Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified South Korea tax professional before filing.
Seoul, South Korea · South Korea · Short-term rental taxes
Short-Term Rental Taxes in Seoul, South Korea
Short term rental taxes in Seoul: registered foreign-tourist homestays report profit on the May income tax return (6–45% plus local income tax) and charge 10% VAT or use the simplified regime.
The 30-Second Answer
- Short term rental taxes in Seoul start with registration: a legal Airbnb-style stay is normally a Foreign-Tourist Urban Homestay (외국인관광 도시민박업) registered with your gu office, followed by a business registration with the tax office within 20 days of starting.
- Profit is business income on the comprehensive income tax return at 6%–45%, filed 1–31 May, plus local income tax of 0.6%–4.5% paid to the city.
- Stays carry 10% VAT; hosts whose prior-year sales are under ₩104 million can be simplified taxpayers who file once a year by 25 January.
- Airbnb now blocks bookings for Korean listings without a submitted registration certificate (from 1 January 2026), and from 4 August 2026 homestays must post their room rates or risk a 5-day suspension.
Deductions
What Seoul Hosts Can Deduct
With books (장부) you deduct actual business costs from homestay revenue. Because you must live in the home, split shared costs between guest use and your own.
Without books, income is estimated using NTS standard expense ratios instead of your real costs. Personal living costs are never deductible, even in an owner-occupied homestay.
Filing Calendar
Key Dates & Filing Calendar
Korea's tax year is the calendar year. VAT runs on half-year periods for general taxpayers and one annual period for simplified taxpayers.
The NTS issues an interim prepayment notice for income tax in early November — roughly half of the previous year's tax. Budget for it after your first full year.
Ministry of Government Legislation — easylaw.go.kr (VAT and income tax filing periods)
VAT Status
Simplified or General VAT Taxpayer?
Income tax works the same way for every homestay host. The real choice at business registration is your VAT status, which drives your filing load and cash cost.
Simplified taxpayer (간이과세자)
For smaller homestays
- Available when prior-year sales are under ₩104 million.
- VAT is computed with an industry value-added ratio, so the effective rate is well below 10%.
- One VAT return a year, due 25 January.
- VAT paid on purchases is only partly credited — less helpful during a big refit.
Prior-year sales under ₩104 million
General taxpayer (일반과세자)
Standard 10% VAT
- Charge 10% VAT on stays and deduct VAT paid on business purchases.
- Two VAT returns a year: 25 July and 25 January.
- Applies once prior-year sales reach ₩104 million.
- Suits hosts with large VAT-bearing costs such as renovation.
No ceiling
Depreciation
Depreciation for Seoul Homestay Assets
Korea sets a standard useful life with a permitted range for each asset class; business-income filers depreciate within that range.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Furniture, appliances & fixtures (비품) | 5 years (range 4–6) | Beds, sofas, fridges and washers bought for the homestay. |
| Reinforced-concrete building (apartment) | 40 years (range 30–50) | Guest-use share only; land is never depreciable. |
| Brick, block or timber building | 20 years (range 15–25) | Typical of older detached or multi-household homes. |
Useful lives from the Corporate Tax Act Enforcement Rules, Table 5, which also govern individual business income. Because you live in the home, apportion building depreciation to the guest-use share.
Korea has no separate depreciation-recapture tax. On a sale, capital gains tax (양도소득세) is computed separately, and depreciation already deducted as a business expense generally reduces your acquisition cost.
VAT & Local Taxes
Seoul Has No Lodging Tax — VAT Does the Work
Seoul levies no occupancy tax or lodging tax on guest stays. The tax on the room price is national VAT; the local layer is local income tax on your profit.
The bars compare the headline rates Seoul hosts meet. VAT applies to the price of each stay; local income tax is a percentage of your taxable income.
10% VAT on stays (lower effective rate for simplified taxpayers)
Ministry of Government Legislation — 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 does not collect Korean VAT or income tax for hosts; the host declares the full booking value | Record gross payouts plus Airbnb fees; keep the booking record |
| Booking.com / Agoda booking | Host remains the VAT taxpayer; commissions are invoiced to you | Keep commission invoices to support deductions |
| Direct booking | Host charges VAT and issues cash receipts where required | Card and cash-receipt sales are visible to the NTS — reconcile them to your books |
Simplified taxpayers apply an industry value-added ratio, so the 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 in Seoul: Registration Is the Gatekeeper
No platform remits Korean tax for Seoul hosts. What changed in 2025–26 is that Airbnb now checks your registration before it takes bookings for your vacation rental.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Requires your accommodation registration certificate; unregistered 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 to you; you self-report the income | Host remains liable for VAT — check any tax settings in the extranet | Reservation and commission statements in the extranet |
| Direct bookings (and Vrbo) | No platform report; card and cash-receipt data reach the NTS | Host charges VAT on each stay | Keep your own monthly sales ledger |
Listing on Several Platforms?
The ₩104 million simplified-taxpayer limit and your income tax are based on total sales across Airbnb, Booking.com, Agoda and direct stays — not per platform. Keep one ledger for the homestay across every channel.
DAC7 Is EU-Only — What Applies in Korea
The EU's DAC7 directive does not apply in Korea. The practical link between your listings and your tax file is the registration Airbnb now requires on every Korean listing, so assume platform income is traceable and declare all of it.
Airbnb — Korea registration guide (airbnb.com/e/ppap_kr_3stepguide); Airbnb Help article 2509
Illustrative P&L: Seoul Homestay on a Bookkeeping Basis
Example: a Mapo-gu host earning ₩36,000,000 a year from foreign guests in a registered homestay. Before personal deductions and credits; illustrative only — not tax advice.
Record-Keeping
Stay Audit-Ready: What Seoul Hosts Should Keep
Seoul hosts are checked from two sides — the gu office on registration conditions and the National Tax Service on income and VAT.
| Keep | How long | Why |
|---|---|---|
| Guest records showing foreign nationality | While operating + 5 years | Proves you host foreigners only, a core homestay condition |
| Books (장부) and expense receipts | At least 5 years | Needed to deduct actual costs instead of standard expense ratios |
| VAT returns, invoices and cash-receipt records | At least 5 years | Backs VAT returns and the ₩104m simplified-taxpayer test |
| Homestay registration and business registration certificates | While operating | Airbnb requires them for bookings; the gu office checks them on inspection |
| Posted room-rate notice and booking prices | While operating | Charging above the posted rate risks a 5-day suspension from Aug 2026 |
Retention periods are prudent recommendations. The NTS can generally 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. Korea's homestay rules are moving fast — the plan to allow domestic guests in shared stays is a proposal, not law. Confirm with your gu office, the National Tax Service (nts.go.kr) and a 세무사 before filing.
- Airbnb — Korea business registration guide — Registration required for new listings (Oct 2024), existing listings (16 Oct 2025); bookings blocked from 1 Jan 2026. airbnb.com/e/ppap_kr_3stepguide
- Airbnb — Foreign-Tourist Urban Homestay requirements — Eligible homes, under 230㎡, host residence, foreigners only, gu registration. airbnb.com/e/ppap_sub1a
- MCST press release — homestay regulation rationalisation (10 Oct 2025) — mcst.go.kr/site/s_notice/press/pressView.jsp?pSeq=22047
- Seoul Shinmun — rate-posting rule effective 4 Aug 2026 — Tourism Promotion Act Enforcement Decree amendment; 5-day suspension. seoul.co.kr/news/life/travel-news/2026/07/28/20260728500107
- easylaw.go.kr — lodging business tax guide (Ministry of Government Legislation) — 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
- 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), RC buildings 40 yrs (30–50), brick/timber 20 yrs (15–25). 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: Seoul STR Taxes
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