Taxation and Fee
| Purchase Fee | ||
| Registration Tax (Lawyer fee) | 2-3% (Selling Price) | |
| Commission | 3%(Selling Price)+JPY60000 | |
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**The transaction cost is generally 6-8% of the property price. |
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| Purchase Tax | ||
| Acquisition Tax | 3% (Appraisal Value) | |
| Buyer Stamp Duty |
For property from JPY 1million to 100millions, the stamp duty range from JPY 100 to30000
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** The appraisal value is determined by the Japanese government. It’s usually much lower than the market value. For example, it is usually 1/3 of the property price in Tokyo. |
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**The transaction cost is generally 6-8% of the property price. |
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Annual Tax Rate |
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| Fixed Asset Tax (Annual) | 1.4%of Appraisal Value | |
| City (Urban) Planning Tax | 0.3% of Appraisal Value | |
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** The appraisal value is determined by the Japanese government. It’s usually much lower than the market value. For example, it is usually 1/3 of the property price in Tokyo. |
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Stamp Duty |
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| Capital gain tax | Within 5 Years of Purchase | (Profit – Expenditure) x 30% |
| Capital gain tax | After 5 Years of Purchase | (Profit – Expenditure) x 15% |
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**Expenditure: Transportation, accommodation, agent fee, legal handling, acquisition tax and management fee during transaction can all be included as expenditure. |
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| Rental income tax | ||
| Annual Rental Income (Annual rental income – all expenses related to the property) | Tax Rate | Deduction |
| Below JPY 1,950,000 | 5% | --------- |
| JPY 1,950,001 – 3,300,000 | 10% | JPY 97,500 |
| JPY 3,300,001 – 6,950,000 | 20% | JPY 427,500 |
| JPY 6,950,001 – 9,000,000 | 23% | JPY 636,500 |
| JPY 9,000,001 – 18,000,000 | 33% | JPY 1,536,000 |
| Above JPY 18,000,001 | 40% | JPY 2,795,000 |
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**If you entrusted us the rental management service, we will arrange a deduction of rental income tax. ** If the amount of annual rental income is less than JPY 380,000 after deducting all expenses, the rental income tax will be waived. (The depreciation is also treated as part of expenditure) |
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