What Taxes Happen in Purchasing Real Properties in Japan

Hello, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

If you purchase real properties in Japan, you must pay several kinds of taxes.

1. Acquisition Tax 不動産所得税

This tax applies to land and buildings and is calculated by multiplying 4% by the fixed property tax’s assessment valuations. In most cases, the valuations are under real prices. Special treatment applies to lands and residential buildings. Therefore, the rate of those is 3% until March 2027. Plus, there are many kinds of special subdactive treatments.

2. Registration and License Tax 登録免許税

It is common to register properties purchsed in Japan. This rate is generally 2%. It apply to assesment valuations. Plus, there are many kinds of special subductive treatments.

3. Consumption Tax

In the case purchasing buldings from businesses including individuals, this transaction is taxed with consumption tax by 10%. By the way, lands is non – taxed because it does not match this tax’s nature.

I will explain taxes related to property businesses in the following blogs.

Taxes When Businesses Sell Real Properties in Japan

Taxes When Running a Property Lending Business in Japan

Our accounting and tax office has been actively assisting foreign business owners in Japan with accounting and tax matters. Also, not only in the tax and accounting field, our office can support your business in Japan in the fields of visa, registration, social insurance, and law by networking with specialists. Plus, we have networked with specialists in web marketing, building websites, and business consulting suitable for Japanese customers. All services are provided in English. Please feel free to reach out to us through the inquiry form.