Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified South Korea tax professional before filing.
Jeju Island, South Korea · South Korea · Short-term rental taxes
Short-Term Rental Taxes in Jeju Island, South Korea
Short term rental taxes on Jeju Island: a registered rural homestay (농어촌민박) reports its profit on the May income tax return at 6–45% plus local income tax, and handles 10% VAT or the simplified regime.
The 30-Second Answer
- Short term rental taxes on Jeju Island start with the right licence: most Jeju hosts run a rural homestay (농어촌민박업) under the Rural Community Improvement Act (농어촌정비법), reported to the city office before hosting, followed by a tax-office business registration.
- The home must be a detached or multi-household house under 230㎡ that you own and live in, and you must have lived locally for at least 6 months. Corporations cannot operate one.
- Profit is business income on the comprehensive income tax return filed 1–31 May at 6%–45%, plus local income tax of 10% of that tax. Stays carry 10% VAT, or the simplified regime if prior-year sales are under ₩104 million.
- Jeju levies no lodging tax on stays, and Airbnb does not collect Korean tax for hosts — but it now blocks bookings for Korean listings that lack a submitted registration certificate.
Deductions
What Jeju Island Hosts Can Deduct
With proper books (장부) you deduct actual homestay costs. Because you must live in the house, split shared costs between guest rooms and your own use.
Without books, income is estimated with NTS standard expense ratios rather than your real costs. Household living costs are never deductible.
Filing Calendar
Key Dates & Filing Calendar
Korea's tax year is the calendar year. General VAT taxpayers file half-yearly; simplified taxpayers file once a year.
After your first full year the NTS sends an interim income tax prepayment notice in early November, roughly half of the previous year's tax.
Ministry of Government Legislation — easylaw.go.kr (VAT and income tax filing periods)
VAT Status
Simplified or General VAT Taxpayer?
Income tax is the same for every Jeju homestay host. The decision you make at business registration is your VAT status.
Simplified taxpayer (간이과세자)
Suits most rural homestays
- Available when prior-year sales are below ₩104 million.
- VAT is calculated using an industry value-added ratio, so the effective rate is far below 10%.
- Just one VAT return a year, due 25 January.
- Input VAT on purchases is only partly recovered.
Prior-year sales under ₩104 million
General taxpayer (일반과세자)
Full 10% VAT
- Charge 10% VAT and deduct VAT paid on business purchases.
- Two VAT returns: 25 July and 25 January.
- Required once prior-year sales reach ₩104 million.
- Can pay off in a year of heavy renovation spending.
No ceiling
Depreciation
Depreciation for Jeju Homestay Assets
Korean business-income filers depreciate each asset over a standard useful life, within a permitted range set by statute.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Furniture, bedding & appliances (비품) | 5 years (range 4–6) | Beds, fridges and washers bought for guest rooms. |
| Brick, block, stone or timber house | 20 years (range 15–25) | Typical of Jeju detached houses; guest-room share only. |
| Reinforced-concrete house | 40 years (range 30–50) | Guest-room share only; land is never depreciable. |
Useful lives from Table 5 of the Corporate Tax Act Enforcement Rules, which also apply to individual business income. Because the homestay is your home, apportion building depreciation to guest use.
Korea has no separate depreciation-recapture tax. If you sell the house, capital gains tax (양도소득세) is calculated separately — ask a 세무사 how past depreciation affects your acquisition cost.
VAT & Local Taxes
Jeju Has No Lodging Tax — VAT and Local Income Tax Apply
Jeju charges no occupancy tax or lodging tax on vacation rental stays. The tax on the room price is national VAT; the local layer is local income tax on your profit.
VAT applies to the price of each stay; local income tax is charged on your taxable income. The bars compare their headline rates.
10% VAT on stays (much lower effective rate for simplified taxpayers)
easylaw.go.kr (VAT, cash receipts); Seongnam City local income tax guide
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects no Korean VAT or income tax for hosts | Declare the full booking value; keep payout and fee records |
| Booking.com / Agoda / Yanolja booking | You stay the VAT taxpayer; commissions are invoiced to you | Keep commission invoices for deductions |
| Direct booking | You charge VAT and issue cash receipts where required | Card and cash-receipt sales reach the NTS — reconcile them |
Simplified taxpayers apply an industry value-added ratio, so their effective VAT is a fraction of 10%. Lodging businesses whose prior-year revenue exceeds ₩24 million must join the cash-receipt system.
Platforms
Airbnb Tax on Jeju Island: Registration Comes First
No platform pays Korean tax for Jeju hosts. Since 2025–26 Airbnb checks that every Korean vacation rental listing has submitted its registration.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Requires your registration certificate; non-compliant listings cannot take bookings from 1 Jan 2026 | No — Korea is not on Airbnb's collect-and-remit list | Transaction history export in the host dashboard |
| Booking.com / Agoda | Commission invoices; you self-report income | No — you remain liable for VAT | Reservation and commission statements in the extranet |
| Direct bookings (and Vrbo) | No platform report; card and cash-receipt data reach the NTS | You charge VAT on each stay | Keep a monthly sales ledger |
Listing on Several Platforms?
The ₩104 million simplified-taxpayer test and your income tax use total sales across Airbnb, Booking.com, Agoda and direct stays. Keep a single ledger for the homestay.
DAC7 Is EU-Only — What Applies in Korea
DAC7 does not apply in Korea. The link between your listing and your tax file is the registration Airbnb requires on Korean listings, so declare all platform income.
Airbnb — Korea registration guide (airbnb.com/e/ppap_kr_3stepguide); Airbnb Help article 2509
Illustrative P&L: Jeju Rural Homestay on a Bookkeeping Basis
Example: a Seogwipo host earning ₩30,000,000 a year from a registered rural homestay, with no other income. Before personal deductions and credits; illustrative only — not tax advice.
Record-Keeping
Stay Audit-Ready: What Jeju Island Hosts Should Keep
Jeju hosts are checked on two fronts: the local government on homestay conditions, and the National Tax Service on VAT and income tax.
| Keep | How long | Why |
|---|---|---|
| Homestay report certificate and business registration | While operating | Airbnb needs them to keep your listing bookable |
| Proof you live in and own the house | While operating | Owner-occupation is a core rural-homestay condition |
| Books (장부) and expense receipts | At least 5 years | Lets you deduct real costs instead of standard ratios |
| VAT returns, invoices and cash receipts | At least 5 years | Supports VAT filings and the ₩104m simplified test |
| Safety-equipment and septic records | While operating | Fire, gas and wastewater conditions are checked on inspection |
Retention periods are prudent recommendations. The NTS can usually reassess within 5 years, and longer where no return was filed or fraud is involved.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational only. Confirm homestay eligibility with your Jeju City or Seogwipo City office and tax matters with the National Tax Service (nts.go.kr) and a 세무사 before filing.
- Airbnb — Rural homestay (농어촌민박업) requirements — Rural/semi-rural residential area, under 230㎡, owner-occupied, 6+ months' residence, safety kit, local-government report then tax registration. airbnb.com/e/ppap_sub2
- Airbnb — Korea business registration guide — Permitted accommodation types; registration required for existing listings by 16 Oct 2025. airbnb.com/e/ppap_kr_3stepguide
- easylaw.go.kr — pension business types — Rural homestay under the Rural Community Improvement Act (농어촌정비법). easylaw.go.kr/CSP/CnpClsMain.laf?csmSeq=1967&ccfNo=1&cciNo=1&cnpClsNo=1
- easylaw.go.kr — lodging business tax guide — 10% VAT, filing periods, ₩104m simplified threshold, 6–45% income tax, cash receipts. easylaw.go.kr/CSP/CnpClsMain.laf?csmSeq=1967&ccfNo=3&cciNo=1&cnpClsNo=3
- easylaw.go.kr — business registration and interim prepayment — Registration within 20 days; November interim prepayment. easylaw.go.kr/CSP/CnpClsMainBtr.laf?popMenu=ov&csmSeq=706&ccfNo=4&cciNo=3&cnpClsNo=1
- Seongnam City — local income tax — 0.6%–4.5% in 8 bands; due 31 May. seongnam.go.kr/city/1000937/10698/contents.do
- Corporate Tax Act Enforcement Rules, Table 5 (law.go.kr) — Useful lives: fixtures 5 yrs (4–6), brick/stone/timber 20 yrs (15–25), RC 40 yrs (30–50). law.go.kr/LSW/flDownload.do?flSeq=153979019
- Airbnb Help — where Airbnb collects and remits taxes — South Korea is not listed. airbnb.com/help/article/2509
Questions
Frequently Asked Questions: Jeju Island STR Taxes
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