Authored by the expert who managed and guided the team behind the Japan Property Pack
Yes, the analysis of Tokyo's property market is included in our pack
If you are a foreigner looking to buy residential property in Tokyo, you will need to budget for several taxes, fees, and professional costs on top of the purchase price.
We constantly update this blog post to reflect the latest rules and market conditions in Tokyo as of early 2026.
Japan does not restrict foreign ownership, but the buying process involves specific costs that can catch first-time buyers off guard.
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 Tokyo.
Overall, how much extra should I budget on top of the purchase price in Tokyo in 2026?
How much are total buyer closing costs in Tokyo in 2026?
As of early 2026, total buyer closing costs in Tokyo typically range from 6% to 9% of the purchase price, which means on an ¥80 million property you should expect to pay roughly ¥4.8 million to ¥7.2 million extra (about $32,000 to $48,000 USD or €30,000 to €45,000 EUR).
If you keep expenses to the bare legal minimum in Tokyo, meaning no buyer agent, no mortgage, and qualifying for all reduced tax rates, you could potentially get away with around 3% to 5% extra (roughly ¥2.4 million to ¥4 million, or $16,000 to $27,000 USD / €15,000 to €25,000 EUR on the same property).
When accounting for all potential fees in Tokyo, including a buyer agent at the legal maximum, mortgage-related costs, and professional support like a translator and tax advisor, you should realistically plan for 10% to 12% of the purchase price (roughly ¥8 million to ¥9.6 million, or $53,000 to $64,000 USD / €50,000 to €60,000 EUR).
The main factors that determine whether your Tokyo closing costs fall at the low or high end include whether you use a buyer agent (adds about 3% plus consumption tax), whether you take out a mortgage (adds registration taxes and bank fees), and whether your property qualifies for reduced registration tax rates that are available through March 2027 for certain residential properties.
What's the usual total % of fees and taxes over the purchase price in Tokyo?
The usual total percentage of fees and taxes over the purchase price in Tokyo is around 6% to 9%, which is what most standard residential transactions with an agent and mortgage will cost you.
The realistic low-to-high percentage range that covers most standard Tokyo property transactions is 5% to 10%, with cash purchases without a buyer agent at the lower end and fully financed purchases with comprehensive professional support at the higher end.
Of that total percentage in Tokyo, roughly 2% to 4% typically goes to government taxes (registration tax, acquisition tax, and stamp duty) while 3% to 5% goes to professional service fees (agent commission, scrivener fees, and translation services).
By the way, you will find much more detailed data in our property pack covering the real estate market in Tokyo.
What costs are always mandatory when buying in Tokyo in 2026?
As of early 2026, the mandatory costs when buying property in Tokyo include stamp duty on the sales contract (a few thousand to tens of thousands of yen depending on price), registration and license tax for ownership transfer, judicial scrivener fees to handle the registration paperwork (typically ¥100,000 to ¥250,000), and real estate acquisition tax which arrives as an invoice a few months after closing.
Optional but highly recommended costs for foreign buyers in Tokyo include independent translation or interpreter services for the contract signing day, thorough title and building compliance checks especially for older properties, and a tax advisor if you will be a non-resident or plan to rent out the property.
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What taxes do I pay when buying a property in Tokyo in 2026?
What is the property transfer tax rate in Tokyo in 2026?
As of early 2026, Tokyo does not have a single property transfer tax but instead has a bundle of taxes: registration and license tax at 1.5% for land transfers (reduced rate valid through March 2026, then rising to 2%) and 2% for buildings (reducible to 0.1% to 0.3% for qualifying homes through March 2027), plus real estate acquisition tax at 3% for residential properties calculated on assessed values which are usually lower than market prices.
There are no extra transfer taxes specifically for foreigners buying property in Tokyo, as Japan's tax system treats foreign and Japanese buyers exactly the same for all acquisition-stage taxes.
Japan's consumption tax (the equivalent of VAT) at 10% generally applies only to the building portion when you buy from a business such as a developer selling new construction, but it typically does not apply when you buy a resale property from an individual seller.
Stamp duty in Tokyo is paid when you sign the sales contract, with rates based on the contract price (for example, ¥10,000 for contracts between ¥10 million and ¥50 million), and reduced rates apply for contracts executed through March 31, 2027.
Are there tax exemptions or reduced rates for first-time buyers in Tokyo?
Japan does not have a specific "first-time buyer" tax exemption, but Tokyo offers various reduced-rate measures based on property type (new versus used), intended use (owner-occupied), floor area (typically 50 to 240 square meters), and timing (many reductions are valid through specific deadlines like March 2026 or March 2027).
If you buy property through a company instead of as an individual in Tokyo, the purchase-stage taxes still apply, but corporate ownership adds complexity with different filing requirements, accounting costs, and potentially different treatment of rental income and capital gains.
There is a tax difference between buying new-build and resale property in Tokyo because new builds from developers typically include 10% consumption tax on the building portion, while individual-to-individual resales generally do not include this consumption tax.
To qualify for reduced registration tax rates in Tokyo, you typically need to provide documentation proving the property will be your residence, meets floor area requirements between 50 and 240 square meters, and was acquired within the time limits specified for each reduction measure.
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 Tokyo in 2026?
How much does a notary or conveyancing lawyer cost in Tokyo in 2026?
As of early 2026, Japan's property registration process is handled by judicial scriveners (shiho-shoshi) rather than notaries, and their fees in Tokyo typically range from ¥100,000 to ¥250,000 (about $670 to $1,670 USD or €630 to €1,570 EUR) depending on transaction complexity such as whether you have a mortgage or multiple lots.
Judicial scrivener fees in Tokyo are typically charged as a combination of a flat service fee plus the actual registration taxes they pay on your behalf, so you will see these itemized separately on your settlement statement.
Translation or interpreter services for foreign buyers in Tokyo typically cost ¥50,000 to ¥200,000 (about $335 to $1,340 USD or €315 to €1,260 EUR) depending on how many hours you need and how many documents require translation.
If you will be a non-resident or plan to rent out your Tokyo property, a tax advisor (zeirishi) is highly recommended, with typical annual costs of ¥100,000 to ¥300,000 (about $670 to $2,000 USD or €630 to €1,890 EUR) for basic filings and ongoing support.
We have a whole part dedicated to these topics in our our real estate pack about Tokyo.
What's the typical real estate agent fee in Tokyo in 2026?
As of early 2026, the typical real estate agent fee in Tokyo is capped by law at 3% of the purchase price plus ¥60,000, plus 10% consumption tax on that total, which means on an ¥80 million property you would pay roughly ¥2.9 million (about $19,400 USD or €18,200 EUR).
In Tokyo, whether the buyer or seller pays the agent fee depends on the arrangement, as many deals involve separate agents for each side with each party paying their own agent, though some listings are handled by a single agent who may collect from both sides.
The realistic low-to-high range for agent fees in Tokyo goes from ¥0 (if you find a property directly without a buyer agent) to the full legal cap of 3% plus ¥60,000 plus consumption tax, with some agents offering discounts on higher-priced properties or for repeat clients.
How much do legal checks cost (title, liens, permits) in Tokyo?
Legal checks including title search, liens verification, and permits review in Tokyo typically cost ¥30,000 to ¥150,000 (about $200 to $1,000 USD or €190 to €940 EUR) in direct costs for registry extracts and certificates, plus additional professional time if you hire someone to interpret complex zoning or building compliance issues.
Property valuation fees in Tokyo, which lenders often require when you take a mortgage, typically cost ¥50,000 to ¥200,000 (about $335 to $1,340 USD or €315 to €1,260 EUR) depending on the lender and property type.
The most critical legal check you should never skip in Tokyo is verifying building compliance and road access, especially for older properties, because Tokyo has many structures with quirky lot shapes, non-conforming building ratios, or limited road frontage that can affect your ability to rebuild or expand.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Tokyo.
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What hidden or surprise costs should I watch for in Tokyo right now?
What are the most common unexpected fees buyers discover in Tokyo?
The most common unexpected fees buyers discover in Tokyo include the 10.21% withholding requirement when buying from a non-resident seller (unless you qualify for an exemption), monthly condo management fees and repair reserve funds that can add ¥15,000 to ¥40,000 per month, earthquake insurance premiums, and renovation costs for older buildings that may not meet current standards.
When purchasing property in Tokyo, you could inherit unpaid charges through the proration process, so it is important to verify that fixed asset tax, management fees, and any special assessments are properly settled or credited at closing.
Fake listings and fee scams are relatively rare in Tokyo compared to other markets, but the main risk for foreign buyers is paying "reservation deposits" or "application fees" to unverified parties before confirming the agent's license and the property's legitimacy through official channels.
Fees that are usually not disclosed upfront by sellers or agents in Tokyo include the full scrivener cost breakdown, lender administration fees if you finance, upcoming condo repair reserve increases or one-off special assessments, and the non-resident seller withholding scenario that can require you to hold back 10.21% of the purchase price.
In our property pack covering the property buying process in Tokyo, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Tokyo?
Extra fees when buying a tenanted property in Tokyo typically include rent deposit transfer handling, property management takeover fees (often around ¥30,000 to ¥100,000, or about $200 to $670 USD / €190 to €630 EUR), and documentation costs to formally update landlord records with the relevant authorities.
When purchasing a tenanted property in Tokyo, you inherit the existing lease agreement and must honor its terms, including the tenant's right to remain until the lease expires and the obligation to return their security deposit under the original conditions.
Terminating an existing lease immediately after purchase is very difficult in Tokyo because Japan's tenant protection laws strongly favor renters, and landlords generally cannot evict tenants without a legally recognized "just cause" such as the building being demolished for redevelopment.
A sitting tenant in Tokyo typically affects the property's market value by lowering the price since you cannot occupy it immediately, but this can work in your favor if you are buying as an investment because you get immediate rental income and often negotiate a 5% to 15% discount compared to vacant properties.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Tokyo.
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 Tokyo?
Which closing costs are negotiable in Tokyo right now?
The closing costs that are negotiable in Tokyo include the real estate agent fee (the legal cap is a maximum, not a fixed rate), professional service fees for translation, legal advisory, and tax advisory, and sometimes the seller's contribution to repair credits or price adjustments.
The closing costs that are fixed by law or regulation in Tokyo and cannot be negotiated include stamp duty rates, registration and license tax rates, real estate acquisition tax rates, and consumption tax, which are all set by national or prefectural governments.
The typical discount or reduction buyers can realistically achieve on negotiable fees in Tokyo ranges from 10% to 30% on agent commissions (especially for higher-priced properties or repeat clients), and similar flexibility exists on professional service fees if you bundle multiple services or negotiate upfront.
Can I ask the seller to cover some closing costs in Tokyo?
The likelihood that a seller will agree to cover some closing costs in Tokyo is moderate, as Japanese negotiations more often show up as price reductions rather than the seller directly paying your line items, but you can always ask and some sellers will accommodate.
The specific closing costs sellers are most commonly willing to cover in Tokyo are repair credits or price adjustments for known issues, prorated fixed asset tax that falls within the seller's responsibility period, and occasionally agent fee sharing in dual-agency situations.
Sellers in Tokyo are more likely to accept covering closing costs when the property has been on the market for a long time, has obvious defects that need addressing, or when general market conditions favor buyers (which is less common in central Tokyo's competitive market in 2026).
Is price bargaining common in Tokyo in 2026?
As of early 2026, price bargaining is moderate in Tokyo because the market remains competitive in central wards like Minato, Shibuya, and Chiyoda, but negotiation is more common for properties with clear drawbacks, older buildings, or listings that have sat on the market for several months.
Buyers in Tokyo typically negotiate 1% to 5% below the asking price (roughly ¥800,000 to ¥4 million on an ¥80 million property, or about $5,350 to $26,700 USD / €5,000 to €25,200 EUR), with larger discounts mainly possible for distressed, overpriced, or imperfect properties.
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What monthly, quarterly or annual costs will I pay as an owner in Tokyo?
What's the realistic monthly owner budget in Tokyo right now?
The realistic monthly owner budget in Tokyo for a typical condominium ranges from ¥30,000 to ¥80,000 (about $200 to $535 USD or €190 to €500 EUR), not including your mortgage payment, to cover management fees, repair reserves, and insurance.
The main recurring expense categories that make up this monthly budget in Tokyo include condominium management fees (¥10,000 to ¥30,000), repair reserve fund contributions (¥10,000 to ¥30,000), fire and earthquake insurance premiums, and utilities.
The realistic low-to-high range for monthly owner costs in Tokyo is ¥15,000 to ¥100,000 (about $100 to $670 USD or €95 to €630 EUR) depending on property type, with small older apartments at the low end and large luxury condos in central wards like Minato or Shibuya at the high end.
The monthly cost that tends to vary the most in Tokyo is the repair reserve fund contribution, which can increase significantly as buildings age and face major maintenance like exterior repainting, elevator replacement, or earthquake retrofitting that was deferred by previous owners.
You can see how this budget affect your gross and rental yields in Tokyo here.
What is the annual property tax amount in Tokyo in 2026?
As of early 2026, the annual property tax in Tokyo consists of fixed asset tax at 1.4% plus city planning tax at 0.3% (totaling 1.7%) of the property's assessed value, which is typically 50% to 70% lower than the market price you paid.
The realistic low-to-high range for annual property taxes in Tokyo is roughly ¥100,000 to ¥500,000 (about $670 to $3,350 USD or €630 to €3,150 EUR) for typical residential properties, with the wide range reflecting different assessed values, property sizes, and locations.
Property tax in Tokyo is calculated based on the assessed value determined by the local government (not the purchase price), and this assessed value is reassessed every three years, so your tax bill can change over time even if you do nothing to the property.
Exemptions and reductions available for certain property owners in Tokyo include reduced fixed asset tax for new residential buildings meeting specific criteria (the building portion can be halved for 3 to 5 years), and small residential land receives an assessed value reduction of up to one-sixth for the fixed asset tax calculation.
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 Tokyo in 2026?
What tax rate applies to rental income in Tokyo in 2026?
As of early 2026, rental income in Tokyo is taxed as part of your overall income under Japan's progressive tax system (rates from 5% to 45% depending on total income), but if you are a non-resident landlord, a flat 20.42% withholding tax is typically deducted from your rent payments by the tenant or property manager.
Landlords in Tokyo can deduct expenses from rental income taxes, including management fees, repairs and maintenance, property taxes, insurance premiums, depreciation on the building, and professional fees like tax advisor costs.
The realistic effective tax rate range after deductions for typical landlords in Tokyo varies widely, but many non-resident landlords effectively pay close to the 20.42% withholding rate, while residents with significant deductible expenses can bring their effective rate down to 15% to 25% depending on their overall tax bracket.
Foreign property owners who are non-residents of Japan pay the 20.42% flat withholding rate on Tokyo rental income instead of the progressive rates that residents pay, though they must still file a Japanese tax return to report the income and may receive refunds if withholding exceeded actual tax due.
Do I pay tax on short-term rentals in Tokyo in 2026?
As of early 2026, short-term rental income in Tokyo is fully taxable as income (just like long-term rentals), and you must also operate within Japan's Private Lodging Business Act (minpaku) or other licensing frameworks, which limits most residential properties to 180 days per year of short-term rental activity.
Short-term rental income in Tokyo is not taxed at a different rate than long-term rental income, but you may face additional costs including Tokyo's accommodation tax for certain price points, licensing and registration fees, and property management costs that are typically higher than for long-term rentals.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Tokyo.
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If I sell later, what taxes and fees will I pay in Tokyo in 2026?
What's the total cost of selling as a % of price in Tokyo in 2026?
As of early 2026, the total cost of selling a property in Tokyo typically ranges from 3% to 6% of the sale price, not including capital gains tax if you made a profit on the sale.
The realistic low-to-high percentage range for total selling costs in Tokyo is 3% to 8%, with the lower end for sellers who handle things directly and the higher end for those using agents, needing significant legal support, and facing capital gains tax on their profit.
The specific cost categories that typically make up the total selling cost in Tokyo include the real estate agent commission (up to 3% plus ¥60,000 plus consumption tax), stamp duty on the sales contract, legal and administrative fees, and potentially capital gains tax on any profit you realized.
The single cost that is usually the largest contributor to selling expenses in Tokyo is the real estate agent commission, which at the legal maximum can easily exceed all other selling costs combined and represents the bulk of most sellers' transaction expenses.
What capital gains tax applies when selling in Tokyo in 2026?
As of early 2026, capital gains tax on property sales in Tokyo is 39.63% (including income tax, resident tax, and reconstruction surtax) if you owned the property for 5 years or less, or 20.315% if you owned it for more than 5 years, with the holding period calculated as of January 1 of the sale year.
Exemptions to capital gains tax available in Tokyo include a special deduction of up to ¥30 million for sales of your primary residence regardless of holding period, and reduced rates for primary residences owned for more than 10 years that can bring the tax below the standard long-term rate.
Foreigners do not pay extra capital gains tax rates when selling property in Tokyo, but non-residents face a 10.21% withholding at the time of sale which is credited against their final capital gains tax liability when they file their Japanese tax return the following year.
Capital gain in Tokyo is calculated as the sale price minus the original purchase price, acquisition costs (agent fees, registration taxes, stamp duty), and transfer expenses (agent fees for selling, legal costs), with building depreciation also factored in for rental properties to reduce your cost basis.
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 Tokyo, 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 - Registration Tax Table | Japan's official tax authority with legally binding rates. | We used it to confirm exact registration and license tax rates including reduced rates and deadlines. We then converted these into practical budget percentages for Tokyo buyers. |
| National Tax Agency - Stamp Duty Guidance | Official NTA rate table for stamp duty on contracts. | We used it to list the stamp duty bands and the reduced-rate period through March 2027. We also showed why stamp duty is usually a small line-item in Tokyo transactions. |
| National Tax Agency - Non-Resident Withholding | Official rule for one of the biggest surprise costs. | We used it to explain when buyers must withhold 10.21% from non-resident sellers. We highlighted the personal-use exemption that matters to individual homebuyers. |
| JETRO - Fixed Asset and City Planning Tax | Government-related organization with vetted guidance. | We used it to confirm the standard 1.4% fixed asset tax and 0.3% city planning tax rates. We explained what these rates mean for annual owner budgets in Tokyo. |
| Tokyo Metropolitan Government - Accommodation Tax | Tokyo's official tax bureau with local tax details. | We used it to explain accommodation tax for short-term rentals in Tokyo. We also flagged that Tokyo is reviewing this system for potential 2027 changes. |
| MLIT - Private Lodging Business Act | National ministry responsible for tourism and housing. | We used it to ground the short-term rental section in Japan's legal framework. We translated the licensing requirements into practical cost implications for owners. |
| DLA Piper REALWORLD - Japan Tax Summary | Major international law firm with verified guidance. | We used it to triangulate acquisition tax rates and residential vs. commercial splits. We treated it as a secondary check against government sources. |
| Housing Japan - Property Taxes 2025 | Established Tokyo agency with 25 years experience. | We used it to verify current reduced-rate deadlines and practical fee estimates. We cross-referenced their professional cost ranges with our own data. |
| National Tax Agency - Non-Resident Rental Income | Official English NTA explanation for foreign landlords. | We used it to validate the 20.42% withholding rule on rent paid to non-residents. We converted this into plain-English guidance for foreign investors. |
| E-Housing - Rent vs. Buy Guide | Tokyo real estate platform for foreign clients. | We used it to gather practical monthly cost estimates for Tokyo owners. We verified their closing cost percentages against official tax sources. |
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