I want to give up inherited land! - About the System of Vesting of Inherited Land in the National Treasury

Poste date: Tuesday, April 23, 2024

The System of vesting of inherited land in the national treasury is a system that allows you to request the government to take over the land in Japan that you do not want to inherit, due to reasons such as not planning to use it yourself, difficulty in renting or selling, or saving time and cost in maintenance and management, only if certain requirements are met. (Effective April 27, 2023)

*Official Name: “Act on Vesting of Land Ownership Acquired through Inheritance or Bequest in the National Treasury”

Purpose of Establishment

If you do not want to inherit real estate, there is a means called “Renunciation of Inheritance”. However, in "renunciation of inheritance," not only the real estate to be relinquished but also all assets such as deposits, savings, and stocks are subject to renunciation. Therefore, many people avoided renunciation of inherited land, but did not register such inherited real estate.

(*Application for inheritance registration was previously optional but has become obligatory as of April 1, 2024.
Inheritance registration of real estate is now obligatory! Please visit here. )

As a result, the number of lands whose owners are unknown, or "Lands with unknown owners" has increased. "Lands with unknown owners" are not properly managed, which lead to degradation of the environment and hinders disaster prevention measures and effective use of land. Therefore, the law has been enacted to prevent the occurrence of such cases.

Flow of Procedures


Source: Ministry of Justice: Outline of Vesting of Inherited Land in the National Treasury

Details of the System

1. Who can apply?

- Heirs who acquired ownership of land by inheritance or bequest.

*Heirs who received a gift before death, persons who acquired the land themselves through purchase or other means, and corporations are not eligible to apply.

*Persons who acquired the land by inheritance or bequest before April 27, 2024, are also eligible.

*If the land is co-owned, application must be made by all co-owners. 

2. Land that can be taken over

There are conditions for land that can be vested in the national treasury, and land that falls under any of the following categories will not be taken over.

(1) Requirements of Rejection (The land that will be immediately rejected at the application stage)

A: Land with buildings on it.

B: Land on which a security interest or the right to use for profit has been established.

C: Land that is scheduled for use by others.

D: Land with soil contamination.

E: Land where the boundary is not clear, or where there is a dispute over the existence or non-existence of ownership or the extent of ownership.

 

(2) Requirements of Disapproval (land that will be disapproved after application if determined to fall under any of the categories)

A: Land with cliffs of a certain inclination and height that require excessive cost and effort to manage.

B: Land with tangible objects on the ground that interfere with the management and disposal of it.

C: Land with tangible objects underground that must be removed for land management and disposal.

D: Land that cannot be managed or disposed of without a dispute with the owner of adjacent land, etc.

E: Other land that requires excessive costs and labor for normal management and disposal.

3. Fee for application

14,000 yen is required per parcel of land.

*One parcel: A unit of land in the land register that represents a single piece of land (not the actual area of the land).

After payment, the fee will not be refunded even if the application is withdrawn or is rejected or disapproved as a result of the examination.

4. Payment of Dues

If approval is granted for vesting in the national treasury, the amount of money necessary for management of the land must be paid. The amount varies depending on the type of land, etc. and is calculated in the following manner.

*Payment must be made within 30 days from the day after receipt of the approval documents.

Specific examples of calculating the dues

(*1) Urbanization promotion areas are those areas where urban areas have already formed and those areas where urbanization should be implemented preferentially and in a well-planned manner within approximately the next 10 years. (Article 7, Paragraph 2 of City Planning Act (Act No. 100 of 1968)).

(*2) Land Use Zone is one of the regional districts under the City Planning Law and refers to an area where land use is defined as a general framework for urban areas, such as residential, commercial, and industrial areas (Article 8, Paragraph 1, Item 1 of City Planning Act).

(*3) Agricultural Land Areas are the designated areas where it is deemed necessary to comprehensively promote agriculture in consideration of various natural, economic, and social conditions (Article 8, Paragraph 2, Item 1 of Act on the Development of Agricultural Promotion Areas (Act No. 58 of 1969)).

If the land falls under formula (1) through (3) in table 1, the dues are calculated based on the calculations in the following table.

Calculation Formulas

(1) Residential land in Urbanization Promotion Area (*1) or Land Use Zone (*2) under the City Planning Act

Area classification Amount to be paid
50m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 4,070 (JPY/m2) and adding 208,000JPY
More than 50m2 but 100m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 2,720 (JPY/m2) and adding 276,000JPY
More than 100m2 but 200m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 2,450 (JPY/m2) and adding 303,000JPY
More than 200m2 but 400m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 2,250 (JPY/m2) and adding 343,000JPY
More than 400m2 but 800m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 2,110 (JPY/m2) and adding 399,000JPY
More than 800m2 The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 2,010 (JPY/m2) and adding 479,000JPY

 

(2) Land that is mainly used for agricultural purposes and is listed in any of the following:

a. Agricultural land in an area designated as Urbanization Promotion Area or Land Use Zone under the City Planning Act

b. Agricultural land in Agricultural Land Area (*3) under Act for Improvement of Agricultural Promotion Areas

c. Agricultural land within the execution area of land improvement projects, etc. (Land improvement projects or projects equivalent thereto prescribed in Article 40, items 1 and 2 (a) or (b) of Regulation for Enforcement of Cropland Act).

Area classification Amount to be paid
250m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 1,210 (JPY/m2) and adding 208,000JPY
More than 250m2 but 500m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 850 (JPY/m2) and adding 298,000JPY
More than 500m2 but 1,000m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 810 (JPY/m2) and adding 318,000JPY
More than 1,000m2 but 2,000m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 740 (JPY/m2) and adding 388,000JPY
More than 2,000m2 but 4,000m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 650 (JPY/m2) and adding 568,000JPY
More than 4,000m2 The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 640 (JPY/m2) and adding 608,000JPY

 

(3) Land that is mainly used as forest

Area classification Amount to be paid
750m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 59 (JPY/m2) and adding 210,000JPY
More than 750m2 but 1,500m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 24 (JPY/m2) and adding 237,000JPY
More than 1,500m2 but 3,000m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 17 (JPY/m2) and adding 248,000JPY
More than 3,000m2 but 6,000m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 12 (JPY/m2) and adding 263,000JPY
More than 6,000m2 but 12,000m2 or less The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 8 (JPY/m2) and adding 287,000JPY
More than 12,000m2 The amount obtained by multiplying the area of the land (to be vested in the national treasury) by 6 (JPY/m2) and adding 311,000JPY
Source: Ministry of Justice: Dues of Vesting of Inherited Land in the National Treasury

Summary

A new law has been enacted that allows you to give up only unnecessary land without giving up inheritance, but the burden of time and cost involved in vesting it in the national treasury is not small. Furthermore, the permission is only granted for the land that meets fairly strict conditions. If the land meets such strict conditions, it may be possible to earn income by leasing or selling the land without vesting it to the national treasury. We recommend that you first ask a reliable real estate company for an appraisal, confirm the asset value, and then decide whether or not to apply for vesting it in the national treasury. We also recommend that you consult with a lawyer, judicial scrivener, or other specialist when applying for it.

  • Hotel Branded Residences in Japan – Finest Living Spaces

    We will explain here about “Hotel Branded Residences”, which are the luxury residences for ultra-wealthy people and exist in many major cities and resort areas around the world, although they are not so familiar in Japan. They are the real estate properties that have changed the mindset of people about hotels from “staying” to “living” places and that are attracting attention from investors around the world as profitable investment opportunity.
  • 2nd Roppongi Hills (Roppongi 5-chome Project) completion in 2030 – Roppongi will be an even more attractive town! -

    The outline of the "Roppongi 5-chome District West Area Redevelopment," also known as "Roppongi Hills 2," has been revealed. This redevelopment project encompasses a vast area adjacent to Roppongi Hills. We explain the development details that have been publicly disclosed at this point.
  • Putting Holes in Rented Apartment Walls in Japan

    You may be wondering if it is allowed to drill holes in the walls of rented properties in Japan, and if so, what size holes are permitted. You may or may not be responsible for the cost of restoration of the property depending on the size of the hole. Find out how to decorate your apartment's walls, what precautions you need to take before putting a hole, and what happens if you drill or make a large hole in the walls.
  • Condominium Unit Ownership Act to be revised in 2024 - What will change?

    The strictness of Condominium Unit Ownership Act is said to be one of the reasons why reconstruction of dilapidated condominiums, which has become a social problem in Japan, has not progressed very well. The Condominium Unit Ownership Act will be revised in 2024 to facilitate a solution to the problem of aging condominiums.
  • Apartment Renovation Costs and Renovation

    The cost of renovating a condominium varies depending on the scope of work, equipment, and the specifics of the renovation. Here, we provide a rough estimate of condominium renovation costs for each area of the home. Additionally, in our examples of condominium renovations, we introduce the approximate construction costs for renovating areas such as the living-dining room, kitchen, and individual rooms.
  • Japan's Real Estate Market Trends in 2023

    Explore the 2023 trends in Japan's real estate market prices through the Japan Property Price Index, which is derived from actual transaction prices. Delve into the fluctuations in residential and commercial property prices throughout the year based on this index.
Exterior of City Tower Azabu-juban
Sale Property tag

City Tower Azabu Juban, a high-rise tower residence. Symbolic tower condominium in Azabu Juban, 4-minute walk to Azabu Juban Station, in the highly promising Minato Mita district, which is undergoing redevelopment. Formerly sold by Sumitomo Fudosan, constructed by a joint venture between Shimizu and Okumura Construction. Within a 15-minute drive to Shinjuku, Otemachi, and Shinagawa. The building has a seismic damping structure that reduces shaking during earthquakes. A guest room, a top lounge with an atrium, a car porch entrance, a concierge service, 24-hour manned management, and other common facilities as well as the latest security are attractive.

JPY 190,000,000 - 548,000,000

Exterior of The Parkhouse Harumi Tiaro Residence
Sale Property tag

A super-high rise tower apartment in Harumi area. It is one of the Parkhouse branded luxury condominium apartments sold by Mitsubishi Jisho Residence Co., Ltd. Completed by Kajima Corporation. There is a fountain place in the vast green premises. Concierge service and various common use facilities are arranged in the building. The room equipment is all-electrified including a bathroom heater and dryer and a floor heating in a living and dining room. The storage space is abundant in an easy-to-use layout and the balcony is spacious providing good views.

JPY 124,800,000

Exterior of NAKAMEGURO ATLAS TOWER
Sale Property tag

Nakameguro Atlas Tower was originally sold by Asahi Kasei Homes Ltd. in September 2009 and was constructed by a joint venture between Kajima Corporation, Toda Corporation and Sato Corporation, in accordance with the new earthquake resistance standards. The building is conveniently located a 2-minute walk from Nakameguro Station on the Tokyu Toyoko Line, which provides easy access to central Tokyo areas, including Shibuya, as well as the Yokohama area. The popular Daikanyama and Ebisu areas are also within easy reach. The 45-storey building with two basement levels is a symbolic Nakameguro condominium with 24-hour manned management and concierge service. The Meguro River greenway, known for its rows of cherry blossom trees, is also close by, so you can enjoy cherry blossom viewing in spring.

JPY 328,000,000

Exterior of Park Court Akasaka Hinokicho The Tower
Sale Property tag

It is a 44-story luxury tower condominium apartment located close to Tokyo Midtown and adjacent to Hinokicho Park. Sold by Mitsui Fudosan Residential Co.,Ltd. and completed by Taisei Corporation. It is designed by the world-famous Japanese architect, Mr. Kengo Kuma adding warmth to the building and its base isolated and vibration damping structure provides high aseismatic performance. It comes with the full range of the latest shared facilities and services such as various lounges, a fitness gym, concierge service, etc.

JPY 218,000,000 - 598,000,000

Exterior of Melody Heim Ginza-higashi
Sale Property tag

Melody Heim Ginza Higashi was originally sold by Kondo Sangyo K.K. in February 1999 and constructed by Daiwa Construction Co under the new earthquake standard (Shin-Taishin). The 12-storey condominium with a total of 44 units is located in an area with walking distance to Ginza and Tokyo Station area, as well as the former Tsukiji Market site, which is scheduled for redevelopment in the future. It is a 4-minute walk from Shintomicho Station on the Tokyo Metro Yurakucho Line and a 7-minute walk from Tsukiji Station on the Hibiya Line, making it a convenient location with excellent access to the city centre. Pets are allowed (subject to building association rules), and the building is equipped with a delivery box and an auto-locking system for security measures.

JPY 109,800,000

Exterior of KACHIDOKI THE TOWER
Sale Property tag

The Kachidoki 5-chome Redevelopment project will be a 53-story ultra high-rise tower residence that will house 1420 units. It will be one of the largest-scale properties in Japan. Thanks to the Sumidagawa River Bridge, a new bridge connecting Kachidoki, Chuo-ku and Minato-ku, the time it takes to access Toranomon and Kasumigaseki from Kachidoki will reduce greatly.

JPY 145,000,000