Japanese Real Estate Taxes and Expenses List

Japanese Real Estate Taxes and Expenses List


Japanese Real Estate Investment Taxes and Expenses List

Time Subject Explanation
PURCHASE Stamp Duty Contract Amount: 5mil.~10mil. JPY →Stamp Tax 5,000 JPY
Contract Amount: 10mil.~50mil. JPY →Stamp Tax 10,000 JPY
Contract Amount: 50mil.~100mil. JPY →Stamp Tax 30,000 JPY
Contract Amount: 100mil.~500mil. JPY →Stamp Tax 60,000 JPY
Contract Amount: 500mil.~1bil. JPY → Stamp Tax 150,000JPY
The Stamp Tax amount changes based on the price of the  investment.
If many contracts are drawn up, the Stamp Tax will be required for each document.
Registration Land: Land Tax Valuation × 1.5% (For purchasing whole buildings only)
and License Tax Building: Building Tax Valuation × 2%
Taxes associated with the transfer of ownership.
Land: Land Tax Valuation / 2 × 3%
 Real Estate Building: Building Tax Valuation × 4%
Acquisition tax About 2 to 6 months after purchase, a tax notice will be delivered.
Non-Residents will need a tax agent, which our Japanese business partner can handle.
Intermediary service fee 3% of the sales price + 60,000JPY + Sales Tax 8%
Judicial Scrivener fee will differ per case. The approximate amount will be shown as below for your reference.
Evaluated property value:  20mil. JPY or below = 50,000 – 80,000 JPY
Evaluated property value:  20mil. – 50 mil. JPY = 60,000 – 100,000 JPY
Evaluated property value:  50 mil. JPY or above = 80,000 – 120,000 JPY
Insurance Insurance premium will differ depending on contract term,
property value, property area, building construction, insurance plan
Remarks: There are other fees outside of those mentioned above. Ex: Loan expenses, etc.
※Upon purchase, it would cost approximately 8-10% of sales price as taxes and expenses including real estate acquisition tax.
Time Subject Explanation
OWNER Property and Property Tax: Evaluated Property Value × 1.4%
City planning Tax City planning Tax: Evaluated Property Value × 0.3%
Building Management Amount changes depending on the property
and Repair Fee
Property Management 5-8% of monthly rental income + Consumption Tax(8%)
Remarks: As tax notices can only be sent to a Japanese address, a tax agent is required. (our Japanese business partner can handle this)
Time Subject Explanation
RENT Income Tax Income tax Amount: Net Income × Tax Rate (5%~40%)
Net Income = Rental Income – Expenses
Remarks: If submission to a tax agent is requested, a fee will be charged.
Time Subject Explanation
RE-SALE Capital Gains Tax Selling within 5 years of purchase:
Income Tax: Capital Gain Amount × 30.63%
Resident Tax: Capital Gain Amount × 9% (Only for those living in Japan)
Selling later than 5 years after purchase:
Income Tax: Capital Gain Amount × 15.315%
Resident Tax: Capital Gain Amount × 5% (Only for those living in Japan)
Calculating Capital Gain:
Capital Gain = Sale Amount – {purchase price + transfer expenses} – Special Deductions
Withholding Tax 10% of selling price
>will be fully credited after tax returns being filed
Japanese Income Tax Rate (Individual)
Income Amount  Tax Rate                       Deduction
1.95mil. JPY and below  5%                            0 JPY
1.95mil. ~ 3.30mil. JPY (including 3.30mil.) 10%                    97,500 JPY
3.30mil. ~ 6.95mil. JPY (including 6.95mil.) 20%                  427,500 JPY
6.95mil. ~ 9.00mil. JPY (including 9.00mil.) 23%                  636,000 JPY
9.00mil. ~ 18.00mil. JPY (including 18.00mil.) 33%               1,536,000 JPY
18.00mil. JPY and over 40%               2,796,000 JPY
※Example: annual income is 2mil. JPY → 2mil. JPY × 10% – 97,500JPY = 102,500JPY

 

★Information above is for reference only and may change from time to time★