1. Land Registry Fee – “Shoyuuken Iten Hiyou”
This refers to the fee incurred in changing the land registry to reflect the legal transfer of the apartment / land ownership from buyer to seller.
2. Property Transaction Tax
This is a form of stamp duty, payable to the Japanese government upon completion of a property transaction. The buyer is liable for this tax.
This one-off tax is payable 3-4 months after completing the property purchase.
3．Fixed Property Tax
This tax is payable annually to the local government. The tax is calculated in accordance with land values for the area.
These land values are re-adjusted every 5 years on Jan 1st – as such the tax payable is also subject to change, though such changes are never usually drastic.
The current rate of annual Fixed Property Tax is advised before making a property purchase.
Landlords pay this tax up-front every year on Jan 1.
When the landlord sells a property, the buyer recompenses the seller for the Fixed Property Tax payable for the remainder of the calendar year following the contract date.
4．Residents’ Tax
Best explained by its title, this is an annual tax payable by the owner of the property.
The amount is not significant – roughly JPY4,000 per year.
In the event of a company owning the property, the amount of Residents’ tax is affected by the size of the company in question.
5. Stamp Tax
In Japan, a system is in place whereby contracts are confirmed partly by signature or personal stamp, but also by both parties signing / stamping over a stamp of fixed value.
The buyer bears the cost of this stamp, usually between JPY2,000 to JPY10,000. Income from this tax goes to the central government.
6. Estate Agent Fees
Finally, your estate agent will receive a fee as commission for arranging the sale and purchase of the property.
These amounts are fixed by Japanese Law, and are based on the property transaction price:
Under JPY2mn – Property price x 5%, plus consumption tax [ie another 5%]
JPY2mn up to JPY4mn - Property price x 4% + JPY20,000, plus consumption tax
Over JPY4mn - Property price x 3% + JPY60,000, plus consumption tax
8. “Kanri-hi”- Property Maintenance Fees and other fees
When making a property purchase, the buyer pays 2 calendar months of ‘Kanri-hi’, or Property Maintenance Fees.
The exact amount varies with different properties.
For certain properties, the seller may have paid upfront for utilities or other minor fees – in such cases the buyer will reimburse the seller in order to take on such liabilities after the contract date.