When Your Residency Status Changes — and How Taxation Changes With It

Departure takes a day — but your new tax status starts the very next one.

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A resident foreign national becomes a non-resident on the day after (1) departing Korea to relocate their domicile/residence abroad, or (2) an event occurs that eliminates their domestic domicile. Conversely, a non-resident typically becomes a resident from the date of entry, or immediately if it is clear from the outset that the stay will last 183 days or more.

The scope of taxation itself changes with status. Residents are taxed on worldwide income through comprehensive (global) taxation. Non-residents are taxed only on Korean-source income, and if they have no domestic place of business or real estate income, that tax liability is typically settled entirely through withholding (separate taxation) with no further filing required.

What to check when your status changes

Record the exact departure date (status changes the day after)
Split the transition-year income into the resident-period portion and non-resident-period portion
Confirm whether foreign-source income earned during the resident period must still be reported
If you retain Korean real estate or interest income after becoming a non-resident, re-check the withholding method

Global taxation vs. separate taxation, at a glance

Residents aggregate interest, dividend, real-estate rental, business, wage, pension, and other income for global taxation — though interest/dividend income under KRW 20 million a year and other income under KRW 3 million a year can be separately taxed instead. Non-residents are globally taxed only on income tied to a domestic place of business or real estate; everything else is separately taxed income by income.

Frequently Asked Questions

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