Real Estate Gifts to Children Soar Due to Tax Hike
29 November, 2018
Gifts of real estate to spouses and children have surged as property owners seek to minimize their tax burden following a hike aimed at stemming property speculation.
According to the Ministry of Land, Infrastructure and Transport on Wednesday, 92,178 real estate gifts were made from January to October, the highest amount since the government began tallying such figures in 2006.
They peaked at 11,179 cases in March, just before the government raised property transfer taxes in April.
In Seoul, there were 20,765 gifts of property, surging in the Gangnam, Seocho and Songpa districts of southern Seoul, which have the highest real-estate prices in the country.
Kim Jong-pil, a tax accountant, said, "The declared value of real estate is expected to surge in Seoul and other areas next year, and higher taxes are also expected for multiple-home owners. As a result, a growing number of people are considering transfers of property as gifts to avoid heavy taxes."
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