One thing to understand first

For a non-resident seller, the 10.21% withheld at source is a prepaid tax on the total sale price, not the final amount.
The final capital gains tax = capital gain × 15.315% (long-term) or 30.63% (short-term), usually less than the amount withheld.
The difference between the two can be reclaimed through a tax return.
Assumes a non-resident individual owner (no resident tax).
Exception: no withholding applies when the sale price is JPY 100 million or less and the buyer is an individual purchasing for their own residence.

Estimate · Indicative

How much of the 10.21% withheld can you get back?

On sale, the buyer withholds 10.21% of the price upfront as a prepaid tax.

The final tax is usually lower, and the difference can be reclaimed through a tax return.

Use your own figures for a rough sense.

All amounts are in units of ¥10,000 (JPY 10k).

Building structure

Current use

When acquired

Acquisition priceJPY 10k

Acquired (year / month)

Not sure (e.g. inherited)

When sold

Expected sale priceJPY 10k

Expected sale (year / month)

Of the 511 JPY 10k withheld upfront, an estimated

approx. 304〜336JPY 10k may be refunded

Withheld (sale × 10.21%): 511 JPY 10k
Tax rate: Long-term 15.315%
Acquisition costs (price × 5%): 200 JPY 10k
Acquisition cost after depreciation (incl. costs): 3,557 JPY 10k
Selling costs: 200 JPY 10k
Estimated capital gain: 1,243 JPY 10k
Estimated capital gains tax: 190 JPY 10k

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This is an estimate for reference only; the actual tax and refund follow your tax return and a tax accountant’s judgment.

Assumptions used

Acquisition costs = price × 5% (agent fee, registration license tax, real estate acquisition tax, stamp duty, judicial scrivener; added to the acquisition cost) / Selling costs = sale × 4% (agent fee, etc.) / building ratio assumed by structure / new-build acquisition, straight-line (fixed-amount) depreciation approximation / assumes a non-resident individual owner (no resident tax). Actual figures vary with second-hand acquisition, withholding exceptions, and actual costs.

Why is there a refund?

At closing, the buyer withholds 10.21% of the total sale price and remits it on your behalf — this is a prepayment, not the tax you ultimately owe. The final amount is based on your capital gain (sale price less acquisition cost and selling costs), and is usually lower than what was withheld. The over-withheld portion is settled and refunded in the following year’s tax return. The estimate above gives you a rough sense of that difference.

How a refund actually happens

1
Sale and withholding
At closing the buyer withholds 10.21% of the price; the balance is remitted to your account.
2
Appoint a tax agent
A non-resident must appoint a Japan-based tax agent to file, pay, and receive refunds.
3
File a tax return
Between Feb 16 and Mar 15 of the following year, the final tax is reconciled against what was withheld.
4
Receive the refund
After reconciliation, the over-withheld portion is returned. The whole process can be done remotely.

Frequently asked questions

Is the 10.21% withheld just gone for good?: No. It is a prepaid tax on the total sale price, not the final amount. The final capital gains tax is usually lower, and the over-withheld portion can be reclaimed through a tax return.
Roughly when does the refund come back?: After the tax return is filed (Feb 16 – Mar 15 of the following year). The actual timing varies by case and depends on the tax authority’s processing.
Living overseas, do I have to come to Japan?: Generally no. With a power of attorney and a Japan-based tax agent, filing and receiving the refund can be done remotely.
What if I don’t know the original purchase price?: This is common with inherited properties. The acquisition price greatly affects the tax and refund, so forcing an estimate isn’t wise here — it’s best to contact us and work it out together.

One thing to understand first

For a non-resident seller, the 10.21% withheld at source is a prepaid tax on the total sale price, not the final amount.

The final capital gains tax = capital gain × 15.315% (long-term) or 30.63% (short-term), usually less than the amount withheld.

The difference between the two can be reclaimed through a tax return.

Assumes a non-resident individual owner (no resident tax).

Exception: no withholding applies when the sale price is JPY 100 million or less and the buyer is an individual purchasing for their own residence.

Why is there a refund?

How a refund actually happens

Sale and withholding

At closing the buyer withholds 10.21% of the price; the balance is remitted to your account.

Appoint a tax agent

A non-resident must appoint a Japan-based tax agent to file, pay, and receive refunds.

File a tax return

Between Feb 16 and Mar 15 of the following year, the final tax is reconciled against what was withheld.

Receive the refund

After reconciliation, the over-withheld portion is returned. The whole process can be done remotely.

Frequently asked questions

Is the 10.21% withheld just gone for good?

No. It is a prepaid tax on the total sale price, not the final amount. The final capital gains tax is usually lower, and the over-withheld portion can be reclaimed through a tax return.

Roughly when does the refund come back?

After the tax return is filed (Feb 16 – Mar 15 of the following year). The actual timing varies by case and depends on the tax authority’s processing.

Living overseas, do I have to come to Japan?

Generally no. With a power of attorney and a Japan-based tax agent, filing and receiving the refund can be done remotely.

What if I don’t know the original purchase price?

This is common with inherited properties. The acquisition price greatly affects the tax and refund, so forcing an estimate isn’t wise here — it’s best to contact us and work it out together.