1. Taxes You Pay When Buying a Property (One-Time Costs)
When purchasing a house in Japan, you should prepare additional costs on top of the property price. These are mostly one-time taxes and fees.
Real Estate Acquisition Tax
This is a local government tax charged after you purchase a property.
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Usually around 3% of the property’s assessed value
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The assessed value is typically lower than the market price
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The tax bill is usually sent a few months after purchase
Registration and License Tax
This tax is required to officially register your ownership with the Japanese Legal Affairs Bureau.
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Generally ranges from 0.4% to 2% of the assessed value
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The rate depends on whether the property is new or used
Stamp Duty
Stamp duty applies to the purchase contract itself.
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The amount depends on the contract price
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Usually ranges from a few thousand yen to a few hundred thousand yen
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Paid by attaching a revenue stamp to the contract
Consumption Tax (10%)
This tax does not apply to land.
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Applies only to the building portion
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Charged only if the seller is a company or developer
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Most used homes sold by individuals are often exempt
Total Purchase Costs
In general, buyers should expect additional costs of around 3%–10% of the property price, depending on the type and value of the property.
2. Annual Property Taxes After Purchase
Once you own the property, there are ongoing taxes you will pay every year.
Fixed Asset Tax
This is similar to annual property tax in other countries.
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About 1.4% of the assessed value per year
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Paid to the local municipality
City Planning Tax
Applies in most urban areas.
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Up to 0.3% of the assessed value
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Used for city infrastructure and development
3. Taxes to Know About in the Future
These taxes do not apply at the time of purchase, but they are important for long-term planning.
Capital Gains Tax
If you sell the property at a profit:
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Long-term ownership generally results in lower tax rates
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Short-term ownership is taxed at a higher rate
Tax on Rental Income
If you rent out the property:
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Rental income is subject to Japanese income tax
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Non-residents usually appoint a tax representative in Japan
Important Notes for Foreign Buyers
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Foreigners can legally buy property in Japan with no ownership restrictions
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Property taxes for foreigners are the same as for Japanese citizens
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Non-residents may need local support for tax payments and filings
Final Thoughts
Buying property in Japan is very possible—even for first-time international buyers. While there are several taxes involved, most are straightforward and predictable.
Understanding these costs early will help you plan better and avoid surprises. With the right guidance, owning a property in Japan can be a smooth and rewarding experience.
PDJ Indonesia
https://www.pdj-indonesia.com
住所：Sudirman 7.8, Level 16 Unit 1 & 2, Jl. Jenderal Sudirman No.Kav 7-8, RT.10/RW.11,
Karet Tengsin, Kecamatan Tanah Abang, Kota Jakarta Pusat,
Daerah Khusus Ibukota Jakarta 10220, Indonesia
Phone Number: +62-852-1333-6739
