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Property taxes and fees in Tokyo can easily add 15-20% to your purchase price, plus significant annual costs.
Buying real estate in Tokyo involves multiple taxes at purchase (Real Estate Acquisition Tax, Registration Tax, Stamp Duty, and potentially Consumption Tax), ongoing annual property taxes (Fixed Asset Tax and City Planning Tax), and various fees including agent commissions and management costs for condos.
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Property purchases in Tokyo involve substantial upfront taxes and fees that can reach ¥10+ million on a ¥60 million condo, plus ongoing annual costs of ¥1+ million.
The exact amounts depend on property type, location, price breakdown between land and building, and whether you qualify for various tax reductions.
| Cost Category | Timing | Typical Amount (¥60M Condo) |
|---|---|---|
| Real Estate Acquisition Tax | At Purchase | ¥1,175,100 |
| Agent Commission | At Purchase | ¥2,046,000 |
| Registration & License Tax | At Purchase | ¥99,900 |
| Stamp Duty | At Purchase | ¥30,000 |
| Fixed Asset Tax + City Planning Tax | Annual | ¥668,100 |
| Condo Management + Repair Reserve | Annual | ¥374,184 |
| Total First Year Cost | Combined | ¥4,393,284 |
What exactly are you buying and what are the price breakdowns in yen?
Tokyo property purchases require precise categorization because taxes are calculated differently for land versus building portions.
For a typical Tokyo condo (mansion-type apartment), your ¥60,000,000 purchase breaks down as approximately ¥9,000,000 for the land portion (15%) and ¥51,000,000 for the building portion (85%). This ratio varies by property age and location, with newer condos having higher building-to-land ratios.
The property type determines your tax obligations. New-build condos incur 10% Consumption Tax on the building portion if purchased from a VAT-registered developer, adding ¥5,100,000 to the example above. Used condos and land purchases don't trigger Consumption Tax.
Detached houses typically split 30-40% land and 60-70% building, while land-only purchases obviously have no building portion and therefore no Consumption Tax liability.
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Where in Tokyo and what are the registered property sizes?
Location within Tokyo significantly impacts your tax calculations and ongoing fees.
Central wards like Minato, Shibuya, and Shinjuku command premium prices but offer higher rental yields and better liquidity. Outer areas like Adachi or Katsushika provide more space per yen but may have lower appreciation potential.
For condos, you'll receive registered sizes including your unit's floor area (typically 45-80 m² for family units) and your proportional land share (often just 8-15 m² of the total building site). The land-use zone designation affects future development rights and property values - Category I residential areas have the most restrictions but stable character.
Floor Area Ratio (FAR) determines building density. Tokyo's central areas often have FAR of 300-600%, meaning buildings can be 3-6 times the land area. Higher FAR generally correlates with higher land values and property taxes.
What are the tax assessment values versus purchase price?
Japanese property taxes are calculated on assessed values, not market prices, which significantly reduces your annual tax burden.
The Fixed Asset Tax Assessment Value (固定資産税評価額) for land typically runs 40-70% of market value, while building assessments represent 50-70% of replacement cost. For a ¥60,000,000 condo, expect combined assessed values around ¥39,300,000 (65% of purchase price).
These assessments are updated every three years by municipal authorities. Land values in prime Tokyo locations may approach 70% of market value due to strong demand, while building assessments depreciate over time following standard depreciation schedules.
The assessment breakdown affects your annual property taxes and serves as the base for calculating Real Estate Acquisition Tax at purchase.
What are the exact purchase taxes in yen amounts?
| Tax Type | Rate | Calculation Base | Example Amount (¥60M Condo) |
|---|---|---|---|
| Real Estate Acquisition Tax - Land | 3% | Land assessed value | ¥108,000 |
| Real Estate Acquisition Tax - Building | 3% | Building assessed value | ¥1,071,000 |
| Registration Tax - Land | 1.5% | Land assessed value | ¥54,000 |
| Registration Tax - Building | 0.3% | Building assessed value | ¥107,100 |
| Stamp Duty | Fixed by price bracket | Contract value | ¥30,000 |
| Consumption Tax (new building only) | 10% | Building purchase price | ¥5,100,000 |
| Total Purchase Taxes | - | - | ¥6,470,100 |
What non-tax fees will you pay at purchase?
Purchase fees in Tokyo are standardized but can add ¥2-3 million to your transaction costs.
Agent commission follows the legal maximum: 3% of purchase price plus ¥60,000, plus 10% consumption tax. For a ¥60,000,000 property, this equals ¥2,046,000. Both buyer and seller typically pay separate commissions.
Judicial scrivener fees for property registration range ¥70,000-¥120,000 depending on complexity. This covers title transfer documentation and legal verification. Additional registration document fees add ¥20,000-¥30,000 for certified copies and filing.
Property appraisals cost ¥55,000-¥110,000 when required by lenders. Translation services for foreign buyers add ¥20,000-¥80,000 for contracts and legal documents. Administrative costs including contract preparation and due diligence total ¥20,000-¥50,000.
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What are the mortgage-related upfront costs?
Financing a Tokyo property involves substantial upfront fees beyond the down payment.
Lender fees typically equal 2% of the loan amount, so ¥1,000,000 on a ¥50,000,000 mortgage. This covers loan processing, credit checks, and administrative costs. Guarantee company fees add another ¥200,000-¥400,000 depending on loan size and borrower profile.
Mortgage registration tax equals 0.4% of the loan amount (¥200,000 on ¥50,000,000). Loan setup fees range ¥30,000-¥55,000 per lender. Required insurance includes fire and earthquake coverage, typically costing ¥50,000-¥200,000 upfront for multi-year policies.
Annual insurance premiums run ¥10,000-¥30,000 for ongoing coverage. Total mortgage-related costs often reach ¥1.5-2 million upfront for typical foreign buyer loans.
What are the annual property taxes for the first five years?
Tokyo property owners pay two annual taxes: Fixed Asset Tax and City Planning Tax, totaling 1.7% of assessed value.
Fixed Asset Tax (固定資産税) equals 1.4% of the combined land and building assessed values. City Planning Tax (都市計画税) adds 0.3% on the same base. For our ¥60,000,000 example with ¥39,300,000 assessed value, annual taxes total ¥668,100.
New residential properties receive tax relief during the first few years. The building portion of Fixed Asset Tax is halved for three years (five years for units under 50 m²). This reduces the annual tax to approximately ¥418,000 in years 1-3, then jumps to the full ¥668,100 from year 4.
Small residential land benefits from a permanent 1/6th reduction in tax assessment up to 200 m² of land area. This significantly reduces the land portion of property taxes for most residential properties.
Which tax exemptions apply and for how long?
Multiple tax reductions can significantly lower your Tokyo property tax burden in the early years.
New-residence relief cuts Fixed Asset Tax on buildings by 50% for three years (extended to five years for compact units under 50 m²). Owner-occupied properties often qualify for additional municipal reductions compared to investment properties.
Small residential land taxation applies the 1/6th rate permanently to land up to 200 m² per dwelling unit. Land exceeding 200 m² but under 400 m² gets taxed at 1/3rd the standard rate. This exemption continues indefinitely as long as the property remains residential.
Floor area thresholds matter for new construction relief. Units between 50-280 m² qualify for the standard three-year building tax reduction. Larger units may not qualify, while very small units get extended five-year relief.
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What are the monthly condo fees versus house maintenance costs?
Condo ownership in Tokyo involves mandatory monthly fees that average ¥374,184 annually as of September 2025.
Management fees (管理費) average ¥19,182 per month (¥230,184 annually) for typical 60 m² units in Tokyo. These cover building maintenance, security, cleaning, and administrative services. Newer buildings command premium fees due to enhanced amenities and services.
Repair reserve funds (修繕積立金) average ¥12,000 monthly (¥144,000 annually) for established buildings. These accumulate for major renovations like exterior painting, elevator replacement, and structural repairs typically needed every 12-15 years.
Detached house owners should budget ¥150,000-¥300,000 annually for maintenance including exterior painting, roof repairs, and system updates. While lower than condo fees initially, major repairs can cost ¥1-3 million every 10-15 years.
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When are taxes billed and what are the payment options?
Tokyo property taxes follow a structured billing schedule with flexible payment arrangements.
Annual property taxes are billed once yearly between April and June, with payment due dates typically in June, September, December, and February for quarterly installments. You can choose to pay the full amount upfront with a small discount or spread payments across four quarters.
Condo management fees are billed monthly by the building association, usually due on the 27th or last business day of each month via automatic bank transfer. Late payment incurs interest charges and potential legal action for persistent non-payment.
Late tax payment interest runs approximately 8.8% annually on unpaid balances. For example, ¥100,000 in unpaid taxes for six months would incur roughly ¥4,400 in penalties. Municipal offices may also impose additional administrative fees for collection efforts.
Are there location-specific or property-specific charges?
Certain Tokyo properties involve additional ongoing costs beyond standard taxes and management fees.
Leasehold properties (地上権) require annual ground rent payments to the landowner, typically ¥60,000-¥200,000 depending on land value and lease terms. These are rare for condos but more common for some detached houses in prime locations.
Private road maintenance fees apply when properties access shared private roads rather than public streets. Annual contributions range ¥50,000-¥200,000 depending on the number of users and maintenance requirements.
Neighborhood association dues (町内会費) range ¥3,000-¥10,000 monthly for community services, local festivals, and area maintenance. While technically voluntary, social pressure often makes participation expected.
Utility connection fees for gas, water, or sewer services may apply to newly developed areas, typically costing ¥100,000-¥300,000 as one-time expenses during property purchase.
What is the total cash outlay and steady-state annual cost?
| Cost Category | One-Time Purchase Cost | Annual Cost (Year 6+) |
|---|---|---|
| Purchase Price | ¥60,000,000 | - |
| Purchase Taxes | ¥6,470,100 | - |
| Purchase Fees | ¥2,324,000 | - |
| Mortgage Setup Costs | ¥1,450,000 | - |
| Property Taxes (Fixed Asset + City Planning) | ¥334,050 | ¥668,100 |
| Management Fee | ¥230,184 | ¥230,184 |
| Repair Reserve | ¥144,000 | ¥144,000 |
| Insurance | ¥100,000 | ¥20,000 |
| Community/Other Fees | ¥60,000 | ¥60,000 |
| Total Initial Cash Outlay | ¥71,112,334 | - |
| Steady-State Annual Cost | - | ¥1,122,284 |
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 represent a significant but manageable cost of Tokyo real estate ownership.
Careful planning for both upfront and ongoing costs ensures successful property investment outcomes in Japan's capital.
It's something we develop in our Japan property pack.