Fire insurance matters more in Japan than most buyers realise: a law from 1899 means a neighbour who burns down your house generally owes you nothing. Cover extends well beyond fire to typhoon, hail, and water damage, but excludes earthquake entirely. With premiums up over 40% since 2019 and contract terms now capped at five years, reviewing your policy at renewal is no longer optional.
Fixed asset tax is Japan's annual property tax, charged by the municipality to whoever owns the land or building as of 1 January — with no distinction between Japanese and foreign owners. The standard rate is 1.4% of assessed value, plus city planning tax of up to 0.3%. Land under a dwelling is taxed on just one-sixth of its value for the first 200 square metres, and new builds get the building portion halved for three to five years. But these reliefs are tied to residential use, so demolishing a house can send the land bill up sixfold.
Real estate acquisition tax is a one-time prefectural levy charged to anyone who acquires land or a building in Japan — resident, foreign individual, or company. It is calculated not on the price paid but on the government's assessed value, which sits well below market. The headline rate is 4%, though land and residential buildings currently get a reduced 3%, and residential land is assessed at only half its recorded value. Generous deductions on top bring the bill to zero for many ordinary purchases. The assessment arrives months after closing, and the reliefs must be claimed — they are not applied automatically.
Your first rent payment arrives at 79.58% of the lease figure, and nothing has gone wrong. Japan withholds 20.42% on rent paid to overseas owners — on gross, not profit. Most of it is recoverable. This is when it applies, when it doesn't, and how to get it back.
Japan is a popular destination for people seeking to live abroad — whether for work, study, family, or cultural reasons. However, living in Japan long-term as a non-Japanese resident requires a valid visa or residence status. Fortunately, Japan offers a variety of legal pathways that allow foreigners to stay in the country for extended periods, with the possibility of transitioning to permanent residency.
The prospect of buying property in Japan is enticing for many non-Japanese residents, especially in major cities like Tokyo and Osaka. One critical question that often arises among potential buyers is whether it’s possible to obtain a 100% housing loan—meaning financing the entire cost of the apartment without making any down payment.
Japan's real estate market is increasingly welcoming to foreign buyers, presenting exciting opportunities for non-Japanese residents seeking to invest in property. However, the process can be complex, and understanding the unique aspects of buying real estate in Japan is crucial. Below are key questions you should consider before making your purchase.
Purchasing property in Japan as a non-Japanese resident can be a straightforward process, but it's essential to be well-prepared with the necessary documents. Ensuring you have the correct paperwork can significantly streamline your buying experience and help avoid any legal complications.
The Real Estate Acquisition Tax is a significant tax that applies to individuals and businesses acquiring real estate in Japan. Understanding this tax is essential for anyone engaged in real estate transactions, whether they are purchasing residential properties, commercial buildings, or land. Below, we provide a comprehensive examination of the Real Estate Acquisition Tax, including its purposes, rates, calculation methods, and practical examples.
