Rosenka land values increase nationwide for 5th year in a row

The Kyukyodo Building in Ginza. Home to the most expensive land in Japan.

On July 1, the National Tax Agency announced the rosenka land values for 2020. Land values nationwide saw a 1.6% year-on-year increase, an improvement from the 1.3% increase seen in 2019 and the fifth year in a row to see growth.

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by Zoe Ward

It’s tax time for property owners in Japan

If you currently own property in Japan, you should be receiving your annual property tax bill this month or next. These taxes are owed by anyone who owns real estate in Japan, be it residential, commercial or otherwise. Those living overseas are taxed the same as those living in the country.

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by Zoe Ward

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.Read more

by Zoe Ward

Tax breaks and better home loan rates to boost Japan's second-hand home market

Journal Standard Renoveru 2
A renovated apartment in Kawasaki City by Renoveru (a collaboration between Journal Standard Furniture and ACME).

As part of a plan to support and boost the market for used homes, the Japanese government is considering introducing measures to encourage lower interest rates on mortgages that include a component for renovations as well as tax benefits for buyers of older homes.

Although there is growing demand from consumers for relatively cheaper existing homes, more than half require some form of work such as earthquake-retrofitting or upgrades to make them barrier-free for older occupants. It is hoped that easier financing will encourage more consumers to consider older homes and reduce the number of vacant homes across the country.

Expanding the Flat 35 Home Loan

The Japan Housing Finance Agency’s ‘Flat 35’ home loan offers interest rates from as low as 1.69%. Although the loan can be used for both new and old properties, it may soon be expanded to provide additional financing for renovation costs at the time of purchase.Read more

by Zoe Ward

Annual real estate taxes to increase in 2015

Home owners are likely to see their annual fixed asset and city taxes increase in 2015. The Ministry of Internal Affairs and Communications has decided that residential buildings will be valued at a higher rate next year to account to reflect the recent increase in construction and labour costs. This will be the first increase in the taxable value since 2009.Read more

by Zoe Ward

Toshima-ku to extend tax on studio apartments

Toshima-ku in Tokyo announced that they will extend the special tax on builders of studio or 'one-room' apartments for another five years.

The tax applies to buildings with 9 or more apartments that are less than 30 sqm (323 sqft) in size. A construction company must pay a tax of 500,000 Yen on each studio apartment within two months of the commencement of construction.Read more

by Zoe Ward

Fixed asset tax reduction on new homes may be extended

The government is considering extending the fixed asset tax reduction on new homes for another two years. Currently, the annual fixed asset taxes are halved for the first 3 ~ 5 years on new homes and apartments. Unless extended, the special tax relief measure is set to expire at the end of March 2014.

There are concerns about a slump in new home sales following the planned increase in consumption tax from April 2014. As a result, the government is looking at measures to counter-act any possible downturn in sales activity. Read more

by Zoe Ward