There are many reasons for changing the head of a household. First of all, there is a reason for tax-free and tax-saving of acquisition tax, general real estate tax, and transfer tax among the taxes related to housing. Let’s take a look at what you need to know when preparing.
Advance preparation for housing application
Conditions for change of head of household
Generation separation method
example
1. Conditions for changing the head of household
30 years of age or older: From the day after the birthday of the year in which you turn 31 세대주 변경
Married, divorced or widowed
Regardless of marital status, if the average monthly income is at least 40% of the standard median income and is able to sustain an independent livelihood
※ In the case of minors, even if they meet the conditions, they cannot become the head of the household. However, it is possible in unavoidable cases such as the death of a family member. 좋은뉴스
40% of the median income based on the National Basic Livelihood Security Act
Year One-person households Two-person households Three-person households Four-person households
2020 702,878 won 1,196,792 won 1,548,231 won 1,899,670 won
2021 731,132 won 1,235,232 won 1,593,580 won 1,950,516 won
※ In order to become a completely independent generation, if you are over 30 years of age, married, divorced or widowed regardless of age or monthly income, and regardless of age or marital status, your monthly average income is at least 40% of the standard median income must be able to prove
If one of these is met and you are transferred to an independent generation, it will be recognized as an independent generation.
※When you become an independent generation
1. Possible to apply for the first priority in the area subject to adjustment
2. Excluding capital gains tax
3. Non-taxable on capital gains tax for one household per household
The reason many people try to separate generations and create an independent head of household is because they can receive the above institutional benefits. In particular, due to the 6.17 Real Estate Measures last year, the area subject to adjustment was expanded, and most major areas in Seoul and the metropolitan area were included in the area to be adjusted. Most of the households have to close the first place, and the competition rate for subscription is also very high.
2. How to separate the head of household
If the above conditions are met and you have found a house to move in, you can do it easily through the local community center or the ‘Government 24’ website.
① When visiting the community center: Requires the head of the household’s bride’s ID and stamp
② When using the Government 24 website
Government24-Search
Government24 Portal Search
First, search for ‘Government 24’ in the search bar.
Government 24-Registration of Resident Registration
Government 24 resident registration correction report
In the search bar on the Government 24 website, click Report Correction of Resident Registration ▶ Go to Service.
Government 24-Civil Application
Government 24 civil complaint
You can apply according to the order by clicking the Apply button in the complaint information and application window. Before proceeding with the whole process, you need to log in through a joint certificate (formerly public certificate).
3. Cases
– Case 1.
My child is a 24-year-old college student, and he bought a studio near a school in Seoul and is living after registering as a move-in. I have lived in Seoul for more than 2 years, and I have been maintaining a subscription account for more than 2 years. Is it possible to apply for the first place in Seoul as the head of household?
– Answer 1.
1st place application is not possible.
If your child is living alone and has reported moving in, of course, he or she will be registered as the head of the household. However, as a student under the age of 30, they do not have any separate income and are not married, so they do not meet any of the basic conditions for generational separation.
Therefore, in this case, even if a move-in report has been made, it is not possible to apply for the first priority in Seoul, and even if a house is purchased through general sale, it is considered as the same household as the parents and eventually becomes a multi-residential person.
Of course, transfer tax is also subject to heavy taxation. It will be a representative case of erroneously judging that everyone will become an independent household if they just report moving in.
– Case 2.
If my child is 29 years old and unmarried, the average annual income exceeds the standard, and I move into a relative’s house where I live in a jeonse and register as the head of the household, is it possible to apply for the first priority as the head of the household?
– Answer 2.
You can also register as the head of the household and apply for the first priority. However, all rights of relatives living in the house are lost.
In principle, there can be only one head of a household in the same house, and only the head of a household can make a first-order subscription in areas regulated beyond the area subject to adjustment. However, if someone moves into a house they already live in and gets the first priority subscription qualification, on the other hand, what happens to someone who already lives in that house?
Since one house cannot have two rights, the other person’s rights will naturally disappear as much as I get the rights. In addition, the person who registered as the head of the household not only loses the eligibility for subscription, but also becomes the first homeowner as soon as the person who registered as the head of the household wins the subscription and becomes the first homeowner, and the period of homelessness that the person had is disappearing.
In short, it means that you will lose the extra points you have accumulated during the period of homelessness in an instant. It’s one of those things that anyone in need of generational segregation should never do unless they want to make their relatives their enemies.
– Case 3.
The basic conditions necessary for generation separation were met. But is there any way to separate generations by living in the same house without moving because we can’t afford a separate house?
– Answer 3.
Generation separation is not possible.
Let’s think in a very simple and common sense. If there is no space (house) to separate, generation separation is also impossible. However, you may have heard it somewhere, and there are people who say that it is possible in the case of a separation-type apartment with a separate entrance, but remember that it is almost impossible to prove independent livelihood.
– Case 4.
I currently live in the same house with my divorced children. The transfer has not been reported, and the child is currently unemployed. Is it possible to apply for the 1st priority as the head of the household without moving?
– Answer 3.
1st place application is possible.
If you meet the basic conditions, you can apply for the 1st place. If you look at the example, it is said that you are divorced, but in order to get a divorce, you must first get married for a divorce to take place. As I explained the basic conditions for generational separation, I informed you that in the case of divorce or widowhood, if you move into a physically independent space, regardless of your age or monthly income, it will be recognized as an independent household.
Also, being unemployed is not a problem for forming an independent generation.
Also, although she is currently living with her mother, she is still living in an independent space without registering for moving in. There is room for the problem of disguised transfer, but anyway, in this case, the basic conditions for generation classification have been met, and it is physically moved into an independent space, so if there are no legal problems, it can be considered as the first qualification. Of course, the same can be said for the case of divorce under the same conditions.
※ Lastly, if a fraudulent transfer is found, you may be sentenced to up to 3 years in prison or a fine of up to 30 million won.
In this way, we found out the conditions for the change of householder through a few examples.