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
Japan places no legal restrictions on foreigners buying property, which means you can own land and buildings with full freehold rights, just like a Japanese citizen.
However, understanding the taxes, fees, and hidden costs is essential because the actual amount you pay at closing and afterward can vary significantly depending on your situation.
We constantly update this blog post to reflect the latest official rates and market practices in Japan.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Japan.
Overall, how much extra should I budget on top of the purchase price in Japan in 2026?
How much are total buyer closing costs in Japan in 2026?
As of early 2026, most foreign buyers in Japan should budget around 7% to 10% of the purchase price for total closing costs, which translates to roughly ¥3.5 million to ¥5 million on a ¥50 million property (about $22,000 to $32,000 USD or €19,000 to €27,000 EUR).
The minimum extra budget possible in Japan is around 4% to 6% of the property price, but this only applies if you buy without a mortgage and without using a buyer-side real estate agent.
The maximum extra budget you should realistically plan for in Japan is around 10% to 13%, especially when you add a mortgage with its registration and guarantee fees, higher assessed-value taxes, and extra services like translation or specialized legal checks.
The main factors that determine whether your closing costs fall at the low or high end in Japan include whether you take out a mortgage, whether you engage your own buyer-side agent, the assessed value of the property for tax purposes, and how much professional support you need for translation and due diligence.
What's the usual total % of fees and taxes over the purchase price in Japan?
The usual total percentage of fees and taxes over the purchase price in Japan is around 7% to 10% for most standard residential transactions involving a mortgage and a buyer-side agent.
The realistic low-to-high percentage range that covers most property transactions in Japan runs from about 4% for the simplest cash deals up to 13% for complex purchases with financing and extensive professional services.
Of that total percentage, government taxes such as stamp duty, registration and license tax, and real estate acquisition tax typically make up around 3% to 5%, while professional service fees including agent commission, judicial scrivener fees, and translation services account for the remaining 3% to 6%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Japan.
What costs are always mandatory when buying in Japan in 2026?
As of early 2026, the mandatory costs when buying property in Japan include stamp tax on the purchase contract, registration and license tax for ownership transfer, real estate acquisition tax billed by the prefecture after closing, and settlement prorations for annual property taxes and (for condominiums) building management fees.
Optional but highly recommended costs in Japan include professional translation or interpreter services for contracts and closing, deeper legal or technical checks for properties with unusual features like shared private roads or unpermitted work, and tax representative services if you plan to rent out the property while living abroad.
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What taxes do I pay when buying a property in Japan in 2026?
What is the property transfer tax rate in Japan in 2026?
As of early 2026, Japan does not have a single "property transfer tax" but instead charges a real estate acquisition tax at a reduced rate of 3% for housing acquisitions (the standard rate is 4%), plus registration and license tax on ownership transfer, and stamp tax on the purchase contract.
There are no extra transfer taxes specifically for foreigners buying property in Japan, as the same tax rates apply regardless of your nationality or residency status.
Japan's equivalent of VAT is consumption tax (currently 10%), and while land itself is not subject to consumption tax, services you pay for like agent fees and scrivener fees do carry consumption tax, and new-build buildings sold by a taxable business may also include consumption tax on the building portion.
You pay stamp tax in Japan when you sign the purchase contract (and also the loan contract if you borrow), with the amount determined by a fixed schedule based on the contract value, ranging from ¥10,000 for properties valued between ¥10 million and ¥50 million up to ¥60,000 for properties between ¥100 million and ¥500 million.
Are there tax exemptions or reduced rates for first-time buyers in Japan?
Japan's tax relief for property buyers is based more on housing-use conditions than on first-time buyer status, so qualifying for reduced rates depends on factors like whether the property meets size and age requirements for residential use, with reduced acquisition tax rates (3% instead of 4%) and significant deductions available for housing purchases.
If you buy property through a company in Japan instead of as an individual, your tax profile shifts to corporate taxation, which can change consumption tax treatment and deductibility rules, but also adds accounting and filing compliance costs that you should factor into your decision.
There is a meaningful tax difference between new-build and resale properties in Japan because new builds sold by taxable businesses commonly include consumption tax on the building portion (currently 10%), while resales between individuals typically do not charge consumption tax on the building, though land remains exempt in both cases.
To qualify for the reduced acquisition tax rate and deductions in Japan, the property generally must meet certain floor area requirements (typically 50 to 240 square meters for housing), and you may need to provide documentation proving the property will be used for residential purposes.
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.
Which professional fees will I pay as a buyer in Japan in 2026?
How much does a notary or conveyancing lawyer cost in Japan in 2026?
As of early 2026, Japan does not use a traditional notary-based conveyancing system, so instead you pay a judicial scrivener (司法書士) around ¥80,000 to ¥200,000 (about $500 to $1,300 USD or €430 to €1,100 EUR) to handle registration filings, with costs rising if there is a mortgage, multiple titles, or complex documentation.
Judicial scrivener fees in Japan are typically charged as a flat fee rather than a percentage of the property price, though the amount increases based on the complexity of the transaction.
Translation or interpreter services for foreign buyers in Japan typically cost between ¥50,000 and ¥200,000 (about $320 to $1,300 USD or €270 to €1,100 EUR), depending on whether you need light translation or full document and meeting interpretation throughout the purchase process.
If you plan to rent out the property while living abroad, budgeting ¥80,000 to ¥250,000 per year (about $500 to $1,600 USD or €430 to €1,350 EUR) for tax compliance support is common because Japan-source rental income requires proper filing and many non-residents appoint a tax representative to handle this.
We have a whole part dedicated to these topics in our our real estate pack about Japan.
What's the typical real estate agent fee in Japan in 2026?
As of early 2026, the typical real estate agent fee in Japan follows a legally capped formula that works out to approximately 3% of the purchase price plus ¥60,000, plus 10% consumption tax, which means about 3.3% all-in, so on a ¥50 million property you would pay around ¥1.7 million (about $10,800 USD or €9,200 EUR).
Whether the buyer or seller pays the agent fee in Japan depends on the deal structure, but if you engage your own buyer-side agent, you typically pay your side, while buying directly from a developer may mean no buyer brokerage fee though the economics are often built into the price.
The realistic low-to-high range for agent fees in Japan runs from 0% if you purchase directly from a developer without a buyer agent, up to the full capped amount of roughly 3.3% including consumption tax if you use a buyer agent on a standard transaction.
How much do legal checks cost (title, liens, permits) in Japan?
Legal checks in Japan, including registry document collection and judicial scrivener administrative work, typically cost between ¥20,000 and ¥150,000 (about $130 to $950 USD or €110 to €810 EUR) for standard transactions, with more complex due diligence on issues like shared private roads or rebuild restrictions potentially exceeding ¥150,000.
Property valuation fees in Japan range from ¥0 to ¥50,000 (about $0 to $320 USD) for cash purchases where you may skip formal appraisal, but if you take a mortgage, bank-related valuation and appraisal charges are commonly bundled into loan fees and can run ¥50,000 to ¥200,000 (about $320 to $1,300 USD or €270 to €1,100 EUR).
The most critical legal check in Japan is verifying the property registration (登記簿) and any liens or rights attached to the land, because this confirms actual ownership and reveals encumbrances that could affect your purchase.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Japan.
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What hidden or surprise costs should I watch for in Japan right now?
What are the most common unexpected fees buyers discover in Japan?
The most common unexpected fees buyers discover in Japan include real estate acquisition tax bills arriving 6 to 18 months after closing, proration settlements at closing for fixed asset tax and management fees, buyer withholding obligations when the seller is a non-resident (potentially 10.21% of the sale price), and FEFTA foreign exchange reporting requirements that may need translation help.
Unpaid property taxes or condo management arrears can affect you if the settlement process does not explicitly address outstanding amounts, so make sure your contract and closing statement clearly handle tax periods and any building fee arrears.
Scams with fake listings or fake fees are uncommon in Japan's well-regulated market, but buyers should verify the licensed brokerage status of any agent and insist that funds move through standard settlement channels handled by the brokerage, bank, and registration professionals.
Fees usually not disclosed upfront in Japan include the exact real estate acquisition tax bill (which depends on assessed values and deductions calculated later), the final judicial scrivener and registration admin tally (which varies with complexity), and any withholding obligations if the seller's residency status is unclear.
In our property pack covering the property buying process in Japan, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Japan?
Extra fees or costs when buying a tenanted property in Japan can include handover coordination expenses, deposit and lease assignment mechanics, and in some cases tenant relocation or settlement payments if vacant possession is negotiated, ranging from nearly zero for a simple lease transfer to significant amounts for buyout arrangements.
When you purchase a tenanted property in Japan, you inherit the existing lease agreement and become the new landlord, which means you must honor the tenant's rights under the lease until it expires or is terminated according to Japanese law.
Terminating an existing lease immediately after purchase in Japan is generally difficult because Japanese tenant protection laws favor the tenant, and landlords typically need "just cause" (such as the building being demolished) to refuse lease renewal or end a tenancy early.
A sitting tenant can affect the property's market value in Japan both positively and negatively: investment buyers may value stable rental income, but owner-occupier buyers often see tenanted properties priced 10% to 20% lower than vacant equivalents because of the difficulty obtaining vacant possession.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Japan.
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Japan?
Which closing costs are negotiable in Japan right now?
Negotiable closing costs in Japan include the brokerage fee (which has a legal cap but can be negotiated lower), professional service fees like judicial scrivener costs and translation, extra legal review fees, and the allocation of settlement prorations between buyer and seller.
Closing costs fixed by law or regulation in Japan include stamp tax (based on contract amount), registration and license tax (statutory rates), and real estate acquisition tax (statutory rate with deductions depending on eligibility), so you cannot negotiate these down.
On negotiable fees in Japan, buyers can realistically achieve discounts of 10% to 30% on professional services by shopping around, and some agents may offer reduced commissions for simpler transactions or repeat clients, though the brokerage cap remains the ceiling.
Can I ask the seller to cover some closing costs in Japan?
The likelihood of a seller agreeing to cover some closing costs in Japan is moderate, but it is more common for negotiations to happen through price adjustments, seller-covered repairs, or tweaking proration allocations rather than the seller directly paying buyer taxes.
Sellers in Japan are most commonly willing to cover specific items like minor repair costs, appliance or fixture replacements, or adjustments to move-out terms, rather than directly paying the buyer's taxes or agent fees.
Sellers are more likely to accept covering closing costs in Japan when the property has been on the market for a long time, when the market is slow, or when the seller is motivated by relocation, inheritance, or financial pressure.
Is price bargaining common in Japan in 2026?
As of early 2026, price bargaining is common in Japan especially on resale properties, though the degree of negotiation depends heavily on the city, market segment, and how realistically the property was originally priced.
Buyers in Japan typically negotiate around 2% to 7% below the asking price on resale properties, which on a ¥50 million home means discounts of roughly ¥1 million to ¥3.5 million (about $6,400 to $22,000 USD or €5,400 to €19,000 EUR), with more motivated sellers potentially going further.
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What monthly, quarterly or annual costs will I pay as an owner in Japan?
What's the realistic monthly owner budget in Japan right now?
A realistic monthly owner budget in Japan for a condominium, excluding mortgage payments, is around ¥35,000 to ¥50,000 (about $220 to $320 USD or €190 to €270 EUR), which covers management fees, repair reserve contributions, and a monthly set-aside for annual property taxes.
The main recurring expense categories that make up this monthly budget in Japan are condominium management fees (管理費), repair reserve funds (修繕積立金), and property taxes (fixed asset tax and city planning tax spread across the year).
The realistic low-to-high range for monthly owner costs in Japan runs from around ¥25,000 to ¥60,000 (about $160 to $380 USD or €135 to €325 EUR), depending on whether you own an older condo with lower fees, a newer building with higher service levels, or a detached house with no management fees but more maintenance responsibility.
The monthly cost that tends to vary the most in Japan is the repair reserve fund because it depends on the building's age, condition, planned renovations, and the management association's budgeting decisions, with some older buildings facing steep increases for major repairs.
You can see how this budget affect your gross and rental yields in Japan here.
What is the annual property tax amount in Japan in 2026?
As of early 2026, annual property taxes in Japan consist of fixed asset tax at 1.4% and city planning tax at up to 0.3% of the property's assessed value, which for a typical ¥50 million condominium with an assessed value around ¥20 million means roughly ¥340,000 per year (about $2,200 USD or €1,850 EUR).
The realistic low-to-high range for annual property taxes in Japan runs from around ¥100,000 for smaller or lower-assessed properties up to ¥500,000 or more (about $640 to $3,200 USD or €540 to €2,700 EUR) for larger or higher-value properties in urban areas.
Property tax in Japan is calculated based on the assessed value (固定資産税評価額) set by the local government, which is typically well below the market purchase price, reassessed on multi-year cycles, and adjusted by various factors including land-use category and building age.
Exemptions or reductions in Japan include a residential land reduction that lowers the taxable base for small residential plots, and certain municipalities offer temporary reductions for new construction or energy-efficient housing, though these vary by location and require confirmation with local authorities.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Japan in 2026?
What tax rate applies to rental income in Japan in 2026?
As of early 2026, rental income from property in Japan is taxed as Japan-source income, and for non-residents who live abroad, tenants (other than individuals renting for personal residence) must withhold 20.42% of the gross rent and remit it to the tax office on your behalf.
Yes, landlords in Japan can deduct expenses from rental income taxes, including property management fees, repairs, depreciation of the building, insurance, and loan interest, which can significantly reduce your effective tax burden.
The realistic effective tax rate for rental income in Japan after deductions varies widely depending on your expenses and residency status, but many non-resident landlords see effective rates between 10% and 20% after claiming allowable deductions through annual filing.
Foreign property owners who are non-residents for tax purposes pay the same 20.42% withholding rate as any non-resident, with the ability to settle their actual liability through a final tax return filed by their appointed tax representative in Japan.
Do I pay tax on short-term rentals in Japan in 2026?
As of early 2026, short-term rental income in Japan is subject to income tax like any rental income, but it also comes with additional compliance requirements including local minpaku (民泊) licensing rules, platform reporting obligations, and potentially higher local lodging taxes that vary by municipality.
Short-term rental income is generally taxed similarly to long-term rental income in Japan, but the administrative burden is higher because you must also comply with the Private Lodging Business Act (minpaku law), local government restrictions, and potentially consumption tax if your annual revenue exceeds the threshold.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Japan.
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If I sell later, what taxes and fees will I pay in Japan in 2026?
What's the total cost of selling as a % of price in Japan in 2026?
As of early 2026, the total cost of selling a property in Japan typically runs around 3% to 6% of the sale price before any capital gains tax, depending on whether you use a brokerage, the complexity of the transaction, and any outstanding mortgage discharge costs.
The realistic low-to-high percentage range for selling costs in Japan runs from about 3% for straightforward sales with minimal fees up to 10% or more if you factor in significant capital gains tax on an appreciated property.
The specific cost categories that make up selling expenses in Japan include brokerage commission (up to about 3.3% including tax), judicial scrivener fees for registration updates and mortgage discharge, any outstanding property taxes to settle, and capital gains tax if applicable.
The single largest contributor to selling expenses in Japan is typically the brokerage commission, which follows the same capped formula as buying (roughly 3% plus ¥60,000 plus consumption tax), making it about 3.3% of the sale price for most transactions.
What capital gains tax applies when selling in Japan in 2026?
As of early 2026, capital gains tax on property sales in Japan is 15% national income tax plus 5% local inhabitant tax for long-term holdings (over 5 years as of January 1 of the sale year), and 30% national plus 9% local for short-term holdings (5 years or less), with an additional reconstruction surtax making the commonly quoted totals approximately 20.315% for long-term and 39.63% for short-term gains.
The most important exemption in Japan is the ¥30 million special deduction (about $190,000 USD or €162,000 EUR) available when you sell your primary residence, which can eliminate or substantially reduce capital gains tax for owner-occupiers who meet the eligibility requirements.
Foreigners do not pay extra capital gains taxes when selling property in Japan, as the same rates apply regardless of nationality, but non-residents may face withholding obligations at closing and should plan compliance carefully with a tax representative.
Capital gains in Japan are calculated as the sale price minus the original purchase price, minus acquisition costs (like agent fees and taxes paid when buying), minus improvement costs, and minus a depreciation adjustment for buildings, with the resulting gain then taxed at the applicable long-term or short-term rate.
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Japan, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| National Tax Agency (NTA) - Registration & License Tax | Japan's official national tax authority explaining exact tax rules. | We used it to confirm registration and license tax rates including reduced housing rates. We also used it to separate statutory taxes from professional fees. |
| National Tax Agency (NTA) - Stamp Tax | Official government guidance for Japan's stamp tax schedule on contracts. | We used it to estimate stamp duty on purchase and loan contracts. We translated the schedule into practical cost ranges. |
| Ministry of Land, Infrastructure, Transport and Tourism (MLIT) | Core ministry for housing policy publishing official special measures. | We used it to confirm the reduced 3% acquisition tax rate and housing deductions. We also explained why headline rates can overstate actual costs. |
| Tokyo Metropolitan Tax Bureau - Property Tax | Government tax bureau showing how property taxes are computed in practice. | We used it to confirm the 1.4% fixed asset and 0.3% city planning tax rates. We also referenced it for timing and proration settlements. |
| MLIT - Brokerage Fee Cap Notice | Official notice setting the legal maximum brokerage fee schedule in Japan. | We used it to anchor the maximum buyer-side commission rules. We converted the formula into practical cost estimates. |
| Tokyu Livable | Major Japanese brokerage summarizing market practice for buyer planning. | We used it as a reality check for the 7% to 10% extra budget rule. We treated it as market-practice triangulation alongside official sources. |
| National Tax Agency (NTA) - Rental Income for Non-Residents | Official English guidance for how Japan taxes non-residents on Japan-source income. | We used it to explain how rental income is taxed and declared for overseas owners. We referenced it for withholding rates and tax representative requirements. |
| National Tax Agency (NTA) - Capital Gains Tax | Official explanation of how Japan computes and taxes gains on property sales. | We used it to anchor the long-term versus short-term framework and base national rates. We translated this into commonly quoted effective totals. |
| National Tax Agency (NTA) - Home Sale Relief | Official page for Japan's most important homeowner capital gains exemption. | We used it to explain the ¥30 million special deduction for primary residence sales. We showed why investment versus own-home status changes taxes later. |
| REINS - Market Data | Industry infrastructure used by licensed agents publishing aggregated data. | We used it to give grounded estimates for typical monthly management and reserve fees. We referenced it only for ongoing owner costs. |
| Ministry of Finance (MOF) - FEFTA Reporting | National authority for foreign exchange rules including reporting requirements. | We used it to flag the non-tax compliance step foreigners often miss. We treated this as a potential hidden cost for admin and translation. |
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