Taxes when buying property in Japan
Acquisition tax, registration tax, stamp tax, building consumption tax, and annual taxes.
Buying property can trigger real-estate acquisition tax (prefectural), registration and license tax on the title and mortgage, stamp tax on paper contracts, and consumption tax on the taxable building component — then annual fixed-asset and city-planning taxes once you own it.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Real-estate acquisition tax (prefectural) on acquiring property.
- Registration and license tax on the title transfer and any mortgage.
- Stamp tax on paper purchase and loan contracts.
- Consumption tax on the building component; land is treated differently.
One-time purchase taxes
At purchase you may face real-estate acquisition tax assessed by the prefecture, registration and license tax on registering the title and any mortgage (statutory rates on assessed values, with temporary reductions), stamp tax on paper contracts, and consumption tax on the taxable building portion — land itself is treated differently for consumption tax. Owner-occupied housing often qualifies for reliefs.
Then the annual taxes
Once you own the property, the municipality bills fixed-asset tax and, in urbanization areas, city-planning tax each year, based on the January-1 owner and assessed value. Because acquisition, registration, and stamp reliefs are temporary and date-sensitive, confirm the current rate for your transaction date and check owner-occupier reductions.
Who this is for
- Home and investment-property buyers
- People budgeting closing costs
What this is not
- Exact municipal assessments
- Acquisition/registration/stamp reliefs are temporary — verify the rate for your transaction date.
Frequently asked questions
Do I need to file a tax return in Japan?
Many employees do not, because tax is settled by year-end adjustment (年末調整). You generally must file (確定申告) if you have side income over ¥200,000, two or more employers, self-employment income, sizeable investment or crypto gains, or you want to claim deductions like large medical costs or a first-year mortgage credit. Filing season is Feb 16 – Mar 15 via e-Tax. When unsure, check the NTA guidance or ask a 税理士.