East Asia · Asia

South Korea

51moderate

Overall Score

South Korea is a East Asia jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 24%. The jurisdiction offers a digital nomad visa for qualifying individuals.

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Corporate Tax

24%

Personal Income Tax

50%

Capital Gains

25%

VAT / GST

10%

Overview

Key Data

Taxation

Personal Income Tax (max)50%

Personal Income Tax (min)7%

Corporate Tax Rate24%

Capital Gains Tax25%

VAT / GST10%

Dividend Tax Rate15%

Withholding Tax22%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesYes

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaYes

Golden VisaNo

Retirement VisaNo

Investment VisaYes

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index65/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easegood

Internet Qualityexcellent

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in South Korea is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. Controlled Foreign Corporation (CFC) rules are in force. Residents who own or control foreign entities may face attribution of that entity's undistributed profits under local anti-avoidance provisions.

National income tax 6–45% + 10% local = 6.6–49.5%. Corporate 9–24% + 10% local = 9.9–26.4%. Listed shares CGT: 0% for small shareholders; 20–25% for large holders. Workcation Visa (digital nomad) launched 2023 (up to 2 years). D-8 visa for corporate investors.

Company Setup & Business Taxation

The standard corporate income tax rate is 24%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Account opening in South Korea can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet infrastructure is excellent, with widespread fibre broadband and reliable mobile connectivity across urban and suburban areas.

Compliance & International Reputation

South Korea is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, South Korea ranks highest for Digital Nomad and Founder / Entrepreneur. It offers a reasonable proposition for digital nomad (score: 53/100). It offers a reasonable proposition for founder / entrepreneur (score: 52/100). It scores lower for freelancer and high net worth individual, who may find other jurisdictions more suitable for their specific requirements.

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.