It was revealed that last year’s apartment donation was the highest ever, as measures to raise high-intensity real estate taxes aimed at multi-homed people followed.
According to the current status of apartment transactions at the Korea Real Estate Agency on the 19th (as of the date of notification), the number of apartment donations nationwide last year was 91,866, which is the largest since 2006 related statistics were released.
The number of national apartment donations decreased from 65,000 in 2018 to 64,390 in 2019, and increased by 43% last year.
In particular, the number of apartment donations in Seoul last year reached 23,675 last year, a sharp increase of 1.9 times compared to the previous year (12,514 cases), a record high.
Among the 25 districts in Seoul, the most donated apartments were in Songpa-gu (2,776 cases), Gangdong-gu (2,678 cases), Gangnam-gu (2,193 cases), and Seocho-gu (2,000 cases). Appeared.
In Gangseo-gu (867 cases), the number of apartment donations increased 3.7 times compared to the previous year (235 cases).
Last year, among apartment transactions such as sale, judgment, exchange, donation, sales right, resale of sales rights, and transfer of other ownership rights, the share of donations was highest in Seocho-gu (26.8%), Songpa-gu (25.4%), and Gangdong-gu (22.7%). It means that one out of four apartment deals in these areas last year was donated.
Not only in Seoul, but also in Gyeonggi and Incheon last year, respectively, with 26,637 and 5,739 apartment donations, respectively, the highest annually.
The number of apartment donations (56,51) in the metropolitan area (Seoul, Gyeonggi, and Incheon) accounted for 61% of the nationwide donations.’
As such, the nationwide craze for donating apartments, centered on the metropolitan area, is interpreted as the government’s high-strength real estate tax increase measures aimed at multi-homed people last year.
In the July 10 measures last year, the government raised the highest tax rate for multi-homed people from 3.2% to 6.0%, and the highest rate of capital gains tax from 42.0% to 45.0%. This took effect in January of this year.
Last year, the largest number of gifts nationwide was July (14,153 cases), and this is the first time that gifts exceeded 10,000 cases per month.
This is because even after the government announced the July 10 countermeasures, it issued a revised bill of the local tax law that would increase the acquisition tax rate to be paid by the beneficiary from 3.5% to a maximum of 12.0% in the case of donating houses of 300 million won or more in the target area in the same month.
After that, until just before the amendment on August 11 was processed, the donations of apartments to avoid excessive taxation were concentrated.’
Immediately after related measures were taken out one after another, the number of national apartment donations decreased to 8,668 in August, 7299 in September, and 6,775 in October. However, it has increased for the last two consecutive months, with 9,619 cases in November and 9,898 cases in December.
Byung-tak Woo, head of the Real Estate Investment Advisory Center of Shinhan Bank, said, “In the market, the sentiment that apartment prices will continue to rise in the future, so donations between families are increasing.” “Because there are many cases where the tax is less when giving gifts than when selling apartments. It is also,” he analyzed.
Currently, the gift tax rate (10-50%) is lower than the transfer tax rate (16-65%) for multi-homed people.
As a result of simulating the difference between the transfer tax and the gift tax (spouse donation), team leader Woo sells 84㎡ for Mapo Raemian Prugio, which was purchased for 1 billion won in Ahyeon-dong, Mapo-gu, Seoul, for 1 billion won 5 years ago. Before the 1st of the month), a transfer tax of 333,215,6,440 won is required, and after that, a transfer tax of 4,352,1,140 won.
On the other hand, for a simple gift to a spouse, you only need to pay a gift tax of 271.6 million won.
Accordingly, Rep. Yoon Hu-deok of the Democratic Party, who is the chairman of the National Assembly’s Planning and Finance Committee, said that the number of expedient gifts for multi-homed people to avoid tax burdens is increasing rapidly, and recently delivered a proposal containing measures to introduce a gift tax surcharge to the government.
Team leader Woo said, “The trend of increasing donations during and before the implementation of the transfer income tax for multi-homed people in June this year will continue,” and said, “In order to expand sales in the market, an incentive plan to exclude heavy transfer tax temporarily rather than a gift tax premium is more efficient.”
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