Rural Second Home Tax in Korea: Keep One-Home Relief (2026)
By the RuralRoof Editorial Team · Last updated 2026-10-16 · 5 official sources
If you already own a flat in the city, a country house raises one tax question first: does the second house cost you the one-home exemption when you sell the flat?
Two articles of the Restriction of Special Taxation Act answer it. This guide sets out their conditions from the statute text, with a table for each, and the filing step that makes the relief count.
- A qualifying rural house is treated as not owned when you sell the home you had before, so the one-home exemption can still apply (Art. 99-4) [1].
- Art. 99-4 needs a house in a 읍 or 면 outside listed zones, bought by 31 December 2028, worth up to ₩300 million (₩400 million for a hanok), held for 3 years [1].
- Art. 71-2 covers one house in a population-decline area bought from 4 January 2024 to 31 December 2026, worth up to ₩900 million outside the capital region [1] [2].
- Both reliefs are claimed by filing; Art. 71-2 also treats you as a one-home owner for comprehensive real estate tax if you apply each September [1] [2].
Does a rural second home break the one-home tax exemption?
Not if it qualifies under Article 99-4 or Article 71-2. Both articles state that the rural house is treated as not owned by the household when the earlier home is sold [1].
Both reliefs work the same way. The household keeps the rural house and sells the home it owned before; for that sale, the law counts only the earlier home.
However, the conditions differ: location, price, dates and holding period. The sections below take each article in turn, then compare them.
Which rural houses qualify under Article 99-4?
One house bought between 1 August 2003 and 31 December 2028 by a resident household, held for at least 3 years, that meets a location test and a price cap (Art. 99-4(1)) [1].
| Test | Condition |
|---|---|
| When bought | 1 Aug 2003 to 31 Dec 2028 |
| Where | A 읍 or 면 (or a 동 set by decree), or an opportunity development zone |
| Not in | The capital region, urban areas, adjustment target areas, land-transaction permit zones, listed tourist zones (with decree exceptions) |
| Value | Standard value (기준시가) of house and land up to ₩300 million at purchase; ₩400 million for a listed hanok |
| Holding | At least 3 years |
| Not near | Not in the same or an adjacent 읍·면·동 as the earlier home (Art. 99-4(3)) |
For example, a Seoul flat owner buying a ₩150 million house in a 면 of Gangwon can meet the location and price tests, if the plot is also outside the other listed zones. Holding and filing still decide the outcome.
What does the adjacent-area rule mean?
The relief does not apply when the rural house and the earlier home sit in the same 읍, 면 or 동, or in neighbouring ones (Art. 99-4(3)) [1].
The rule targets a second house next door to the first. In practice, a buyer moving from a provincial town to a village nearby should check the boundaries of both addresses.
Can you sell the city home before the 3 years are up?
Yes. Article 99-4(4) applies the relief even if you sell the earlier home before you have held the rural house for 3 years [1].
The condition follows you. If you then stop holding the rural house before 3 years, you pay the tax the relief saved, within 2 months of the end of that month (Art. 99-4(6)) [1].
The statute excuses listed unavoidable cases, such as expropriation for public works (Art. 99-4(6)) [1].
What is the population-decline area relief (Article 71-2)?
A newer relief for households with one home that buy one house in a population-decline area between 4 January 2024 and 31 December 2026 (Art. 71-2(1)) [1].
The decree sets the price caps by area. The cap is the standard value of house and land at purchase (Enforcement Decree Art. 68-2) [2].
| Where the house is | Value cap |
|---|---|
| Population-decline area outside the capital region | ₩900 million |
| Population-decline area in the capital region (border areas) | ₩400 million |
| Area of population-decline concern outside the capital region | ₩400 million |
Two exclusions apply in every case: metropolitan cities (their counties excepted), and the same 시·군·구 as the home you owned before (Decree Art. 68-2) [2].
The Ministry of the Interior and Safety designates the areas by notice. Check the current notices for your county before relying on this relief [3] [4].
Does Article 71-2 also help with comprehensive real estate tax?
Yes. A one-home household that buys a qualifying house in the same window is treated as a one-home owner for comprehensive real estate tax (Art. 71-2(2)) [1].
You apply to the tax office between 16 and 30 September (Art. 71-2(3)). According to the decree, you need not reapply in later years if nothing changes (Art. 68-2(4)) [1] [2].
Which relief fits your country house?
Compare the two side by side. Some houses meet both; the dates and caps usually decide.
| Art. 99-4 rural house | Art. 71-2 decline-area house | |
|---|---|---|
| Purchase window | To 31 Dec 2028 | 4 Jan 2024 to 31 Dec 2026 |
| Location | 읍·면 outside listed zones | Designated population-decline areas |
| Value cap | ₩300m (hanok ₩400m) | ₩900m or ₩400m by area |
| Holding period | 3 years | Not set in the article |
| Excluded nearby | Same or adjacent 읍·면·동 | Same 시·군·구 |
| Comprehensive RE tax | Not covered by this article | Yes, by September application |
How do you claim the relief, and what should you check first?
Both reliefs need an application. Article 99-4(7) requires a special-taxation application, and the decree for Article 71-2 requires a report filed with the capital gains tax return [1] [2].
- Find the standard value (기준시가) of the house and land at the purchase date.
- On 토지이음, confirm the plot is outside urban areas and permit zones [5].
- Check the address against the current MOIS decline-area notices [3] [4].
- Compare the 읍·면·동 and 시·군·구 of both homes.
- Plan the holding period and the sale order of the city home.
- Have a certified tax accountant confirm the plan before you sign.
Tax is one of the checks; the house itself needs the others. Start with the rural house checklist, then use address search or browse rural listings.
Frequently Asked Questions
Does owning a country house cancel the one-home tax exemption in Korea?
Not when the country house qualifies under Article 99-4 or 71-2; the law then treats it as not owned when the earlier home is sold [1].
What is the price limit for a rural house under Article 99-4?
A standard value (기준시가) of house and land up to ₩300 million at purchase, or ₩400 million for a listed hanok [1].
How long must I keep the rural house?
At least 3 years under Article 99-4. If you sold the city home early and then dispose of the rural house before 3 years, the saved tax becomes payable within 2 months [1].
Is the population-decline area relief still open?
Article 71-2 covers houses bought between 4 January 2024 and 31 December 2026 [1].
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General information, checked against the official sources below on the date shown. No sponsored content: no office, organization, agent or seller named here paid for or reviewed this page. Rules change, so confirm with the office named or a specialist (a licensed agent or a lawyer) before you sign.
Sources
- [1]조세특례제한법 (Restriction of Special Taxation Act), Arts. 71-2, 99-4 (in force 2026-09-18) · Korea Ministry of Government Legislation (law.go.kr) · accessed 2026-10-16
- [2]조세특례제한법 시행령 (Enforcement Decree), Art. 68-2 (amended 2026-02-27) · Korea Ministry of Government Legislation (law.go.kr) · accessed 2026-10-16
- [3]인구감소지역 지정 변경 고시 (MOIS notice 2024-15) · Ministry of the Interior and Safety · accessed 2026-10-16
- [4]인구감소관심지역 지정 고시 (MOIS notice 2025-78, in force 2026-01-01) · Ministry of the Interior and Safety · accessed 2026-10-16
- [5]토지이음 (land-use plan: urban area, permit zone) · MOLIT · accessed 2026-10-16