Proposal to introduce tax on vacant homes
On December 11, the opposition Democratic Party for the People independently submitted a bill to the House of Representatives that would impose a tax on the owners of homes and apartments that are vacant. This is in response to growing concerns over speculative investment causing housing affordability issues in Japan’s major cities.
The proposal would allow municipalities to levy taxes on owners of unoccupied housing in urban cities, such as Tokyo, and resort regions, with the tax amount to be based on land values. It also includes a higher income tax and corporate tax rate to be charged on properties sold within two years of purchase.Read more
Temple wins appeal over tax bill
A temple in Osaka has won an appeal trial over the taxation of land within the temple grounds, resulting in the cancellation of a 4.8 million Yen tax bill. Under the Religious Corporations Act, temple and shrine land is normally not taxed unless it is for commercial use.Read more
High-rise apartments may soon lose their inheritance tax appeal
Apartments, particularly those in high-rises, have been a very appealing means of reducing inheritance taxes due to the way real estate is valued for estate purposes. That may soon change with the National Tax Agency (NTA) firming up plans to value apartments closer to their market price.Read more
Kyoto City's 'akiya' vacant home tax approved
Kyoto City’s plan to tax owners of vacant homes was approved by the Ministry of Internal Affairs and Communications in March, which means some ‘akiya’ or unoccupied homes will come with an additional annual tax. The new tax will not be imposed immediately - it may start in the 2026 fiscal year - and will not be applied to all vacant homes.Read more
Kyoto may be first city in Japan to introduce a tax on empty homes
Kyoto City is looking at introducing a special tax on vacant ‘akiya’ homes, in what could become the first akiya tax in Japan.
Commercial landowners will likely receive a tax break in 2022
Both the Komeito political party and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) are seeking that property taxes for commercial land receive some kind of tax relief next year. The leading Liberal Democratic Party also seems to be in favor of this measure.
Home loan tax deduction may be reduced in 2022
The cash loophole from the 1% home loan income tax deduction is about to be closed as the government looks to revise the percentage down next year.