Overview
Non-residents owning real estate in Japan need to appoint a tax agent to handle the payment of property tax, submission of tax returns, and receipt of tax notifications. Ownership of real estate also incurs obligations for withholding tax on rental income and capital gains tax reporting.
Key Themes
Real estate acquisition tax: A tax that is levied only once when purchasing real estate, with a standard tax rate of 4% of the assessed value. However, for residential properties, there are reductions of land assessed value × ½ × 3% and building assessed value × 3%.
Property Tax and City Planning Tax:A local tax levied annually.
Capital Gains Tax:Profits from the sale of real estate are subject to income tax or corporate tax. The tax agent is responsible for reporting and payment.
Real Estate Rental Income:Payments to non-resident landlords may be subject to withholding tax.
Our Services
MOCHIZUKI & Associates provides tax agent services for real estate owners, including calculation of acquisition tax, payment of property tax and city planning tax, capital gains reporting, and coordination of withholding and remittance of rent.