Authored by the expert who managed and guided the team behind the Japan Property Pack
Everything you need to know before buying real estate is included in our Japan Property Pack
Buying property in Japan involves several hidden costs that can add 8-15% to your purchase price beyond the listed property value.
First-time buyers often underestimate expenses like judicial scrivener fees, acquisition taxes that arrive months after purchase, and ongoing monthly charges for condo management that can reach ¥30,000 in Tokyo.
If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.
Property buyers in Japan face upfront costs including 3% agent commission, 10% deposit, and registration fees of 2% of assessed value.
Hidden ongoing expenses include monthly management fees averaging ¥28,748 for Tokyo condos and annual property taxes of 1.4% plus 0.3% city planning tax.
| Cost Category | Amount | When Due |
|---|---|---|
| Agent Commission | 3% + ¥60,000 + 10% tax | At closing |
| Deposit | 5-10% of purchase price | Signing agreement |
| Registration Tax | 2% of assessed value | At transfer |
| Acquisition Tax | 3-4% of assessed value | 6-12 months after |
| Judicial Scrivener | ¥100,000-¥150,000 | At closing |
| Property Appraisal | ¥200,000-¥400,000 | Before purchase |
| Monthly Management (Tokyo) | ¥28,748 average | Monthly ongoing |
How much is the real estate agent's commission in Japan, and how is it calculated on the purchase price?
Real estate agent commission in Japan is capped by law at 3% of the purchase price plus ¥60,000, with an additional 10% consumption tax applied to the total.
This means for a ¥50 million property, you'll pay ¥1,500,000 + ¥60,000 = ¥1,560,000, then add 10% tax for a total of ¥1,716,000 in commission fees.
The commission structure only applies to properties over ¥4 million - cheaper properties have different sliding scales. Both buyer and seller typically pay their own agents separately unless you're in a dual agency arrangement where one agent represents both parties.
Payment is due at closing, not when you sign the initial agreement. Some agents may request a partial payment earlier, but this isn't standard practice in the Japanese market.
It's something we develop in our Japan property pack.
What percentage of the purchase price will you need to put down as a deposit, and when is it due?
The standard deposit for property purchases in Japan ranges from 5-10% of the purchase price, with new condos typically requiring the higher end at around 10%.
For resale properties, you can often negotiate a 5% deposit, especially in less competitive market conditions. The deposit becomes part of your down payment and is credited toward your final purchase amount.
This deposit is due when you sign the purchase agreement (売買契約書), not at the initial offer stage. You'll typically have a few days between offer acceptance and contract signing to arrange the funds.
The deposit is held in escrow by the real estate agent or a third-party institution until closing. If you back out after signing without valid legal grounds, you forfeit this deposit to the seller.
What are the registration and stamp duties when transferring property ownership in Japan?
Registration tax in Japan is calculated at 2% of the officially assessed property value for both land and building components, though new buildings get a reduced rate of 0.4%.
If you're financing the purchase, you'll pay an additional 0.4% of your loan amount for mortgage registration. Stamp duty varies by contract value, ranging from ¥10,000 for properties under ¥10 million to ¥60,000 for properties between ¥50-100 million.
The assessed value used for these calculations is typically 60-80% of the actual market price, so your registration tax will be lower than 2% of what you actually paid for the property.
These fees are paid at the time of ownership transfer and cannot be financed as part of your mortgage. Budget around ¥300,000-¥800,000 for a typical ¥40-60 million property purchase.
How much do judicial scrivener and notary fees usually cost for handling the legal paperwork?
Judicial scrivener fees for handling ownership transfer and property registration typically cost between ¥100,000-¥150,000 for standard residential transactions.
These professionals handle the complex legal documentation required for property transfer, including registration with the Legal Affairs Bureau and ensuring all paperwork meets government requirements.
Notary fees are separate and much lower, usually ¥7,000-¥11,000 per hour or fixed rates for standard document authentication. Most residential purchases require minimal notary involvement unless you're using powers of attorney.
Complex transactions involving multiple parties, corporate ownership, or unusual financing arrangements can increase judicial scrivener fees to ¥200,000 or more.
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What is the typical cost of property appraisal and home inspection in Japan before purchase?
Property appraisal costs in Japan range from ¥200,000-¥400,000 for standard homes and condos, with larger or commercial properties commanding higher fees.
Home inspections start at ¥50,000-¥80,000 for basic visual inspections, but comprehensive structural and seismic assessments can cost up to ¥100,000 additional.
Unlike some countries, property appraisals are often required by lenders before mortgage approval, making this a necessary expense rather than optional due diligence.
Specialized inspections for older properties may include earthquake resistance evaluation, which is increasingly important given Japan's strict seismic building codes introduced after major earthquakes.
It's something we develop in our Japan property pack.
How much will you pay in acquisition tax after buying, and when does the bill usually arrive?
Real estate acquisition tax in Japan is 3-4% of the officially assessed property value, with residential properties typically taxed at 3% and commercial properties at 4%.
The tax bill arrives 6 months to a year after you complete the property registration, often catching new owners off guard who haven't budgeted for this delayed expense.
This tax is calculated on the assessed value (not your purchase price), which is usually 60-80% of market value. For a ¥50 million property with a ¥35 million assessed value, you'd pay approximately ¥1,050,000 in acquisition tax.
Payment must be made in a lump sum and cannot be financed. Some prefectures offer slight variations in rates, so check with your local tax office for exact calculations.
What are the average monthly management fees and repair fund contributions for condos in Tokyo or Osaka?
As of September 2025, the average monthly management fee plus repair fund contribution for a 60m² condo in Tokyo is approximately ¥28,748.
In Osaka and the Kansai region, management fees typically run about 5% of the monthly rental value, which translates to roughly ¥20,000-¥25,000 for similar-sized units.
These fees cover building maintenance, common area utilities, professional management services, and contributions to a reserve fund for major repairs like elevator replacement or exterior renovation.
Luxury condos and buildings with extensive amenities can have management fees exceeding ¥40,000 monthly, while older buildings without elevators or doormen may charge as little as ¥15,000.
How high is the annual fixed asset tax and city planning tax, and how are they assessed?
Fixed asset tax (kotei shisan zei) in Japan is 1.4% of the assessed property value, calculated annually and reassessed every three years by local governments.
| Tax Type | Rate | Assessment Frequency |
|---|---|---|
| Fixed Asset Tax | 1.4% of assessed value | Every 3 years |
| City Planning Tax | 0.3% of assessed value | Every 3 years |
| Combined Rate | 1.7% total | Billed together annually |
| Payment Schedule | 4 quarterly installments | May, July, December, February |
| Assessment Base | 60-80% of market value | Local government determination |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What insurance policies are mandatory, and how much should you expect to pay for fire and earthquake coverage?
While fire and earthquake insurance aren't legally mandatory in Japan, they're required by all mortgage lenders and strongly recommended for cash buyers given Japan's natural disaster risks.
Annual premiums for comprehensive fire insurance range from ¥20,000-¥55,000 for homes, with apartments typically costing less due to shared building coverage.
Earthquake insurance must be purchased alongside fire insurance and is set at 30-50% of your fire coverage amount. The premium depends on your building's construction materials, age, and location risk level.
Wooden structures in high-risk areas like Tokyo pay significantly more than concrete buildings in lower-risk regions. Budget approximately ¥40,000-¥80,000 annually for combined coverage on a typical condo.
What additional costs come from financing, like loan arrangement fees, guarantee company fees, and interest rate adjustments?
Mortgage financing in Japan involves several upfront costs beyond the loan itself, starting with arrangement fees that can reach 2.2% of the loan amount at some banks.
1. **Loan arrangement and processing fees**: ¥50,000-¥200,000 depending on the lender2. **Guarantee company fees**: ¥300,000-¥1,500,000 paid upfront (replaces personal guarantors)3. **Fire insurance premium**: Required for loan approval, ¥30,000-¥80,000 annually4. **Credit investigation fees**: ¥30,000-¥50,000 for income and asset verification5. **Loan agreement stamp duty**: ¥10,000-¥60,000 based on loan amountGuarantee company fees are the largest surprise cost, essentially replacing the need for personal guarantors but requiring a substantial upfront payment that cannot be financed.
It's something we develop in our Japan property pack.
What moving costs, utility setup charges, and initial furnishing expenses should you budget for?
Moving costs in Japan vary significantly based on distance and volume, but expect ¥80,000-¥200,000 for a typical household move within the same city.
Utility connection fees include electricity (¥0-¥3,000), gas (¥3,000-¥5,000), water (¥0-¥2,000), and internet (¥3,000-¥40,000 for installation). Most utilities require deposits equivalent to 1-2 months of estimated usage.
Initial furnishing costs depend entirely on your needs, but budget at least ¥300,000-¥500,000 for basic appliances and furniture if moving from overseas. Japanese electrical appliances use different voltage and plugs than many countries.
Key money (礼金) and security deposits for rental properties don't apply to purchases, but you may need similar upfront payments for parking spaces or storage units.
What ongoing hidden costs like parking fees, garbage disposal charges, or neighborhood association fees often surprise new homeowners in Japan?
Monthly parking fees in major cities range from ¥10,000-¥30,000 if your building doesn't include parking in the purchase price or management fees.
1. **Neighborhood association fees (自治会費)**: ¥500-¥1,500 monthly for community events and local administration2. **Garbage disposal charges**: Usually included in municipal taxes but some private services charge extra3. **Building entrance key replacement**: ¥5,000-¥15,000 when electronic keys need updating4. **Cable/satellite TV fees**: ¥2,000-¥8,000 monthly if not included in management fees5. **Seasonal maintenance contributions**: Ad-hoc charges for unexpected repairs or improvementsTokyo condos often have additional fees for amenities like gym access, concierge services, or rooftop garden maintenance that aren't clearly disclosed upfront.
Older buildings may require special assessments for elevator modernization, earthquake retrofitting, or exterior renovation that can cost each owner ¥100,000-¥500,000.
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.
Understanding these hidden costs upfront helps you budget accurately and avoid financial surprises during your Japan property purchase.
Many first-time buyers underestimate the total transaction costs, which typically add 8-15% to the purchase price when all fees and taxes are included.
Sources
- Old Houses Japan - Real Estate Commission
- Smart JDM - Transaction Costs
- INA Group - Initial Costs Tokyo
- Arrows Realty - Agency Fees
- RE/MAX Apex - Deposit Information
- Mailmate - Japan Property Tax
- Japan Notaries Association
- Tokyo Portfolio - Home Inspection Costs
- E-Housing - Property Taxes Guide
- INA Group - Management Fees Tokyo vs Osaka