Typical Costs of Buying Property in Japan

Understanding the various costs involved in purchasing Japanese real estate is essential for accurate budgeting. Beyond the property's purchase price, here are the typical fees and taxes you should anticipate:

• Real Estate Agent Commission (Chukai Tesuryo)

  This fee is paid to the real estate brokerage handling the sale. The maximum allowable commission is regulated by Japanese law. Based on recent changes for lower-value properties and standard rules for higher-value ones (excluding consumption tax):

  • For properties with a purchase price **up to 8 million JPY**: Maximum commission is **300,000 JPY** (+ Consumption Tax).
  • For properties with a purchase price **over 8 million JPY**: Calculated using the standard tiered formula, often simplified as **(Purchase Price × 3% + 60,000 JPY)** (+ Consumption Tax).

  Note: This fee is paid to the agent listing/selling the property, not to Property Pilot Japan. We help coordinate with the agent.

• Stamp Duty (Inshi Zei)

  Revenue stamps must be affixed to the official purchase and sale agreement. The cost depends on the property price stated in the contract, ranging from approx. 1,000 JPY to 60,000 JPY for properties between 1 million and 100 million JPY (reduced rates may apply). The real estate agent will often procure the physical stamps for you and ask for reimbursement in cash on the day of contract signing.

• Legal Scrivener Fees (Shiho Shoshi Hoshu)

  A qualified legal scrivener (Shiho Shoshi) is required to legally register the change of property ownership. Their fees cover document preparation and registration procedures. Costs vary based on complexity and property value, but generally fall within the range of approx. 50,000 JPY to 200,000 JPY.

• Registration & License Tax (Toroku Menkyo Zei)

  This national tax when registering the property title and any associated mortgage is collected via the legal scrivener's invoice. It's calculated based on the property's official assessed value. Standard rates for ownership transfer registration are around 1.5% for land and 2.0% for buildings, although various reductions can apply, especially for residential properties.

• Property Acquisition Tax (Fudosan Shutoku Zei)

  This is a one-time prefectural tax levied on the *official assessed value* of the property (this value is determined by the government and is usually significantly lower than the market purchase price). The standard tax rate is typically:

  • Land & Residential Buildings: 3%
  • Non-Residential Buildings: 4%

  You will receive a payment notice from the local tax office several months after completing the purchase. Various reductions may apply, especially for qualifying residential properties.

• Property Pilot Japan Service Fee

  Our initial service fee of 200,000 JPY covers consultation, sourcing assistance, and purchase facilitation, as detailed on the Pricing page. Post purchase we will arrange insurance and the connection of required utilities.

• Miscellaneous Costs

  Other potential costs include:

  • Pro-rated Fixed Asset / City Planning Tax for the year of purchase.
  • Fire and Earthquake Insurance premiums (highly recommended).
  • Bank fees if financing is used. Extremely unlikely without a mid or long term Japanese visa.

As a very general estimate, budget approximately 5% to 8% of the property's purchase price for these associated acquisition costs. This percentage can be higher for very low-priced properties due to fixed minimum fees and the updated commission structure for properties under 8M JPY.