Japanese Real Estate Investment Taxes and Expenses List

Time	Subject	Explanation
		Amount: over 5mil.~10mil. JPY → Tax 5,000 JPY
		Amount: over 10mil.~50mil. JPY → Tax 10,000 JPY
		Amount: over 50mil.~100mil. JPY → Tax 30,000 JPY
	Stamp Duty	Amount: over 100mil.~500mil. JPY → Tax 60,000 JPY
		Amount: over 500mil.~1bil. JPY → Tax 150,000JPY
		The Stamp Tax amount changes based on the price of the investment. If many contracts are drawn up, the Stamp Tax will be required for each document.
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		Land: Land Tax Valuation × 1.5% (For purchasing whole buildings only)
	Registration and License Tax	Building: Building Tax Valuation × 2%
		Taxes associated with the transfer of ownership.
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		Land: Land Tax Valuation / 2 × 3%
PURCHASE		Building: Building Tax Valuation × 4%
	Real Estate Acquisition tax	About 2 to 6 months after purchase, a tax notice will be delivered.
		Non-Residents will need a tax agent, which our Japanese business partner can handle.
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	Intermediary service fee	3% of the sales price + 60,000JPY + Sales Tax 10%%
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		Evaluated property value: 20mil. JPY or below = 50,000 – 80,000 JPY
	Judicial Scrivener fee (For reference)	Evaluated property value: 20mil. – 50 mil JPY = 60,000 – 100,000 JPY
		Evaluated property value: 50 mil. JPY or above = 80,000 – 120,000 JPY
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	Insurance	Premium will differ depending on contract term,property value, property area, building construction, insurance plan

※Upon purchase, it would cost approximately 8-10% of sales price as taxes and expenses including real estate acquisition tax.

Time	Subject	Explanation
	Property and City planning Tax	Property Tax: Evaluated Property Value × 1.4% City planning Tax: Evaluated Property Value × 0.3%
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OWNER	Building Management and Repair Fee	Amount changes depending on the property
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	Property Management	5-8% of monthly rental income + Consumption Tax(10%)

Time	Subject	Explanation
RENT	Income Tax	Income tax Amount: Net Income × Tax Rate (5%~40%) Net Income = Rental Income – Expenses

Time	Subject	Explanation
		Selling within 5 years of purchase: Income Tax: Capital Gain Amount × 30.63% Resident Tax: Capital Gain Amount × 9% (Only for those living in Japan)
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RE-SALE	Capital Gains Tax	Selling later than 5 years after purchase: Income Tax: Capital Gain Amount × 15.315% Resident Tax: Capital Gain Amount × 5% (Only for those living in Japan)
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		Calculating Capital Gain: Capital Gain = Sale Amount – {purchase price + transfer expenses} – Special Deductions
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	Withholding Tax	10% of selling price＞will be fully credited after tax returns being filed

Japanese Income Tax Rate (Individual)

Income Amount	Tax Rate	Deduction
1.95mil. JPY and below	5%	0 JPY
1.95mil. ~ 3.30mil. JPY (including 3.30mil.)	10%	97,500 JPY
3.30mil. ~ 6.95mil. JPY (including 6.95mil.)	20%	427,000 JPY
6.95mil. ~ 9.00mil. JPY (including 9.00mil.)	23%	636,000 JPY
9.00mil. ~ 18.00mil. JPY (including 18.00mil.)	33%	1,536,000 JPY
18.00mil. JPY and over	40%	2,796,000 JPY