Do You Need a Revenue Stamp on a Japanese Property Contract? Stamp Duty Amounts, Reductions and E-Contracts
Written by：SUMIMOTO Inc.Editorial Policy
When you buy property in Japan, a revenue stamp is often attached to the contract. Many overseas buyers ask how much it costs on top of the purchase price, and whether they have to pay it at all.
This article explains how stamp duty generally works for sale contracts, loan agreements and construction contracts, focusing on typical amounts and points to watch.
Which documents are subject to stamp duty?
Stamp duty is a tax on creating certain documents, not on the transaction itself. It arises when a taxable document is made.
In real estate, the documents typically covered are the sale and purchase contract, the loan agreement for a mortgage, and the construction contract for a new build. If the document is made in Japan, the buyer's nationality or country of residence is generally said not to matter.
Key figures (example: ¥40 million purchase, ¥35 million loan)
- Sale contract stamp duty
- 1×10,000 yen
- Loan agreement stamp duty
- 2×10,000 yen
- Penalty if the stamp is missing
- 3×
Approximate, with the reduced rate applied
Loan above ¥10 million up to ¥50 million
Said to be 1.1× if self-reported
How much is the duty for each contract amount?
Stamp duty on a sale contract depends on the contract amount bracket. A reduced rate applies to real estate transfer contracts, and the current deadline is said to be contracts made through the end of March 2027.
Stamp duty on property sale contracts (approximate)
| Contract amount | Standard rate | Reduced rate |
|---|---|---|
| Over ¥5M up to ¥10M | ¥10,000 | ¥5,000 |
| Over ¥10M up to ¥50M | ¥20,000 | ¥10,000 |
| Over ¥50M up to ¥100M | ¥60,000 | ¥30,000 |
| Over ¥100M up to ¥500M | ¥100,000 | ¥60,000 |
Note that the reduced rate generally does not apply to mortgage loan agreements. A loan above ¥10 million up to ¥50 million is typically ¥20,000.
Legal basis
- Stamp Tax Act, Art. 2
- Stamp duty is imposed on taxable documents listed in Appended Table 1.
- Stamp Tax Act, Art. 3
- The person who creates the taxable document is generally the taxpayer.
- Stamp Tax Act, Art. 8
- Payment is basically made by affixing a stamp and cancelling it with a seal.
- Stamp Tax Act, Art. 20
- Sets out a penalty tax where the required stamp was not affixed.
Basis for the reduced rate
- Act on Special Measures Concerning Taxation, Art. 91
- Provides a time-limited special measure reducing stamp duty on real estate transfer contracts and similar documents.
Act on Special Measures Concerning Taxation (e-Gov Law Search)
Is a stamp unnecessary for an e-contract?
Stamp duty applies to paper documents, so it is widely understood to be not charged on contracts concluded as electronic data, according to the National Tax Agency's position. Choosing a real estate company that supports e-contracts can sometimes save the cost.
However, if you print the contract and sign it as the original, it may still be a taxable document. Confirm with the agent before signing which version is the official original.
Who pays the stamp cost, and what should you watch?
By law the taxpayer is the person who creates the document, but for sale contracts it is common for buyer and seller to split the cost. Agree on who pays how much before signing.
Common gaps and fixes
✕Checked only the sale contract and left the loan agreement's stamp cost out of the budget.
→Ask for the stamp cost of the sale, loan and construction contracts to be listed in the closing-cost estimate.
✕Assumed the reduced rate also applies to the loan agreement.
→Check which documents the reduction covers, and its deadline, in National Tax Agency materials.
✕Made one original each for seller and buyer but prepared stamps for only one copy.
→Confirm the number of originals and whether each needs a stamp with the agent.
✕Living abroad, exchanged contracts by post without deciding who affixes the stamp.
→Agree in writing or by email who affixes and cancels the stamp, and when.
Pre-signing checklist
- I confirmed the contract amount and the stamp duty for the sale contract
- I confirmed whether the reduced rate applies and its deadline
- I included the loan agreement's stamp cost in closing costs
- I asked the agent whether the contract is electronic or on paper
- I agreed who pays for the stamp and who affixes it
- I confirmed the number of originals and whether each needs a stamp
FAQ
- Q. Do foreign buyers living overseas have to pay stamp duty?
- A. If the contract is made in Japan, it is generally treated as a taxable document regardless of nationality or residence.
- Q. Does a receipt for the purchase price also need a stamp?
- A. Depending on the amount on the receipt, it may. Check the brackets with National Tax Agency materials or a tax accountant.
- Q. What happens to the reduction after April 2027?
- A. The current deadline is said to be the end of March 2027. Check the latest information at the time you sign to see if it has been extended.
In the SUMIMOTO Hub app, the 24-hour AI advisor explains how to read sale and loan contracts and the items that make up closing costs, in multiple languages. For exact amounts and eligibility, please consult a qualified tax accountant or judicial scrivener.
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References & Sources
This article provides general information as of its publication date and is not individual legal, tax or investment advice. It was written with the help of generative AI.Editorial Policy
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