Taxes

Fixed Asset Tax -Fixed Asset Tax

Every January 1st, people who own land, buildings, or depreciable assets must pay a tax based on the value of these assets. This tax is called Fixed Asset Tax（固定資産税）, which is paid to the municipality where the assets are located.

Real Estate Acquisition Tax -Real Estate Acquisition Tax

When you acquire property like land or buildings in Japan, Real Estate Acquisition Tax（不動産取得税）is charged by the local prefecture. This applies when you purchase, exchange, receive, or build new property. The tax amount is usually based on the value of the property, which is calculated using the fixed asset valuation. For residential properties, there may be some reductions. After the property is obtained, the local government will send a notice with the tax amount. Typically, the tax is paid in full, but in some cases, it can be paid in installments.

Property Registration and License Tax -Property Registration and License Tax

When buying property or setting up a mortgage, Property Registration and License Tax（登録免許税）is charged during the property registration process. This tax is paid to make sure your ownership or mortgage rights are legally protected. The amount depends on the property’s value and type, and it’s usually based on the assessed value used for property taxes. In some cases, such as applying for a mortgage tax deduction, there may be tax reduction measures.

Stamp Tax Fee -Stamp Tax Fee

Stamp Tax Fee（印紙税）applies to specific documents, such as real estate purchase agreements or rental contracts. The amount of tax depends on the value written in the contract, and you pay it by attaching a stamp to the document. In real estate transactions, this tax amount varies based on the contract details, making it an important part of the process.

Corporate Tax -Corporate Tax

In Japan, companies and organizations are required to pay Corporate Tax（法人税）on their income. In real estate transactions, corporations are also required to pay corporate tax when buying or selling properties. The tax is calculated based on the company’s earnings, so the more profit a business makes, the more tax it has to pay. This tax is paid to the national government and is an important part of the financial responsibilities for companies in Japan. Additionally, it may change with tax reforms.

City Planning Tax -City Planning Tax

In areas designated for urban development, people who own land or buildings are required to pay City Planning Tax（都市計画税）. This tax is used to fund public infrastructure like roads and parks and support the organized growth of cities. It applies to land and buildings that are subject to property tax, and the amount is determined based on their assessed value. The tax rate varies by municipality, but it is generally set at 0.3% or lower of the assessed value. It plays an important role in funding local infrastructure improvements.