Applies to newly acquired homes from Oct. 1; two-year window required when both properties are in regulated zones
District alerts 481 cases nearing deadline, reviews 532 already past it
Gangnam-gu is intensifying its outreach to taxpayers following a change to the disposal deadline for temporary two-home owners under the acquisition tax rules.
The effort aims to prevent residents from missing the deadline and incurring additional acquisition tax and surcharges — a risk that has grown since the window, which many owners believed to be three years, was shortened to two years for some.
The district announced it will actively publicize the change to the disposal deadline for temporary two-home owners, which took effect Oct. 1 under a revised enforcement decree of the Local Tax Act.
Under the revised rules, when both the previous home and the newly acquired home are located in a regulated zone, the deadline to dispose of the previous home is cut from three years to two. All of Seoul and parts of Gyeonggi Province fall within regulated zones.
A temporary two-home situation arises when a homeowner acquires a new residence — typically for a move — before selling the existing one. Selling the previous home within the prescribed period allows the owner to avoid the heavier acquisition tax rate on the new property. The revised standard applies to new home purchases made on or after Oct. 1.
However, those who had already signed a sales contract before Oct. 1 may still be subject to the original three-year deadline. Because the applicable standard varies depending on the acquisition date, supporting documents such as the sales contract, and whether the properties fall within a regulated zone, individual verification is necessary.
To spread word of the change quickly, the district sent notices to 2,988 real estate agencies in the area and asked them to actively inform clients of the updated disposal deadline during home-sale consultations.
The district is also tightening follow-up oversight of existing applicants who received an exemption from the heavier acquisition tax rate under the temporary two-home provision.
For 481 cases in which the three-year deadline under the previous rules applies — covering new home acquisitions made between Oct. 1, 2023 and March 31, 2024 — the district plans to verify each deadline and send text message and app notifications six months, three months and one month before expiration.
The district is also reviewing cases where the disposal deadline has already passed. The review covers 532 cases involving new home acquisitions made between Aug. 12, 2020 and Sept. 30, 2023 for which follow-up management has not been completed.
Officials will check whether the previous home has been sold and whether any additional tax filings or payments have been made. Cases where neither has occurred will go through a notification and explanation process before additional taxation is pursued.
"It is important to provide the necessary information in advance so that taxpayers do not miss filing deadlines or face surcharges simply because they were unaware of the rules," Gangnam-gu District Mayor Kim Hyun-ki said. "We will give thorough guidance on the changed system and disposal deadlines to protect taxpayers' rights and maintain fair tax administration."
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