South Korean Cabinet Approves Extended Grace Period for Multiple Home Owners to Avoid Higher Capital Gains Taxes

SEOUL — The Cabinet approved revisions to enforcement decrees on Tuesday, April 21, 2026, in Seoul, exempting owners of multiple homes from higher capital gains taxes if they file for sales permits by May 9, 2026. Under the revisions to the enforcement decrees of the Income Tax Act and the Real Estate Transaction Reporting Act, the grace period for owners of multiple homes in designated speculative areas ends on May 9, 2026.

Owners of multiple homes who apply for land transaction permits by May 9, 2026, will be excluded from the heavier tax, Yonhap reported.

President Lee Jae Myung proposed measures to allow extra time for owners of multiple homes to sell their properties before the exemption ends. The proposal considers the time needed to obtain a land transaction permit. The heavy taxation was temporarily postponed under the previous President Yoon Suk Yeol administration. The heavy taxation will resume after nearly four years, according to Yonhap.

A maximum tax rate of up to 75 percent will apply to capital gains from the sale of homes owned by multiple-property holders in designated speculative areas. Designated speculative areas are mostly in the wider capital region. The policy is part of the government's push to stabilize rising housing prices, Yonhap reported.

Prime Minister Kim Min-seok presided over a Cabinet meeting at the Government Complex in Seoul on Tuesday, April 21, 2026.