Multiple-home capital gains tax returns as Gangnam gift transfers gain attention

From May 10, the heavier capital gains tax on multiple-home owners in regulated areas resumed, raising expectations that gift transfers will continue around Seoul’s Gangnam area. According to the Supreme Court registry data cited by Maeil Business Newspaper, gift registrations for Seoul collective buildings reached 2,153 in April, up 55.2% from 1,387 in March and the highest since December 2022. Gangnam, Seocho and Songpa led the increase with 442 cases. Owners of two homes face an added 20 percentage points on the basic rate, while those with three or more face 30 points; including local income tax, the top effective rate reaches 82.5%. Maeil Business Newspaper, mk.co.kr, said demand for debt-assumed gifts and heavier taxes on high-end homes are behind the trend.