Temporary two-home grace period in adjustment zones cut from 3 years to 2 — effective October 1, 2026
Source material is a Korean government announcement (in Korean).
The period of the one-household-one-home special treatment for capital gains tax and comprehensive real estate holding tax on temporary two-home owners in adjustment zones is shortened from 3 years to 2 years, scheduled to take effect on October 1, 2026. Inquiries: Ministry of Finance and Economy, Property Tax Division, 044-215-4310.
Key facts
| Effective date | Scheduled to be promulgated and take effect from October 1, 2026 (approved at the September 29, 2026 Cabinet meeting) |
|---|---|
| Temporary two-home grace period | In adjustment zones: 3 years → 2 years |
| Purchased-rental apartments | For purchased-rental apartments in adjustment zones, the exclusion of the multi-home owner capital gains tax surcharge and additional corporate tax applies only to sales within a set period — in principle the existing special treatment is kept until December 31 next year |
| Rental business owner's residence | The one-household-one-home capital gains tax special treatment continues for 5 years from the registration cancellation date, as at present |
| Mutually beneficial lease special treatment | Ends on the originally scheduled date, December 31 this year; the residence requirement exemption applies only to homes sold within 1 year after the lease ends (at most until December 31, 2029) |
| Completed unsold homes outside the capital region | Tax support application deadline extended by 1 year to December 31 next year |
| Inquiries | Ministry of Finance and Economy, Property Tax Division, 044-215-4310 |
Last checked:
On September 29, 2026, the 42nd Cabinet meeting approved a partial amendment of the Enforcement Decree of the Income Tax Act and others, scheduled to be promulgated and take effect on October 1, 2026. For a person who owns a home in an adjustment zone and acquires another home in an adjustment zone, becoming a temporary two-home owner, the period of the one-household-one-home special treatment for capital gains tax and comprehensive real estate holding tax is shortened from the current 3 years to 2 years. An application deadline is set for the exclusion of the multi-home owner capital gains tax surcharge for purchased-rental apartments in adjustment zones, and the existing special treatment is in principle maintained until December 31 next year.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
Which enforcement decrees are being amended?
Partial amendments of the Enforcement Decrees of the Income Tax Act, the Corporate Tax Act, the Comprehensive Real Estate Holding Tax Act, and the Inheritance Tax and Gift Tax Act were approved at the 42nd Cabinet meeting.
What is the background of this amendment?
It is a follow-up measure to this year's tax reform proposal announced on August 3.