'Difficult to Sell Houses for Temporary Two-Home Owners'... Housing Disposal Deadline Extended from 2 Years to 3 Years

[Asia Economy Sejong=Reporter Kim Hyewon, Sejong=Reporter Song Seungseop] Within the next three years, homeowners who sell their existing house will be eligible for the temporary two-home ownership special exemption. As many homeowners find it difficult to sell their houses due to unavoidable circumstances and voices criticizing the unfairness of real estate tax policies have grown louder, the government has eased the requirements.

On the 12th, the Ministry of Economy and Finance held an emergency economic ministers' meeting at the Seoul Government Complex to discuss measures to supplement real estate tax policies. According to the plan, starting next month, the 'disposal deadline for the previous house' to qualify for the temporary two-home ownership special exemption will be extended from 2 years to 3 years. Capital gains tax and acquisition tax will be applied retroactively from this date, and comprehensive real estate tax will be applied from the tax obligation establishment for this year. However, in the case of comprehensive real estate tax, those who applied for the temporary two-home ownership special exemption last year are also subject to this measure.

Photo by Hyunmin Kim kimhyun81@

A temporary two-home owner refers to a person who owned one house per household but temporarily became a two-home owner by acquiring a new house due to moving, etc. The government has provided tax benefits if the previous house is disposed of within a certain period. This is because it was judged that the purpose is more for actual demand rather than speculation.

Among temporary two-home owners, there have been widespread complaints that it is difficult to dispose of houses due to rising base interest rates and a decrease in overall housing market transactions. In particular, there have been criticisms that the recently announced government tax benefits are unfair. Through tax law amendments, acquisition tax surcharges are eased even in regulated areas for those who newly become multi-home owners, but if the balance payment has already been made, surcharges will be imposed if the house is not sold within the deadline.

The Ministry of Economy and Finance explained, "This is a measure to resolve the inconvenience of temporary two-home owners and to minimize market shocks caused by urgent sales."