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Property ownership in Fukuoka comes with several tax obligations that foreign investors need to understand before purchasing. The main property tax rate is 1.4% annually for fixed asset tax, plus an additional 0.3% city planning tax if your property is within a designated planning area.
Beyond annual property taxes, you'll face one-time acquisition taxes of 4% and registration fees of 0.4% when purchasing. If you rent out your property, rental income is subject to income tax at regular rates, while selling property triggers capital gains tax ranging from 20.315% to 39.63% depending on how long you've owned it.
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Property owners in Fukuoka pay 1.4% fixed asset tax annually plus 0.3% city planning tax if applicable, while facing one-time acquisition costs of 4% and registration fees of 0.4%.
Capital gains tax ranges from 20.315% for properties held over 5 years to 39.63% for shorter holdings, with rental income taxed at standard income rates.
| Tax Type | Rate | Frequency |
|---|---|---|
| Fixed Asset Tax | 1.4% of assessed value | Annual |
| City Planning Tax | 0.3% of assessed value | Annual (if applicable) |
| Real Estate Acquisition Tax | 4% of assessed value | One-time (after purchase) |
| Registration Tax | 0.4% of assessed value | One-time (at purchase) |
| Capital Gains Tax (under 5 years) | 39.63% | Upon sale |
| Capital Gains Tax (over 5 years) | 20.315% | Upon sale |
| Vacant Property Penalty | Up to 6x normal tax | Annual (if deemed hazardous) |
What is the property tax rate in Fukuoka?
The property tax rate in Fukuoka is 1.4% annually for fixed asset tax on residential properties.
If your property is located within a designated city planning area in Fukuoka, you'll pay an additional 0.3% city planning tax.
This means your total annual property tax rate could be 1.7% (1.4% + 0.3%) if both taxes apply to your property. The taxes are calculated based on the assessed value determined by municipal authorities, which is typically lower than the actual market value of your property.
As of September 2025, these rates remain standard across Fukuoka and apply equally to both Japanese nationals and foreign property owners.
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What are the different types of property taxes I need to pay in Fukuoka?
Property owners in Fukuoka face several types of taxes throughout their ownership period.
| Tax Type | Rate/Amount | When You Pay |
|---|---|---|
| Fixed Asset Tax | 1.4% of assessed value | Annually (4 installments) |
| City Planning Tax | 0.3% of assessed value | Annually (if applicable) |
| Real Estate Acquisition Tax | 4% of assessed value | One-time after purchase |
| Registration Tax | 0.4% of assessed value | At time of purchase |
| Municipal Residence Tax | Varies by income | Annually (if residing in Fukuoka) |
| Business Tax | Varies by rental income | Annually (if rental qualifies as business) |
| Capital Gains Tax | 20.315% - 39.63% | Upon property sale |
Are there any annual property taxes for residential properties in Fukuoka?
Yes, all residential property owners in Fukuoka must pay annual property taxes.
The fixed asset tax of 1.4% is mandatory for every property owner, while the city planning tax of 0.3% applies only if your property is within a designated city planning area. Both taxes are calculated annually based on the municipal assessed value of your property.
Tax notifications are mailed to property owners each year, typically allowing payment in four installments throughout the year. The payment schedule usually falls in April, July, December, and February of the following year.
These annual obligations continue as long as you own the property, regardless of whether you live in it, rent it out, or leave it vacant.
How much is the fixed asset tax for properties in Fukuoka?
The fixed asset tax in Fukuoka is exactly 1.4% of your property's assessed value.
The assessed value is determined by municipal authorities and typically represents about 70% of the official land price for land, while buildings are valued based on reconstruction costs minus depreciation. This assessed value is generally lower than the actual market value of your property.
For example, if your property has an assessed value of ¥20 million, your annual fixed asset tax would be ¥280,000 (¥20 million × 1.4%). Newly constructed homes may qualify for temporary reductions, such as half the normal rate for 2-3 years.
The assessed value is reviewed every three years, which means your tax bill can change periodically based on these reassessments.
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Are there any additional taxes for vacant properties in Fukuoka?
Vacant properties in Fukuoka can face significantly higher taxes if they're deemed problematic.
Under Japan's Vacant Houses Special Measures Act, municipalities can impose property taxes up to six times higher than normal rates on vacant properties that are considered hazardous, unsanitary, or detrimental to the local environment.
Properties that fall into this category typically include those with structural damage, overgrown vegetation, or other conditions that negatively impact the neighborhood. The municipality will first issue warnings and orders for improvement before applying the penalty taxes.
Regular vacant properties that are properly maintained don't face these penalties, but owners should ensure their properties remain in good condition to avoid these substantial tax increases.
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What is the calculation method for property taxes in Fukuoka?
Property tax calculations in Fukuoka follow a straightforward formula based on municipal assessed values.
- Assessed Value Determination: The municipality determines your property's assessed value, typically reviewed every three years
- Land Assessment: Land is valued at approximately 70% of the official land price in your area
- Building Assessment: Buildings are valued based on reconstruction costs minus accumulated depreciation
- Fixed Asset Tax Calculation: Assessed value × 1.4% = annual fixed asset tax
- City Planning Tax Calculation: Assessed value × 0.3% = annual city planning tax (if applicable)
Additional exemptions or reductions may apply depending on your property type and circumstances. For instance, small residential land (under 200 square meters) receives a significant tax reduction, while newly constructed homes often qualify for temporary reductions.
Do I need to pay city or local taxes on my property in Fukuoka?
Yes, property owners in Fukuoka pay municipal taxes directly to the city government.
The fixed asset tax and city planning tax are both municipal (city-level) taxes collected by Fukuoka City. These taxes fund local infrastructure, schools, and public services within the city.
If you reside in Fukuoka as of January 1st of any year, you'll also owe municipal residence tax based on your income. This applies whether you're a property owner or not, but as a property-owning resident, you'll pay both property taxes and residence tax.
Foreign property owners pay the same municipal taxes as Japanese nationals, with no additional fees or different rates based on nationality.
Are there taxes on the sale of property in Fukuoka, like capital gains tax?
Capital gains tax applies to all property sales in Fukuoka, with rates depending on your ownership period.
| Ownership Period | Tax Rate | Tax Components |
|---|---|---|
| Less than 5 years | 39.63% | National + local inhabitants' tax |
| 5 years or more | 20.315% | National + local inhabitants' tax |
| Primary residence sale | Same rates | Up to ¥30 million deduction available |
| Non-resident sellers | 10.21% | Withholding tax (may be final tax) |
| Inherited property | Same rates | Special deductions may apply |
The tax is calculated on your profit (sale price minus purchase price and improvement costs), not the total sale amount. If you're selling your primary residence, you can deduct up to ¥30 million from your capital gains, significantly reducing or eliminating the tax burden.
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Are there any special fees for foreign property owners in Fukuoka?
Foreign property owners face no special fees or different tax rates in Fukuoka compared to Japanese nationals.
You pay exactly the same property taxes, acquisition taxes, and registration fees as Japanese buyers. The Japanese government treats foreign property ownership equally when it comes to taxation, with no discrimination based on nationality.
However, if you're a non-resident (living outside Japan for more than one year), you must appoint a tax agent to handle your tax obligations if you leave Japan. This agent will be responsible for receiving tax notices and making payments on your behalf.
Non-residents also face a 10.21% withholding tax on property sales, which may be the final tax depending on tax treaty agreements between Japan and your country of residence.
What are the registration and license tax fees when purchasing a property in Fukuoka?
Property purchases in Fukuoka require several mandatory fees and taxes during the transaction process.
Registration tax costs 0.4% of the assessed value for ownership registration, which officially records you as the new property owner in the government registry. This is a one-time fee paid at the time of purchase.
Real estate acquisition tax is a separate 4% charge based on the assessed value, billed to you several months after completing your purchase. Unlike registration tax, this isn't collected at closing but comes as a separate tax bill later.
Additional professional fees include judicial scrivener fees (typically ¥100,000-300,000) for handling the legal paperwork and real estate brokerage commissions (usually 3% plus ¥60,000 plus consumption tax).
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Is there a tax on rental income from properties in Fukuoka?
Rental income from Fukuoka properties is subject to both national and municipal income taxes.
If you're a Japanese resident, rental income is added to your other income and taxed at progressive rates ranging from 5% to 45% nationally, plus municipal taxes. The exact rate depends on your total annual income level.
Non-residents face a 20.42% withholding tax deducted monthly from rental payments, except when tenants use the property as their primary residence. This withholding may be your final tax obligation, depending on tax treaties between Japan and your country.
If your rental operation qualifies as a "real estate rental business" due to its scale (typically 10+ units or 10+ rooms), you may also owe business tax on the rental income.
All rental income must be reported on annual tax returns, and you can deduct legitimate expenses like property management fees, repairs, and depreciation.
What is the process for paying property taxes and fees in Fukuoka, and when are they due?
Fukuoka property taxes follow a structured annual payment schedule with multiple options for settlement.
Tax notifications are mailed to property owners each year, typically in late spring. The annual tax bill can be paid in four installments with due dates usually in April, July, December, and February of the following year.
Payment methods include bank transfers, convenience store payments, and direct payments at municipal offices. Many property owners set up automatic bank transfers to ensure timely payments and avoid penalties.
If you're leaving Japan or moving away from Fukuoka, you must appoint a tax agent before departure to handle future tax obligations. Failure to pay property taxes results in penalties and can lead to property seizure in extreme cases.
Registration and acquisition taxes have different payment processes - registration tax is paid at closing through your judicial scrivener, while acquisition tax bills arrive separately 3-6 months after purchase.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property taxation in Fukuoka follows Japan's standardized municipal system, making it predictable for investors to calculate ongoing costs.
Understanding these tax obligations upfront helps foreign buyers budget accurately and avoid surprises during property ownership in Fukuoka.