Gyeonggi-do Expands Real Estate Acquisition Tax Reduction for Foreign-Invested Companies from 7 to 15 Years

Gyeonggi Provincial Government Gwanggyo New Office Building

Gyeonggi Province is significantly extending the acquisition tax exemption period for foreign-invested companies from the existing 7 years to 15 years to revitalize the local economy and create new jobs.

On the 10th, Gyeonggi Province announced that the 'Partial Amendment to the Gyeonggi Province Local Tax Reduction Ordinance' passed the Gyeonggi Provincial Council plenary session on the 27th of last month and will be promulgated on the 17th.

The amendment mainly expands the acquisition tax exemption period and exemption rate for business real estate acquired or transferred by foreign-invested companies. However, only foreign-invested companies that have received tax reduction decisions from the government by December 31, 2025, are eligible for the related benefits.

First, the full acquisition tax exemption period for business real estate for foreign-invested companies will be extended to 15 years. Previously, when foreign-invested companies purchased real estate for investment, the acquisition tax exemption period was fully exempted for up to 7 years and 50% exempted from the 8th to the 10th year. With this ordinance amendment, foreign-invested companies in the province will be exempt from acquisition tax on business real estate for the next 15 years starting this year.

Additionally, when foreign-invested companies acquire factories or facilities from existing businesses (business transfer), the acquisition tax exemption period will increase by 2 years from the existing 5 years to 7 years. A 30% exemption will be applied from the 8th to the 10th year.

The province expects that this ordinance amendment will also boost Governor Kim Dong-yeon's goal of attracting 100 trillion won in domestic and foreign investment during his term.

The province is striving to create an innovative ecosystem in Gyeonggi Province by attracting domestic and foreign advanced companies and research institutions to foster high-tech industries such as the semiconductor industry, future vehicles, and bio-health industries.

An innovative ecosystem refers to a virtuous cycle structure that achieves innovation by combining advanced knowledge and industrial ecosystems through research and development.

The province plans to continuously ease entry barriers for foreign investment to expand the attraction of advanced foreign companies and create a global innovation ecosystem by attracting world-class companies.

Choi Won-sam, head of the Provincial Taxation Division, said, "The expansion of local tax exemptions is expected to have significant economic effects, including attracting foreign companies to invest in the province and creating new jobs. Considering the prolonged economic downturn recently, we will actively work on revitalizing the local economy through institutional improvements by continuously identifying areas that require ordinance amendments."

This content was produced with the assistance of AI translation services.