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Fees of Selling Properties

Fees of Selling PropertiesVarious duties and taxes will be incurred when you decide to sell off your property. They can be divided into the five main categories below:

Agency Fees
This fee is intended for the real estate agency. The standard agency entrustment fee in Japan is 3%+60,000JPY+Consumption Tax of the final selling price of the property. However if you proceed to sell your property through our company, the adjusted price will be 3%+Consumption Tax of the final selling price. If you wish to sell your property, please inquire us for more information.
※When the purchase price is under 10,000,000JPY, the cost will be 3%(Agency Service Fee)+60,000JPY+Consumption Tax (normal handling fees)

Stamp Duty
This fee will be listed under stamp duty in the sales contract. Please see the stamp duties below:

Above 5,000,000JPY and under 10,000,000JPY 10,000JPY(5,000JPY)
Above 10,000,000 JPY and under 50,000,000JPY 20,000JPY(10,000JPY)
Above 50,000,000JPY and under 100,000,000JPY 60,000JPY(30,000JPY)
Above 100,000,000JPY and under 500,000,000JPY 100,000JPY(60,000JPY)
Above 500,000,000JPY and under 1,000,000,000JPY 200,000JPY(160,000JPY)
Above 1,000,000,000JPY and under 5,000,000,000JPY 400,000JPY(320,000JPY)

The reduced stamp duties are valid from April 1, 2014 till March 31, 2018 (shown in parenthesis). Please contact us if the selling price of your property is not within the range listed above.

Registration Fees
Once the contract has been established, the seller must transfer the property title to the buyer, the related fees of which will be made to a tax accountant, who acts as a delegate to handle the change of titles. If the seller has yet to settle his or her mortgage loan, the registration fee will also include the mortgage loan write-off fees.

Capital Gain Tax
When you sell your property, the total selling price will be considered as one form of income. As such, if the sale of a property brings capital gain, the buyer will be responsible for this tax. If the seller is a non-resident and meets various conditions (※1), the buyer has the obligation to pre-pay 10% of the selling price to the tax bureau. As a result, the buyer will pay only 90% of the selling price to the seller. This rule is regulated by the Japanese government to prevent non-residents from tax evasion, by purposely collecting taxes at the time of transaction. Of course, there will be an annual final income tax return system (※2). Through the final filing, the seller can settle the overpaid tax (upon income tax return filing, the seller can deduct various expenses incurred during the sales transaction and get a refund of excessive or overpaid fees).

※1 Various conditions refer to: “Regardless of whether the buyer is a legal entity or an individual, the intent of usage is other than for self-use or for relatives.” In contrast, if the selling price is under 100,000,000JPY, the seller does not need to pay the 10% income tax.

※2 Taxation is adjusted based on the previous year’s income/expense conditions; Japan follows an annual tax filing system.

Calculation Method
Selling price – (Original Purchasing Price + Original Purchase Related Fees) = Capital Gain
Capital Gain×Tax Rate=Capital Gain Tax

Property Holding Duration
Long Term or Short Term Short-Term Long-Term
Number of Years Under 5 Years Over 5 Years Exemptions for Holding Period of Over 10 Years
For Self-Use Capital Gain Tax 30% Capital Gain Tax 15% (1) If capital gain is under 60,000,000JPY, the tax rate is 10%
(2)If capital gain is over 60,000,000JPY, the tax rate is 15%
For Non Self-Use Capital Gain Tax 30% Capital Gain Tax 15%

Our company can provide tax-related services. Please contact us for details.

Moving Fees (For Self-Use Properties)
Our company also provides moving and waste/garbage disposal related services. We can make arrangements for overseas moving and waste/garbage disposal and also provide free cost-evaluation services of the preceding expenses. Please inquire us for more details.