Withholding tax when the seller is a non-resident

This information applies to:
  • Sellers who are non-residents (eg. foreigners living abroad and Japanese citizens living abroad).
  • Buyers, both local and overseas residents, who are buying real estate in Japan from a non-resident.

If the seller of Japanese real estate is a non-resident, depending on the situation, the buyer must withhold 10.21% of the sale price and pay it to the tax office, with the remaining 89.79% paid to the seller. The buyer is responsible for paying the 10.21% to the tax office by the 10th of the month following the transaction.

As a buyer: As a seller:
It is your obligation to make this payment to the tax office by the deadline. If you are currently living overseas, you will need to appoint a tax representative or accountant to pay this on your behalf. You will need to appoint a tax representative in Japan to file a final tax return to have the remainder returned to you (less any taxes that may have been owed).

Withholding Tax in Japan

*If the payment of deposits and mid-term payments also meet the conditions for withholding tax, the tax must be withheld and paid by the buyer at each payment.  

The information contained on this page is intended as a general guide only and is not investment, taxation or financial advice. Readers are strongly advised to contact qualified tax accountants or specialists either in Japan or in their home country to obtain accurate information before making any decision.