〈Costs and taxes to be paid at the time of Concluding a Contract〉
1. Contract Deposit
Typically 10% of the property price.
2. Stamp Duty
Based on the Stamp Duty law.
〈Costs and Taxes to be paid to the Solicitor/Attorney〉
1. Contract Translation Charge (Optional)
Varies depending on the time required.
2. Registration Tax
A tax counsellor or accountant introduced by our corporation lawyer will support you.
〈Costs and Taxes that should be paid at the time of Closing〉
1. Remaining Balance of the Purchase Price
No loans available for non-residents
2. Reimbursement of Fixed Asset Tax and City Planning Tax
Property owners are required to pay Fixed Asset Tax and City Planning Tax, which are levied on fixed assets such as land and buildings. The taxpayer (the one who will be liable for paying tax) will be determined on January 1st, and the taxation period will start from April 1st of the same year to March 31th in the following year. Buyers must reimburse a pro rata amount of the annual tax to the seller upon closing the contract. If the hand over date is between January 1st and March 31th, the buyer must pay the seller, the same amount as the current annual tax as an advance payment for the following year. The seller will pay the tax on behalf of the buyer upon receiving a tax statement. However, even if the imposed tax is set at a higher/lower rate than the amount paid in advance, neither party is required to make up for the difference.
〈Taxes to be paid after closing〉
1. Real Estate Acquisition Tax
“・For residential use
Land: 1.5% of assessed value
Building: 3% of assessed value”
Land: 3% of assessed value
Building: 4% of assessed value”
Bill will be issued 3-6 months after title transfer.
〈Annual Costs and Taxes for Property Owner〉
1. Fixed Asset Tax and City Planning Tax
“Fixed Asset Tax: 1.4% of assessed value
City Planning Tax: 0.3% of assessed value”
Tax reduction available for residential lands.
2. Fire Insurance Premium (Optional)
Varies depending on insurance conditions
3. Neighborhood Association Fee (Optional)
“Varies depending on the Association
(Ex: 100–1,000 JPY/month)”
Note: The Tax Authority requires non-residents who own real estate in Japan to appoint a resident as their tax administrator. You may appoint your friends or acquaintances living in Japan, however, you can also hire a solicitor/attorney as your administrator.