Tax Basics for Foreign Buyers of Japanese Real Estate

Buying property in Japan brings certain taxes and fees regardless of nationality. Two of the most common are registration tax, a national tax paid at the registry when title transfers, and real estate acquisition tax, a prefectural tax charged after acquisition.

Once you own the property, fixed asset tax and city planning tax apply every year, billed by the municipality to whoever owns the property as of January 1 — including owners living abroad. Appointing a tax administrator to handle payments on your behalf is common practice.

If you sell in the future, any gain may be subject to capital gains tax, at a rate that depends on how long you held the property. It's worth thinking about your exit strategy from the day you buy.