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Capital Gains Tax for Foreigners 2026

Selling Korean property or stocks? Foreigner-specific rates, withholding, and treaty relief.

Capital gains in Korea are taxed when you sell real estate, certain stocks, or business assets. Rates depend on residency status, holding period, and tax treaty. Foreign residents (over 183 days) face same rates as Koreans. Non-residents face withholding tax.

Property capital gains

Under 1 year = 70%, 1-2 years = 60%, over 2 years = 6-45% progressive. Residents who own 1 home for 2+ years pay 0% if sale price under KRW 1.2B. Non-residents get no exemption.

Stock capital gains

Listed Korean stocks: small shareholders exempt. Large shareholders (10%+ stake or KRW 1B+ holding) = 20-25%. Foreign stocks held by Korean residents = 22% on gains above KRW 2.5M.

Non-resident withholding

Non-resident foreigners selling Korean property: 10% of gross sales OR 20% of net gains (whichever lower) withheld by buyer. File annual return to claim refund of overpayment.

Long-term holding deduction

3+ years property holding = 4% deduction per year (plus 4% per year of residency in home). Max 40% deduction at 10 years + residency. Major savings for long-term owners.

Frequently Asked Questions

Q. I am F-6 (marriage visa) — same rates as Koreans?

A. Yes. F-2, F-4, F-5, F-6 are residents for tax purposes. Same one-home exemption and long-term deduction apply.

Q. Tax treaty for selling Korean property?

A. Most treaties allow Korea to tax Korean property gains. But home country gives credit to avoid double tax. Check your country treaty article on capital gains.

Q. When is capital gains filed?

A. Preliminary return: 2 months after sale month. Final return: next May (in annual income tax filing). Major property sales — preliminary filing avoids late penalty.