Acquiring a home in the name of a corporation can be used for asset management, rental income generation, tax benefits, etc. However, there are different regulatory and tax issues when purchasing a home in the name of a corporation than for an individual, and these should be carefully considered.
The main purpose of acquiring a house in the name of a corporation
There are four main purposes for which a corporation acquires housing. The first is the purpose of the rental business. By renting out the housing, continuous income can be generated, and long-term market price gains can be expected. The second is the purpose of asset management. The corporation's liquid assets can be converted into real assets to diversify the portfolio and spread risks. It can also be acquired for the purpose of employee welfare. By utilizing the corporate-owned housing for employee housing welfare, it can contribute to attracting and retaining talent. The last is the purpose of tax reduction. When acquiring under the corporate name, it can receive more favorable tax benefits than individuals, and it is used as part of a tax-saving strategy.
Key Tax Issues and Loan Regulations Related to Corporate Housing Acquisitions
As of 2025, the following tax issues should be considered when acquiring a home under a corporate name:
Acquisition tax is applied to corporations at a higher acquisition tax rate (12%) than to individuals, and some types of housing (when registering as a rental business) can receive a reduction benefit. Corporations have a greater burden of comprehensive real estate tax than individuals in terms of possession tax (property tax, comprehensive real estate tax), and the possibility of adjusting the tax rate must also be considered. In the case of capital gains tax, additional rates may be applied in addition to the basic rate (10~25%) when a corporation transfers a house, and the reduction benefit is limited for long-term holding.
The loan regulations applied to corporations when they acquire housing are different from those applied to individuals. Corporations are subject to lower LTV and DTI regulations than individuals, and DSR (debt service ratio) regulations are applied more strictly. In addition, corporate loans have higher interest rates than personal loans, and there are differences depending on the credit rating and collateral stability of the corporation.
Tax benefits available to corporations
If you register a house under the corporate name as a rental business operator, you can receive benefits such as acquisition tax and property tax reduction, and if you register a long-term rental, you can be exempted from some of the comprehensive real estate tax. In addition, in the case of commercial real estate, you can receive a value-added tax refund when registering a rental business, and if you invest in certain areas (innovative cities, public housing, etc.), you can receive benefits such as acquisition tax reduction.
Precautions for drafting and registering a contract
First, let's find out what to keep in mind when writing a contract.
The corporate name, business registration number, representative information, and whether the corporate seal will be used must be clearly stated. The terms of payment for the purchase price, the schedule for payment of the down payment and balance, and whether VAT will be processed must be included in the contract, and once the corporation's internal approval procedures (board of directors approval, etc.) are completed, related documents must be attached.
When proceeding with the registration procedure, you should obtain a copy of the register to confirm the rights such as mortgage, attachment, and provisional disposition, and prepare documents such as a copy of the corporate register, a copy of the business registration certificate, and a corporate seal certificate in advance. After acquisition, you should not forget to pay the acquisition tax and report the property tax and comprehensive real estate tax.
Success stories that can be utilized after acquiring corporate housing
After acquiring a home, a corporation can operate a long-term rental home to enjoy stable rental income and tax benefits, or it can purchase an outdated home and redevelop it to increase its real estate value.
There are also cases where shared office operations have created new revenue models by mixing residential and commercial spaces.
Expected changes in real estate regulations and response strategies after 2025
As the year changes, many changes are expected.
There is a possibility that the housing acquisition tax and property tax surcharge rates will be maintained or strengthened, and registration requirements for rental business operators may be strengthened or benefits may be reduced. So how should we respond to these expectations?
First, before regulations are strengthened, you should first secure housing in areas with relatively less regulations. In addition to residential real estate, it is a good idea to expand your investment areas to commercial and logistics centers.
Since this is only a prediction, it is necessary to continuously monitor changes in tax laws and real estate-related laws and adjust strategies.
Acquiring a home under a corporate name has many advantages, but it requires thorough pre-review and systematic management. A strategy is required to effectively manage real estate while minimizing legal and tax risks.
