Encumbered Gift Tax Calculator

Encumbered Gift Tax Calculator helps estimate Korea-related property tax, capital gains, gift, inheritance, exemption, or transfer scenarios in English.

Encumbered gift tax calculator

Uses the Korean encumbered-gift model for mortgage or jeonse debt assumed by the donee, transfer-tax portion, gift-tax portion, family debt-assumption presumption, one-house exemption on the debt transfer portion, and comparison with pure gift tax.

Korean source inputs

Encumbered total tax

₩87,592,400

Gift tax plus transfer tax on assumed debt.

Pure gift total tax

₩160,050,000

Comparison if no debt is assumed.

Savings

₩72,457,600

Encumbered route is cheaper.

Gift tax payable

₩77,600,000

Rate band 1억 초과 ~ 5억원.

Transfer tax payable

₩9,992,400

5,000만원 초과 ~ 8,800만원

Effective burden

10.9%

Total tax divided by appraised value.

This English calculator calls the same pure real-estate calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic stub.

Related calculators

Encumbered gift tax calculator

This English guide follows the Korean encumbered-gift calculator for debt-assumed gifts, transfer-tax allocation, gift-tax allocation, and pure-gift comparison.

Debt portion and gift portion

In an encumbered gift, the donee assumes mortgage debt, jeonse deposit, or another debt attached to the property. The assumed debt is treated as a paid transfer to the donor under Income Tax Act Article 88(1) and Enforcement Decree Article 159, while the debt-excess value is treated as a gift under Inheritance and Gift Tax Act Article 47(1).

For example, an KRW 800 million house with a KRW 300 million jeonse deposit gifted to a child has a KRW 300 million transfer portion and a KRW 500 million gift portion. Jeonse deposit is included as debt under Enforcement Decree Article 36(1).

Gift tax and transfer tax

Gift deductions include spouse KRW 600 million, adult lineal descendant KRW 50 million, and minor lineal descendant KRW 20 million, with progressive gift tax rates from 10 to 50 percent.

If the donor one-house exemption applies, the debt-transfer portion can be exempt. A sale price up to KRW 1.2 billion can have zero transfer tax when conditions are met; over KRW 1.2 billion, only the excess portion is taxed and the one-house long-term deduction table can reach 80 percent.

Proof risk

Family encumbered gifts are presumed not to have an actual debt assumption under Inheritance and Gift Tax Act Article 47(3), so objective proof is needed. If the donor keeps paying interest or principal, the debt assumption can be denied.

The donee also pays acquisition tax on the gift portion and the paid-debt portion separately. The calculator compares encumbered gift tax against pure gift tax, but actual reporting should be reviewed with debt documents and payment evidence.