href=\"#section-5\">5. Key Summary and Final Checklist<\/a><\/span><\/li>\n<\/ul>\n<\/div>\n<h2 id=\"section-1\" style=\"color: #000; border-bottom: 2px solid #eeeeee; padding-bottom: 0.3em; margin-top: 1.6em; margin-bottom: 1em; font-size: 14pt; line-height: 1.8;\"><strong><span style=\"font-size: 24pt;\">1. Core Concepts: &#039;Resident&#039; vs. &#039;Non-Resident&#039;, the Beginning of All Problems<\/span><\/strong><\/h2>\n<ul style=\"font-size: 14pt; line-height: 1.8;\">\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">The most important criterion that creates tax differences is not \u2018nationality (citizenship)\u2019. <strong>Whether you are a \u2018resident\u2019 or a \u2018non-resident\u2019 under Korean tax law<\/strong>no see.<\/li>\n<li style=\"margin-bottom: 1.6em;\">\ud83d\udc64 **Resident:** A person whose main residence is in Korea, such as having a Korean address or living in Korea for more than 183 days. A &#039;resident&#039; pays taxes in Korea on all income earned in Korea as well as worldwide.<\/li>\n<li style=\"margin-bottom: 1.6em;\">\u2708\ufe0f **Non-resident:** A person who is not a &#039;resident&#039;. If your base of life (family, work, home, etc.) is in Australia, you are a &#039;non-resident&#039; under Korean tax law. A &#039;non-resident&#039; is <strong>Income generated only within Korea (e.g. income from the transfer of a Korean apartment)<\/strong>I only pay taxes in Korea.<\/li>\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">If you are an Australian permanent resident, you may be considered a &#039;resident&#039; depending on the circumstances. <strong>If you become an Australian citizen and continue to reside in Australia, you will clearly be a \u2018non-resident\u2019 of Korea**. It is this change in status that makes the difference in tax benefits. <\/strong><\/li>\n<\/ul>\n<h2 id=\"section-2\" style=\"color: #000; border-bottom: 2px solid #eeeeee; padding-bottom: 0.3em; margin-top: 1.6em; margin-bottom: 1em; font-size: 14pt; line-height: 1.8;\"><strong><span style=\"font-size: 24pt;\">2. Korean Taxes: The Huge Benefits You Lose by Being a \u2018Non-Resident\u2019<\/span><\/strong><\/h2>\n<ul style=\"font-size: 14pt; line-height: 1.8;\">\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">Most of the core benefits of the capital gains tax that were given to Korean &#039;residents&#039; do not apply to &#039;non-residents&#039;. This is the cause of the tax bomb.<\/li>\n<li style=\"margin-bottom: 1.6em;\">\u274c **Loss of tax exemption benefit for 1st generation 1 house:** This is an exceptional benefit where if a &#039;resident&#039; owns\/lives in 1 house for 2 years or more, capital gains of up to 1.2 billion won are exempt from tax. However, <strong>Non-residents are not eligible for this benefit in principle. <\/strong><b style=\"font-size: inherit;\">So even if the house you own in Korea is your only home,<\/b><span style=\"font-size: inherit;\"> If you sell as a non-resident, this benefit will be lost.<\/span><\/li>\n<li style=\"margin-bottom: 1.6em;\">\u274c **Reduction of long-term holding special deduction:** This is a system that reduces taxes significantly the longer you hold it. Non-residents can also receive this deduction, but the deduction rate may be much lower than that of residents due to not meeting residency requirements, etc. (Example: Residents up to 80% vs. non-residents up to 30%)<\/li>\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">As a result, even if an apartment is sold at the same price, the capital gains subject to taxation for non-residents will be much larger, so the capital gains tax to be paid in Korea may increase by tens of millions to hundreds of millions of won.<\/li>\n<li><a style=\"font-size: 14pt; line-height: 1.8;\" href=\"https:\/\/www.nts.go.kr\/nts\/cm\/cntnts\/cntntsView.do?mi=2307&amp;cntntsId=7706\" target=\"_blank\" rel=\"noopener noreferrer\">National Tax Service of Korea: Non-resident transfer income tax guide<\/a><\/li>\n<\/ul>\n<h2 id=\"section-3\" style=\"color: #000; border-bottom: 2px solid #eeeeee; padding-bottom: 0.3em; margin-top: 1.6em; margin-bottom: 1em; font-size: 14pt; line-height: 1.8;\"><span style=\"font-size: 24pt;\"><strong>3. Australian Tax: Australian citizens are liable to pay tax on their worldwide income.<\/strong><\/span><\/h2>\n<ul style=\"font-size: 14pt; line-height: 1.8;\">\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">It doesn&#039;t end there. Apart from tax issues in Korea, you now also need to look at your obligations as an Australian citizen. <b>Citizens who live in Australia are also required to lodge tax returns with the Australian Taxation Office (ATO).<\/b><\/li>\n<li style=\"margin-bottom: 1.6em;\">\ud83c\udf0f **Worldwide Income Tax:** Australian tax residents are: <b>In addition to income generated within Australia,<\/b> You must report all income earned worldwide to Australia, including capital gains from the sale of your Korean apartment.<\/li>\n<li style=\"margin-bottom: 1.6em;\">\ud83c\udfe0 **No Main Residence Exemption:** Australia also has a one-home exemption, but this only applies to the home you &#039;actually reside in&#039;. If <b>If your primary residence is in Australia,<\/b> An apartment in Korea is not considered a &#039;house you actually live in&#039; and therefore is considered an investment property and is not eligible for this benefit.<\/li>\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">in other words, <b>Apart from paying taxes in Korea,<\/b> You will also need to report this capital gain in Australia and pay tax under Australian tax laws.<\/li>\n<\/ul>\n<h2 id=\"section-4\" style=\"color: #000; border-bottom: 2px solid #eeeeee; padding-bottom: 0.3em; margin-top: 1.6em; margin-bottom: 1em; font-size: 14pt; line-height: 1.8;\"><span style=\"font-size: 24pt;\"><strong>4. Double Taxation Problems and Solutions (feat. Korea-Australia Tax Treaty)<\/strong><\/span><\/h2>\n<p><span style=\"font-size: 14pt;\">\u201cThen, do I have to pay taxes in both Korea and Australia?\u201d You may be thinking, \u201cWell, that\u2019s not the case. That\u2019s thanks to the **Korea-Australia Double Taxation Avoidance Agreement**.<\/span><\/p>\n<ul>\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">To put it very simply, it&#039;s like this.<br \/>\n<blockquote style=\"background: #f9f9f9; border-left: 10px solid #ccc; margin: 1.5em 10px; padding: 0.5em 10px; font-size: 14pt; line-height: 1.8;\">\n<p style=\"margin: 0;\">1. **Pay taxes first in Korea where the property is located** (primary taxation rights)<br \/>\n2. When filing your tax return in Australia, prove that **&quot;I have already paid tax in Korea on this income&quot;**.<br \/>\n3. Then the Australian Taxation Office, <b>Taxes paid to the Korean government<\/b> It deducts the amount of tax you pay in Australia (this is called the &#039;Foreign Income Tax Offset&#039;).<\/p>\n<\/blockquote>\n<\/li>\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">For example, if the tax calculated under Australian tax law is $50,000 and the tax paid to Korea is $40,000, you only need to pay the difference of $10,000 more to Australia. If the tax paid to Korea is more, there is no additional tax to pay to Australia.<\/li>\n<li><a style=\"font-size: 14pt; line-height: 1.8;\" href=\"https:\/\/www.ato.gov.au\/individuals-and-families\/income-deductions-offsets-and-records\/tax-offsets\/claiming-a-foreign-income-tax-offset\" target=\"_blank\" rel=\"noopener noreferrer\">Australian Taxation Office (ATO): Foreign Tax Credit Guide<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1599 aligncenter\" src=\"https:\/\/jddaddy.com\/wp-content\/uploads\/2025\/07\/entrepreneur-working-with-bills-scaled-1-300x200.jpg\" alt=\"\uc2dc\ubbfc\uad8c\" width=\"519\" height=\"346\" srcset=\"https:\/\/jddaddy.com\/wp-content\/uploads\/2025\/07\/entrepreneur-working-with-bills-scaled-1-300x200.jpg 300w, https:\/\/jddaddy.com\/wp-content\/uploads\/2025\/07\/entrepreneur-working-with-bills-scaled-1-1024x683.jpg 1024w, https:\/\/jddaddy.com\/wp-content\/uploads\/2025\/07\/entrepreneur-working-with-bills-scaled-1-768x512.jpg 768w, https:\/\/jddaddy.com\/wp-content\/uploads\/2025\/07\/entrepreneur-working-with-bills-scaled-1-1536x1024.jpg 1536w, https:\/\/jddaddy.com\/wp-content\/uploads\/2025\/07\/entrepreneur-working-with-bills-scaled-1-2048x1366.jpg 2048w, https:\/\/jddaddy.com\/wp-content\/uploads\/2025\/07\/entrepreneur-working-with-bills-scaled-1-18x12.jpg 18w\" sizes=\"auto, (max-width: 519px) 100vw, 519px\" \/><\/p>\n<h2 id=\"section-5\" style=\"color: #000; border-bottom: 2px solid #eeeeee; padding-bottom: 0.3em; margin-top: 1.6em; margin-bottom: 1em; font-size: 14pt; line-height: 1.8;\"><strong><span style=\"font-size: 24pt;\">5. Key Summary and Final Checklist<\/span><\/strong><\/h2>\n<ul>\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\">Let me summarize.\n<ul style=\"font-size: 14pt; line-height: 1.8; list-style-type: '\u2714'; padding-left: 2em;\">\n<li style=\"padding-left: 0.5em; margin-bottom: 1em;\"><strong>If you become an Australian citizen, you become a **non-resident** for Korean tax purposes.<\/strong><\/li>\n<li style=\"padding-left: 0.5em; margin-bottom: 1em;\"><strong>&#039;Non-residents&#039; will not receive key benefits such as **one-household, one-home tax exemption** when selling Korean apartments, which will significantly increase the transfer tax in Korea.<\/strong><\/li>\n<li style=\"padding-left: 0.5em; margin-bottom: 1em;\"><strong>At the same time, you must report your capital gains in accordance with **Australia&#039;s worldwide income reporting obligations**.<\/strong><\/li>\n<li style=\"padding-left: 0.5em; margin-bottom: 1em;\"><strong>Although you will not pay taxes twice under the &#039;double taxation avoidance agreement&#039;, **you will ultimately pay taxes based on the higher rate of the two countries.**<\/strong><\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 1.6em; font-size: 14pt; line-height: 1.8;\"><strong>This is the most important advice.<\/strong> This issue is very variable, including the size of an individual&#039;s assets, the holding period, and changes in the laws of both countries. Therefore, **before making important decisions such as applying for citizenship or selling an apartment, you should definitely seek formal advice from an accountant\/tax agent in both Korea and Australia.** It is wise to seek professional help to develop a tax-saving strategy.<\/li>\n<\/ul>\n<\/div>\n<p><span style=\"font-size: 14pt;\"><em><strong>*2025 Canada Immigration Big Changes: A Complete Analysis of Express Entry Screening Changed by AI \u2013 <a href=\"https:\/\/jddaddy.com\/en\/2025-%ec%ba%90%eb%82%98%eb%8b%a4-%ec%9d%b4%eb%af%bc-%eb%8c%80%eb%b3%80%ed%99%94-ai%ea%b0%80-%eb%b0%94%ea%be%bc-express-entry-%ec%8b%ac%ec%82%ac-%ec%99%84%ec%a0%84-%eb%b6%84%ec%84%9d\/\">Go see the article<\/a><\/strong><\/em><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Among the permanent residents who have settled overseas, there must be many who have left their real estate, including apartments, in Korea. I have been living in Australia for over 10 years, and I got permanent residency 5 years ago. As my permanent residency renewal is approaching, I received an email from the Australian Immigration Service asking me to apply for a RRV (Resident Return Visa) or citizenship, or both. I suddenly wondered, &#039;If I get overseas citizenship, can I later leave my apartment in Korea? <a title=\"Transfer tax on Korean apartments when acquiring overseas (Australian) citizenship\" class=\"read-more\" href=\"https:\/\/jddaddy.com\/en\/%ed%95%b4%ec%99%b8-%ed%98%b8%ec%a3%bc-%ec%8b%9c%eb%af%bc%ea%b6%8c-%ec%96%91%eb%8f%84%ec%84%b81590-2\/\" aria-label=\"Read more about Transfer tax on Korean apartments when acquiring overseas (Australian) citizenship\">Read more<\/a><\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":""},"categories":[37,295],"tags":[1499,1498,1497,1493,1495,1500,1496,1494,470],"class_list":["post-1590","post","type-post","status-publish","format-standard","hentry","category-finance-economy","category-immigration-study-abroad","tag-1499","tag-1498","tag-1497","tag-1493","tag-1495","tag-1500","tag-1496","tag-1494","tag-470"],"_links":{"self":[{"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/posts\/1590","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/comments?post=1590"}],"version-history":[{"count":12,"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/posts\/1590\/revisions"}],"predecessor-version":[{"id":1604,"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/posts\/1590\/revisions\/1604"}],"wp:attachment":[{"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/media?parent=1590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/categories?post=1590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jddaddy.com\/en\/wp-json\/wp\/v2\/tags?post=1590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}