Japan Property Purchase Costs by Due Date: A Buyer’s Checklist

This article is part of the Zagdim “Japan property” series on transaction costs. It answers one question: when you buy property in Japan, what do you have to pay besides the price? For the overall picture, see the main article “Buying Japanese Property Is Not Just the Price: Brokerage Fees, Registration Costs, Taxes, Insurance and Holding Costs” (link added by the publisher).

Besides the price, a buyer in Japan pays a brokerage fee, stamp duty, registration and licence tax, and a judicial scrivener’s fee. After handover, a real estate acquisition tax bill arrives. If you buy from a developer or a company, the building portion of the price includes consumption tax. At handover, the fixed asset tax for the year is also apportioned. A Japanese mortgage adds a registration tax for the mortgage, fire insurance and, if the loan agreement is on paper, stamp duty.

These costs fall due at different points: before the brokerage contract, at signing, at handover, at registration and after handover. Some are calculated on the fixed asset valuation, and some depend on whether you will live in the property yourself. This checklist goes in order of when each payment falls due. It flags what changes if you are buying to let or are living abroad, and which documents to keep for the day you sell.

Why Does the Budget Still Come Out Wrong After the Price Is Agreed?

In Japan, the costs beyond the price appear in several instalments. Some are paid on the day of signing, some at registration, and the real estate acquisition tax bill is sent by the prefecture only after handover. Registration and licence tax and real estate acquisition tax are based on the fixed asset valuation (固定資産評価額), not the sale price, so multiplying the price by a percentage gives an unreliable estimate. In addition, several reduced rates require that you live in the property yourself. A buyer who is letting the property out, or who lives abroad, will understate the costs by using the owner-occupier calculation.

The Short Answer: What Do You Pay When Buying?

When buying through a broker, there are five main payments: the brokerage fee (仲介手数料); stamp duty (印紙税) on a paper contract; the registration and licence tax (登録免許税) paid at registration; the judicial scrivener’s fee (司法書士, the professional who handles registration on your behalf); and the real estate acquisition tax (不動産取得税) after handover. At handover, buyer and seller customarily apportion that year’s fixed asset tax (固定資産税), and how it is split depends on the sale contract. If you use a Japanese mortgage, add the registration and licence tax for registering the mortgage, stamp duty on the loan agreement, and the fire insurance the lender requires. If you are not going to live in the property, you cannot use the reduced rates for building registration or for the mortgage registration. If the seller lives abroad, you may have to withhold 10.21% of the price when you pay.

From Signing to the Tax Bill: When Is Each Payment Due and How Is It Calculated?

The “will not live there” column asks whether you will live in the property after buying, not what your nationality is. As of September 2026, the brokerage fee cap, the 1.5% land transfer rate, the 3% real estate acquisition tax rate with the halving for residential land, and the new-home deduction do not differ because you are a foreigner or live overseas.

Before the Brokerage Contract: Ask About Separate Charges

The cap on the brokerage fee is not a fixed price, and you can negotiate the amount with the broker. For how the cap is calculated, see the main article. The payment timing is written in the brokerage contract, in the field for the time the agreed fee is collected (約定報酬の受領の時期), so confirm it before you sign.

If you are abroad and ask a broker to view properties or investigate on your behalf, first find out which costs will be charged separately. A broker may not charge extra for viewings or application fees. The only separate charges allowed are advertising costs you requested, and actual expenses for remote on-site investigation or travel that you specially requested and agreed in advance to bear. Ask for an estimate before commissioning the work, and agree to the amount before you proceed.

There is a special rule for properties priced at JPY 8 million or less. If the broker explains it when the brokerage contract is signed and obtains your consent, the broker can collect more than the normal cap, up to JPY 330,000 (tax included) for a taxable broker. As of September 2026, this special rule is not limited to charges to the seller, so a buyer may also be asked to pay it.

At Signing the Sale Contract: Stamp Duty Is Charged Per Copy

On a paper sale contract for real estate, each original copy must carry a stamp according to the contract amount. If buyer and seller each keep an original, each copy is taxed separately. Who bears the cost follows what the contract says.

For sale contracts drawn up before March 31, 2027, reduced amounts apply:

• Over JPY 5 million up to JPY 10 million: normally JPY 10,000, reduced to JPY 5,000
• Over JPY 10 million up to JPY 50 million: normally JPY 20,000, reduced to JPY 10,000
• Over JPY 50 million up to JPY 100 million: normally JPY 60,000, reduced to JPY 30,000

Other amount bands have their own rules. As of September 2026, a contract signed electronically is not a document subject to stamp duty.

At Handover: Price, Consumption Tax and Fixed Asset Tax Apportionment

When you buy from a developer or a company, the 10% consumption tax (消費税) in the price applies to the building portion only. Land sales are not taxed. As of September 2026, buying from an individual owner who lived in the home is not a transaction carried out as a business, so the price does not include consumption tax. Service fees such as the judicial scrivener’s fee carry an additional 10% consumption tax, while the cap on the brokerage fee already includes tax.

Fixed asset tax for the full year is paid by whoever is registered as the owner on January 1. If the transfer happens on January 2 or later, the seller still pays that year’s tax. So at handover the two sides customarily apportion the year’s tax by days. This is custom, not a legal rule, and the split depends on the sale contract. Your own fixed asset tax bills start from the first year in which you were the owner on January 1. When you sell in future, the amount the buyer pays you as their share counts toward the sale price.

If the seller lives abroad, you must withhold first. If the seller is a non-resident of Japan or a foreign company and you pay in Japan, you generally have to deduct 10.21% of the price at payment and pay it over on the seller’s behalf. This applies whether the buyer is an individual or a company. Withholding is not required when you buy as an individual for yourself or your family to live in and the price is JPY 100 million or less. Before signing, check with the broker whether the seller lives in Japan, and before paying, ask a tax accountant (稅理士, zeirishi) to explain the payment deadline and procedure.

At Registration: Registration and Licence Tax and the Scrivener’s Fee

Registration and licence tax is generally calculated on the registered value in the fixed asset tax ledger. For a new building that has no registered value yet, the registry officer determines it. You can ask the seller or the broker for a fixed asset valuation certificate (固定資産評価証明書) to estimate the amount. Land and building are taxed separately:

• Transfer of land by sale: 1.5% for registrations made before March 31, 2029. Living there is not required.
• Transfer of a building by sale: normally 2%. For an individual buying to live in, acquired before March 31, 2027, the rate is 0.3%. A resale home must have been built on or after January 1, 1982, or meet the earthquake-resistance standard.
• First registration of a newly built home (保存登記): normally 0.4%. For an individual’s owner-occupied new home, built or acquired before March 31, 2027, the rate is 0.15%.

The reduced rates for buildings also require a floor area of at least 50 square meters, registration within one year of acquisition, and a certificate of a house for residential use (住宅用家屋証明書, as it is commonly called) issued by the city, ward, town or village, attached to the registration application. If it is submitted after registration, the reduced rate cannot be used. Anyone planning to live in the home should therefore get the certificate before registration.

As of September 2026, a person who buys to let or does not live in the home pays the standard building rate. Someone who has moved to Japan and actually lives in the home may qualify, and the individual case should be checked with the judicial scrivener or the local municipality.

Judicial scrivener fees are set by each office and agreed with you, and there is no national fee table. Ask for an estimate before signing, and ask that the fee and the registration and licence tax be listed separately.

After Handover: The Acquisition Tax Bill Comes Separately

The prefecture where the property is located imposes real estate acquisition tax once on anyone who acquires land or a house, whether or not it is registered. The tax is paid on a notice that arrives later, not on the day of handover. For land and homes acquired before March 31, 2027, the rate is 3%, and the tax base for residential land is halved. The calculation again starts from the fixed asset valuation.

Taking Tokyo as an example: you must file a declaration with the Tokyo Metropolitan Tax Office (都税事務所) within 30 days of acquisition. If you applied for registration within the 30 days, a declaration is generally not needed, but to use a reduction measure you still have to file with documents. Payment notices are sent around the 7th of each month and generally must be paid by the end of that month. They cannot be paid by bank account transfer. Deadlines and methods elsewhere follow local rules.

Whether a deduction applies depends on how old the home is and whether you live in it:

• New homes (including new homes with no occupant yet): JPY 12 million can be deducted from the value per dwelling, or JPY 13 million for a certified long-life quality home. There is no owner-occupation requirement, so a home that is rented out can also qualify.
• Resale homes: only for an individual buying to live in, and the home must meet the earthquake-resistance conditions. The reduction of tax on the land under a resale home also depends on meeting this deduction.

The area conditions for both deductions, for acquisitions from April 1, 2026, are at least 40 and no more than 240 square meters. The specific urban regeneration emergency zones in the special wards of Tokyo have their own rule. In Tokyo, the declaration for the resale-home deduction must include the resident record (住民票, juminhyo). If you plan to move to Japan and want the deduction, first ask the prefectural tax office how you can prove owner-occupation.

If you are abroad, someone must receive the tax bill. A person with no address or similar in the prefecture where the tax applies must appoint a tax administrator (納税管理人) and notify or obtain approval from the prefecture. In cases recognized as not affecting collection, the appointment can be waived.

If You Use a Japanese Mortgage: What Gets Added?

• Registration and licence tax for registering the mortgage: 0.4% of the loan amount, calculated on the loan, not on the price. For an individual buying to live in, built or acquired before March 31, 2027 and registered within one year, it is 0.1%. The conditions again include 50 square meters and the certificate of a house for residential use.
• Stamp duty on the loan agreement: a paper loan agreement (金銭消費貸借契約書) needs a stamp based on the loan amount, for example JPY 20,000 for an amount over JPY 10 million up to JPY 50 million. As of September 2026, the loan agreement does not get the reduction available for sale contracts and is taxed at the standard amount. A contract signed electronically is not taxed.
• Judicial scrivener’s fee: registering the mortgage can also be handled by a judicial scrivener, with the fee charged separately.
• Fire insurance: taking a Japan Housing Finance Agency (住宅金融支援機構) loan as the example, the building must stay insured against fire until the loan is repaid. The insured amount is generally at least the total loan (the same as the building’s assessed value when the loan exceeds it), and a policy with certain special clauses can be lower than the total loan. The maximum policy period is five years, and the policy must be renewed on expiry. Conditions at other banks need to be checked individually.
• Refund of the brokerage fee: if the sale contract contains a clause allowing cancellation if the mortgage is not approved (融資特約), and the broker uses the standard brokerage contract terms (標準媒介契約約款), the broker must refund the fee already collected in full, without interest, when the mortgage is finally refused and the contract is cancelled.

As of September 2026, the Japanese laws reviewed do not require a homeowner to buy fire insurance. The Japan Housing Finance Agency requirement is a condition of its loan. Earthquake insurance cannot be bought alone and has to be added to a fire policy. Its premium depends on the building’s structure and location, and policy periods run from one year to long terms of two to five years. Fire insurance premiums are set by each insurer.

**Example:** a loan of JPY 20 million to buy an apartment that will be let out, with the loan agreement signed on paper. Registration and licence tax for the mortgage is JPY 20 million x 0.4% = JPY 80,000. If instead an individual bought to live in and met every condition, 0.1% would give JPY 20,000. Stamp duty on the paper loan agreement is JPY 20,000, with no reduction. The scrivener’s fee and the insurance premium are extra. This is purely illustrative, assumes no other special cases, and the actual figures depend on the law at the time of registration and the lender’s conditions.

Which Documents Should You Keep Until the Day You Sell?

Income tax on a sale is calculated on the gain: the sale price minus the acquisition cost (取得費) and selling expenses, then minus any special deductions that apply. The documents from your purchase are the basis for calculating the acquisition cost later. The acquisition cost includes:

• The purchase price, plus equipment and improvement costs. For the building, depreciation over the holding period is deducted
• Purchase fees, such as the brokerage fee paid on buying
• Registration and licence tax and registration costs, real estate acquisition tax, and stamp duty
• Survey fees paid when buying land
• Interest on the loan taken to buy the property, for the period up to the day you actually began using it

For a property bought to let, taxes such as registration and licence tax, real estate acquisition tax and stamp duty are not included in the acquisition cost. Amounts already counted as necessary expenses against other income cannot be counted twice. When the acquisition cost is unknown, 5% of the sale price can be used as the acquisition cost (概算取得費). Only with kept documents can you use the actual cost.

Documents to keep:

• The sale contract. If the land and building amounts are listed separately, keep that too, since it is used to calculate the building’s depreciation
• The receipt for the brokerage fee
• The judicial scrivener’s invoice, including the registration and licence tax
• The payment receipt for the real estate acquisition tax
• The original contract copy with its stamp affixed
• The mortgage loan agreement and interest statements
• Receipts for equipment and improvement costs

Which Common Claims Need Caution?

• “Taxes and fees are roughly a few percent of the price.” Registration and licence tax and real estate acquisition tax are based on the fixed asset valuation, so an estimate from the price is unreliable. Ask for the valuation certificate first.
• “Everyone can use these tax reductions.” The reduced rates for building registration and mortgage registration, and the resale-home deduction, all require that you live in the property yourself. These reduced rates, and the 3% real estate acquisition tax rate, are also set only until March 31, 2027.
• “The certificate of a house for residential use can be added after registration.” It must be attached to the registration application. If it is submitted later, the reduced rate cannot be used.
• “Foreigners pay separate viewing and handling fees.” Viewing fees and application fees may not be charged separately. As of September 2026, the cap on the brokerage fee also does not differ by nationality or place of residence.
• “A seller who lives abroad has nothing to do with you.” When you pay in Japan, you may have to withhold 10.21% of the price.

How Do You Decide What to Do Next?

You can move forward when: the brokerage fee and the judicial scrivener’s fee are both quoted in writing; registration and licence tax and real estate acquisition tax have been estimated from the valuation certificate; and you know which reductions require owner-occupation and have budgeted the standard rate for those you cannot use.

Stop and check first when: the broker wants to charge items that are not on the list; the budget uses an owner-occupier reduced rate but you will not live there; the seller lives abroad and nobody has explained the withholding; or the acquisition date could fall after March 31, 2027 and no extension of the reductions has been decided.

For the yearly and monthly costs after you buy, and the taxes on renting out and selling, see the main article “Buying Japanese Property Is Not Just the Price: Brokerage Fees, Registration Costs, Taxes, Insurance and Holding Costs” (link added by the publisher).

FAQ: Japan Property Purchase Costs

What is different between buying to let and buying to live in?

As of September 2026, someone who will not live in the property pays 2% on the building transfer and 0.4% on the mortgage registration. An owner-occupier who meets the conditions pays 0.3% and 0.1%, which are set only until March 31, 2027. The real estate acquisition tax deduction for resale homes also requires owner-occupation.

What should I watch for when paying a seller who lives abroad?

When you pay in Japan, you generally must withhold 10.21% of the price and pay it over on the seller’s behalf. No withholding is needed when you buy as an individual for yourself or your family to live in and the price is JPY 100 million or less.

If I sign the contract electronically, is stamp duty still due?

As of September 2026, a contract signed electronically is not a document subject to stamp duty, for both the sale contract and the mortgage loan agreement. For a paper contract, each original copy needs a stamp according to the contract amount.

Glossary

• Fixed asset valuation (固定資産評価額): the value assessed by the municipality and recorded in the fixed asset tax ledger. Registration and licence tax and real estate acquisition tax are calculated from it.
• Certificate of a house for residential use (住宅用家屋証明書, commonly called): a document from the city, ward, town or village certifying that the house meets the residential conditions. It must be attached to qualify for the reduced registration and licence tax rate.
• Judicial scrivener (司法書士): the professional who handles real estate registration and similar procedures.
• Mortgage (抵当権): the right over a property that secures a loan. When you use a mortgage, it has to be registered.
• Acquisition cost (取得費): the cost of buying that is deducted from the sale price when you sell.
• Withholding (源泉徴収): the payer deducts tax at the time of payment and pays it over on the recipient’s behalf.
• Tax administrator (納税管理人): the person who receives tax bills and pays tax for a taxpayer who does not live locally.

About the Data

• The facts were checked on September 30, 2026, against Japanese statutes and official documents from the National Tax Agency, the Ministry of Internal Affairs and Communications, the Ministry of Land, Infrastructure, Transport and Tourism, the Tokyo Metropolitan Bureau of Taxation and the Ministry of Finance, and against explanations from the Japan Federation of Judicial Scriveners Associations, the General Insurance Rating Organization of Japan and the Japan Housing Finance Agency. All of these documents are in Japanese.
• The following conclusions are drawn from official documents; no official text states them in a single sentence:
• “Price x 3.3% + JPY 66,000” is a shortcut formula converted from the tiered rates.
• The special rule for JPY 8 million or less may also apply to buyers. This comes from comparing the wording of the notice before and after the 2024 amendment.
• That the brokerage fee cap, the 1.5% land transfer rate, the 3% real estate acquisition tax rate with the halving for residential land, the new-home deduction, and the taxpayers of real estate acquisition tax and fixed asset tax do not differ by nationality or residence is concluded from the fact that the provisions reviewed make no such distinction. Local ordinances were not checked one by one.
• That a person who does not live in the property cannot use the reduced rates for building registration and mortgage registration, or the resale-home deduction, is inferred from the owner-occupation requirement in each provision. How municipalities decide what counts as “living there,” and how a person living abroad proves owner-occupation, was not found explained.
• That mortgage loan agreements are outside the stamp duty reduction is inferred from the list of what the reduction covers. That electronic contracts are not subject to stamp duty comes from a general National Tax Agency example, which is not about real estate contracts.
• That no law compels fire insurance is concluded from the earthquake insurance law and the documents of the Ministry of Finance and the Japan Housing Finance Agency. All laws, other lenders and condominium rules were not searched.
• That an individual selling their own home is not carrying out a business transaction is inferred from the National Tax Agency’s definition, which uses assets for personal living as its example.
• The filing deadline, the way notices are sent and paid, and the resident record requirement for real estate acquisition tax come from the Tokyo Metropolitan Bureau of Taxation’s explanation. Other places may differ. Whether foreigners or non-residents can obtain a mortgage from a private bank was not checked; each bank publishes its own conditions, and see the Zagdim articles “Can Foreigners Get a Mortgage in Japan? Permanent Residency, Work Visas and Non-Resident Buyers” and “The First Step in Buying Japanese Property Is Not Placing an Order: Decide on Area, Budget, Loan and Purpose” (links added by the publisher) for the Japan Housing Finance Agency Flat 35 eligibility. How the fixed asset tax share paid by the buyer is treated on the buyer’s side was also not found explained.
• The Ministry of Land, Infrastructure, Transport and Tourism has requested that the 3% real estate acquisition tax rate and the halving for residential land be extended to March 31, 2030 (Ministry of Internal Affairs and Communications data as of August 31, 2026). This is still under study and not decided. Whether the reductions for registration and licence tax and stamp duty that expire on March 31, 2027 will be extended was not found in any request.

Have a question about this guide? Leave a comment below, or ask Zagdim directly.

Sources

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Important Notice

This article is general information and is not individual legal, tax, financial or insurance advice. Facts were checked on September 30, 2026. Tax rates, deadlines and rules may change, so rely on current announcements from the Japanese authorities and, where needed, consult a qualified tax accountant, judicial scrivener or other professional.