Questions and Answers
Q: Is there any restrictions to buy a property in Japan for oversea people?
A: No, there is no any restrictions so you can buy any kinds of real estate in Japan such as apartment, condo, building and land.
Q: Do you need to come to Japan for the contract and the settelement?
A: No, you don’t need. All transaction can be done by airmail and oline.
Q: How long does the transaction take after the offer is agreed by the seller?
A: It is most likely to take 1.5~2 months.
Q: What are requirements for buying a property in Japan?
A: It is required to obtain an Affidavit (Declaration) from a local gorvenment or public notary which proves follows;
*Date of Birth
Q: Is it possible to make any Japanese bank account for oversea people (non-resident)?
A: It is very hard to make it so i would say it is not possible.
Q: How do you get a rent from tenant?
A: Wiring the rent is one of our property management service which costs 5% + Tax of rent. Our company will send the rent to your account when you want, but it costs roughly 7,000~7,500 Yen/each time.
Q: What service of property management do we have?
A: rent collection, basic tax handlings, complaints handling etc.
Q: Do you have to pay taxes from your rental income in Japan every year?
A: Depends on how much your annual actual income is. If it is less than 380,000 yen, tax payment will be exempted.
※Annual income= (( Monthly Rent Income – All Expenses) x 12month))-Depreciation
All Expenses = Such as maintenance fee, property management fee
Q: How about capital gain tax?
A: According to the law in japan about this, if you sell it in less than 5 years, you will be charged 30% of profit. On the other hand, in the case of 5 years or more, you will be charged 15% of profit.
※this is for people who are non-residential.
Q:How much is the tax filling?
A: It is 15,000 yen (basic fee) and 7,000 yen(per property).
Q: What is the tax filling for?
A: You need to report to Government that how much income you had for a year. If you file a tax with our tax accountant, he will be carrying over the “loss”. Like when you bought a property, you have payed such lot of expenses. and he will be carrying over this LOSS and special deduction of some amount of money.
Q: How much is the insurance and what are they covered by insurance?
A: When you buy a property which size is 1 room, you need to buy insurance which costs around 20,000 yen for around 5 years period The insurance covers water leaks, disaster and so on.
Q: Can you increase the rental during the contract?
A: It is not possible to raise the rent for the rental which has been contracted, but the new contract can raise the rent.
Q: What is the “withholding tax”?
A: Here is a simple explanation about “withholding tax” called 源泉徴収税 in Japanese. if your property is tenanted as used for personal residence, it is not required to pay withholding tax. On the other hand, if it is tenanted as used for business purpose, it is required to pay it. For example, it is used for office or it is rented by one company and used as dormitory for their employers.
*It is called tax but you will get this back later on after filing tax return.
Basically, when the tenant is commercial, the tenant must pay consumption tax.(10%)
But this consumption tax is NOT yours, this is something you have to return to the government.(we also call it “temporary receive tax”)
But if the rent + consumption tax goes to overseas, tax office’s concern is “Can tax office get this consumption tax back from the landlord?”
So tax office set the law, saying, “when the landlord is oversea people and the tenant is commercial use, the tenant MUST pay 20% to the tax office and 80% to the landlord. “
“And if the landlord want this 20% back, please file the tax return.”
So this law is to force landlord to FILE tax. AND Avoid oversea people to not paying consumption tax.
There was NO law that the government can receive consumption tax in advance AND directly from the tenant.
ONLY withholding tax is the right tax for the tax office to secure their consumption tax.
Who must pay consumption tax?
*Us like company, of course” “individual which has Above certain amount of income.”
Do you have to pay consumption tax?
*I believe you are BELOW certain level of income so most likely you will not have to pay.
*So you will get this “20%”Back after filing tax return.
if you have any other questions, please feel free to contact us.