A buyer should pay 4 kinds of taxes.
- Fixed Asset Tax (annually)
- Registration Tax
- Income Tax
- Real Estate Acquisition
①Fixed Asset Tax
- A buyer has to pay fixed asset tax once a year.
- Fixed asset tax is calculated depending on valuation of the property, but it will approximately equivalent to 1 month rental fee.
- The valuation is judged by the government, and only an owner of the property knows the valuation.
- Registration tax is imposed for the valuation of a property.
- it is approximately 120,000~150,000 Yen (if the property is 1 room property)
- Depends on how much your annual actual income. If it is less than 480,000 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
④Real Estate Acquisition Tax
- A buyer will be billed a real estate acquisition tax about 6 months ~ 1 year later after purchasing a property.
- This tax rate is different between a land and property.