Housing Subscription Savings Deduction (주택청약저축 소득공제) for Foreign Residents in Korea

A 2025 reform to Korea's income tax rules extended the housing subscription savings deduction (주택청약저축 소득공제) from head-of-household filers only to also include the spouse. For foreign residents married to a Korean national, this is the first time the deduction has been within reach.

Before going further: the exact eligibility wording for foreigners has not been verified from the primary statute. This guide explains what the reform is and how to claim it if you qualify, but you should confirm your specific situation with the National Tax Service (NTS) or a tax professional before relying on this deduction.

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What the deduction is

A housing subscription savings account (주택청약저축) is a bank account that serves two purposes. First, it is the required entry vehicle for Korea's public housing subscription lottery (청약), where residents apply to purchase new apartments built by government-affiliated developers. Second, contributions to the account are deductible from taxable income under certain conditions.

The deduction works like this: 40% of what you contribute in a calendar year is removed from your taxable income, up to a maximum deduction of ₩3M per year. Because it reduces taxable income rather than directly reducing your tax bill, the cash benefit depends on your marginal rate. At the 16.5% rate that applies to many mid-range salaries, the maximum annual saving is approximately ₩495,000.

This is not a large amount on its own. But it sits on top of other year-end settlement deductions (rent tax credit, credit card deduction, and others), and for residents who already hold the account for housing lottery purposes, the incremental effort to claim it is minimal.

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The 2025 reform: what changed

Before 2025, only the head of household (세대주) in a Korean household could claim this deduction. In Korean administrative practice, the head of household is the person registered as the primary householder under Korea's resident registration system, most commonly the Korean spouse in a mixed-nationality household.

The 2025 reform added the spouse to the list of eligible claimants. This change is significant for two groups: Korean spouses in households where the foreign resident holds the savings account, and foreign residents who hold the account in their own name and are the spouse of a Korean national who is registered as head of household.

The reform applies to contributions made from the 2025 tax year onward. It first became claimable at the January 2026 year-end settlement cycle.

Important caveat: the exact language of the reform in the income tax enforcement decree (소득세법 시행령) was not reviewed for this guide. The reform is confirmed from two English-language news sources reporting on the 2026 settlement cycle. If there are additional conditions, including any visa-type restriction, that detail would appear in the statute, not in news coverage. Confirm the exact rule with NTS before claiming.

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Who qualifies

To claim the deduction, you must meet all four conditions at the same time:

1. Korean tax resident. You must have been in Korea for 183 or more days in the calendar year. Most foreign residents on employment or residence visas with continuous stay will satisfy this.

2. Total annual salary at or below ₩70M. This is the gross wage income ceiling. Workers above ₩70M do not qualify (as of 2025, verify at hometax.go.kr).

3. No home owned. You must not own a home as of the time of the deduction claim. If you own property jointly with a spouse, check whether this disqualifies you; the NTS applies its own ownership definition for this purpose.

4. Account holder. You (or your spouse, as registered head of household) must hold a housing subscription savings account (주택청약저축) at a Korean bank.

For most foreign residents, the qualifying path following the 2025 reform is: foreign resident is married to a Korean national, the Korean national is registered head of household, and the foreign resident holds a savings account in their own name. However, the exact combinations the statute permits have not been confirmed from the primary legal text. The conservative approach is to verify before claiming.

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The dual purpose of the savings account

If you already hold a housing subscription savings account for lottery purposes, there is nothing extra to open. The same account generates both the lottery eligibility and the potential tax deduction.

If you do not hold an account and are considering opening one specifically for the deduction, weigh the benefit against the other conditions. You will need to deposit enough each year for the deduction to be meaningful. The maximum deduction of ₩3M per year corresponds to annual contributions of ₩7.5M (because 40% of ₩7.5M is ₩3M). Depositing less generates a proportionally smaller deduction. Contributing ₩2M per year, for example, generates an ₩800,000 deduction, worth roughly ₩132,000 in tax at the 16.5% rate.

Whether the account makes sense depends on whether you also want access to the public housing lottery, not just the deduction. Housing subscription lotteries are a long-term play. Accounts accumulate priority points over time, and the most competitive lottery entries typically go to applicants with many years of contribution history.

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How to claim it at year-end settlement

Year-end tax settlement (연말정산) runs in January each year through your employer. Here is the process:

Step 1: Confirm eligibility. Before anything else, verify the four conditions above. If you are unsure whether the spouse-of-head-of-household rule applies to your visa or residency situation, contact NTS (1544-9944) or ask your HR team.

Step 2: Obtain your savings certificate. Visit the bank where your housing subscription savings account is held and request a housing subscription savings contribution certificate (주택청약납입증명서). Most major banks (KB Kookmin, Shinhan, Woori, Hana, NH Nonghyup) issue this through their internet banking portal or branch. The certificate shows your total contributions for the calendar year.

Step 3: Submit to your employer. Your employer's HR or payroll team will have a year-end settlement document submission window, typically mid-to-late January. Submit the savings certificate along with your other deduction documents (rent tax credit receipts, medical receipts, and so on).

Step 4: Review your settlement result. After your employer processes the settlement, you will receive a withholding receipt (근로소득 원천징수영수증) showing your final tax position for the year. Confirm the deduction appears. If it is missing and you believe you qualify, follow up with HR before the settlement window closes.

Self-employed workers and those not subject to employer-administered year-end settlement claim deductions through the annual comprehensive income tax return (종합소득세 신고), filed in May for the prior tax year.

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What this deduction is not

Not a direct cash transfer. The deduction reduces your taxable income. It does not put ₩495,000 into your account. The tax saving appears as a reduced tax liability, or a refund if more tax was withheld than owed.

Not a visa-based entitlement. The deduction is tied to tax residency, income level, home ownership status, and account holding, not to your visa type. However, visa type may be relevant to how the statute defines eligibility for the spouse extension. This is the gap that requires verification.

Not retroactive. Contributions made in years before the 2025 reform cannot be retroactively claimed under the new spouse eligibility rule.

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The verification caveat, stated plainly

Two English-language news sources from January 2026 report that the 2025 reform extends the deduction to spouses and that foreign workers married to Korean nationals are a beneficiary group. That reporting has not been cross-checked against the actual 소득세법 시행령 amendment text.

Specific things not confirmed from statute:

• Whether the reform covers all foreign-resident spouses or only those holding particular visa categories
• Whether any additional documentation (such as proof of spousal household registration) is required beyond the standard savings certificate
• Whether there is any cap or phase-out on the amount that applies differently to foreigners

If these details matter to your filing, the right step is a direct inquiry to NTS: call 1544-9944 (Korean) or visit a tax office with your ARC and marriage certificate. The NTS also publishes an annual guide for foreigners on year-end settlement in English, available at nts.go.kr.

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FAQ

Can foreign residents in Korea claim the housing subscription savings deduction?

Possibly, following a 2025 reform. The reform extended eligibility from the head of household only to also include the spouse. In practice, this opens the deduction mainly to foreign residents who are married to a Korean national and hold a housing subscription savings account in their own name. The exact eligibility language for foreigners has not been confirmed from the underlying statute (소득세법 시행령). Verify your specific situation with the National Tax Service (NTS) or a tax professional before claiming it.

How much can I deduct, and how much will I actually save?

You can deduct 40% of your annual contributions to a housing subscription savings account (주택청약저축), up to a maximum deduction of ₩3M per year. At a marginal income tax rate of 16.5%, that maximum deduction saves approximately ₩495,000 in tax. The actual saving depends on your marginal rate. This is a deduction from taxable income, not a direct credit.

What are the conditions to qualify?

You need to meet all four conditions: be a Korean tax resident (183 or more days in the calendar year), have total annual salary at or below ₩70M, not own a home, and hold a housing subscription savings account (or your spouse, as head of household, holds one). The 2025 reform added spouses to the eligible group. All four conditions must be satisfied.

How do I claim the deduction?

The deduction is claimed at year-end tax settlement (연말정산) in January through your employer. Before the settlement window closes, obtain a housing subscription savings certificate (주택청약납입증명서) from the bank where your account is held. Submit this to your employer's HR or payroll team as part of your year-end settlement documents. The employer adjusts your tax withholding accordingly.

What is a housing subscription savings account used for beyond the deduction?

A housing subscription savings account (주택청약저축) has two purposes. First, it is the entry vehicle for Korea's public housing subscription lottery (청약), where you apply to purchase new apartments built by government-affiliated developers. Second, and separately, it generates this income deduction if you meet the eligibility conditions. The account is held at Korean banks including KB Kookmin, Shinhan, Woori, and others.

Does this deduction apply to contributions made before 2025?

The 2025 reform, which extended eligibility to spouses, applies to contributions made from the 2025 tax year onward. It first becomes claimable at the January 2026 year-end settlement cycle. Contributions made in prior years under the old head-of-household-only rule would not have been eligible for spouses under the previous rules.

What if I am not sure whether I qualify?

Do not claim the deduction before verifying. The exact foreign-eligibility carve-out was not confirmed from the primary statute text for this guide. Contact the NTS directly via their multilingual helpline (1544-9944) or visit a tax office. If your employer has an HR team familiar with foreigner year-end settlement, ask them to confirm the eligibility condition in your specific case before submitting the certificate.

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What to do next

1. Check whether you hold a housing subscription savings account (주택청약저축). If yes, look up the account at your bank and confirm your total contributions for 2025.
2. Verify the four eligibility conditions: 183 or more days in Korea, salary at or below ₩70M, no home owned, account held in your name or your head-of-household spouse's name.
3. If you are uncertain about the foreign-resident eligibility carve-out, call NTS at 1544-9944 or bring your ARC and marriage certificate to a local tax office before the January settlement window.
4. If you qualify, obtain the savings certificate from your bank and submit it to your employer during year-end settlement.
5. For a broader picture of what you may be eligible to claim at year-end settlement and beyond, see the year-end tax settlement guide.

What's changed

• 2026-05-28: Guide first published covering the 2025 reform, eligibility conditions, how to claim, and the foreign-resident verification caveat.

@misc{seoulstart-korea-housing-subscription-deduction-guide,
  author = {{Seoulstart Editorial Team}},
  title = {{Housing Subscription Savings Deduction (주택청약저축 소득공제) for Foreign Residents in Korea (2025)}},
  year = {2026},
  publisher = {Seoulstart},
  url = {https://seoulstart.com/guides/korea-housing-subscription-deduction-guide},
  note = {Last updated May 28, 2026}
}