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Stamp duty, registration license tax, income tax, fixed asset / city planning tax, resident tax, and inheritance tax — 2026 rates with Fukuoka City case studies.
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| Tax | Purchase | Gift | Inheritance | Holding | Disposal | Authority | Non-resident note |
|---|---|---|---|---|---|---|---|
| Stamp duty | ○ | ○ | − | △ | ○ | Tax office | Same conditions as residents |
| Consumption tax | ○ | − | − | △ | ○ | Tax office | Same conditions as residents (10%) |
| Registration license tax | ○ | ○ | ○ | − | − | Legal Affairs Bureau | Owner-occupied reductions on buildings and mortgages do not apply to investment use (land rate 1.5% applies regardless of use) |
| Income tax | − | − | − | ○ | ○ | Tax office | Withholding tax on rent 20.42% / withholding tax on disposal 10.21% |
| Inheritance tax | − | △ | ○ | − | − | Tax office | Governing law is the national law of the deceased; Japanese law applies to registration plus the 3-year obligation |
| Gift tax | − | ○ | △ | − | − | Tax office | Same as above |
| Real estate acquisition tax | ○ | ○ | − | − | − | Prefecture | Same conditions as residents (3% special rate) |
| Resident tax | − | − | − | ○ | ○ | Municipality | Exempt ✓ |
| Fixed asset / city planning tax | − | − | − | ○ | − | Municipality | Same conditions as residents |
○ Taxable / △ Conditional / − Not taxable
The nine taxes that apply across real estate transactions (acquisition / holding / disposal)
| Tax | Status | Non-resident note |
|---|---|---|
| Stamp duty | ○ | Same conditions as residents |
| Consumption tax | ○ | Same conditions as residents (10%) |
| Registration license tax | ○ | Owner-occupied reductions on buildings and mortgages do not apply to investment use (land rate 1.5% applies regardless of use) |
| Income tax | − | Withholding tax on rent 20.42% / withholding tax on disposal 10.21% |
| Inheritance tax | ○ | Governing law is the national law of the deceased; Japanese law applies to registration plus the 3-year obligation |
| Gift tax | ○ | Same as above |
| Real estate acquisition tax | ○ | Same conditions as residents (3% special rate) |
| Resident tax | − | Exempt ✓ |
| Fixed asset / city planning tax | − | Same conditions as residents |
| Tax | Status | Non-resident note |
|---|---|---|
| Stamp duty | △ | Same conditions as residents |
| Consumption tax | △ | Same conditions as residents (10%) |
| Registration license tax | − | Owner-occupied reductions on buildings and mortgages do not apply to investment use (land rate 1.5% applies regardless of use) |
| Income tax | ○ | Withholding tax on rent 20.42% / withholding tax on disposal 10.21% |
| Inheritance tax | − | Governing law is the national law of the deceased; Japanese law applies to registration plus the 3-year obligation |
| Gift tax | − | Same as above |
| Real estate acquisition tax | − | Same conditions as residents (3% special rate) |
| Resident tax | ○ | Exempt ✓ |
| Fixed asset / city planning tax | ○ | Same conditions as residents |
| Tax | Status | Non-resident note |
|---|---|---|
| Stamp duty | ○ | Same conditions as residents |
| Consumption tax | ○ | Same conditions as residents (10%) |
| Registration license tax | − | Owner-occupied reductions on buildings and mortgages do not apply to investment use (land rate 1.5% applies regardless of use) |
| Income tax | ○ | Withholding tax on rent 20.42% / withholding tax on disposal 10.21% |
| Inheritance tax | − | Governing law is the national law of the deceased; Japanese law applies to registration plus the 3-year obligation |
| Gift tax | − | Same as above |
| Real estate acquisition tax | − | Same conditions as residents (3% special rate) |
| Resident tax | ○ | Exempt ✓ |
| Fixed asset / city planning tax | − | Same conditions as residents |
An overview, rates, and non-resident considerations for each tax in turn.
A national tax affixed to real estate sales contracts. One contract on each side (buyer and seller) is subject to the tax.
A national tax levied on transfers of assets by domestic taxable enterprises. Land is exempt; buildings, brokerage fees, and judicial scrivener fees are taxable (10%).
A national tax paid to the Legal Affairs Bureau when real estate is registered. It arises on transfer of ownership and on creation of a mortgage.
The calculation base is the fixed asset tax assessed value (the loan amount for mortgage registration).
A national tax levied on an individual's annual income. For non-residents, rental income and capital gains from Japanese real estate are subject to Japanese tax.
When a non-resident owner receives rent, the 'tenant (payer)' has a statutory withholding obligation. The practical split is:
| Tenant | Purpose | Withholding |
|---|---|---|
| Individual | Own or relative's residence | Not required |
| Individual | Business use (e.g., sole-proprietor office) | Required (20.42%) |
| Corporation | Company housing / office / store (regardless of use) | Required (20.42%) |
Capital gain = Sale price − (Acquisition cost + Disposal expenses)
| Holding period | Non-resident | Resident (reference) |
|---|---|---|
| Short-term (5 years or less) | 30.63% | 39.63% (includes 9% resident tax) |
| Long-term (over 5 years) | 15.315% | 20.315% (includes 5% resident tax) |
Under Article 36 of Japan's 'Act on General Rules for Application of Laws', inheritance is in principle governed by the National law of the deceased. The applicable law differs by the combination of deceased and heirs:
| Deceased | Substantive law of inheritance | Japan real estate registration procedure |
|---|---|---|
| Japanese national | Japanese Civil Code | Japan Real Estate Registration Act |
| Foreign national (e.g., Taiwanese) | Inheritance law of that country (e.g., Taiwan Civil Code) | Japan Real Estate Registration Act |
| Foreign national, but the private international law of that country designates Japanese law for real estate located in Japan | Through Renvoi (Article 41 of the General Rules Act), Japanese Civil Code may become the governing law | Japan Real Estate Registration Act |
The residence and nationality of both heirs and the deceased determine the statutory shares and the validity of any will. Investors from Taiwan, Hong Kong, Singapore and elsewhere are each subject to different governing laws; estate division agreements should be drafted within the family law and inheritance law framework of the relevant country.
Even when the substantive governing law is foreign, 'registration of real estate located in Japan' follows the Japan Real Estate Registration Act. The procedure is:
Foreign-national heirs have no Japanese family register (koseki), so identity and family relationships must be evidenced via affidavits, signature certifications and certificates of residence obtained through diplomatic missions or notaries in the home country. The procedure is several times more complex than inheritance among Japanese nationals.
Source: Real Estate Registration Act Article 76-2, effective 1 April 2024
Filing deadline: within 10 months from the day after learning of the death.
Filing location: in principle, the tax office with jurisdiction over the deceased's domicile at death. If the deceased was domiciled outside Japan, jurisdiction depends on the heirs' domicile or that of the tax agent — confirm with the tax office or a specialist on a case-by-case basis.
Basic deduction: JPY 30,000,000 + JPY 6,000,000 × number of statutory heirs
Real estate located in Japan is subject to Japanese inheritance tax regardless of the nationality or place of residence of the heirs or the deceased. The actual tax amount varies by case — consult a specialist familiar with both the home country's inheritance law and Japanese inheritance tax law early in the process.
A national tax on property received during a calendar year. The recipient files and pays.
Basic deduction: JPY 1,100,000 per year (calendar-year taxation)
Rates: progressive 10–55% (on the amount exceeding the basic deduction)
Formula: Taxable amount = Gifted amount − JPY 1,100,000 Tax = Taxable amount × Rate − Deduction
Filing deadline: 2/1 – 3/15 of the year following the gift
A local tax (prefectural tax) levied on those acquiring real estate. A tax notice arrives 6 months to 18 months after acquisition.
Tax base: fixed asset tax assessed value
Residential-land special rule (through 2027/3/31): for land assessed as residential, the tax base is halved
New housing deduction: JPY 12,000,000 deducted from the tax base for owner-occupied new housing (not available for used investment properties)
A local tax levied based on domicile as of January 1.
However, 'domicile' under local tax law is not a formal test based on the resident registry alone — it is a substantive determination based on where the center of one's life is located. Even if the resident registry is moved overseas, if you retain a base in Japan, have family there, travel back and forth frequently, or make long temporary returns, the tax authority may still treat you as a Japanese resident. Overseas postings, dual-base lifestyles, or retention of a Japanese base should be reviewed with a specialist.
A local tax (municipal tax) levied on the owner of the property as of January 1. Assessment-based (the city office calculates and mails a tax notice).
Assessed values are reassessed every 3 years (most recently in FY Reiwa 6)
Mid-year sale proration: a buyer acquiring on or after July 1 is not the taxpayer of record for that year; by commercial practice the tax is prorated by day
All amounts are based on tax rates as of May 2026 and prevailing Fukuoka City market prices. Actual amounts will vary with assessed values and contract terms.
| Stamp duty | Reduced rate, bracket JPY 10–50 million | 10,000 |
|---|---|---|
| Brokerage fee | 18 million × 3% + 60,000 + 10% consumption tax | 660,000 |
| Registration license tax (land transfer) | Assessed value 4 million × 1.5% | 60,000 |
| Registration license tax (building transfer, investment-use base rate) | Assessed value 6 million × 2.0% | 120,000 |
| Judicial scrivener fee (estimate) | — | 100,000 |
| Real estate acquisition tax (land, residential-land 1/2 special) | 4 million × 1/2 × 3% | 60,000 |
| Real estate acquisition tax (building) | 6 million × 3% | 180,000 |
| Fire insurance (5-year bundle) | — | 30,000 |
| Total acquisition costs | 1,220,000 |
→ approx. 6.8% of property price
→ approx. 6.8% of property price
| Fixed asset tax (land, small-scale residential 1/6) | 4 million × 1/6 × 1.4% | 9,333 |
|---|---|---|
| Fixed asset tax (building) | 6 million × 1.4% | 84,000 |
| City planning tax (land, residential 1/3) | 4 million × 1/3 × 0.3% | 4,000 |
| City planning tax (building) | 6 million × 0.3% | 18,000 |
| Total annual fixed asset / city planning tax | 115,333 |
| Tenant type | Monthly rent | Withholding | Owner net (monthly) | Annual withheld |
|---|---|---|---|---|
| Individual (residential use) | 90,000 | None | 90,000 | 0 |
| Corporation (company housing) | 90,000 | 18,378 / month | 71,622 | 220,536 |
| Sale price | — | 20,000,000 |
|---|---|---|
| Cumulative depreciation (5 years) | 12 million × 0.067 × 5 | 4,020,000 |
| Acquisition cost (land not depreciated) | 6,000,000 + (12,000,000 − 4,020,000) | 13,980,000 |
| Disposal expenses (brokerage, stamp) | — | 800,000 |
| Capital gain | 20 million − 13.98 million − 0.8 million | 5,220,000 |
| Capital gains tax (non-resident, long-term) | 5.22 million × 15.315% | 799,443 |
| Reference: resident (incl. 5% resident tax) | 5.22 million × 20.315% | 1,060,443 |
| Buyer withholding (when no exception applies) | 20 million × 10.21% | 2,042,000 |
| Expected refund on filing (with buyer withholding) | 2,042,000 − 799,443 | 1,242,557 |
Non-resident advantage in actual amount: resident tax exemption saves approx. JPY 261,000 on long-term gains (vs. a resident: 5.22 million × 5%).
Market reality: whole-building RC apartments in Fukuoka City (yields 5.5–6.8%) usually trade in the JPY 90 million – 250 million range. JPY 100 million represents a small whole-building standard price point.
| Stamp duty | Reduced rate, bracket JPY 50–100 million | 30,000 |
|---|---|---|
| Brokerage fee | 100 million × 3% + 60,000 + 10% consumption tax | 3,366,000 |
| Registration license tax (land) | Assessed value 25 million × 1.5% | 375,000 |
| Registration license tax (building, base rate) | Assessed value 30 million × 2.0% | 600,000 |
| Registration license tax (mortgage, base rate) | Loan 75 million × 0.4% | 300,000 |
| Judicial scrivener fee (estimate) | — | 200,000 |
| Real estate acquisition tax (land) | 25 million × 1/2 × 3% | 375,000 |
| Real estate acquisition tax (building) | 30 million × 3% | 900,000 |
| Total acquisition costs | 6,146,000 |
→ approx. 6.1% of property price
→ approx. 6.1% of property price
| Fixed asset tax (land, all-unit residential special) | 25 million × 1/6 × 1.4% | 58,333 |
|---|---|---|
| Fixed asset tax (building) | 30 million × 1.4% | 420,000 |
| City planning tax (land) | 25 million × 1/3 × 0.3% | 25,000 |
| City planning tax (building) | 30 million × 0.3% | 90,000 |
| Total annual fixed asset / city planning tax | 593,333 |
Varies by the composition of tenants across 10 units. If all units are rented to individual residential tenants, withholding is zero. If all units are leased to corporate tenants, annual rent 5.5 million × 20.42% ≈ JPY 1.12 million is withheld. In practice it is a mix; track the breakdown when managing contracts.
| Sale price (assumed) | — | 105,000,000 |
|---|---|---|
| Cumulative depreciation (5 years) | 60 million × 0.033 × 5 | 9,900,000 |
| Acquisition cost (land not depreciated) | 40,000,000 + (60,000,000 − 9,900,000) | 90,100,000 |
| Disposal expenses (brokerage, stamp) | 105 million × 3% + 60,000 + consumption tax + stamp 60,000 | 3,600,000 |
| Capital gain | 105 million − 90.1 million − 3.6 million | 11,300,000 |
| Capital gains tax (non-resident, long-term) | 11.3 million × 15.315% | 1,730,595 |
| Reference: resident (incl. 5% resident tax) | 11.3 million × 20.315% | 2,295,595 |
| Buyer withholding (when no exception applies) | 105 million × 10.21% | 10,720,500 |
| Expected refund on filing | 10,720,500 − 1,730,595 | 8,989,905 |
Non-resident advantage in actual amount: resident tax exemption saves approx. JPY 565,000 on long-term gains (vs. a resident: 11.3 million × 5%).
Following the case studies, four points re-summarizing 'advantages and watch-outs that overseas owners actually experience'.
The core differentiator of this page. After the case studies and the four highlights, three commonly confusing practical points are laid out as separate cards.
Readers of this page are overseas investors who already live outside Japan from the outset; rules written for Japan residents ('before leaving Japan') do not apply. The standard workflow for overseas investors is:
Once investment scale reaches the JPY 100 million bracket (reference: properties above JPY 100 million, second property and beyond), 'holding real estate through a Japanese corporation' becomes a structure worth considering.
Nine questions at the foot of the page. Each Q&A is structured as FAQPage JSON-LD to optimize for GEO citation.