Are you looking forward to purchase a property in Japan? There are a number of properties in Japan for Foreigners to purchase because there is no special restrictions to foreign investors in Japan for property purchase. Additional costs except property price itself are as following:
1. Real Estate Agent’s Commission (仲介手数料)
If a real estate agent facilitated the purchase, buyers must pay a commission.
- Standard calculation: (Purchase price × 3%) + ¥60,000 + consumption tax
- According to current consumption tax rate 10 percent, the total agent fee amount including consumption tax is 3.3 percent of purchase price + 66,000yen.
- Example: On a ¥30 million property, the commission would be about ¥1.05 million before tax.
2. Registration and License Tax (登録免許税)
This tax is paid when registering ownership of the property and mortgage (if applicable).
- Rates vary depending on property type and ownership transfer.
- Typically 0.15–0.3% of the assessed property value (which is usually lower than market price).
3. Judicial Scrivener Fee (司法書士報酬)
A judicial scrivener handles the legal registration process at the Legal Affairs Bureau.
- Cost: Around ¥50,000–¥150,000, depending on complexity.
4. Stamp Duty (印紙税)
A stamp tax applies to the purchase contract.
- Ranges from ¥10,000 to ¥600,000 depending on the property price.
- Example: A contract of ¥30 million usually requires a ¥30,000 stamp.
5. Real Estate Acquisition Tax (不動産取得税)
Levied by local governments a few months after purchase.
- Rate: 3% of land and building’s assessed value (sometimes 4% for commercial use).
- Exemptions or reductions may apply for residential properties.
6. Fixed Asset Tax and City Planning Tax (固定資産税・都市計画税)
These are annual property taxes, but buyers must pay their share for the remaining year after purchase.
- Fixed asset tax: 1.4% of assessed value.
- City planning tax (where applicable): 0.3%.
- Typically prorated between buyer and seller at the time of transfer.
7. Loan-Related Costs (if financing)
If purchasing with a mortgage, additional expenses apply:
- Loan arrangement fee: often 1–2% of loan amount.
- Guarantee fee: varies by lender, can be several hundred thousand yen.
- Fire and earthquake insurance: typically ¥50,000–¥200,000 per year, depending on coverage.
8. Miscellaneous Costs
- Moving costs
- Renovation or repair expenses (especially with older properties)
- Management fees and repair fund contributions for condominiums
When buying property in Japan, buyers should budget an extra 6–10% of the property price for taxes, legal fees, agent commissions, and other mandatory costs. Proper planning ensures a smooth transaction and helps buyers avoid last-minute financial stress.