The government has announced a policy to reduce housing acquisition tax for households with newborn babies. In other words, it has decided to exempt households who purchase houses after giving birth from housing acquisition tax of up to 5 million won.
the birth of a newborn baby 신생아 취득세 감면
the birth of a newborn baby
Confirming the 2023 Special Cases for Newborns!
Table of Contents
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1. Newborn Childbirth Household Housing Acquisition Tax Reduction
2. Newborn childbirth acquisition tax reduction targets
3. Details of Newborn Childbirth Acquisition Tax Reduction
4. Check and apply for the date of application of acquisition tax reduction
5. Method and calculation of acquisition tax
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1. Newborn Childbirth Household Housing Acquisition Tax Reduction
In 2024, the government announced a policy that integrated housing acquisition tax breaks with special loans for newborns. Under the new government policy, newborn households can be completely exempted from acquisition tax of up to W5 million if they purchase a house through special loans for newborns. This allows them to purchase a house at a low interest rate of 1 percent and benefit from acquisition tax at the same time.
2. Newborn childbirth acquisition tax reduction targets
From Jan. 1, 2024 to Dec. 31, 2025, the housing acquisition tax reduction policy for newborn babies will be implemented. The policy is 100% exempted from the W5 million limit, which is designed to significantly reduce the cost of acquiring homes for babies and provide better parenting environments. Notable details are as follows:
Qualification Requirements
Households that gave birth to children between January 1, 2024 and December 31, 2025 are eligible.
This is the case when you acquire a house for the purpose of actually living with your child.
This applies to the case of acquiring a house within one year before and five years after the child’s birth date.
Each household must have one householder.
special note
Homes that have already been acquired are also subject to the policy, provided that they have given birth within one year from the date of acquisition.
You can also receive a reduction if you give birth within five years of acquiring a house.
3. Details of Newborn Childbirth Acquisition Tax Reduction
The Housing Acquisition Tax for Newborn Households is a new system that exempts 100 percent of acquisition taxes up to W5 million. The main advantage of this policy is that there are no special requirements related to the value of a home or income. Therefore, the policy provides even greater benefits for new born households and works favorably in terms of reducing the burden of acquiring a home.
4. Check and apply for the date of application of acquisition tax reduction
The acquisition tax reduction will take effect after January 1, 2024, when the tax obligation is established, and the exact application process has not yet been announced. However, similar to the first-in-a-lifetime home acquisition tax reduction, the expected application method is as follows:
Preparing documents:
A copy of the resident registration (extract)
Family Relationship Certificate (Details)
application form
Additional documents (required for acquisition):
a contract of sale
Certificate of completion of reporting of real estate transaction contract
a copy of a bank account
Where to apply:
the competent tax department or the relevant local tax office
5. Method and calculation of acquisition tax
Housing Acquisition Tax Calculator!
When purchasing a house or apartment, acquisition tax is levied according to the price of the property. The acquisition tax depends on the price of the house, especially for houses under 600 million won, the acquisition tax rate is 1%, and an additional 0.1% of local education tax is levied.
For example, if you buy a house less than 500 million won, the acquisition tax is calculated as 5 million won. This means that for households with newborn babies, the acquisition tax is zero won.
In addition, if the purchase amount exceeds 600 million and is less than 900 million, the acquisition tax rate rises from 1% to 3%, and the local education tax rises from 0.1% to 0.3%. For houses exceeding 900 million, the acquisition tax rate is 3%, and the local education tax is 0.3%.
In addition, an additional 0.2% farming and fishing village special tax will be levied if the dedicated area exceeds 85 m2. Understanding these tax rates and tax standards can help minimize the burden on purchasing a property and make an efficient financial decision.
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