Buying property in Japan is only the first step—owners also need to understand the taxes that come with holding real estate. Whether you live overseas or in Japan, the same rules generally apply.
At purchase, you pay a one-time Real Estate Acquisition Tax (不動産取得税), typically around 3% of the assessed value, plus a registration and license tax when the title is recorded.
Every year, owners pay Fixed Asset Tax (固定資産税), roughly 1.4% of the government-assessed value, and in city areas an additional City Planning Tax (都市計画税) of up to 0.3%. These are billed to whoever owns the property on January 1.
When you sell, any profit is subject to Capital Gains Tax (譲渡所得税). The rate is higher for properties held five years or less (about 39%) and lower for longer holdings (about 20%).
Foreign owners who do not live in Japan usually appoint a local tax agent (納税管理人) to handle payments. Always consult a licensed tax accountant for your specific situation.
At purchase, you pay a one-time Real Estate Acquisition Tax (不動産取得税), typically around 3% of the assessed value, plus a registration and license tax when the title is recorded.
Every year, owners pay Fixed Asset Tax (固定資産税), roughly 1.4% of the government-assessed value, and in city areas an additional City Planning Tax (都市計画税) of up to 0.3%. These are billed to whoever owns the property on January 1.
When you sell, any profit is subject to Capital Gains Tax (譲渡所得税). The rate is higher for properties held five years or less (about 39%) and lower for longer holdings (about 20%).
Foreign owners who do not live in Japan usually appoint a local tax agent (納税管理人) to handle payments. Always consult a licensed tax accountant for your specific situation.