Q3 When purchasing properties abroad, I might encounter problems with my bank loans. Do you provide assistance in this regard?
Yes, we do provide assistance in this regard. You can get bank loans from Chinese financial institutions in Tokyo. If you decide to purchase a property through a loan, we can recommend related financial institutions at your request. Please contact us for more information.
Q4 During purchase, what other fees are included apart from the selling price of the property?
Yes there are other fees involved. As case in point, if you decide to purchase a unit around 20 square meters, you will need to pay an additional fee of 200,000~400,000 JPY apart from the selling price of the unit itself. Please see below for what the additional fee entails.
Real Estate Registration Fee (includes property registration and license tax)
Fire Insurance Fee (35 years)
Fixed Assets Tax & City Planning Tax (calculated by the day in the first year)
Management Fee & Maintenance Fee (applicable only to new properties)
Management Fee for the First Year
Maintenance Fee for the First Year
Q5 If the buyer is a non-resident, is he or she required to pay 20% of the withholding tax (prepaid income tax)?
If the buyer, who is a non-resident, rents the apartment after purchase and meets various conditions (※1), then he or she assumes the responsibility to pay 20% of the rental price to the tax bureau. As a result, the buyer only receives 80% of the rent. This is one of the regulations passed by the Japanese government to prevent non-residents from tax evasion by purposely collecting taxes when income is derived. Of course, there will be an annual final income tax return period (※2) during which the owner can receive a refund on overpaid tax. (During tax filing, the following can be deducted from the rental price: Fixed Asset Depreciation Cost, Fixed Assets Tax, City Planning Tax, Management Fees, Maintenance Fees, Management Handling Fee, Other Expense, etc.)
※1. Various conditions refer to ＜1. Tenant is a legal corporation 2. Tenant is an individual but the property is not intended for self or family-use＞. In short, if the tenant is an individual and the property is occupied by the tenant or by his/her family members, then there is no need to pay tax.
Q6 What is the fee like for brokerage commission?
According to Japanese law, the brokerage commission is set as follows: [Selling Price x 3% + 60,000 JPY + 8% Consumption Tax].
Q7 Can I see the interior of the property?
It depends on the current condition of your property. If the property in question is vacant, then you are allowed to go inside. However if the space is already occupied, then you are not permitted to enter as to protect the tenant’s privacy. However, if the seller is the person who is living inside, then negotiations can be made for a possible visit. If you wish to see the property’s interior, please let us know in advance.
Q8 Are there any restrictions to the number of people that can be registered under a property title?
There are no restrictions with regards to the number of people that can be registered under a property title. However if you wish to register under a number of names, then please be reminded that each individual will have to provide their identification card and other relevant documents required of the registration process.