Q. I am living abroad but my address is still in Korea. Because my children are studying abroad, my family moved abroad and got a green card. My family is a single residence owner. I am curious if a transfer income tax will be imposed when I sell my apartment, and also want to know how to file the tax return.
A.
Thank you for your questions and your time.
If you have your address in Korea or your place of residence for more than a year in Korea, you are Korea residents regardless of your nationality. And the Korea residents who are single resident owners are exempted from the transfer income tax. If the resident who has owned a house in the country becomes a non-resident because of emigration or needs to stay abroad for more than a year because of studying or working abroad, he(she) will be exempted from the transfer income tax when selling the house within 2 years from the date of departure.
When overseas Koreans transfer domestic real estate, they have to file and pay the transfer income tax in the competent tax office, receive a confirmation from the head of the tax office and obtain a copy of certificate of seal impression for selling real estate.
However, it is difficult to tell from only the information you have provided us whether or not the transfer income tax will be imposed or how much tax will be required.
For more information, call 126 without a telephone exchange number, contact your tax office or visit http://www.nts.go.kr.
Thanks.
Person in charge: Taxpayer advocacy officer, Suwon of the Jungbu Regional Tax office, National Tax Service (☎ 126)
Relevant law: Income Tax Act No. 89.(Non-taxable transfer income)