Key takeaways
- You are a Korean tax resident if you have a domicile in Korea or a residence for 183 days or more in a tax year; from 1 January 2026, 183 consecutive days spanning two tax years also makes you resident.
- Foreign residents who have lived in Korea for five years or less in the last ten are taxed on Korea-source income, plus foreign income only if it is paid by a Korean entity or transferred to Korea – a remittance-style rule.
- Rates are progressive from 6% to 45%, plus local income tax of 10% of the national tax (top combined 49.5%); foreign employees may elect a flat 19% rate (plus local tax) for up to 20 consecutive years from the start of employment in Korea (the 2026 tax reform bill proposes raising it to 21% for income from January 2027, subject to adoption by the National Assembly).
Last reviewed: October 2026
South Korea attracts engineers, researchers and remote workers – it also introduced a workcation (digital nomad) visa in 2024. Its tax system has features that matter a lot for newcomers: the five-year remittance rule and the optional flat rate for foreign employees. This guide covers residence, rates and practical steps for 2026.
South Korea tax residency – key figures (2026)
| Item | Rule |
|---|---|
| Residence tests | Domicile in Korea; residence ≥ 183 days in a tax year; consecutive 183 days over two tax years (from 2026) |
| Deemed residence | Occupation requiring 183+ days, accompanying family or substantial assets in Korea |
| Foreign residents ≤ 5 years in 10 | Korea-source income + foreign income paid in or remitted to Korea |
| Progressive rates | 6% to 45% (45% above KRW 1 billion) |
| Local income tax | 10% of national income tax |
| Flat rate option (foreign employees) | 19% on gross salary (20.9% with local tax) for up to 20 years; proposed increase to 21% |
| Workcation (digital nomad) visa | F-1-D, for remote workers employed abroad (income of about USD 5,500 a month or more); no specific tax exemption |
Who is a Korean tax resident?
- Domicile: your home, family and assets indicate a permanent base in Korea.
- 183 days in a tax year (calendar year).
- New in 2026: residence for 183 consecutive days spanning two tax years also makes you resident – closing a gap for people arriving mid-year.
- Deemed residence: if your job requires 183+ days in Korea, or your family accompanies you, or you hold substantial assets in Korea. Residence is assessed on facts and circumstances; Koreans working abroad with family and property in Korea may remain resident.
If you are also resident elsewhere, the tax treaty tie-breaker decides.
How foreign residents are taxed
Short-term foreign residents (≤ 5 years in the last 10): taxed on Korea-source income; foreign-source income is taxable only if paid by a Korean entity or transferred to Korea. Keeping foreign investment income abroad keeps it outside Korean tax.
Long-term residents (> 5 years): taxed on worldwide income.
Rates (national): 6% up to KRW 14 million; 15% to 50 million; 24% to 88 million; 35% to 150 million; 38% to 300 million; 40% to 500 million; 42% to 1 billion; 45% above – plus 10% local income tax.
Flat rate for foreign employees: foreign nationals working in Korea can elect a flat 19% rate on their gross employment income (without deductions) for up to 20 consecutive years from the start of work – usually attractive for high earners.
Example: A French engineer earning KRW 200 million joins a Seoul company. Under progressive rates (with deductions) her national tax would reach the 38% bracket; electing the 19% flat rate on gross salary, plus 1.9% local tax, could reduce her bill. Her French dividends left in France are not taxed in Korea during her first five years.
How to become resident
- Obtain a visa: E-7 (professional employment), D-8 (investment/startup), F-1-D workcation for remote workers employed abroad, or others.
- Register with immigration within 90 days and obtain an Alien Registration Card.
- Register your address and, if working, your employer withholds tax monthly; file a year-end settlement or a May tax return.
Frequently asked questions
How do I become a tax resident in South Korea?
By having a domicile in Korea or a residence of 183 days or more in a tax year. From 2026, 183 consecutive days spanning two tax years also makes you resident. Accompanying family or substantial assets in Korea can create deemed residence.
Are foreigners taxed on worldwide income in Korea?
Only after more than five years of residence in the last ten. Before that, foreign residents are taxed on Korea-source income and on foreign income paid by Korean entities or transferred to Korea.
What is the flat tax rate for foreigners in Korea?
Foreign employees can elect a flat 19% rate on gross employment income, plus 10% local income tax, for up to 20 consecutive years from the start of work in Korea.
What are the income tax rates in South Korea?
National rates are progressive from 6% to 45%, with local income tax of 10% of the national tax, giving a top combined rate of 49.5%.
Related guides
Sources
- PwC Worldwide Tax Summaries – Korea: Residence
- PwC Worldwide Tax Summaries – Korea: Taxes on personal income
- National Tax Service (nts.go.kr); Korea Immigration Service
This guide is general information, not personalised tax advice.
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