On October 1, 2026, Korea shortened the temporary two-home special-treatment period from three years to two for certain homes in adjustment target areas. That does not mean everyone moving from one home to another must sell the old home within two years. The former three-year rule may remain, depending on whether both homes are in adjustment target areas, when the new home was acquired, and whether the contract and deposit were completed by August 3.
This article follows the Income Tax Act Enforcement Decree in force from October 1 and the government's explanatory material. The actual tax and exemption outcome can vary with household composition, holding and residence periods, other rights such as presale or occupancy rights, and the contract structure.
PexelsFour questions that separate two years from three
If the answer to all four questions is yes, the capital-gains-tax special-treatment period runs for two years from acquisition of the new home. If either home is outside an adjustment target area, this two-year reduction does not apply. The former rule also remains if the new home was acquired by August 3 or if the contract and deposit payment by that date can be documented.
A contract alone is not enough. As the government explanation states, keep evidence such as a bank-transfer record or receipt showing that the deposit was paid by August 3.
| Condition | Result |
|---|---|
| Both homes in adjustment target areas; new home acquired after Aug. 3; old home transferred after Sept. 30 | Two years from acquisition of the new home |
| New home acquired by Aug. 3 | Former three-year rule |
| Both contract and deposit payment by Aug. 3 are documented | Former three-year rule |
| Either home is outside an adjustment target area | Not covered by this two-year reduction |
PexelsContract date versus final-payment date
For an ordinary purchase, the final-payment date is generally treated as the acquisition or transfer date. The current Income Tax Act Enforcement Decree measures the temporary two-home period from acquisition of the new home. The registration filing date can become the reference if the payment date is unclear or ownership registration occurs before final payment.
Counting two years from the day the contract was signed, or assuming that a delayed registration extends the deadline, can produce the wrong date. Check the final-payment and registration filing dates for both homes.
Different effective dates for capital gains and comprehensive real estate taxes
For capital gains tax, the two-year rule applies when the new home is acquired after August 3, 2026 and the old home is transferred on or after October 1. For comprehensive real estate tax, the new period applies to households that acquired the new home after August 3 and incur tax liability as of June 1, 2027. A tax-by-tax application table separates those dates.
| Tax | Effective condition | Records to check first |
|---|---|---|
| Capital gains tax | New home acquired after Aug. 3 + old home transferred after Sept. 30 | Acquisition and transfer dates; regulated-area status |
| Comprehensive real estate tax | New home acquired after Aug. 3 + liability arising on June 1, 2027 | Acquisition date and holdings on the assessment date |
Acquisition tax is a local tax. Do not copy the national-tax dates in the table into an acquisition-tax decision. Confirm the original filing and transition rule separately through Wetax or the tax division of the relevant city, county or district.
The end-2027 default deadline for registered rental apartments
A deadline now applies to exclusion from the multiple-home capital-gains surcharge and additional corporate tax for registered rental apartments in adjustment target areas. The default rule requires transfer by December 31, 2027. Do not assume the same rule covers non-apartments, apartments outside adjustment target areas, construction rentals or public-support types.
| Situation | Special-treatment deadline |
|---|---|
| Default | Transfer by Dec. 31, 2027 |
| Mandatory rental period has not ended | One year from deregistration |
| Redevelopment or reconstruction is underway | One year from the transfer notice |
| Both exceptions apply | The later of the two dates |
The one-year disposal window after a win-win lease ends
A qualifying win-win rental home must satisfy statutory conditions, including limiting a rent increase to no more than 5% from the prior contract. The residence-requirement waiver was adjusted around qualifying lease contracts made by December 31, 2026. Meeting the rent cap alone does not automatically secure the treatment.
Support through the end of 2027 for completed unsold homes outside the capital region
Tax support for qualifying completed but unsold homes outside the capital region was extended by one year through December 31, 2027. Such homes may be excluded from the home count for capital gains and comprehensive real estate tax. Related exclusions for corporate restructuring REITs were extended to the same date. The labels ‘outside the capital region’ and ‘unsold’ are not enough on their own; confirm completion status, acquisition date, price and other statutory conditions.
PexelsFive records to keep with the contract
If the two-year or three-year result is unclear, put these five items on one sheet and compare them with the current law. National-tax questions can be checked through Hometax or the National Tax Service at 126; local-tax questions go to Wetax or the relevant local authority. If a sale is near or presale, occupancy or inherited-home rights are involved, show the contract and date records together to a qualified tax professional.
The amendment does more than shorten deadlines. It preserves the former rule for documented deposit payments made by August 3, allows a separate disposal period after a qualifying win-win lease ends, and adds a year of support for qualifying completed unsold homes outside the capital region. Before counting two years on a calendar, identify which transition rule attaches to the contract.
This is a general explanation of the system, not individual tax advice. Recheck the latest law and the responsible tax authority's guidance before filing.
Sources reviewed
The article was checked against the sources below. Image context and credits appear in each caption.
