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Reduce the property tax rate by 0.05% p, check if it is extended after applying it for the next three years
90% target for real estate disclosure shots
Apartment targets by 2030, single-family homes by 2035
Government Announces Confirmation of Measures to Reduce Property Tax Burden to Achieve Public Prices
The government will increase the official price of apartments and flats, which is the standard for taxes related to real estate, to 90% of the market price by 2023. In order to ease the tax burden, the property tax rate It will be lowered for an owner with a public price of 600 million won or less starting next year.
On the 3rd, the Ministry of Lands, Infrastructure and Transport and the Ministry of Public Administration and Security announced the plan to specify the official price of real estate and ease the burden of property tax.
◆ … (Ministry of Public Administration and Data Security)
First, starting next year, the property tax rate for houses owned by a head of household will be lowered and less than 600 million won in the official price.
It was decided to reduce the reduction tax rate by 0.05 percentage points for each taxable base section.
The reduction rate is from 22.2% to 50% and the property tax is cut in half for houses with an official price of 100 million won or less. In terms of quantity, the public price of less than 100 million won is up to 30,000 won, less than 100 million to 250 million won from 3 to 75,000 won, and less than 250 million to 500 million won 75,000 to 150,000 won and less than 500 million won 150,000 ~ 180,000 won are exempt.
Based on this year’s property tax imposition, 94.8% of the list price of 600 million won or less among one owner amounted to 1.03 million households.
The government estimates that there will be an annual fiscal support effect of KRW 478.5 billion (approximately KRW 1.4 trillion over three years). The reduced tax rate will apply from next year’s property tax imposition through 2023, and the government plans to decide whether to modify it after reviewing changes in the housing market.
◆ … (Ministry of Land, Infrastructure and Transportation of Materials)
The published real estate price is realized gradually up to the level of 90% of the market price.
Starting this year, the published price update rate is 65.5% for land (standard land), 53.6% for single-family homes (standard homes), and 69.0% for apartment homes. The government plans to increase the reflection rate by 3 percentage points each year to the 90% level.
However, the time to achieve the goal varies depending on the type and price range. Since the current level of realization is different for each type and price range, the realization target is achieved in 5-10 years for apartments, 7-15 years for single-family homes, and 8 years for land.
For housing, the discount rate is different based on the market price of 900 million won.
The published price of apartments under 900 million won, with a current rate of 68.1%, rises to 70% of the market price in 2023, three years later, and then increases by 3 percentage points each year until 90 % in 2030. For those with less than 900 million to 1.5 billion won, the discount rate will increase from 69.2% to 90% until 2027, seven years later. The realization rate of 1.5 billion won or more is currently 75.3%, which is 90% in 2025, five years later.
For single-family homes, the realization rate for houses with less than 900 million won will be 90% by 2035, the realization rate for houses between 900 and 1.5 billion won by 2030, and those with 1.5 billion won or more by 2027.
In the case of land, the completion rate will increase by 3 percentage points per year to reach 90% in 2028.
The published price realization plan is applied from the published price calculation in 2021.
