Renting Out a Home in Korea as a Foreign or Overseas Landlord: Rental Income Tax, Multiple-Home Rules, and Managing from Abroad

Many overseas Koreans and foreign nationals keep a home in Korea and rent it out: an apartment they lived in before moving abroad, one they inherited, or one they bought as an investment. Being abroad does not take a landlord outside the Korean tax system. Rental income from Korean property is taxed in Korea, the number of Korean homes a household owns affects several other taxes, and Korea’s tenant protection rules apply in full. This article explains what a foreign or non-resident landlord needs to know, and how to manage a Korean rental from overseas.

1. How Korea Taxes Rental Income of Non-Residents

• Rental income from real estate located in Korea is Korean-source income, taxable in Korea whatever the owner’s nationality or residence.
• Non-residents with Korean rental income are generally taxed in the same way as residents: they file an annual global income tax return and pay tax at Korea’s progressive rates (6% to 45%), plus local income tax of 10% of the income tax.
• Korean tax residence depends on where you live and where your family and main economic life are, not your nationality. (See our earlier article on selling Korean real estate as a non-resident.)

2. What Is Taxed: Monthly Rent and Large Deposits

Korean leases combine monthly rent and security deposits, including the large lump-sum jeonse deposit. They are taxed differently.

Monthly rent

• Monthly rent is generally taxable.
• A household that owns only one home may be able to treat the rent as tax-free, unless the home is a high-value home (official standard price above KRW 1.2 billion). Whether and how this applies to a non-resident owner should be checked case by case.

Security deposits and jeonse

• Deposits are not income as such. However, owners of three or more homes with total deposits above KRW 300 million are taxed on deemed rental income, calculated on the excess deposit at a set interest rate. Some small homes are excluded from the count.

Small landlords

• If total annual rental income from homes is KRW 20 million or less, the landlord can choose separate taxation at 14% after standard deductions, instead of adding the rent to other Korean income.

Expenses

• Landlords who keep books can deduct actual expenses, such as repairs, agent fees, interest on loans for the property, insurance, and property tax. Others use standard expense ratios.

3. Registration, Filing, and a Local Tax Agent

① Business registration

• Landlords who rent out homes must generally register as a housing rental business with the tax office. Failing to register can result in a penalty based on rental revenue.
• Registering as a private rental housing business with the local government is a separate, optional regime with its own obligations (such as limits on rent increases) and tax effects. Do not confuse the two.

② Annual filing

• File the global income tax return by May 31 of the following year.

③ Appoint a tax agent

• A non-resident should appoint a tax agent in Korea to receive tax notices and handle filings and payments. This can be a relative, a tax accountant, or another trusted person.
• Without one, notices for property tax (July and September), comprehensive real estate holding tax (December), and income tax can go unanswered, leading to penalties and, eventually, enforcement against the property.

4. Multiple-Home Rules: Why the Number of Homes Matters

Korea’s real estate taxes depend heavily on how many Korean homes a household owns. Generally only homes in Korea count for these purposes.

Tax	Why the number of homes matters
Acquisition tax	Buying an additional home can attract higher rates for multiple-home households, especially in regulated areas
Comprehensive real estate holding tax	Higher thresholds and benefits are available only to resident one-home households. Non-residents generally use the standard threshold, and owners of several homes can face higher rates
Capital gains tax	Non-residents generally cannot use the one-home exemption at all. Owners of several homes in regulated areas can face heavier rates, although these surcharges have been suspended for several years. Check the current status before selling
Rental income tax	One-home households may receive favorable treatment, and deemed rental income on deposits applies only to owners of three or more homes

Who is in the “household”

• The household generally includes your spouse and family members who share the same address. A spouse’s Korean home counts toward your household’s total.
• For foreign nationals, determining the household can be complicated, because foreign residents are registered differently from Korean nationals. Confirm how your household is treated before buying or selling.

Key takeaway: Before buying another Korean home, or inheriting one, check how it changes your household’s home count. An inherited home can change the tax on the home you already own.

5. Korea’s Tenant Protection Rules

Korea’s Housing Lease Protection Act applies regardless of where the landlord lives.

• Two-year minimum term: a shorter agreed term can be treated as two years at the tenant’s choice.
• Tenant’s right to renew: the tenant can generally request one renewal of two years. The landlord can refuse only on limited grounds, such as moving in personally.
• Rent increase cap: increases on renewal are generally limited to 5%.
• Lease reporting: leases above set deposit or rent levels in covered areas must be reported within 30 days of signing.
• Landlord disclosure: landlords must disclose information such as unpaid taxes and senior deposits when the tenant asks.
• Returning the deposit: this is the landlord’s most important obligation. A landlord abroad who cannot return a deposit at the end of the lease faces a lease registration order, lawsuits, and possible forced sale of the property.

Key takeaway: Plan how you will fund the deposit return well before each lease ends, especially for jeonse, where the deposit can be a large share of the home’s value.

6. Managing a Korean Rental from Abroad

People

• Real estate agent: for finding tenants and drafting leases
• Property manager or trusted relative: for repairs, inspections, and tenant contact
• Tax accountant: for business registration, annual filing, and acting as tax agent

Power of attorney

• Give a specific power of attorney, notarized and apostilled (or certified at a Korean consulate), covering leasing, collecting rent, returning deposits, repairs, and dealing with the tax office. Banks and agents may ask for their own forms.

Money

• Have rent and deposits paid into a Korean account in your own name, not a relative’s account. This keeps the tax and foreign exchange records clean.
• Remitting rental income abroad generally requires showing that it is legitimate income and that Korean tax has been paid. Keep the lease, tax returns, and tax payment certificates.

Lease documents

• Use a Korean standard lease form with special terms suited to a landlord abroad, such as how notices are given, who the tenant should contact, and how repairs are approved.

7. Your Home Country’s Tax

If you live in the United States, Canada, Australia, or elsewhere, your home country will usually tax your worldwide income, including Korean rent.

• Report the Korean rent in your home country return, usually with a foreign tax credit for Korean tax paid.
• Some countries also require reporting of foreign bank accounts that hold the rent or deposits.
• Depreciation and expense rules differ between countries, so the taxable income in each country may not match.

8. Before You Rent: Special Cases

• Homes bought under the Seoul-area foreigner permit regime: foreign nationals who bought a home in the Seoul metropolitan area after August 26, 2025 under the land transaction permit regime must live in it for two years. Renting it out during that period breaches the permit conditions and can lead to enforcement levies. (See our earlier article on the foreigner land transaction permit zone.)
• Inherited homes: may increase your household’s home count and trigger other filings. (See our earlier article on finding a parent’s assets in Korea.)
• Jeonse in a falling market: if home values fall below the deposit amount, returning the deposit may require additional funds. Consider whether monthly rent or a lower deposit suits a landlord abroad better.

9. Checklist

• Confirm your Korean tax residence status
• Register as a housing rental business with the tax office
• Appoint a tax agent in Korea
• Check your household’s number of Korean homes
• Use a Korean account in your own name for rent and deposits
• Report the lease where required
• Prepare a specific power of attorney for your manager or agent
• Plan how you will return the deposit at the end of each lease
• File the Korean return by May 31, and report the rent in your home country

10. Conclusion

Renting out a Korean home from abroad is common and entirely manageable, but it comes with Korean tax obligations, multiple-home rules that affect other taxes, and strong tenant protections. The landlords who run into trouble are usually those who never registered, had no tax agent to receive notices, routed money through relatives’ accounts, or could not return a deposit on time.

With a tax agent, a clear power of attorney, rent paid into your own account, and a plan for each deposit return, a Korean rental can run smoothly however far away you live.