Real Estate Laws & Property Ownership for Foreigners in Korea
Can foreigners buy property in South Korea? The short answer is yes. South Korea has become an attractive destination not only for travelers and professionals but also for foreign investors looking to buy property. With clear rules and a stable housing market, buying real estate in Korea is more accessible than many assume. This guide walks you through the real estate laws, property rights, and legal requirements for foreigners interested in owning property in Korea.
Can Foreigners Own Property in Korea?
Yes! Since the Foreigners’ Land Acquisition Act was revised in 1998, foreign nationals are legally allowed to purchase property in Korea. Whether you are a resident or a non-resident, you can buy land, apartments, villas, or commercial buildings. However, specific regulations and reporting duties apply.
Key Facts:
- You do not need Korean citizenship to buy property.
- Foreigners must comply with the Registration of Real Estate under Foreigners Act.
- Purchasing land in military protection zones or cultural heritage sites may be restricted.
Types of Property Foreigners Can Buy
Foreigners in Korea can legally purchase the following types of real estate:
- Apartments (Most common choice for expats in Seoul or Busan)
- Villas (Smaller buildings, often more affordable)
- Officetels (Mixed-use buildings, popular among digital nomads)
- Commercial Property (Shops, offices)
- Land (With more paperwork and restrictions)
Many foreign investors in Korea prefer officetels or apartment units in central business districts due to strong rental demand.
Legal Process: Step-by-Step Guide to Buying Property
Step 1: Visa Status & Eligibility
You don’t need a specific visa to buy property. However, having a long-term visa (like D-8 investment visa, F-2 resident visa, or F-5 permanent resident visa) can be helpful for financing or long-term residence.
Step 2: Find a Licensed Real Estate Agent
- Look for agents familiar with foreign property transactions.
- Use websites like Zigbang, Dabang, or Korea Realty that offer English support.
Step 3: Sign a Preliminary Contract (계약서)
- Pay a deposit (usually 10%).
- Ensure all contract terms are clearly translated.
- Have a Korean-speaking friend or legal advisor review it.
Step 4: Register the Transaction
- File a Report of Real Estate Acquisition by Foreigners within 60 days.
- Submit the required paperwork to the local government office.
Step 5: Final Payment and Ownership Transfer
- Pay remaining balance.
- Register the ownership under your name at the local registry office.
- You’ll receive an official property registration certificate (등기부등본).
Taxes & Fees for Foreign Property Owners
Foreigners are subject to the same property taxes in Korea as locals:
| Type of Tax | Description |
| Acquisition Tax | 1.1%–3.5% based on property type and price |
| Registration Tax | 0.8%–1.2% for transfer of title |
| Property Tax (재산세) | Annual tax based on assessed value |
| Capital Gains Tax | Applies when selling property |
It’s crucial to consult a tax advisor in Korea to manage your obligations, especially if you plan to rent out the property.
Financing: Can Foreigners Get a Mortgage in Korea?
Yes, but with conditions.
- Some banks offer mortgages to foreigners if you hold a long-term visa and meet income requirements.
- Loan-to-value (LTV) and debt-to-income (DTI) ratios may be stricter.
- Required documents: passport, ARC, income statements, and tax returns.
Popular banks offering expat services: Shinhan Bank, Hana Bank, Woori Bank.
Renting Out Your Property as a Foreigner
Yes, you can rent out your property to Korean nationals or other foreigners. However:
- Register your rental income with the National Tax Service (NTS Korea).
- Be aware of tenant rights under Korean housing law.
- Use official rental contracts (임대차계약서) to avoid disputes.
Common Mistakes to Avoid
❌ Not registering the purchase within 60 days
❌ Signing a contract without legal review
❌ Failing to check zoning restrictions or mortgage eligibility
❌ Ignoring tax obligations on rental income or capital gains
Buying property in Korea as a foreigner is entirely legal and increasingly popular, especially in major cities like Seoul, Busan, and Incheon. Whether you're looking for foreign real estate investment in Korea or a place to live, understanding the process and requirements is essential.
From real estate law in Korea to property taxes and mortgages, this guide provides information you need to make a smart and legal investment. Property ownership rules for foreigners can involve tax and legal implications. Consult a licensed real estate agent and legal advisor to ensure smooth property ownership in South Korea.
