What Kind of Tax Should a Buyer Pay for Purchasing a Property in Japan?


A buyer should pay 4 kinds of taxes.

  1. Fixed Asset Tax (annually)
  2. Registration Tax
  3. Income Tax
  4. 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.

②Registration Tax

  • 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)

③Income Tax

  • 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 feeproperty 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.
Gran Asset Management Inc.8/F 2-2-3 Maizuru Chuo, Fukuoka Japan 810-0073
P:(+81)92-753-9578 / F:(+81)92-753-9587
E-Mail : japan-investment@gran-am.com
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