Asia · East Asia
South Korea
A first-world economy with a strong passport and an investor-immigration system that was repriced sharply upward in 2023 — worth understanding, rarely the answer for a globally mobile family.
Tax position
- Income tax (top)
- 45% national income tax plus a 10% local surtax on the tax itself — an effective top marginal rate around 49.5%
- Capital gains
- Complex and asset-specific: real property gains up to 45%+ with heavy surcharges on multi-home owners; listed share gains generally exempt for small shareholders but taxed for large shareholders; from 2025 a financial investment income tax on other gains was abolished before taking effect
- Wealth tax
- none as such, but the Comprehensive Real Estate Holding Tax operates as a property wealth tax on high-value holdings
- Inheritance tax
- Up to 50% — among the highest in the world, and 60% can apply to controlling shareholdings under the largest-shareholder premium. A major planning issue for family businesses.
- Special regime
- Foreign residents who have had a domicile in Korea for 5 years or less in the preceding 10 are taxed on foreign-source income only if paid in Korea or remitted to Korea. Foreign workers may elect a 19% flat rate (plus local surtax) on employment income for up to 20 years.
- Territorial
- No — worldwide income taxed
- CFC rules
- Yes
- Exit tax
- Yes — leaving has a cost
- CRS
- Participating
Is South Korea actually right for your family?
We will tell you if it is not. That is the whole service.