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First-time homebuyers in Korea may qualify for an acquisition tax reduction of up to KRW 3 million.

In general, a first home priced at KRW 1.2 billion or less may qualify for a tax reduction of up to KRW 2 million. A qualifying non-apartment home priced at KRW 600 million or less and measuring no more than 60㎡ may receive up to KRW 3 million.

Following the amendment dated December 31, 2025, the previous occupancy requirement and restriction on purchasing an additional home were removed.

However, the reduced tax may be reclaimed if the home is sold, gifted, rented out, or used for another purpose within three years of acquisition.

This tax benefit reduces acquisition tax when a person and their spouse purchase their first home for consideration, such as through a sales transaction.

A qualifying first home priced at KRW 1.2 billion or less may receive an acquisition tax reduction of up to KRW 2 million.

The limit increases to KRW 3 million for a qualifying non-apartment home priced at KRW 600 million or less with an exclusive area of no more than 60㎡.

The acquisition tax reduction limit depends on the purchase price, exclusive floor area, and type of home.

• A qualifying first home priced at KRW 1.2 billion or less may receive a reduction of up to KRW 2 million.
• A non-apartment home priced at KRW 600 million or less with an exclusive area of 60㎡ or less may receive a reduction of up to KRW 3 million.

Following the amendment, the requirement to begin permanent residence within three months and the restriction on acquiring another home within three months were removed.

However, the reduced acquisition tax may still be reclaimed if the qualifying home is sold, gifted, rented out, or used for another purpose within three years of acquisition.

The revised rules apply when the acquisition tax liability arises after the amended law takes effect. The acquisition date and the timing of tax liability should therefore be checked.

The reduced acquisition tax may be reclaimed if the qualifying home is sold, gifted, rented out, or used for another purpose within three years of acquisition.

Under the revised rules, failure to move into the home within three months or the purchase of an additional home does not, by itself, trigger a tax reclaim.

Buyers purchasing a tenant-occupied home should confirm the remaining lease term and applicable holding period before completing the transaction.

The first-time homebuyer acquisition tax reduction is not automatically applied. The buyer must submit an application to the local tax office responsible for the area where the home is located.

Basic required documents:

• Local tax reduction application form
• Detailed family relationship certificate
• Resident registration certificate

Applicants should also check the three-year reclaim conditions before applying for the tax reduction.

Q. Does every first-time homebuyer receive a KRW 3 million reduction?
No. The general limit is KRW 2 million. The KRW 3 million limit applies only to a qualifying non-apartment home priced at KRW 600 million or less with an exclusive area of 60㎡ or less.

Q. Is moving into the home within three months still required?
Under the revised rules, the three-month occupancy requirement has been removed.

Q. Can the home be rented out within three years?
Renting out the home within three years may trigger a reclaim of the reduced tax.

Q. What if the home already has a tenant?
If the remaining lease term is one year or less, the three-year period may be counted from the lease expiration date.