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Property Selling Costs and Taxes

This page explains necessary costs and taxes to sell a property in Japan including explanations and examples.

Costs and taxes required in selling a property

The table below describes property selling costs and taxes for the stages from signing a contract to filing an income tax return.

When signing a contract

Stamp duty Dcoumentary stamp tax required for the contract.

When the remaining balance is settled

Agent commission 3% of the sales price + 60,000 yen + consumption tax
in accordance with property transaction regulations.
Registration costs
  • Registry license tax for Disposition of mortage

    Required if your mortgage has not been paid off.
    Approximately 15,000 yen per mortage.

  • Commission for the Legal Serivener

When filing an income tax return

Capital gain tax

Capital gains tax (an income tax and a resident tax) is required to pay if the gains are made by selling a property.

Capital gains =
					Selling price (income from the property sale) -
					[ (Initial acquisition price-Depreciation costs) + Expenses for the initial acquisition + Expenses for the selling]
For further information about property taxation, the following links may be referenced.

Other costs

Surveyor's commission(A/N) The fee for land surveying to determine the boundary points.
Moving Costs The costs depend on the amount of stuff you move.

TO Costs and taxes required in selling a property

Examples of Property Selling Costs and Taxes

When you sell a property in Japan, miscellaneous costs arise such as commissions and taxes.
Your net profit is the amount deducting miscellaneous fees and taxes from the sales price.
Here are the examples of necessary costs and taxes to sell a property in Japan.

  • House
  • Apartment
Property summary
Property type House built in 2006
Land area 73.31 sq.m.
Size of the house 93.96 sq.m.

*case with capital gain not arising

Selling Price ¥70,000,000
Costs ¥2,678,000
Net Profit ¥67,322,000
Miscellaneous Costs
When signing a contractStamp duty ¥45,000
When balance is settledAgent commission ¥2,268,000
Disposition of mortgage fee ¥15,000
When filing an income tax returnCapital gain tax on property None if selling profit is not gained
Other costsSurveyor’s commission ¥250,000 in the case of restoring 2 boundary points.
Moving costs ¥100,000 dependent on the amount of stuff you move
Total ¥2,678,000

Please be advised that above example is for reference purpose only and the situation may vary depending on property and financial institutions.

Property summary
Property type Apartment built in 2000
Land area(proportion of ownership) 13.10 sq.m.
Size of apartment 32.75 sq.m

*case with capital gain not arising

Selling Price ¥29,500,000
Costs ¥1,072,250
Net Profit ¥28,427,750
Miscellaneous Costs
When signing a contractStamp duty ¥15,000
When balance is settledAgent commission ¥992,250
Disposition of mortgage fee ¥15,000
When filing an income tax returnCapital gain tax on property None if selling profit is not gained
Other costsSurveyor’s commission None
Moving costs ¥50,000 dependent on the amount of stuff you move
Total ¥1,072,250

Please be advised that above example is for reference purpose only and the situation may vary depending on property and financial institutions.

TO Examples of Property selling costs and taxes

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