Tax payable on the registration of ownership or registration of transfer of land or property
Tax rate: Assessed value of property x 2%
It is imposed on both buyer and seller who sign the real estate purchase and sales agreement.
| Sales Contract (Yen) | Stamp Duty (Yen) |
|---|---|
| 1.01 – 5 Million | 1,000 Yen |
| 5.01 – 10 Million | 5,000 Yen |
| 10.01 – 50 Million | 10,000 Yen |
| 50.01 – 100 Million | 30,000 Yen |
Tax on individuals and companies which acquire real estate in Japan (This is paid 3-6 months after property is acquired)
Tax rate: Assessed value of property x 3%
(Property price x 3% + 60,000 Yen) + 8% Consumption Tax
In general, around 100,000 – 200,000 Yen, subject to property price
Property taxes include: Fixed Asset Tax & City Planning Tax
They are payable by all individuals and companies which own real estate as of 1st January each year.
Fixed Asset Tax rate: Assessed value of property x 1.4%
City Planning Tax rate: Assessed value of property x 0.3%
Tax on individuals who gain rental income.
| Annual Rental Income (Yen) | Tax rate | Deduction (Yen) |
|---|---|---|
| 0 – 1.95 Million | 5% | 0 |
| 1.95 Million above – 3.3 Million Below | 10% | 97,500 Yen |
| 3.3 Million above – 6.95 Million Below | 20% | 427,500 Yen |
| 6.95 Million above – 9 Million Below | 23% | 636,000 Yen |
| 9 Million above – 18 Million Below | 33% | 1,536,000 Yen |
| 18 Million and above | 40% | 2,796,000 Yen |
Monthly Expenses
Sold within 5 years: (Profit – Expenditure) x 30%
Sold after 5 years: (Profit – Expenditure) x 15%
After purchasing property in Japan, a lot of overseas investors are concerned how the properties could be managed properly.
We can resolve all the problems and provide professional and reliable after-sales property management services for you. Since we are located in Tokyo, we can handle all property-related issues, legal and tax matters for our customers in person.
We will transfer rental income (in Japanese Yen) to customers every 6 or 12 months.
For example, cleaning fee or repairing costs incurred when contract terminates. We also send late payment reminder to tenants on behalf of owners.
For example, toilet blockage, leaking roof, noise from neighbors, insurance-related issues etc.
The income report states all expenses (tax payment, utility bills, repair bills, management fees etc.) and rental income in which customers can have a comprehensive understanding on their revenue income from investment.
For customers who purchased properties via other real estate agents, and are not satisfied with their current management company, our company can also manage these properties for you without worries. Please feel free to contact us.
Property management fee: 5% of monthly rent + consumption tax