Property fees and tax FAQ
Questions on closing costs, registration, acquisition tax, fixed-asset tax, and the mortgage deduction.
This hub answers questions about the fees and taxes of buying, owning, and selling property.
Key points
- Direct answers to common questions, each linking to a detailed guide.
- Answers reflect the higher-rate 2026 environment and verified sources.
- Use the linked guides and calculators for the full decision.
- Educational only — confirm material decisions with the relevant professional.
About this FAQ hub
This hub answers questions about the fees and taxes of buying, owning, and selling property. It gathers 16 of the most common questions on this topic — questions on closing costs, registration, acquisition tax, fixed-asset tax, and the mortgage deduction — each with a short, direct answer and a link to the guide that covers it in full.
The answers reflect Japan’s higher-rate 2026 environment rather than the near-zero conditions of earlier years: the Bank of Japan’s operating guideline was around 1.0% in mid-2026, and several lenders pre-announced further increases, so the answers assume rates can rise. Advertised rates are execution-month or example figures verified in 2026, not guaranteed offers, and only final underwriting and execution determine your actual rate.
How to use these answers
Treat each answer as a starting point rather than a verdict. It summarises the general rule, but your own situation — residence status, income type, the specific property, and the lender — determines the outcome, and mortgage approval is both borrower-specific and property-specific. Follow the linked guides for the full decision, use the calculators to model your own numbers, and confirm anything material with the lender, a licensed real-estate broker, a judicial scrivener, or a tax accountant.
For any mortgage question, obtain a dated written quotation rather than relying on a headline rate or a comparison ranking: pricing changes monthly, discounts can depend on conditions you must maintain, and referral economics can influence which products a ranking features. Where a figure is not disclosed on a lender’s page — the effective all-fee cost, the real minimum income, or non-permanent-resident eligibility — treat it as requiring a direct quotation, not something to infer.
Who this is for
- Anyone with quick questions on this topic
- Buyers and borrowers doing initial research
What this is not
- A substitute for professional advice
- These are educational summaries; confirm material decisions with the lender, broker, or a licensed professional.
Frequently asked questions
What fees are outside the property price?
Brokerage, loan, registration, tax, insurance, inspection, renovation, moving, and reserves.
What is registration and license tax?
A tax on specified registrations (ownership transfer and mortgage), based on assessed value and any relief.
What is real-estate acquisition tax?
A prefectural tax assessed after acquisition, based on assessed value; residential relief can reduce it.
What is fixed-asset tax?
An annual municipal tax based on the assessed value of the property.
What is city-planning tax?
An additional local tax in designated urban-planning areas.
Who pays the current year’s fixed-asset tax at closing?
Seller and buyer commonly prorate it economically by contract; legal liability follows statutory rules.
What is the mortgage tax deduction?
An income-tax credit based on your qualifying year-end mortgage balance (a 0.7% framework), subject to conditions.
Is the 2026 mortgage deduction automatic?
No; eligibility and filing requirements must be met, and you generally file a return in the first year.
Is there an income limit for the mortgage deduction?
The general applicable-income ceiling is ¥20 million, with additional floor-area conditions.
Must I file a tax return in the first year?
Generally yes for an initial mortgage-credit claim; later years an employee may claim it through year-end adjustment.
What tax applies when I sell property?
Capital-gains tax on the taxable gain after basis, allowable costs, and relief — not the gross price.
Is sale price minus purchase price the taxable gain?
Not necessarily; depreciation and transaction costs affect the basis and the gain.
What is the ¥30 million home-sale deduction?
A possible deduction of up to ¥30 million from qualifying principal-residence capital gain, subject to conditions.
Is inheritance registration mandatory?
Yes, inheritance-registration obligations now apply under the amended system; deadlines and transition rules require review.
Should spouses own property 50/50?
Only if contributions, debt, gift-tax, control, and future-sale consequences support that split.
Can unequal payments create gift-tax issues?
Potentially, when legal ownership and economic contributions differ.