The government has decided to exempt multi-home owners from heavy capital gains tax if they file for land transaction permits by May 9, when the current tax moratorium ends, treating such applications the same as signed sales contracts. The measure follows President Lee Jae-myung's concern that multi-home owners willing to sell could see their properties locked up from mid-month due to land transaction permit procedures that take two to three weeks or longer.
The government announced on the 9th that multi-home owners who file for land transaction permits with local governments by May 9 and sign sales contracts will be exempt from heavy capital gains tax if they complete the sale within four months for existing regulated areas (Seoul's Gangnam three districts and Yongsan-gu) or within six months for newly designated regulated areas (the remaining 21 districts in Seoul and 12 areas in Gyeonggi Province). The respective deadlines are September 9 and November 9.
In land transaction permit zones, when multi-home owners sell tenant-occupied homes to non-homeowners, filing for a land transaction permit by May 9 will also defer the buyer's actual residency requirement and the obligation to register residency when obtaining a mortgage loan.
The actual residency requirement is deferred until the initial contract expiration date of lease agreements signed as of February 12 this year, with a maximum extension to February 12, 2028. The residency registration obligation is deferred until the later of six months from loan disbursement or one month from the lease contract's termination date.
Regarding President Lee's mention of allowing single-home owners to sell jeonse-occupied properties, the government said further review is needed.
"We recognize the need from a fairness perspective," a Ministry of Land, Infrastructure and Transport official said, "but while it would increase housing supply, it could also temporarily boost demand through gap investment, so we will announce our decision after a comprehensive review."
The government plans to publicly announce proposed amendments to the Income Tax Act Enforcement Decree and the Real Estate Transaction Reporting Act Enforcement Decree starting on the 10th, and promulgate and implement them within this month following Cabinet deliberation.