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Japan – Property Taxes

Property Tax

  • Property tax in Japan is based on the value of the property and is set by the local government. The property tax rate is typically between 0.4% and 2.1% of the property value.
  • The property tax must be paid annually by the property owner and can be paid in one lump sum or in instalments.
  • Failure to pay property tax can result in penalties and interest charges.
  1. Capital Gains Tax (CGT)
  • CGT is charged on the sale of a property that is not your main residence. The rate of CGT is 20.315% on any gain made from the sale of the property.
  • Any gain made on the sale of a property is calculated as the sale price minus the purchase price, and any costs associated with buying or selling the property.
  • CGT is paid by the seller of the property.
  1. Inheritance Tax
  • Inheritance tax in Japan is charged on the transfer of property through inheritance. The rate of inheritance tax varies depending on the relationship between the deceased and the heir and the value of the property.
  1. Gift Tax
  • Gift tax in Japan is charged on the transfer of property as a gift. The rate of gift tax varies depending on the relationship between the giver and the recipient and the value of the property.
  1. Tax on Property Income
  • Tax on rental income from a property in Japan is charged at the standard rate of income tax, currently 20.315%.

Tax Advantages of Buying a House in Japan

  • There are several tax advantages to buying a house in Japan, including:
  • Property tax is relatively low compared to other developed countries.
  • Tax deductions for mortgage interest payments are available.
  • Long-term property ownership may result in lower property taxes.


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