Tax Planning
Real Estate, Capital Gains & Exit Tax: Planning under Korea’s 2026 Tax Revision
New rules are coming on capital gains, real estate holding tax (CRET), and exit tax for individuals leaving Korea—what long-term homeowners and potential emigrants must know.
By NomadicTax Research Team • 5-8 min read • August 19, 2026
## Background: 2026 Revision Bill Highlights
The Ministry of Finance and Economy’s *2026 Tax Revision Bill* unveiled in early August includes several reforms targeting **capital gains**, **comprehensive real estate holding tax (CRET)**, and enhanced exit-tax obligations for high ownership individuals. ([english.mofe.go.kr](https://english.mofe.go.kr/?boardCd=N0001&seq=6391&utm_source=openai))
Key initiatives include:
- Expanded preferential treatment for long-term owner-occupied single homes.
- Temporary easing of higher capital gains rates for homes in adjustment areas owned by multi-homeowners during 2027-2028.
- Altering the CRET basic deduction thresholds and fair market value ratios.
- Serious tightening of exit tax for individuals who are major shareholders (대주주) leaving the country. ([law.go.kr](https://www.law.go.kr/lsLawLinkInfo.do?chrClsCd=010202&lsJoLnkSeq=1000226211&utm_source=openai))
## Exit Tax (HNWI Case): What Exists & What's Changing
The **exit tax** in Korean law (소득세법 제118조의9) treats certain assets as if sold on the date a person departs (국외전출자).
- Applies to residents who are **major shareholders** holding certain classes of stock as defined by law (articles under §94), and who have lived in Korea for at least 5 of the past 10 years. ([law.go.kr](https://www.law.go.kr/lsLawLinkInfo.do?chrClsCd=010202&lsJoLnkSeq=1000226211&utm_source=openai))
- Required to calculate deemed gains on shares that meet ownership and valuation thresholds.
## Real Estate & Capital Gains Planning
- **Capital Gains Tax** changes for residential properties: long-term home owners (owner-occupied) selling homes under a threshold (e.g. 가격 3 billion KRW) may benefit from increased deduction limits. ([english.mofe.go.kr](https://english.mofe.go.kr/?boardCd=N0001&seq=6391&utm_source=openai))
- Higher CRET deductions and value assessments — changes planned for tax years beginning in 2027.
- Temporary relief for multi-home owners in adjustment areas, but only for 2027-2028. Planning sale timing or ownership rearrangement could help. ([english.mofe.go.kr](https://english.mofe.go.kr/?boardCd=N0001&seq=6391&utm_source=openai))
## Case Study: Planner Scenario for Exit Tax & Real Estate
| Scenario | Profile | Strategy |
|---|---|---|
| Exiting HNWI with major-share ownership | Resident for 10 years, owning 10% of a listed company exceeding major-share thresholds | Assess whether shareholding meets major-share definition. If yes, compute deemed gain at exit—maybe sell beforehand if certain reliefs apply. |
| Selling two-property in adjustment area in 2027 | One in capital area, one in regional designated adjustment area | Utilize temporary easing rates in 2027-28; maybe move second home ownership to split taxpayers or use spousal ownership for lower rates. |
| CRET exposure for multiple residential homes | Owns two homes both with high assessed property values | Consider consolidating ownership under joint titles, or evaluating property value vs assessed value to reduce fair market value ratio exposure. |
## Recommended Action Steps
1. **Get property valuations early**, especially for homeowner-occupied residence and any second homes in adjustment areas.
2. **Check your major shareholder status**, share percentages and whether stock holdings fall under §94 definition.
3. **If planning expatriation** or long-term stay abroad, analyze deemed sale dates, exit tax exposure, and whether relief is possible before movement.
4. **Track the passage of the Tax Revision Bill**: many changes proposed will only be law after enaction by National Assembly—likely to take effect January 2027 unless stated otherwise.
## Takeaway
South Korea’s 2026 proposed tax revisions put real estate and exit-related rules under sharper tax scope. For major shareholders, homeowners, or those considering leaving, timing, documentation, and stock/home ownership structure will determine how much gets taxed and when. Effective planning now can ease future burdens.