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Buying property in Kyoto involves multiple taxes and fees that can add up to 6-8% of the purchase price, not including ongoing annual costs.
Property owners in Kyoto must pay annual Fixed Asset Tax at 1.4% of assessed value plus City Planning Tax at 0.3%, while one-time costs include Real Estate Acquisition Tax at 3%, Registration Tax ranging from 0.3-2%, brokerage fees capped at around 3.3% of the purchase price, and various administrative fees totaling another 1-3% of the property value.
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Property taxes and fees in Kyoto include both one-time costs at purchase (6-8% of price) and annual recurring taxes (1.7% of assessed value).
Foreign and domestic buyers face identical tax rates, but must budget for brokerage fees, registration costs, judicial scrivener fees, and various government taxes that vary based on property type, location, and value.
| Tax/Fee Category | Rate/Amount | Payment Timing |
|---|---|---|
| Fixed Asset Tax | 1.4% of assessed value | Annual (4 installments) |
| City Planning Tax | 0.3% of assessed value | Annual (4 installments) |
| Real Estate Acquisition Tax | 3% of assessed value | One-time (6-12 months after purchase) |
| Registration Tax | 0.3-2% of assessed value | One-time (at closing) |
| Brokerage Fee | (Price × 3% + ¥60,000) × 1.10 | One-time (at closing) |
| Judicial Scrivener Fee | ¥80,000-¥150,000 | One-time (at closing) |
| Stamp Duty | ¥10,000-¥60,000 (varies by price) | One-time (at contract signing) |
What property details do I need to calculate exact taxes and fees in Kyoto?
You need to specify the exact purchase price, which ward in Kyoto City the property is located, whether it's land, house, or condo, and if it's new or used construction.
The purchase price directly affects brokerage fees, stamp duty amounts, and registration taxes. Each ward in Kyoto City may have slight variations in local assessments, though the tax rates remain consistent citywide.
Property type determines eligibility for various tax reductions and exemptions. New construction receives favorable tax treatment for the first 3-5 years compared to used properties.
These four factors form the foundation for all subsequent tax calculations, so gather this information before requesting cost estimates from agents or lawyers.
How do I find the city-assessed values for land and buildings?
City-assessed values (固定資産税評価額) are typically 60-70% of market price for land and 40-60% for used buildings in Kyoto.
The official assessed values appear on the annual property tax notice sent to current owners each April. If you're buying, request this document from the seller or their agent during negotiations.
For preliminary estimates before purchase, use the percentage ranges above applied to the market price. Land assessments tend to be more stable, while building assessments decrease over time due to depreciation.
Real estate agents experienced in Kyoto can provide reasonably accurate pre-purchase estimates based on recent comparable sales and assessment patterns in specific neighborhoods.
The city reassesses all properties every three years, so older assessment notices may not reflect current values for rapidly appreciating areas.
What will my annual Fixed Asset Tax be in Kyoto?
Fixed Asset Tax in Kyoto is charged at 1.4% of the combined assessed value for both land and buildings.
This tax applies to all property owners regardless of nationality or residency status. The city calculates it automatically based on their official assessed values updated every three years.
For a property with ¥12,000,000 land assessment and ¥8,000,000 building assessment, your annual Fixed Asset Tax would be (¥12,000,000 + ¥8,000,000) × 1.4% = ¥280,000 per year.
The city bills this tax in four installments: April, July, December, and February. You can pay at post offices, banks, or convenience stores using the provided payment slips.
How much City Planning Tax will I owe each year?
Most areas of Kyoto City fall within the city planning tax zone, subject to 0.3% annual tax on assessed property values.
| Property Assessed Value | Annual City Planning Tax | Combined with Fixed Asset Tax |
|---|---|---|
| ¥10,000,000 | ¥30,000 | ¥170,000 |
| ¥20,000,000 | ¥60,000 | ¥340,000 |
| ¥30,000,000 | ¥90,000 | ¥510,000 |
| ¥40,000,000 | ¥120,000 | ¥680,000 |
| ¥50,000,000 | ¥150,000 | ¥850,000 |
| ¥60,000,000 | ¥180,000 | ¥1,020,000 |
| ¥70,000,000 | ¥210,000 | ¥1,190,000 |
City Planning Tax is billed together with Fixed Asset Tax in the same four annual installments. The combined tax rate effectively becomes 1.7% of your property's assessed value.
What tax reductions and exemptions can lower my annual property taxes?
Small residential land parcels under 200 square meters per dwelling unit qualify for significant tax reductions on the land portion.
The first 200 square meters of residential land is taxed at only one-sixth of its assessed value, while areas from 200-400 square meters are taxed at one-third of assessed value for Fixed Asset Tax purposes.
Newly constructed homes receive building tax reductions for the first 3 years (detached houses) or 5 years (condos), cutting the building portion of Fixed Asset Tax in half during this period.
For a typical new home on a 150-square-meter lot, these reductions could save ¥50,000-¥150,000 annually in the first few years, depending on assessed values.
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When and how much is the Real Estate Acquisition Tax?
Real Estate Acquisition Tax is a one-time prefectural tax of 3% applied to the assessed value of both land and buildings for residential properties.
For a property with ¥20,000,000 total assessed value, the base tax would be ¥20,000,000 × 3% = ¥600,000. However, various deductions apply for owner-occupied residences and properties meeting specific construction standards.
The tax bill typically arrives 6-12 months after completing the ownership transfer registration. You cannot pay this at closing - it comes as a separate assessment from Kyoto Prefecture.
First-time homebuyers and properties used as primary residences often qualify for substantial deductions that can reduce this tax by ¥100,000-¥300,000 or more.
What are the Registration and License Tax rates for property transfers?
Registration Tax varies significantly based on property type, age, and whether you're taking a mortgage.
| Property Type | Standard Rate | Reduced Rate (if eligible) |
|---|---|---|
| Used House/Condo | 2.0% of assessed value | 0.3% (limited time) |
| Land Purchase | 1.5% of assessed value | 0.3% (certain conditions) |
| New Construction | 0.4% of assessed value | 0.1% (limited period) |
| Mortgage Registration | 0.4% of loan amount | 0.1% (residential loans) |
For a used house with ¥8,000,000 assessed building value, Registration Tax would be ¥8,000,000 × 2.0% = ¥160,000 at standard rates, or ¥24,000 if reduced rates apply.
How much stamp duty do I need for property purchase contracts?
Stamp duty depends on the purchase price and loan amount, paid by affixing revenue stamps to contracts.
For purchase contracts:
- Up to ¥10,000,000: ¥10,000 stamp required
- ¥10,000,001 to ¥50,000,000: ¥20,000 stamp required
- ¥50,000,001 to ¥100,000,000: ¥60,000 stamp required
- Above ¥100,000,000: ¥100,000 stamp required
For mortgage contracts:
- Up to ¥5,000,000 loan: ¥2,000 stamp
- ¥5,000,001 to ¥10,000,000: ¥10,000 stamp
- ¥10,000,001 to ¥50,000,000: ¥20,000 stamp
- Above ¥50,000,000: ¥60,000 stamp
Buy these stamps at post offices or designated sellers before contract signing. Both buyer and seller typically split the purchase contract stamp cost.
What do judicial scriveners charge for registration services?
Judicial scrivener fees for handling property and mortgage registrations typically range from ¥80,000 to ¥150,000 depending on case complexity.
Simple cash purchases without mortgages usually cost ¥80,000-¥100,000 for registration services. Properties involving mortgages, multiple owners, or complex title situations increase fees toward the upper range.
These professionals handle all legal paperwork, coordinate with the Legal Affairs Bureau, and ensure proper transfer of ownership rights. Their fees are separate from government registration taxes.
Payment is typically due at closing, either directly to the scrivener's office or coordinated through the real estate brokerage handling the transaction.
How do I calculate the exact brokerage fee for my Kyoto property purchase?
Japanese law caps brokerage fees using the formula: (Purchase Price × 3% + ¥60,000) × 1.10 for tax.
For a ¥30,000,000 property: (¥30,000,000 × 3% + ¥60,000) × 1.10 = (¥960,000) × 1.10 = ¥1,056,000 maximum brokerage fee.
For a ¥50,000,000 property: (¥50,000,000 × 3% + ¥60,000) × 1.10 = (¥1,560,000) × 1.10 = ¥1,716,000 maximum brokerage fee.
This represents the legal maximum - some agents may charge less, but none can legally charge more. The fee covers finding properties, negotiating terms, and coordinating the closing process.
Payment is typically split between contract signing (50%) and final closing (50%), though cash payment at closing is also common.
What banking and insurance costs should I budget for mortgage financing?
Japanese banks charge multiple fees for mortgage processing and require comprehensive insurance coverage.
| Cost Category | Typical Amount | Payment Timing |
|---|---|---|
| Bank Processing Fee | ¥30,000 - ¥150,000 | At loan approval |
| Loan Guarantee Fee | 2.0% of loan amount | At closing (can be financed) |
| Fire Insurance (annual) | ¥15,000 - ¥30,000 | Annual or pre-paid |
| Earthquake Insurance (annual) | ¥10,000 - ¥50,000 | Annual (optional but recommended) |
| Credit Life Insurance | 0.1-0.3% of loan balance | Monthly with loan payments |
For a ¥30,000,000 loan, expect ¥600,000 in guarantee fees plus ¥30,000-¥80,000 in annual insurance premiums. It's something we develop in our Japan property pack.
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What are typical monthly fees for condos and townhouses in Kyoto?
Condominiums and townhouses in Kyoto charge monthly fees for building maintenance, repairs, and amenities.
Management fees typically range from ¥10,000 to ¥30,000 per month, covering daily building operations, cleaning, security, and administrative costs. Newer buildings with more amenities charge toward the higher end.
Repair reserve funds require ¥5,000 to ¥20,000 monthly contributions for major building renovations, elevator maintenance, and structural repairs over time. Older buildings often require higher contributions.
Parking spaces, where available, cost an additional ¥5,000 to ¥25,000 per month depending on location and convenience. Central Kyoto locations command premium parking fees.
Annual total for these fees typically ranges from ¥240,000 to ¥900,000, with most properties falling in the ¥360,000-¥600,000 range for combined monthly obligations.
When does Kyoto bill property taxes and what are the payment options?
Kyoto City mails annual property tax bills in April, with payment due in four installments throughout the year.
The four payment deadlines are: April 30, July 31, December 25, and February 28 of the following year. You can pay all four installments at once in April if preferred.
Payment methods include post offices, banks, convenience stores (7-Eleven, FamilyMart, Lawson), and online banking for many institutions. Each payment slip includes a barcode for convenience store scanning.
Late payments incur penalties of 8.7% annually, so mark these dates clearly on your calendar. The city sends reminder notices for missed payments but charges interest from the original due date.
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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 taxes and fees in Kyoto represent significant ongoing costs that require careful budgeting beyond the initial purchase price.
Understanding these costs upfront helps investors and homebuyers make informed decisions about property affordability and long-term ownership expenses in Japan's historic capital.
Sources
- E-Housing - Understanding Property Taxes in Japan
- Real Estate Japan - Guide to Japanese Real Estate Taxes
- MailMate - Real Estate Tax Guide
- Global Property Guide - Japan Taxes and Costs
- Japan Guide - Property Taxes
- Find Hokkaido Agents - Property Taxes in Japan
- PwC Tax Summaries - Japan
- EY Japan Tax Alert 2025