A summary of costs and taxes when purchasing your property in Japan.
Initial Costs Around
Initial taxes and related fees are generally around 5–6% of purchase price. Including government taxes, stamp duty, lawyer fee, agency fee and other related costs.
Consumption Tax
Consumption tax is sometimes called sales tax or VAT in other countries. In Japan, mostly purchase price has included consumption tax.
Overview of Property Fees and Taxes
Property Transactions fees and taxes explained
Annual costs include city planning and fixed asset taxes, building management fees, and maintenance funds. Japan Hana also provides comprehensive property management services, handling tenant relations, rent collection, and income transfers to property owners.
The annual City Planning and Fixed Asset Tax is determined by the local municipality and varies for each property.
1.7% × Tax Base*
*Tax Base is calculated by the government and is generally lower than the sale price, typically 30–50% of the property value.
Japan Hana offers comprehensive property management services, including managing tenant relations, overseeing rent collection, and ensuring timely transfers of rental income to the property owner. Our team handles all aspects of property care to ensure a hassle-free ownership experience.
Please see personal income tax rates below as a guide. Taxes will be attributable to net income only, net of applicable expenses. Personal taxes will depend on the individual's tax position, buyers are advised to consult a tax professional for their individual tax circumstances.
Personal Income Tax Rates in Japan
| Income Range | Tax Rate |
|---|---|
| Below ¥1.95 million | 5% |
| Between ¥1.95 million – ¥3.3 million | 10% |
| Between ¥3.3 million – ¥6.95 million | 20% |
| Between ¥6.95 million – ¥9 million | 23% |
| Between ¥9 million – ¥18 million | 33% |
| Between ¥18 million – ¥40 million | 40% |
| Over ¥40 million | 45% |
Points to note: The above tax rates are for general cases, fees and costs may vary according to the property type and location and the individual's circumstances. For taxes, clients are advised to seek professional tax advice for their individual circumstances.
Our team of experts are friendly, knowledgeable and fluent in Chinese, English and Japanese. We are here to help you find your dream property in Japan.