Expanse - Japan

Taxes and Fees

One-Time Tax Expenses and Fees

Registration Tax

Tax payable on the registration of ownership or registration of transfer of land or property Tax rate: Assessed value of property x 2%

Stamp Duty

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 Million1,000 Yen
5.01 – 10 Million5,000 Yen
10.01 – 50 Million10,000 Yen
50.01 – 100 Million30,000 Yen

Real Estate Acquisition Tax

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%

Agent Commission

(Property price x 3% + 60,000 Yen) + 8% Consumption Tax

Commission for the Legal Scrivener

In general, around 100,000 – 200,000 Yen, subject to property price

Yearly Tax Payment​

Property Taxes

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%

Personal Income tax

Tax on individuals who gain rental income.

Annual Rental Income (Yen)Tax rateDeduction (Yen)
0 – 1.95 Million5%0
1.95 Million above – 3.3 Million Below10%97,500 Yen
3.3 Million above – 6.95 Million Below20%427,500 Yen
6.95 Million above – 9 Million Below23%636,000 Yen
9 Million above – 18 Million Below33%1,536,000 Yen
18 Million and above40%2,796,000 Yen

Monthly Expenses:

  • Management Fee

  • Monthly management fee

  • Building Repair Fund

  • Monthly building repair fee includes repair broken water pipes etc.

Tax payment when selling properties:

Capital Gain Tax

Sold within 5 years: (Profit – Expenditure) x 30%
Sold after 5 years: (Profit – Expenditure) x 15%

Property Management Services

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.

Our Services include:

Find tenants and sign leasing contract with tenant.
Collect rent and manage payments
We will transfer rental income (in Japanese Yen) to customers every 6 or 12 months.
Handle all rent-related issues
For example, cleaning fee or repairing costs incurred when contract terminates.We also send late payment reminder to tenants on behalf of owners.
Resolve complaints and all property-related issues
For example, toilet blockage, leaking roof, noise from neighbors, insurance-related issues etc.
Manage tax payments (include property tax) on behalf of our customers
Provide quarterly and yearly income report
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

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