Property Fees and Taxes

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What is the initial cost of purchasing Japan property?

Initial Costs Around

6%-8%

Initial taxes and related fees are generally around 6-8% of purchase price. Including government taxes, stamp duty, lawyer fee, agency fee and other related costs.

Consumption Tax

Included

Consumption tax is sometimes called sales tax or VAT in other countries.

In Japan, mostly purchase price has included consumption tax.

 

Stamp Tax

Stamp tax is paid when signing a sales, construction or mortgage contract. The amount of stamp tax is based on the purchase price.

Property Price Range

Stamp Tax

¥10-50 million

¥10,000

¥50-100 million

¥30,000

¥100-500 million

¥60,000

¥500million – 1billion

¥160,000

Stamp tax is paid when signing a sales, construction or mortgage contract. The amount of stamp tax is based on the purchase price.

Property Price Range

Stamp Tax

¥10-50 million

¥10,000

¥50-100 million

¥30,000

¥100-500 million

¥60,000

¥500million – 1billion

¥160,000

Judicial Scrivener Fees

Charged for the registration and transfer of title and other services. 

 

Real Estate Acquisition Taxes

Real estate acquisition tax is calculated by the government against the government’s taxable fixed asset value for the property and depends on the type of property that you purchase. You will receive a bill from the tax office within 6 months after the purchase. Typically this is:

3% x Tax Base*

* Tax Base is decided by government and is generally lower than the sale price, typically 30-50% of property value

 

Real Estate Registration Taxes

Registration tax is calculated by the government against the government’s taxable fixed asset value  for the property. Typically this is:

2% x Tax Base*

* Tax Base is decided by government and is generally lower than the sale price, typically 30-50% of property value

 

Brokerage Fee 

3% +¥60,000 plus consumption tax

 

Annual Fees

City Planning and Fixed Asset Tax

Annual City Planning and Fixed Asset Tax will be different for each property as determined by the local municipality

1.7% x Tax Base*

* Tax Base is decided by government and is generally lower than the sale price, typically 30-50% of property value

 

Building Management Fee and Maintenance Sinking Fund

The Building Management Fee is charged monthly for the upkeep of common-use areas of the building. 

 

The Maintenance Sinking Fund Fee is charged monthly and goes towards future building repairs. The fee is reviewed every few years and may be adjusted by the management association of homeowners in accordance with the long-term repair plan.

 

Property Management Fee

Japan Hana provides property management services to look after your property in Japan and take care of tenant, collect the rent and transfer to owner.

Applicable Taxes to Rental Returns

Please see personal income tax rates below as a guide. Taxes will be attributable to net income only, net of applicable expenses. Personal taxes will depend on the individual’s tax position, buyers are advised to consult a tax professional for their individual tax circumstances.

Personal Income Tax Rates in Japan

Income Range

Tax Rate

Below ¥1.95 million

5%

Between ¥1.95 million – ¥3.3 million 

10%

Between ¥3.3 million – ¥6.95 million 

20%

Between ¥6.95 million – ¥9 million

23%

Between ¥9 million – 18 million

33%

Between ¥18 million – ¥40 million

40%

Over ¥40 million

45%

  1. Tax allowance for each person is around ¥380,000 
  2. Tax filing services must be carried out each year. Japan Hana can assist to introduce accounting firms to our clients. 

Personal Income Tax Rates in Japan

Income Range

Tax Rate

Below ¥1.95 million

5%

Between ¥1.95 million – ¥3.3 million 

10%

Between ¥3.3 million – ¥6.95 million 

20%

Between ¥6.95 million – ¥9 million

23%

Between ¥9 million – 18 million

33%

Between ¥18 million – ¥40 million

40%

Over ¥40 million

45%

  1. Tax allowance for each person is around ¥380,000 
  2. Tax filing services must be carried out each year. Japan Hana can assist to introduce accounting firms to our clients. 

Points to note: The above tax rates are for general cases, fees and costs may vary according to the property type and location and the individual’s circumstances. For taxes, clients are advised to seek professional tax advice for their individual circumstances.

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