Nonresident landlord taxes
Japanese rental income, withholding, a tax representative, expenses, and the sale.
A nonresident who rents out Japanese property is taxable in Japan on that rental income; certain tenants must withhold tax on the rent, you deduct the usual expenses on a filed return, and you generally need a Japanese tax representative to handle filings and notices.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Nonresident Japanese rental income is taxable in Japan.
- Certain tenants must withhold tax on rent paid to a nonresident.
- You file a return and deduct the usual rental expenses.
- Appoint a Japanese tax representative (納税管理人).
Rent withholding and filing
If you live abroad and rent out Japanese property, the rental income is Japan-source and taxable here. When the tenant is a corporation or an individual renting for business, they generally must withhold tax on the rent and remit it, which you then reconcile on a return. Residential tenants renting for their own home are usually an exception to the withholding requirement.
Tax representative and sale
Because you are abroad, appoint a Japanese tax representative (納税管理人) to file, receive notices, and pay on your behalf. You still deduct the ordinary rental expenses and depreciation. When you eventually sell, a nonresident sale can also involve withholding by the buyer, and treaty provisions may apply — plan the sale with a professional.
Who this is for
- Owners abroad renting Japanese property
- People moving away but keeping property
What this is not
- Resident landlords
- Tenant withholding and a tax representative are often required; confirm before renting from abroad.
Frequently asked questions
How does tax residency work in Japan?
For tax, Japan classifies you as non-resident, non-permanent resident, or permanent resident — separate from your immigration status. Broadly: non-residents are taxed only on Japan-source income; non-permanent residents (in Japan under 5 of the last 10 years, without permanent intent) are taxed on Japan-source income plus foreign income paid in or remitted to Japan; permanent residents (for tax) are taxed on worldwide income. This affects foreign income and investments, so confirm your category with the NTA or a tax accountant.