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Property ownership in Nagoya involves several mandatory taxes and fees that significantly impact your total investment cost. The combined annual property tax rate reaches 1.7% of assessed value, while upfront costs can add 6-8% to your purchase price.
Understanding these costs is crucial for accurate budgeting whether you're buying for investment or relocation purposes, as they can substantially affect your returns and monthly expenses.
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Nagoya property taxes combine a 1.4% fixed asset tax with a 0.3% city planning tax, totaling 1.7% annually based on assessed value.
Purchase costs include registration fees (1.5% for land, 0.3% for buildings), acquisition tax (1.5-3%), and real estate agent commissions (3% plus ¥60,000).
| Cost Type | Rate/Amount | When Paid |
|---|---|---|
| Fixed Asset Tax | 1.4% of assessed value | Annually |
| City Planning Tax | 0.3% of assessed value | Annually |
| Registration Tax (Land) | 1.5% of value | At purchase |
| Registration Tax (Building) | 0.3% of value | At purchase |
| Acquisition Tax | 1.5% land, 3% building | Within 6 months |
| Agent Commission | 3% + ¥60,000 | At purchase |
| Condo Management Fees | ¥28,500/month average | Monthly |
How much is the annual property tax rate in Nagoya and what percentage of the property value does it represent?
The annual property tax rate in Nagoya is 1.7% of the assessed property value, combining two separate taxes.
This rate consists of a 1.4% fixed asset tax (imposed nationally) and a 0.3% city planning tax (imposed by Nagoya city). Both taxes are calculated on the property's official assessed value, not the market price or purchase price.
For example, if your property has an assessed value of ¥30 million, you'll pay ¥420,000 in fixed asset tax and ¥90,000 in city planning tax annually, totaling ¥510,000. The assessed value is typically 60-70% of the market value, so your actual tax burden relative to what you paid is usually lower than 1.7%.
As of September 2025, this combined rate remains consistent across Nagoya's residential properties, making it predictable for budgeting purposes.
Are there additional city or prefectural taxes on top of the national property tax rate?
No, there are no additional prefectural taxes specifically for property ownership beyond the fixed asset tax and city planning tax.
The Aichi Prefecture does impose separate taxes on personal income and business enterprises, but these are unrelated to property ownership itself. The city planning tax of 0.3% is the only additional municipal tax on property ownership in Nagoya.
However, this city planning tax only applies to properties located in designated urban planning areas within Nagoya. Most residential areas fall under this designation, but some rural or undeveloped zones may be exempt from the city planning tax portion.
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What is the standard calculation method used for property taxes in Nagoya—based on assessed value, market value, or purchase price?
Property taxes in Nagoya are calculated based on the assessed value recorded in the "fixed asset tax book," not market value or purchase price.
This assessed value is determined by municipal authorities through official appraisals and typically represents 60-70% of the actual market value. The assessment considers factors like location, building age, construction materials, and local infrastructure developments.
The calculation method ensures consistency across similar properties and prevents tax fluctuations based on individual transaction prices. For instance, if you purchase a property for ¥50 million, the assessed value might be ¥35 million, resulting in lower tax obligations than if calculated on your purchase price.
This system provides stability for property owners, as taxes aren't influenced by temporary market fluctuations or premium prices paid during competitive bidding situations.
How often are property valuations updated in Nagoya and by how much do they typically change?
Property valuations in Nagoya are generally reassessed every three years as part of the national revaluation cycle.
However, the taxable amount can change more frequently due to wider city assessments or infrastructure developments. New buildings in your area, transportation improvements, or changes in local building material costs can trigger interim adjustments between the three-year cycles.
Typical changes range from minimal increases of 1-3% annually to more significant jumps of 10-15% when major infrastructure projects are completed nearby. Properties near new subway stations or shopping centers often see higher increases.
As of September 2025, the most recent comprehensive revaluation occurred in 2024, with the next scheduled for 2027. These regular updates ensure tax assessments reflect current property conditions and neighborhood developments.
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What are the registration fees when buying a property in Nagoya and how are they calculated?
Registration fees in Nagoya include a transfer registration tax of 1.5% for land and 0.3% for buildings, plus a 0.4% mortgage registration fee if financing the purchase.
These fees are calculated separately on the assessed value of land and building portions of your property. For example, on a ¥40 million property (¥25 million land, ¥15 million building), you'd pay ¥375,000 for land registration and ¥45,000 for building registration.
If you're taking a mortgage, add another 0.4% of the loan amount for mortgage registration. On a ¥30 million loan, this adds ¥120,000 to your costs.
Additional judicial scrivener fees range from ¥5,000 to ¥20,000 depending on the complexity of your transaction and the professional you choose. These registration procedures are mandatory and must be completed to legally transfer ownership.
Are there stamp duties or transaction taxes when purchasing a property and what are the exact amounts or percentages?
Yes, stamp duties are required on property purchase contracts in Nagoya, with amounts varying based on the transaction value.
| Property Value | Stamp Duty Amount | Example |
|---|---|---|
| Up to ¥5 million | ¥1,000 | Small apartment |
| ¥5-10 million | ¥10,000 | Older condo |
| ¥10-50 million | ¥20,000 | Standard family home |
| ¥50-100 million | ¥40,000 | Premium property |
| Over ¥100 million | ¥60,000+ | Luxury properties |
Additionally, you'll face a one-time acquisition tax billed within six months of purchase: 1.5% on land value and 3% on building value. This is separate from annual property taxes and can be a significant unexpected cost for new property owners.
What are the typical notary or legal fees required for property transactions in Nagoya?
Notary and legal fees in Nagoya property transactions typically range from ¥5,000 to ¥20,000, depending on the judicial scrivener you select and transaction complexity.
These fees cover the preparation and filing of legal documents required for property transfer registration. More complex transactions involving multiple parties, corporate ownership, or unusual property types may incur higher fees toward the upper end of this range.
Unlike some countries, Japan doesn't require traditional notary services for property transactions. Instead, judicial scriveners handle the legal documentation and registration process, making the fees relatively modest compared to total transaction costs.
Some buyers opt for additional legal consultation with property lawyers, which can cost ¥50,000 to ¥200,000 for comprehensive review services, but this isn't mandatory for standard residential purchases.
How much are the real estate agent commissions in Nagoya and what percentage of the purchase price do they usually take?
Real estate agent commissions in Nagoya are 3% of the purchase price plus ¥60,000 for properties over ¥4 million, with lower rates for less expensive properties.
This commission structure is standardized across Japan and applies to properties above the ¥4 million threshold. For a ¥50 million property, you'd pay ¥1.56 million in agent commission (¥50 million × 3% + ¥60,000).
For properties under ¥4 million, commissions are calculated at 5% of the first ¥2 million plus 4% of the remaining amount. Properties between ¥2-4 million pay 4% plus ¥20,000.
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These fees are typically paid at closing and are separate from any buyer's agent fees if you use dual representation.
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Are there annual maintenance or management fees for apartments and condominiums in Nagoya, and what is the usual range?
Yes, apartment and condominium owners in Nagoya pay monthly management and repair reserve fund fees averaging ¥28,500 combined.
This breaks down into approximately ¥10,661 for monthly management fees and ¥17,830 for the repair reserve fund. Management fees cover daily operations like cleaning, security, and building maintenance, while the repair fund saves for major renovations and replacements.
The typical range varies from ¥2,000 to ¥10,000 monthly for basic maintenance, depending on building size, age, and amenities. Luxury condominiums with concierge services, pools, or gyms can charge significantly higher fees.
These fees are mandatory and can increase over time as buildings age and require more maintenance. Factor these costs into your monthly budget, as they're comparable to additional property taxes on your investment.
Are there one-time utility connection fees for water, gas, or electricity when setting up a new property?
Yes, utility connection fees in Nagoya include one-time charges that vary by provider and property type.
Lock exchange fees typically range from ¥5,000 to ¥20,000, covering the replacement of gas meter locks and safety equipment. Initial deposits for electricity and gas connections can add another ¥10,000 to ¥30,000, depending on the utility company and your usage history.
Water connection fees are generally lower, around ¥2,000 to ¥5,000 for basic service activation. Some properties may require additional work for meter installations or line upgrades, increasing these costs.
These one-time fees are separate from ongoing monthly utility bills and security deposits. Budget approximately ¥20,000 to ¥50,000 total for utility connections when moving into a new property in Nagoya.
Are there any recurring municipal service fees like garbage collection, sewage, or neighborhood association fees in Nagoya?
Municipal service fees in Nagoya are typically included in your monthly utility bills rather than charged separately.
Sewage fees are calculated based on water usage and appear on your water bill. Garbage collection is funded through city taxes and doesn't require separate payment for standard household waste. Common area maintenance in condominiums is included in your management fees.
Some neighborhoods charge small annual or monthly fees for local community association activities, typically ranging from ¥1,000 to ¥5,000 annually. These support local festivals, maintenance of small parks, or community improvements.
Water treatment and sewage processing fees are proportional to usage, making them variable rather than fixed costs. Most property owners find these integrated billing systems convenient compared to separate municipal invoices.
What other hidden or less obvious costs should a property owner in Nagoya expect that are not included in the main taxes and fees?
Several additional costs can impact Nagoya property owners beyond standard taxes and fees.
1. **Fire and disaster insurance premiums** - Often mandatory for condominiums, ranging from ¥20,000 to ¥50,000 annually depending on coverage and building type2. **Repair reserve fund increases** - Condominium reserve funds can increase as buildings age, potentially doubling monthly contributions over time3. **Renewal and replacement costs** - Lock changes, key replacements, and unit renovations when tenants change in rental properties4. **Professional management fees** - If hiring property management companies for rental properties, expect 5-8% of rental income monthly5. **Vacancy periods** - For investment properties, factor in 1-2 months annual vacancy even in good rental marketsIt's something we develop in our Japan property pack.
Special assessments for major building repairs or improvements can also create unexpected expenses, sometimes reaching ¥500,000 to ¥1 million per unit for significant renovations. These costs vary significantly based on property type, age, and intended use.
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 all property taxes and fees in Nagoya is essential for accurate investment planning and avoiding unexpected financial burdens.
These costs can add 6-8% to your purchase price upfront and 1.7-2% annually, significantly impacting your returns whether buying for investment or personal use.
Sources
- E-Housing - Understanding Property Taxes in Japan
- City of Nagoya - Guide to Japanese Personal Taxes 2023
- Real Estate Japan - Guide to Japanese Real Estate Taxes
- Global Property Guide - Japan Taxes and Costs
- Real Estate Japan - Property Taxes for Homeowners
- Japan Guide - Tax Information
- GaijinPot - Cost to Buy Home in Japan
- Expatica - Japan Real Estate
- Tokyo Portfolio - Hidden Costs Buying Property
- Wagaya Japan - Transaction Costs