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South Korean taxes are from moderate to high

Rental Income: Rental income tax is from 6% to 35% for limited liability companies and 11% to 22% for stock companies. Value Added Tax on gross rent is 10%.

If the rental income is less than KRW24 million (US$20,870) and the property value is assumed to be under KRW900 million (US$773,714), a special method for the calculation of the personal taxable income is used. In the sample calculation provided, effective income tax amounts to 2.48% of the gross rent, given that the annual rental income is KRW20.7 million (US$17,795) and under certain assumptions.

Capital Gains: Capital gains taxes are around 6% to 35%. A special deduction applies if the property is held for more than three years.

Inheritance: The inheritance tax is between 10% and 50% depending on the property value.

Residents: Residents are taxed on their worldwide income at progressive rates, from 6% to 35%.

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