Property Selling Costs and Taxes

In order to sell a property, it is required that miscellaneous expenses such as agent commissions, taxes, ect. are calculated.

This page explains necessary costs and taxes for the selling of 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 each stage of the property selling process; from the signing of a contract to the filing of an income tax return.

When signing a contract

Stamp duty Documentary 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 mortgage
  • Required if your mortgage has not been paid off.
  • Approximately 15,000 yen per mortgage.
  • Commission for the Legal Scrivener

When filing an income tax return

Capital gain tax
  • Capital gains tax (an income tax and a resident tax) is required to be paid if financial 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.
  • Bureau of Taxation
    Guide to metropolitan taxes:
    Taxes related to real estate (page 33 onwards)
  • Bureau of Taxation PDF
  • National Tax Agency JAPAN

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.

 

 

 

Examples of property selling costs and taxes

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

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 contract Stamp duty ¥45,000
When balance is settled Agent commission ¥2,268,000
Disposition of mortgage fee ¥15,000
When filing an income tax return Capital gain tax on property None if selling profit is not gained
Other costs Surveyor’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 purposes only and the situation may vary depending on the property and the 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 contract Stamp duty ¥15,000
When balance is settled Agent commission ¥992,250
Disposition of mortgage fee ¥15,000
When filing an income tax return Capital gain tax on property None if selling profit is not gained
Other costs Surveyor’s commission None
Moving costs ¥50,000 dependent on the amount of stuff you move
Total ¥1,072,250