All About Property Taxes in Japan: The Ultimate Guide

Last Updated: 10월 1, 2026

Foreigners looking to purchase properties in Japan need a guide to navigate local tax laws and other related rules and regulations for a smooth and seamless experience in purchasing property overseas. Our guide answers some of the most frequently asked questions on property acquisition in Japan, especially for foreigners.

If you’re thinking about buying property in Japan, good news! Foreigners, even those not living in Japan, can buy and own land and buildings here. But there’s more to it than just handing over the cash. It's important to know about taxes, documents, registration costs, and the ongoing expenses you'll face before you go through with the deal.

And just a heads-up: owning property doesn’t automatically get you a visa or residency. Those are separate things.

Things Foreigners Need to Know About Buying Property in Japan

The most crucial fact is that foreign buyers, including those who have residency, are welcome to purchase commercial buildings, land, and residential real estate in Japan because the law does not impose any restrictions on such an operation. It should be noted, however, that those not being residents may encounter additional requirements and taxes to complete a real estate purchase in Japan.

Paying the taxes and expenses listed below should be based on the type of property, its assessed value, location, purchase price, residency, and whether it is a loan.

Taxes and Other Fees Involved in Property Purchase Transactions

Fixed Asset Tax

A local tax paid by property owners called fixed asset tax in Japan is based on the assessed value of this property, and its standard rate is 1.4%. By the way, an owner as of January 1st will be liable for this tax for the current year. Note that the assessed value does not necessarily match the property’s market value; also, there are exemptions for residences.

Real Estate Acquisition Tax

When purchasing land or a building is completed, a prefecture-level tax, named real estate acquisition tax, must be paid once. The standard rate is 4%; however, if it is land bought within the exemption scope, the rate is subject to reduction by 1% (until March 31, 2027), or there may be other exemptions depending on the property.

City Planning Tax

A local tax levied for buildings in specified urban planning areas is called city planning tax and is based on a property’s assessed value (maximum rate of 0.3%). Residential structures benefit from several exemptions; however, this tax’s rate is subject to local government determination.

Registration and License Tax

One of the taxes paid upon acquiring real estate property in Japan and registering a right or interest in it with the Legal Affairs Bureau is called registration and license tax. The applicable rate is generally 2% of the assessed value for transfer of property ownership and some other reduced rates for specific interests and property types. In addition, it might also be necessary to pay registration fees for a mortgage.

Stamp Tax

One of the taxes due upon signing the documents for real estate purchases in Japan is called stamp tax, and its amount depends on the value of the contract’s content. For example, reduced stamp tax rates apply to certain real estate transfers for a limited period of time.

Japanese Consumption Tax

A consumption tax in the amount of 10% is levied in Japan. It typically applies to goods and services; in this regard, the building is subject to tax, and land is generally tax-exempt. It is also possible to claim an input tax credit when this tax is involved. For example, for taxable Japanese residents, the question of input tax credit depends on whether the real property is purchased for resale or for investment or business purposes.

Withholding Tax

A withholding tax at the rate of 10.21% that can apply to real estate transactions with a non-resident is another tax that should be taken into account by foreign buyers (withholding tax on dividends has a rate of 2.02%). The company buying the real estate property in this case will generally withhold this tax and remit it to Japanese tax authorities. However, it does not apply if the property is purchased by an individual or a company for their family. In addition, the amount of this tax is reduced by the purchase amount of this real estate of one property below 100 million Yen.

Brokerage Fee

In turn, a brokerage fee payable to an authorized real estate agent is based on an offer above four million. This rate is a rough estimate; the amount will be calculated and agreed upon with an independent third party in each case.

Documents Required to Purchase Real Estate in Japan

The documents for buying one of the properties in Japan can differ depending on whether the buyer is a resident to a non-resident, the method of payment, and the documents the seller needs. They may include the following:

Passport and Residency Documents

Most foreigners will require an electronic passport to buy one of this property. Residents can also present their residence card to identify themselves, although, for some transactions, other documentary evidence of their identity may be necessary. As a foreign resident, it usually takes the form of documents from official sources showing one’s name, address, and date of birth. By the way, having bought one of this property does not provide a right to live in Japan; residency and visa issues are regulated separately and are considered independently.

Registered Seal and Seal Certificate

In Japan, all residents are required to have an inked personal seal (Inkan). If such registration is made in a city government, a seal registration certificate should be presented. One of the documents that foreigners do not have when buying property in Japan is a Japanese seal. However, depending on the circumstances, it is crucial to consult one’s attorney regarding this particular document.

Japanese Bank Account

A Japanese bank account is always useful but is not mandatory to buy one of this property, as most people still arrange it for paying expenses in relation to the property and receiving rental income from it. To open a current account, if one is a resident, it is necessary to present a passport, a residence card, and address details. Non-residents, however, should contact their banks or the real estate agent to set up a payment for this property and a wire transfer account before signing the contract.

Loan Application and Guarantee Documents

For those who plan to take a loan in Japan, a loan application procedure with a Japanese bank is required, during which the income, occupation, nationality, residency, property rights, and liabilities of the applicant under the law will be considered. These documents may vary significantly from bank to bank and should also be discussed with an attorney, especially for non-residents. A company’s guarantee is sometimes required to obtain a loan to buy one of this property.

Other Charges Relating to the Ownership of Property in Japan

Other than the above-listed charges for purchasing property in Japan, there are also judicial scrivener’s fees, such as land management, building management, repair costs, insurance, bank loan statements, exchange differences, accountant’s costs, and maintenance of buildings. By the way, those not residing in Japan also pay additional taxes for these purchases when filing their tax returns.

Conclusion

For a foreigner, buying one of this property in Japan is generally possible; nonetheless, specific matters for such a purchase in this country should be considered in advance. Some of the most critical ones are the cost of purchasing, which involves such factors as taxes, registration and license tax, stamp tax, and brokerage fees. In addition, it is needed to count on some additional costs regarding property management and taxes for those purchasing for rental purposes. Moreover, when buying property in non-residence in Japan, one should prepare those documents regarding one’s identity with the purchase of one of the properties.

With this knowledge and help from experts in the field of real estate, law, and tax accounting, one will be able to navigate buying property in Japan with ease and benefit from this country’s real estate purchase procedures.