Tax

These articles contain information about taxes related to real estate. These easy to understand articles are specifically created for non-residents in Japan and cover topics such as taxes levied at the time of purchasing, possessing, and selling real estate, taxes levied on ownership of real estate, taxes levied on rent income from real estate investment, and more.

Taxes and Expenses after acquiring Real Estate in Japan

When you purchase real estate in Japan such as your own home or an income-generation property, there are taxes and miscellaneous expenses that you have to pay after your purchase or throughout the period of your ownership. We here provide a guidance on taxes and expenses after your purchasing real…

Capital Gains Tax when Selling Property in Japan

Here we would like to provide some guidance regarding what taxes are involved when selling your real estate property in Japan. When you have income from selling a real estate property–which is called “capital gains”–a national and local (inhabitant) income tax may be imposed on it. These taxation…

Taxes in Japan: Filing Japanese Income Tax in Tokyo

For many foreign residents living in Japan it’s possible that the confusion and hours or research spent in filing Japanese taxes are negligible since their companies file on their behalf. However, if 1) you’re self-employed, 2) your company happens to be based overseas, or 3) your company doesn’t…

Accounting in Tokyo: Bilingual Accounting & Consulting Firms

Whether you are filing individual tax returns or hoping to establish a new business, financial issues can be complicated. These difficulties will no doubt be compounded upon moving to a country like Japan, where you will face the intricacies of a different financial system on top of linguistic and…

Individual VS Corporate Investment Property Ownership

Should you register your Japanese investment property under your own name, or under a corporate structure? What are the advantages or disadvantages of both options? How about tax implications? Accessibility to financing? Below is the transcript of an interview we conducted on our PodCast, with Mr S…

Income Tax on Rental Real Estate Income

The income received when renting out a real estate property in Japan is counted as part of your taxable income. It may seem frustrating at first if you don't know where to ask or how things are calculated. Here in this easy to follow guide, we will explain what rental income taxes can affect real es…

Withholding tax on real estate sales by Non-residents

When a real estate property in Japan owned by a non-resident or a foreign corporation is sold, to prevent omission of report on income tax, the person who purchases and pays for the property has to pay the equivalent amount of the income tax withheld upon the transaction to the local taxation offi…

Property Taxes in Japan - Fixed Asset Tax and City Planning Tax

When you own real estate in Japan, a Fixed Asset Tax and City Planning Tax are imposed yearly. These taxes are due regardless if the owner is an individual or a corporation. A notification of the tax due is sent to the owner of the property as of the 1st of January every year. We would like to ex…

Withholding Tax for the leasing of real estate owned by Non-residents

When a foreign investor or a real estate owner who does not live in Japan due to overseas assignment rents out real estate in Japan and a lessee is a corporation, the lessee shall pay 20.42% of the rent to the tax office as withholding tax, and the lessor will receive the remaining amount after wi…

Japanese Consumption Tax (VAT)

In Japan, the current consumption tax was raised to 10% starting October 2019. In this article, we cover the following aspects regarding Japanese Consumption Tax. ・Consumption tax in Japan and how it’s displayed in Shops ・The history of Japanese consumption tax ・Who is eligible to do? Tax fre…