NTS Launches Tax Probe Against Foreigners Who Own Multiple Homes

Reporter Rosyn Park ㅣ 2020-08-03 13:54

A view of the apartment complexes that cover the affluent Gangnam District, which is home to some of the most expensive real estate in Seoul.

The National Tax Service has launched a probe into 42 foreigners who own multiple homes as part of government-led efforts to curb skyrocketing real estate prices in the Seoul metropolitan area.

According to the NTS on Monday, among those who are being investigated is a U.S. citizen who purchased 42 homes for a total 6.7 billion won since 2018.

The American is said to have rented out the homes to collect money but underreported the rental income to evade taxes.

In another case, a Chinese national with a student visa bought eight homes but failed to report related rental income.

Between 2017 and May this year, 1,036 foreigners have purchased more than two homes in South Korea.

The NTS said of the 23,167 homes purchased by foreigners, nearly 38 percent were not occupied by them.

The agency suspects speculative investment is the leading motive behind why these foreigners own multiple homes.