Dreaming of owning a home or a beautiful Machiya in Kyoto?

お役立ち情報・ネタ

2026.04.16

While buying property in Japan is an exciting journey, the terminology and tax systems can be quite different from your home country.

Here is a deeper dive into the upfront costs and rules you need to know!

1. The 6-8% Closing Costs

As a general rule, expect to pay an additional 6% to 8% on top of the property’s purchase price. For example, for a ¥30,000,000 property, you should budget around ¥32,400,000 in total.

Good News: If you are buying for personal use (not renting it out), you will NOT be subject to the 20.42% withholding tax on rental income that usually applies to non-resident investors!

2. The Breakdown of Fees

• Brokerage Fee: Typically 3% of the purchase price + ¥60,000 + 10% tax.

• Stamp Duty: A tax affixed to your official sales contract.

• Registration & Legal Fees: Paid to a Judicial Scrivener to legally transfer the title to your name.

3. Making Sense of Taxes

If you are from countries like Australia, these might sound familiar:

• Real Estate Acquisition Tax: A one-time tax billed 3-6 months after purchase (Exactly like Stamp Duty/Transfer Duty in Australia!).

• Pro-rated Property Taxes: You reimburse the seller for the property tax for the remaining days of the year from your settlement date (Just like pro-rata adjustments for Council/Water rates!).

4. The “Kyoto Rule”

Kyoto City is introducing a new “Vacant Home Tax” (Tax on Non-Resident Housing). If you plan to use your property as a vacation or second home rather than living there full-time, make sure to factor this into your future maintenance budget!

Buying property abroad doesn’t have to be overwhelming when you have the right guidance.