A number of financing options are available in Japan for overseas purchasers, though obviously dependent on the purchase value of the property, the location, the applicant’s country of residence, existing assets and income. Marimo provides both assistance and consultation during the loan application process and we utilise our close connections with both domestic and offshore financial institutions to help locate our clients the best-performing loans.
|Currency||Japanese Yen (JPY)|
|Source of tax law||Corporation Tax Law, Income Tax Law, Consumption Tax Law, Special Taxation Measures, Special Taxation Measures Law|
|Tax treaties||Japan has concluded 65 tax treaties with other countries for the purpose of avoiding double taxation.|
|Tax authorities||National Tax Agency (NTA: http://www.nta.go.jp/foreign_language/)|
There is no need to pay a brokerage fee when the property is purchased directly from the seller.
From 3.0 - 4.0% of the fixed asset value.
4.0%A tax relief deduction is applicable for acquisition of residential Land Use Zones. The estimated value of the fixed asset is halved.
The amount of stamp tax payable is dependent on the property price listed on the Purchase & Sales Agreement.
There are tax relief measures in effect for contracts signed between 31 March, 2013 and 31 March, 2014. The tax relief reduction was expanded from 1 April 2014.Current stamp tax ranges from JPY 15,000 to JPY 540,000, and from 1 April 2014, from JPY 10,000 to JPY 480,000.
From 1 April, 2017, the consumption tax will rise from 8.0% to 10.0%.
0.0%Please note that all of the prices listed on this website include consumption tax where applicable.
Registration tax is payable upon acquisition of either a piece of land or a building. The tax is calculated against the taxable fixed asset value, which is valued by the Japanese government once every 3 years.
Registration of land ownership: 2.0% (1.5% with tax relief)
Registration of building ownership: 2.0% (0.3% with tax relief)
Registration of Mortgage: 0.4% (0.1% with tax relief)
* The tax rates above are not dependent on the Land Use Zone and are flat rates that apply across all Land Use Zone categories.
|Fixed Asset Tax||
This type of property tax is 1.4% of the estimated fixed asset value on average, though the upper limit of the tax rate is 2.1% as enacted by respective municipalities.
Fixed Asset Value:
|City Planning tax||
The upper limit of the tax rate is 0.3% as enacted by the respective municipalities.
The standard taxable value of the city planning tax is calculated based on the tax valuation of fixed assets.Residential property less than 200 sqm: One-third of the standard taxable value. Residential property greater than 200 sqm: Two-thirds of the standard taxable value.
|Resident tax||paid by tenant|
|20% flat-rate withholding tax
When the annual income tax is filed by March the following year the owner will receive a refund.
|Income tax bands||
|Capital Gains tax||When a capital gain is generated on the disposal of a fixed asset, the following capital gains tax is applied.
a) Short-term capital gains (less than 5 years): 39% (income tax: 30%, resident’s tax 9%).
b) Long-term capital gains (equal to or greater than 5 years): 20% (income tax: 15%, resident’s tax: 5%).
* The holding period is calculated from 1 January.
|Withholding tax||10% of sales price (fully credited after tax returns filed)|
|Surtax||A 2.1% surtax will be levied on the withholding tax and income tax for certain Japan-source income arising from 1 January, 2013. Residents of countries with tax treaties in effect with Japan may be able to receive a partial or full refund on this surtax.|
|URL||Ministry of Land, Infrastructure, Transport and Tourism
National Tax Agency
Ministry of Economy, Trade and Industry
Statistics Bureau, Ministry of Internal Affairs and Communications
Financial Services Agency
Japan External Trade Organization
* Our multinational team accepts both written and spoken queries in English and provides language support for speakers of Mandarin and Bahasa Malaysia.
Each of us investment team members are expert professionals at property investment advisory, with an acquired know-how of Japanese property investment. We are more than happy to support you by helping you develop your ideas about the properties in the pursuit of your goals. Also, our multinational team welcomes any inquires in English and can provide additional support for speakers of Mandarin and Bahasa Melayu.