Buying Property in Korea as a Foreigner: Reports, Permits, Funds, Loans and Tax

Can foreigners buy property in Korea?

In principle, yes. Korea once had a separate Foreigner Land Acquisition Act; today the rules sit inside the Act on Report on Real Estate Transactions (부동산거래신고법). A useful way to picture it: a foreign buyer goes through the same purchase process as a Korean buyer, with three extra layers on top.

1. Reporting: a foreigner who acquires property must report it within a set period.
2. Permits: in certain zones, a permit is required before signing.
3. Funds: money brought in from abroad must go through foreign exchange reporting, and you may have to explain where it came from.

Taxes, by contrast, follow essentially the same structure as for Korean nationals.

Step 1: the acquisition report

Reports go to the city, county or district office where the property is located. Late reports can bring fines. You can read the current text of the law at the National Law Information Center.

Step 2: check whether a permit is needed

• Zones restricted for foreign land acquisition: in military facility protection zones, cultural heritage protection zones, ecological and landscape conservation areas and special wildlife protection zones, a foreigner must obtain a permit before signing. A contract made without it is void.
• Land transaction permit zones (토지거래허가구역): in designated zones, anyone, Korean or foreign, needs a permit from the local office to buy land above a certain size, and buyers of homes must actually live in them.
• Permit zones aimed at foreign buyers: in August 2025 the government designated all of Seoul and large parts of Incheon and Gyeonggi as permit zones for foreigners buying housing (officetels excluded), initially for one year. Buyers had to move in within four months of the permit and live there for two years. That period has since run its course, so check current notices from the Ministry of Land (MOLIT) and the local government to see whether it was extended or changed.

Before you send any down payment, ask the local land office or your agent which zones the address falls into.

Step 3: source of funds and remittances from abroad

Buying Korean property with money from overseas requires reporting under the foreign exchange rules. Non-resident foreigners in particular are generally expected to file a real estate acquisition report with a designated foreign exchange bank before sending the money. Procedures differ for residents and non-residents, so follow these principles:

• Choose one designated foreign exchange bank and remit with the stated purpose "real estate acquisition."
• Keep the remittance confirmations, the report and the contract. You will need this trail when you sell and want to send the proceeds abroad.
• Splitting transfers to avoid reporting, or carrying cash, can itself be a violation.
• In regulated areas, above certain prices, or in permit zones, buyers must submit a funding source plan (자금조달계획서) with evidence, and foreign buyers are increasingly asked for detail on overseas funds.

Step 4: loans are possible but not easy

Korea's lending limits, LTV (loan-to-value) and DSR (debt service ratio), apply to foreigners exactly as to Koreans; see LTV and DSR explained. On top of that:

• Government mortgage programs such as Didimdol and Bogeumjari are generally designed for Korean nationals, so most foreigners cannot use them.
• Bank mortgages look at your alien registration, documented income in Korea, remaining period of stay and credit history. Non-residents find it very hard to borrow at all.
• Plan for a much larger share of your own money. You can get a rough idea with the loan calculator, then confirm with lenders directly.

Step 5: contract, balance payment and registration

Checking the property register on the Internet Registry Office and recent prices on the MOLIT real transaction site works the same as for Koreans; see how to check real transaction prices. For title registration, registered foreigners use their alien registration number, while unregistered foreigners must first obtain a real estate registration number from an immigration office. Most buyers hire a judicial scrivener (beopmusa, 법무사) for the paperwork; legal connect helps you find one who speaks your language.

Taxes: acquisition tax follows the same structure

Based on our tax calculator, acquisition tax uses the same rate structure regardless of nationality. For a buyer's only home, the rate is 1% up to ₩600M, a sliding formula between ₩600M and ₩900M, and 3% above ₩900M. A local education tax is added, plus a rural special tax if the exclusive area exceeds 85㎡. Owners of multiple homes, especially in regulated areas, face heavier rates.

Other points to keep in mind:

• How many homes you own and who counts as your household depend on your circumstances, including family members in and outside Korea. Confirm before you buy.
• Capital gains tax: the one-home-per-household exemption assumes you are a Korean tax resident, so non-residents generally cannot use it. Leaving Korea before you sell can change your residency status.
• If you will live abroad, you can appoint a tax administrator (납세관리인) to handle Korean tax matters.
• Additional taxes on foreign buyers have been debated, so check current rates on Wetax or with the local office just before signing.

For decisions that depend on your situation, consult a professional through find an expert or tax connect.