Costs and Taxes

1. Costs and taxes that should be paid at the time of Concluding a Contract
Category Description Remarks
Purchase Money Earnest Money Deposit Typically 10% of the property price
Fee Agent Commission First half of the total amount
Tax Stamp Duty For sale and purchase contract
(ex: 10,000JPY for a property less than 50,000,000 JPY)
2. Costs and Taxes that should be paid to the Solicitor/Attorney
Category Description Remarks
Fee Solicitor/Attorney Fee
Contract Translation Charge* Varies depending on the time required
Tax Registration Tax The Solicitor/Attorney will pay the tax on your behalf

*Optional

3. Costs and Taxes that should be paid at the time of Closing
Category Description Remarks
Purchase Money Remaining Balance of the Purchase Price No loans available for non-residents
Fee Agent Commission Second half of the total amount
Tax Reimbursement of
Fixed Asset Tax and City Planning Tax
Per-diem reimbursement of the annual Fixed Asset Tax and City Planning Tax to the seller.
Starting Date: April 1st
4. Taxes that should be paid after the Closing
Category Description Remarks
Tax Real Estate Acquisition Tax <For residential use>
 Land: 1.5% of assessed value
 Building: 3% of assessed value
<Others>
 Land: 3% of assessed value
 Building: 4% of assessed value
* Bill will be issued in 3-6 months after title transfer.
5. Annual Costs and Taxes for Property Owner
Category Description Remarks
Tax Fixed Asset Tax and City Planning Tax Fixed Asset Tax: 1.4% of assessed value
City Planning Tax: 0.3% of assessed value
* Imposed by Fiscal Authority of Kyoto City.
* Tax reduction available for residential lands.
Insurance Fire Insurance Premium* Varies depending on insurance conditions
Fee Housing Maintenance Service Membership Fee* After-sales support service for the houses renovated by Hachise. Free for the first year.
Vacant Home Maintenance Fee* Optional vacant home maintenance service for the vacation homes renovated by Hachise.
Others Neighborhood Association Fee* Varies depending on the Association
(Ex: 100–1,000 JPY/month)

*Optional

Fixed Asset Tax and City Planning Tax
Property owners are required to pay Fixed Asset Tax and City Planning Tax, which are levied on fixed assets such as land and buildings. The taxpayer (the one who will be liable for paying tax) will be determined on January 1st, and the taxation period will start from April 1st of the same year to March 31th in the following year. Buyers must reimburse a pro rata amount of the annual tax to the seller upon closing the contract. If the hand over date is between January 1st and March 31th, the buyer must pay the seller, the same amount as the current annual tax as an advance payment for the following year. The seller will pay the tax on behalf of the buyer upon receiving a tax statement. However, even if the imposed tax is set at a higher/lower rate than the amount paid in advance, neither party is required to make up for the difference.
Agent Commission
Properties are sorted into 3 groups by the transaction forms.
  1. Seller is Hachise, no Broker
  2. Seller is Hachise, Broker is designated
  3. Seller is others, Broker is Hachise
Regarding B and C, The buyer will pay an agent commission of [3% of property price before taxes + 60,000 JPY] + consumption tax. This is indispensable and non-negotiable. Timing of the payment varies depending on the brokers, but the payment is generally made in two equal installments, the first when making a contract and another when finalizing the deal.
Tax Administrator
The Tax Authority requires non-residents who own real estate in Japan to appoint a resident as their tax administrator. You may appoint your friends or acquaintances living in Japan, however, you can also hire a solicitor/attorney as your administrator.