10% Tax Refund on Accommodation in Korea for International Travellers

Planning a holiday to South Korea? Besides setting aside money for Korean food, shopping, attractions and endless convenience-store runs, international travellers may also be able to claim a tax refund on their accommodation.

The scheme applies to eligible foreign independent travellers staying at participating accommodation providers in South Korea. As not every hotel or property offers the service, travellers should always confirm their accommodation’s participation before making a reservation.

Who is eligible for an accommodation tax refund in South Korea?

The tax refund is generally available to non-residents who do not earn income in South Korea. Eligible travellers include foreigners who have been staying in the country for no longer than six months, as well as overseas Koreans who have lived abroad for at least two years and are staying in South Korea for three months or less.

Travellers must also leave South Korea within three months of the date on which the accommodation was provided.

The programme is intended for foreign independent travellers. Those visiting South Korea as part of a package or group tour are not eligible. Diplomats, United States military personnel stationed in South Korea, people employed in the country and bookings made under a company name or through an agent are also excluded.

Which accommodation expenses are covered?

The refund applies to VAT-inclusive room charges at participating accommodation facilities for stays of up to 30 nights. Breakfast may also be covered when it is already included in the room rate.

However, separately purchased breakfast, additional services and other incidental charges are not refundable. Stays exceeding 30 nights are also excluded from the scheme.

How to claim your accommodation tax refund

The exact process may differ between accommodation providers and tax-refund operators, so check with your hotel before booking and again when checking in. Keep your passport and any documents issued by the property readily available.

1. Before booking: Confirm directly with the accommodation provider that it participates in the foreign-tourist tax-refund programme. Do not assume that every hotel is included.

2. During check-in: Present your passport if requested and confirm the property’s refund procedure. The hotel may provide instructions or documents that must be retained throughout your stay.

3. During check-out: Pay the eligible VAT-inclusive accommodation charges and obtain the relevant tax-refund voucher or documentation from the hotel.

4. Claim the refund: Follow the instructions supplied by the accommodation provider or tax-refund operator. Depending on the available service, the refund may be processed through a designated counter, kiosk, mobile platform or another approved method.

Requirements and procedures can vary between properties, while participating accommodation providers may change over time. It is therefore best to verify the latest details directly with your hotel before confirming your stay.

Between Seoul’s lively neighbourhoods, Busan’s coastal scenery and Jeju’s natural attractions, there are already plenty of reasons to visit South Korea. Being able to recover part of the tax charged on an eligible hotel stay is simply a welcome bonus.