Tax and Financing in Japan

  • Real Estate Tax and other fees in Japan

    Acquisition
    1 Brokerage Fee : Generally 3-5% +GST
    2 Acquisition Tax : From 3-4% of the fixed
    .........................asset Value
    3 Stamp Duty :
    ....Depend on the property value JPY 10,000 - 480,000
    4 GST:
    ................8% (From 1 April 2017 GST will go up to 10%)
    5 Registration Fee: Calculated against the taxable fixed asset value
    ......................... Usually pay this tax to Judical Scriener inc. their fees
    ..........................Approx. 2.0% of the estimated fixed value
    6 Judical Scrivener Fee: Commission to carry out ownership registration
    7 Fire & Earthquake Insurance: Fire Insurance to be applied to all building
    .........................Earthquake Insurance to be applied to tenanted residences

     

    Holding Period
    1 Fixed Asset Tax : ..Approx. 1.4 - 2.1 % of the estimated fixed value
    2 City Planning Tax : Calculated against the taxable fixed asset value
    3 Building Maintenance Cost

     

    Rental Period
    1 Non-Resident Income Tax : 20% Flat-rate withholding tax
    ...........................When the annual income tax is filed by March,
    ...........................the following year the owner will get a refund.
    2 Income Tax:
    .......Less than JPY 1,950,000 income ... 5%
    .......................... Depend on various income............10% - 40%
    ...........................Income over JPY 40,000,000.........45%

     

    Disposal time
    1 Capital Gain Tax : Short term capital gain (less than 5 years) 39%
    .......................... Long term capital gain (over 5 years) ......20%
    2 Withholding Tax : 10% of sales price (credited after tax returns filed)


    Treaties for the avouidance of double taxation are in existence and in effect between Japan and Australia.

Financing in Japan

If you intend to fund your purchase with a loan you need to apply to an appropriate financial institution before signing the Contract....................

A number of financing options are available in Japan for Overseas purchasers, though obviously depend on the purchase value of the property, location, your assets and income.
Each financial institution will require that you complete, sign, seal and delivery their specific loan application Form.
Necessary Items Financial Institute will take 2-3 weeks to process a loan application.
Once approved, you will need to sign a loan agreement to finalize conditions to borrow money.

Loan Applicationn Necessary Items



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