Zagdim Reader Desk · Japan property sale tax

Tax on selling property in JapanNon-resident withholding tax and refund filing

If you live overseas and are preparing to sell, or have already sold, property in Japan, start by separating the tax withheld from the sale proceeds from the tax finally due. The Zagdim Reader Desk first establishes your situation and organises the sale, cost and withholding records, then shortlists suitable Japanese certified tax accountants to assess the return and any refund.

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Who it is forOverseas owners selling, or who have sold, property in Japan

Handled byCertified tax accountants (zeirishi) in Japan

LanguagesEnglish or Japanese; other languages on request

Reader Desk feeFree of charge

Rules differ by nationality

How the sale is taxed in your country of residence, and whether a tax treaty or relief for Japanese tax applies there, varies by country. This page describes the general Japanese rule for non-residents, often written from the position of owners in Taiwan and Hong Kong; residents and passport holders of the United Kingdom, United States, Singapore, Australia, Canada and other countries should confirm the position for their own country.

National Tax AgencyNational Tax Agency · transfer of real estate

01 · Understanding tax on a sale

You sold a property in Japan and 10.21% was withheld. Is the tax now settled?

A buyer who pays a non-resident for land or buildings in Japan must, in principle, withhold 10.21%. It is calculated on the sale price, not on the gain. The exemption from withholding applies only where the buyer is an individual, the property is for the buyer’s own or a relative’s residence, and the consideration does not exceed ¥100 million (about US$625,000).

Withholding is not the final tax. In the tax return, income is calculated from the sale proceeds, the acquisition cost, the selling expenses and any applicable deductions, and the tax already withheld is then credited against the tax due. Only the amount above the tax due can be claimed back; any shortfall must be paid.

In principle, 10.21% is withheld on the sale price

It is not calculated on the gain, and it is not the final tax due.

Conditions apply even at ¥100 million or less

The buyer must be an individual, and the property must be for the buyer’s own or a relative’s residence, for withholding to be waived.

Holding period is judged at 1 January of the year of sale

Judged as at 1 January of that year: more than 5 years is long-term, 5 years or less is short-term.

Costs and expenses affect the income

Keep the purchase contract, receipts for expenses and the building’s depreciation records.

The excess withheld can be claimed back

It is settled through a tax return; do not assume the full amount withheld will be refunded.

You must arrange a return even from overseas

Confirm the filing obligation and the tax agent (nozei kanrinin) first, then check the deadline that applies.

Apartment blocks and a pedestrian crossing on a residential street in Japan — Confirm tax and the handling of the proceeds before you sell

Documents sorted with coloured clips beside a pair of glasses on a desk — Gather purchase, holding and sale records together

02 · Who it suits

Which overseas owners need help with tax on a sale

Whether you are preparing to sell or have already completed, you can start by gathering the records. Individual and company ownership are calculated differently and must be assessed separately.

Preparing to sell

You want to estimate the effect of withholding and filing first

Suits: You are about to sign or complete, and want to know how much will be withheld from the proceeds and which costs can be used.

What to prepare: Provide the acquisition records, the expected sale price, the buyer’s intended use and how the property is held, for a certified tax accountant (税理士, zeirishi) to check.

Tax already withheld

Tax was withheld on your sale and you want to claim it back

Suits: 10.21% has been withheld from the proceeds, and you want to understand the return and what may be refunded.

What to prepare: Gather the sale and purchase contracts, withholding records, expenses and the building’s depreciation records.

Inherited or received as a gift

You did not buy the property yourself. How is the cost worked out?

Suits: You are selling after inheriting the property or receiving it as a gift, and are unsure how the acquisition date and cost carry over.

What to prepare: In principle you take over the previous owner’s acquisition cost and date, so gather the previous owner’s records first.

All situations

Points common to every case

Whether tax was withheld, whether tax is finally due and whether a refund is available are separate questions.

The tax amount, deductions and application of resident tax in your case are assessed by the certified tax accountant; refunds are examined by the tax authorities.

If the property is held in a company’s name or jointly, or a relief for an owner-occupied home or other income is involved, mention it at the assessment.

Zagdim Reader DeskWe listen to your situation first, then arrange a professional

03 · Reader Desk

How the Zagdim Reader Desk helps

The Reader Desk first establishes the property, how it is held and how far the sale has progressed, and organises the contracts, cost and withholding records. It then shortlists suitable Japanese certified tax accountants to assess the capital gain (譲渡所得), the filing deadline and the tax agent; the certified tax accountant handles the return and any refund that applies.

English or Japanese

Handled by a Japanese certified tax accountant

01
Understand the sale
How it is held, completion and withholding.
02
Organise the records
Acquisition cost, expenses and withholding certificates.
03
Arrange a certified tax accountant
Checks income, deadlines and the tax agent.
04
File and follow up
Files the return and follows up on further documents and the refund.

04 · Costs and timing

Withholding, final tax and professional fees: look at each separately

Withholding on proceeds

10.21% in principleCalculated on the consideration

Withholding can be waived where conditions such as an individual buyer’s own residence and consideration not exceeding ¥100 million are met; each case is checked.

Income tax on the sale

As determined by the returnCalculated after deducting allowable costs and expenses

Tax already withheld is used in the settlement; the excess is claimed back and any shortfall is paid.

Professional fees

As quoted by the professionalReturn and tax agent, itemised

The fee is confirmed according to the transaction, the cost records and the scope of the return, and work starts only after you confirm.

Zagdim Reader Desk

No charge at this stageOrganising information and arranging a professional

The Reader Desk does not charge readers at this stage.

After the sale, when do you have to file?

Where you are obliged to file for income from the sale, the return is in principle filed between 16 February and 15 March of the year after the sale. Only where there was no obligation to file a final tax return (確定申告) in the first place and you are simply claiming a refund can the claim usually be made within 5 years from 1 January of the year after the income year. That period cannot be applied to every sale.

Tokyo Tower and the city skyline lit up at dusk

JAPAN · SALE TAX DESK

Work out proceeds, costs and tax together

If you are unsure whether the tax withheld can be refunded, gather the records first and have a certified tax accountant assess them.

05 · Getting started

Ask Zagdim to shortlist the right professional for tax on a sale in Japan

Send a message setting out where the property is, whether it is held personally or through a company, when it was acquired and sold, and whether tax has been withheld. The Reader Desk will list the sale, purchase and expense records you need to prepare, then arrange a certified tax accountant.

WhatsApp Email the Reader Desk

The Zagdim Reader Desk handles contact and follow-up.

Fill in the assessment form (about 2 minutes)

If a messaging app is not convenient, leave your details and the Zagdim Reader Desk will reply by WhatsApp or email.

01Whether withholding applies to these proceeds
02How the holding period is determined
03Whether cost and depreciation records are complete
04How the filing obligation and the refund are handled

06 · Common questions

Tax on selling property in Japan: common questions

You sold a property in Japan and tax was withheld. Do you still have to file?

The filing obligation has to be determined first. The 10.21% is withholding on the proceeds; the final tax is calculated on the capital gain. The return credits the tax already withheld: any excess is refunded and any shortfall must be paid.

If the price is below ¥100 million, is withholding never required?

No. The buyer must also be an individual, and the property must be for the buyer’s own or a relative’s residence. A sale to a company, a purchase to let as an investment, or any other transaction outside the conditions cannot rely on the exception on price alone.

Is withholding based on the sale price or on your gain?

In principle 10.21% is withheld on the consideration. Only in the return is taxable income calculated, as sale proceeds less acquisition cost, selling expenses and applicable deductions.

You bought the property exactly five years ago. Is it long-term or short-term?

It depends on the holding period as at 1 January of the year of sale, not on the anniversary at the completion date. Only more than 5 years is long-term; 5 years or less is short-term.

How is the withheld tax refunded, and can you recover all of it?

A certified tax accountant checks the acquisition cost, selling expenses, income and tax withheld, and settles them through a final tax return. Only the amount above the final tax due can be claimed back; do not assume a full refund.

Can the original purchase price and repair costs all be deducted?

The acquisition cost of a building must be reduced by the equivalent of depreciation over the holding period, so the full original price cannot simply be deducted. Selling expenses are limited to costs incurred directly for the sale; repairs and the costs of holding and managing the property cannot all be treated as selling expenses.

You have heard there are five years to claim a refund. Can you leave it until later?

Where there is an obligation to file, the return must in principle still be filed between 16 February and 15 March of the year after the sale. The five-year rule is limited to refund claims where there was no obligation to file a final tax return in the first place; have a certified tax accountant confirm which applies first.

Confirm the filing obligation first, then work out whether a refund is due.

Ask Zagdim to shortlist the right professional

Income from a sale and refunds in Japan are received and examined by the tax authorities, which decide the amount and timing of any refund. The Zagdim Reader Desk helps organise the records and arrange a professional; the return is filed by a Japanese certified tax accountant in accordance with the law. This page is general information and is not tax advice on any individual case. Information checked to 28 October 2026.