While buying property in Japan is an exciting journey, the terminology and tax systems can be quite different from your home country.
Here is a deeper dive into the upfront costs and rules you need to know! 
1. The 6-8% Closing Costs
As a general rule, expect to pay an additional 6% to 8% on top of the property’s purchase price. For example, for a ¥30,000,000 property, you should budget around ¥32,400,000 in total.
Good News: If you are buying for personal use (not renting it out), you will NOT be subject to the 20.42% withholding tax on rental income that usually applies to non-resident investors!
2. The Breakdown of Fees
• Brokerage Fee: Typically 3% of the purchase price + ¥60,000 + 10% tax.
• Stamp Duty: A tax affixed to your official sales contract.
• Registration & Legal Fees: Paid to a Judicial Scrivener to legally transfer the title to your name.
3. Making Sense of Taxes
If you are from countries like Australia, these might sound familiar:
• Real Estate Acquisition Tax: A one-time tax billed 3-6 months after purchase (Exactly like Stamp Duty/Transfer Duty in Australia!).
• Pro-rated Property Taxes: You reimburse the seller for the property tax for the remaining days of the year from your settlement date (Just like pro-rata adjustments for Council/Water rates!).
4. The “Kyoto Rule”
Kyoto City is introducing a new “Vacant Home Tax” (Tax on Non-Resident Housing). If you plan to use your property as a vacation or second home rather than living there full-time, make sure to factor this into your future maintenance budget!
Buying property abroad doesn’t have to be overwhelming when you have the right guidance.
Have any questions about buying real estate in Kyoto?
Send me a DM! Let’s find your dream home in Japan.
