Fees and Taxes of Selling Your Home in Japan
Costs and Taxes when selling a property
There are a number of fees that are required to be paid when selling a property in Japan. Here we outline the general case:
Fee | Agents Fees (仲介手数料) | Property Price × 3% + JPY 60,000 + 10% Tax | |
Other Cost | Judicial Scrivener Fee, House cleaning etc. | ||
Taxes | Capital Gains Tax (所得税) | Non-resident Seller: Income Tax (所得税) | If held less than 5 years: 30.63% If held for more than 5 years: 15.315% *Based on Net Income |
Resident Seller: Income Tax and Resident Tax (所得税 and 住民税) | If held less than 5 years: 39.63% If held for more than 5 years: 20.315% *2.1% of the income tax is added as special income tax for reconstruction **Based on Net Income | ||
Stamp Duty (印紙税) | Differs according to Price: JPY 10,000 – 480,000 | ||
Points to note:
- Above tax rates are for the general situation. There may be deductions that can be applied on a case by case basis, dependent on property type and purchasing purpose.
- In regards to withholding tax: when the seller resides overseas, the buyer, instead of the seller, will pay 10.21% of the price to the tax office directly, and pay the rest of the amount to the seller. The seller will receive a refund from tax office the following year (apply between February 16 – March 15, and expect to receive the amount in May or June).
- If property being sold is still under mortgage with an overseas bank, some additional fees may apply, depending on the bank’s rules and regulations.
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