This study proposes improvements to taxation policies related to vacant houses to encourage voluntary maintenance by their owners. To achieve this, a comprehensive review of domestic and foreign laws, regulations, and statistical data on vacant house maintenance and taxation was conducted. The findings indicate that the current taxation system for vacant houses faces issues at multiple stages, including real estate acquisition, ownership, and disposal, which reduces its effectiveness in motivating owners to manage their vacant houses.
This study categorizes vacant houses into four types based on internal and external factors that cause vacancy, housing supply and demand issues, and associated risks. It proposes specific taxation improvements for each type.
First, for Type 1 vacant houses requiring demolition, recommended measures include expanding acquisition taxes exemptions, extending the special aggregate taxation period, and providing capital gains tax relief. Second, for Type 2 vacant houses neglected despite defects, financial support for defect remediation is proposed instead of tax incentives. Third, for Type 3 vacant houses where low residential demand results from external factors, support for small-scale housing maintenance projects is recommended. Fourth, for Type 4 vacant houses kept idle in anticipation of rising housing prices, the introduction of a vacancy tax should be considered. Across all types, this study proposes excluding or reducing the long-term holding special deduction for capital gains tax. Accordingly, it examines the significance and limitations of the government's amendment bill and suggests future directions for improvement.