Gov′t to exempt owners of multiple homes from heavier tax if they sell by May 9

▲ Apartment buildings in Seoul (Yonhap)

govt-property tax

Gov't to exempt owners of multiple homes from heavier tax if they sell by May 9

SEOUL, April 9 (Yonhap) -- The government will exempt owners of multiple homes from higher capital gains taxes should they file for sales permits by May 9, the finance ministry said Thursday.

The move follows President Lee Jae Myung's directive earlier this week to introduce supplementary measures giving people owning multiple homes extra time to sell properties before the exemption ends, with the law imposing higher taxes set to take effect May 9.

The ministry said the grace period for owners of multiple homes in designated speculative areas will end as scheduled May 9, but those who apply for land transaction permits by the same day will be excluded from the heavier tax.

Accordingly, sales transactions of properties in Seoul's long-designated speculative zones -- Gangnam, Seocho, Songpa and Yongsan districts -- need to be completed by Sept. 9, the ministry added. For those in the remaining 21 other districts of Seoul that were newly designated as speculative zones in October, owners have up to six months, or until Nov. 9, to complete transactions.

The maximum tax rate will reach 75 percent for capital gains on homes in designated speculative areas, primarily in the greater Seoul region, as part of the government's effort to curb rising housing prices.

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