Tax & Legal
Columns on the taxes and laws involved in Japanese real estate, such as acquisition tax, fixed asset tax and capital gains tax.
Who Pays Property Tax in the Year You Buy? How the Pro-Rata Settlement Works for Resale Properties in Japan
Fixed asset tax is levied on whoever owns the property on January 1, so when you buy mid-year the seller and buyer normally split the tax by days. This article covers how the settlement works, a worked example, and what to check before signing.
Do You Need a Revenue Stamp on a Japanese Property Contract? Stamp Duty Amounts, Reductions and E-Contracts
Property sale contracts and mortgage agreements in Japan are subject to stamp duty. This guide covers typical amounts, the reduced rates said to apply to contracts made through March 2027, e-contracts, and the penalty for forgetting the stamp.
What Taxes Do You Pay Every Year After Buying Property in Japan?
Owning property in Japan means paying fixed asset tax every year, plus city planning tax in urbanization promotion areas. Tax is based on the assessed value set by the municipality, not the purchase price. Here are the rates, reliefs and who pays.
Another Tax Bill After Buying? How Japan's Real Estate Acquisition Tax Works
A few months after you buy property in Japan, a prefectural tax notice may arrive. Here is how the real estate acquisition tax works, how it is estimated, which housing reductions apply, and what overseas buyers should watch for.
Taxed on Japanese Rent While Living Abroad? A Non-Resident Owner's Guide
If you move abroad but keep a property in Japan, the rental income is generally still taxed in Japan. Here is how withholding, tax returns and the tax representative usually work.
How Much Is Property Tax in Japan? A Fixed Asset Tax Guide
A practical guide to Japan's annual fixed asset tax and city planning tax after buying property — how the taxable value and rates are set, key reductions, and a common settlement-day misunderstanding.
- What is fixed asset tax, and who has to pay it?
- How is city planning tax different from fixed asset tax?
- How is the tax amount actually calculated?
- How much does the small residential land reduction actually save?
- What is the new-build reduction, and how long does it last?
- When does the tax notice arrive, and how do you pay?
Will Japan's Food Tax Really Drop to 1%? What the 2027 Cut Covers, and What It Doesn't
In September 2026, Japan's government approved a tax reform outline that would cut consumption tax on food from 8% to 1% for two years starting April 2027. Here's what's covered, what isn't, and why it's a temporary measure.
US Long-Term Rates Hit a 19-Year High — How Should You Think About Your Japan Mortgage and Investments?
In New York bond trading on September 15, 2026, the US 10-year Treasury yield briefly rose to 5.04%, its highest in about 19 years. No specific spillover figures for Japan have been reported yet, but here's how to think about mortgages and asset allocation in this environment.
Will Japan's Food Consumption Tax Really Drop to 1%? What the Tax Reform Outline Means for Your Cost of Living
Japan's ruling party is speeding up coordination on a plan to cut the consumption tax on food from 8% to 1%. Here's where the September tax reform outline stands, and what it does — and doesn't — change for your tax filings.
- How Would the Food Consumption Tax Actually Be Cut? What's the '1% Cash Benefit' About?
- When Would the Cut Take Effect — and Does It Affect Your Tax Filing Now?
- What Tax-Status Misunderstandings Are Common Among Foreign Residents?
- What Can You Prepare Now, Before the Cut Takes Effect?
- Beyond Consumption Tax, What Other Tax Changes Are Worth Watching?
Does Sending Money From Abroad to Japan Trigger Gift Tax? What Cross-Border Family Transfers Mean for Your Filing
Receiving help from family overseas to buy property or cover living costs in Japan is common — but transfers above a certain amount can trigger Japan's gift tax. Here's who is generally liable, how the tax office finds out, and roughly what the numbers look like.
Is Japan's Food Consumption Tax Really Dropping to 1%? What's Changing (and What Isn't) Explained
Food and beverage price hikes are set to hit a 2026 high of 4,531 items in September, even as PM Takaichi has proposed cutting the consumption tax on food from 8% to 1% for two years starting April 2027 (not yet law). Here's how Japan's reduced tax rate works and what the proposal actually says.
Can You Deduct Earthquake Insurance Premiums? Coverage and Limits Explained
An earthquake centered in southern Ibaraki shook much of the Tokyo metropolitan area early on August 23, 2026. Here is how earthquake insurance premiums are treated for income and resident tax, which homes qualify, and the exclusions that overseas owners and landlords most often miss.
Can Foreigners Use Japan's Mortgage Tax Credit? The 2026 Reform and Non-Resident Rules
Japan's fiscal 2026 tax reform outline extends the mortgage tax credit's deadline by five years, to the end of 2030. For overseas readers considering buying property in Japan, here's how to tell whether you qualify and what the non-resident rules mean in practice.
How Much Inheritance Tax Applies to Japanese Real Estate? Filing and Tax Agents for Overseas Heirs
What overseas-based heirs need to know about Japanese inheritance tax on real estate: the basic exemption, filing deadline, the small-lot exemption, and appointing a tax agent.
What Tax Do You Pay When Selling Property in Japan? Gains and Withholding
How capital gains are calculated, how the rate turns on your holding period, and what withholding and exemptions mean for non-resident sellers.
What Tax Do Non-Resident Owners Pay? Property Tax, Income Tax, Withholding
The practical points overseas property owners need to cover: fixed asset tax, income tax on rent, and withholding at source.
Laws Covered in This Category
- Act on Earthquake Insurance (Act No. 73 of 1966)
- Can You Deduct Earthquake Insurance Premiums? Coverage and Limits Explained
- Act on General Rules for National Taxes, Art. 117
- Taxed on Japanese Rent While Living Abroad? A Non-Resident Owner's Guide
- Act on General Rules for National Taxes, Article 117
- What Tax Do Non-Resident Owners Pay? Property Tax, Income Tax, Withholding
- Act on Special Measures Concerning Taxation (basic deduction for calendar-year taxation)
- Does Sending Money From Abroad to Japan Trigger Gift Tax? What Cross-Border Family Transfers Mean for Your Filing
- Act on Special Measures Concerning Taxation, Art. 91
- Do You Need a Revenue Stamp on a Japanese Property Contract? Stamp Duty Amounts, Reductions and E-Contracts
- Act on Special Measures Concerning Taxation, Article 35
- What Tax Do You Pay When Selling Property in Japan? Gains and Withholding
- Act on Special Measures Concerning Taxation, Article 41
- US Long-Term Rates Hit a 19-Year High — How Should You Think About Your Japan Mortgage and Investments?
- Act on Special Measures Concerning Taxation, Article 41 (Special income tax credit for those with a home loan)
- Can Foreigners Use Japan's Mortgage Tax Credit? The 2026 Reform and Non-Resident Rules
- Act on Special Measures Concerning Taxation, Articles 31 and 32
- What Tax Do You Pay When Selling Property in Japan? Gains and Withholding
- Act on Submission of Records on Overseas Remittances, etc., Article 4, Paragraph 1
- Does Sending Money From Abroad to Japan Trigger Gift Tax? What Cross-Border Family Transfers Mean for Your Filing
- Consumption Tax Act, Appended Table 1
- Will Japan's Food Tax Really Drop to 1%? What the 2027 Cut Covers, and What It Doesn't
- Consumption Tax Act, Appended Table 1-2
- Is Japan's Food Consumption Tax Really Dropping to 1%? What's Changing (and What Isn't) Explained
- Consumption Tax Act, Article 29
- Will Japan's Food Tax Really Drop to 1%? What the 2027 Cut Covers, and What It Doesn't
- Consumption Tax Act, Article 29 (Tax Rates)
- Will Japan's Food Consumption Tax Really Drop to 1%? What the Tax Reform Outline Means for Your Cost of Living
- Income Tax Act, Art. 120
- Taxed on Japanese Rent While Living Abroad? A Non-Resident Owner's Guide
- Income Tax Act, Art. 161, para. 1
- Taxed on Japanese Rent While Living Abroad? A Non-Resident Owner's Guide
- Income Tax Act, Art. 2, para. 1, item 5
- Taxed on Japanese Rent While Living Abroad? A Non-Resident Owner's Guide
- Income Tax Act, Art. 212, para. 1
- Taxed on Japanese Rent While Living Abroad? A Non-Resident Owner's Guide
- Income Tax Act, Art. 213, para. 1
- Taxed on Japanese Rent While Living Abroad? A Non-Resident Owner's Guide
- Income Tax Act, Article 120 (Final Tax Return)
- Will Japan's Food Consumption Tax Really Drop to 1%? What the Tax Reform Outline Means for Your Cost of Living
- Income Tax Act, Article 161
- What Tax Do Non-Resident Owners Pay? Property Tax, Income Tax, Withholding
- Income Tax Act, Article 165
- Can You Deduct Earthquake Insurance Premiums? Coverage and Limits Explained
- Income Tax Act, Article 2 (Definitions)
- Will Japan's Food Consumption Tax Really Drop to 1%? What the Tax Reform Outline Means for Your Cost of Living
- Income Tax Act, Article 2, Paragraph 1, Item 3 (definition of 'resident')
- Can Foreigners Use Japan's Mortgage Tax Credit? The 2026 Reform and Non-Resident Rules
- Income Tax Act, Article 212(1)
- What Tax Do You Pay When Selling Property in Japan? Gains and Withholding
- Income Tax Act, Article 33
- What Tax Do You Pay When Selling Property in Japan? Gains and Withholding
- Income Tax Act, Article 77
- Can You Deduct Earthquake Insurance Premiums? Coverage and Limits Explained
- Inheritance Tax Act, Article 1-3
- How Much Inheritance Tax Applies to Japanese Real Estate? Filing and Tax Agents for Overseas Heirs
- Inheritance Tax Act, Article 1-4
- Does Sending Money From Abroad to Japan Trigger Gift Tax? What Cross-Border Family Transfers Mean for Your Filing
- Inheritance Tax Act, Article 2
- How Much Inheritance Tax Applies to Japanese Real Estate? Filing and Tax Agents for Overseas Heirs
- Inheritance Tax Act, Article 2-2
- Does Sending Money From Abroad to Japan Trigger Gift Tax? What Cross-Border Family Transfers Mean for Your Filing
- Inheritance Tax Act, Article 21-6 (spousal deduction)
- Does Sending Money From Abroad to Japan Trigger Gift Tax? What Cross-Border Family Transfers Mean for Your Filing
- Inheritance Tax Act, Article 22
- How Much Inheritance Tax Applies to Japanese Real Estate? Filing and Tax Agents for Overseas Heirs
- Inheritance Tax Act, Article 27
- How Much Inheritance Tax Applies to Japanese Real Estate? Filing and Tax Agents for Overseas Heirs
- Inheritance Tax Act, Article 62
- How Much Inheritance Tax Applies to Japanese Real Estate? Filing and Tax Agents for Overseas Heirs
- Inheritance Tax Act, Articles 21-9 through 21-18 (inheritance-settlement taxation)
- Does Sending Money From Abroad to Japan Trigger Gift Tax? What Cross-Border Family Transfers Mean for Your Filing
- Local Tax Act (provisions on city planning tax)
- What Taxes Do You Pay Every Year After Buying Property in Japan?
- Local Tax Act (地方税法), Article 349-3-2
- What Taxes Do You Pay Every Year After Buying Property in Japan?
- Local Tax Act (地方税法), Article 350
- What Taxes Do You Pay Every Year After Buying Property in Japan?
- Local Tax Act, Article 294 (Individual Resident Tax Taxpayers)
- Will Japan's Food Consumption Tax Really Drop to 1%? What the Tax Reform Outline Means for Your Cost of Living
- Local Tax Act, Article 34(1)(v)-2 and Article 314-2(1)(v)-2
- Can You Deduct Earthquake Insurance Premiums? Coverage and Limits Explained
- Local Tax Act, Article 343, Paragraph 1
- Who Pays Property Tax in the Year You Buy? How the Pro-Rata Settlement Works for Resale Properties in Japan
- Local Tax Act, Article 350, Paragraph 1
- Who Pays Property Tax in the Year You Buy? How the Pro-Rata Settlement Works for Resale Properties in Japan
- Local Tax Act, Article 359
- Who Pays Property Tax in the Year You Buy? How the Pro-Rata Settlement Works for Resale Properties in Japan
- Local Tax Act, Article 702, Paragraph 1
- Who Pays Property Tax in the Year You Buy? How the Pro-Rata Settlement Works for Resale Properties in Japan
- Local Tax Act, Article 73-14
- Another Tax Bill After Buying? How Japan's Real Estate Acquisition Tax Works
- Local Tax Act, Article 73-15-2
- Another Tax Bill After Buying? How Japan's Real Estate Acquisition Tax Works
- Local Tax Act, Article 73-2
- Another Tax Bill After Buying? How Japan's Real Estate Acquisition Tax Works
- Local Tax Act, Article 73-24
- Another Tax Bill After Buying? How Japan's Real Estate Acquisition Tax Works
- Local Tax Act, Articles 343 and 359
- What Tax Do Non-Resident Owners Pay? Property Tax, Income Tax, Withholding
- Stamp Tax Act, Art. 2
- Do You Need a Revenue Stamp on a Japanese Property Contract? Stamp Duty Amounts, Reductions and E-Contracts
- Stamp Tax Act, Art. 20
- Do You Need a Revenue Stamp on a Japanese Property Contract? Stamp Duty Amounts, Reductions and E-Contracts
- Stamp Tax Act, Art. 3
- Do You Need a Revenue Stamp on a Japanese Property Contract? Stamp Duty Amounts, Reductions and E-Contracts
- Stamp Tax Act, Art. 8
- Do You Need a Revenue Stamp on a Japanese Property Contract? Stamp Duty Amounts, Reductions and E-Contracts
- Supplementary provisions of the 2016 amendment act (Act No. 15 of 2016)
- Will Japan's Food Tax Really Drop to 1%? What the 2027 Cut Covers, and What It Doesn't