Under Japanese civil law, co-ownership of real estate is permitted, and each owner’s share must be officially recorded in the property registry. Even among family members, Japan’s gift tax rules are strictly applied. The ownership share must reflect the actual financial contribution made by each party. In Japan, even between spouses or parents and children, co-ownership shares must be accurately recorded. A misunderstanding of how taxation works for jointly owned properties can lead to unintended tax liabilities—such as unnecessary income tax or even gift tax. Understanding how Japanese tax laws apply to co-ownership is essential to avoid costly mistakes. 1. Capital Gains Tax from Co-Owned Property Japan does not allow …
For the Sale of a Primary Residence in Japan When you sell your primary residence in Japan, you may be eligible for a special income deduction of up to ¥30 million from your capital gains—regardless of how long you owned the property. This is known as the: Special ¥30 Million Deduction for the Sale of a Primary Residence 居住用財産の譲渡所得の特別控除（3000万円特別控除） Eligibility Criteria To qualify for this special deduction, the property sold must fall into one of the following categories: Additionally, the deduction may be applied if the property was lost due to a natural disaster. Other Requirements You may not claim this special deduction if: Important Notes Exceptions The deduction does …
Get Answers about Owning, Renting and Living in Greater Kobe. Please submit your comments to core8eight@gmail.com. Dear Rica, I have heard that Japan requires registration for almost everything! I am feeling a bit nervous about our upcoming move to Kobe from Tokyo this spring. My husband is Japanese and I am on a spouse visa. Since my husband works full-time, the task of getting all these registrations done has fallen to me. I am feeling a bit daunted by it all! Daunted Debbie Dear Daunted Deb, Fortunately, although it can definitely be time-consuming, Kobe City has provided careful instructions for 3 different moving scenarios. Please check the scenarios below and click …
Ben Y., a 40-year old Australian telecommuting computer engineer, has been eager to purchase a home for his growing family (a Japanese wife and 2 children under 5) for several years. He already owns a house in Australia, but wants to live in the Kansai area near his wife’s aging parents. Ben has limited Japanese skills, and even less knowledge about buying property in Japan. From the outset, he has been concerned about the differences between Japan and Australia in this regard. We spoke with Sachiko Inoue and Fumihiro Saeki, both shihoushoshi-lawyers and co-founders of Kobe Legal Partners, to get the scoop about the various players involved in a home …
For many city dwellers, the word “Shangrila” conjures up images of a remote, beautiful, peaceful, yet mythical place where life approaches perfection. Ashiya-Okuike, located 500-600 meters above sea level in the Rokko mountain range north of Ashiya proper, may be pretty close to this Utopian ideal according to local residents. Okuike is a world unto itself. Surrounded by national forests on all sides, yet only a 15-minute drive to the conveniences, restaurants, and culture of the greater Kobe area, Okuike offers an almost retreat-like atmosphere of serenity and solitude that attracts many who desire their own secluded oasis. Until the 1990s, Okuike’s generally affluent residents co-existed with hundreds of corporate …
Before buying your new home in Japan, there are certain things that you need to check out. Due to language barriers and differences in disclosure requirements between your home country and Japan, it is advisable to use your bilingual real estate agent to gather information and field questions for you. In addition to the physical structure of the building itself, there are a number of concerns and possible risks stemming from Japan’s unique geography—earthquakes, tsunami, etc. Please note that this is not an exhaustive list. The questions you need to ask will depend on the type of property you buy and want you would like to do with it. Check …
So, you have decided to give up your gypsy lifestyle as a renter and take the big plunge of becoming a homeowner—king or queen of your castle! However, you have never bought residential property, let alone in Japan. Read on to see the 7 steps involved in buying a condo or home in Japan for your residence. After an offer is made, a purchase agreement is usually signed within 1-2 weeks, with the closing occurring 3-4 weeks after that. Finding the Right House or Condo (and the Right Real Estate Agent!): Although you can search through ads and online listings, this can be very time-consuming and may not provide you …
Get Answers about Owning, Renting and Living in Greater Kobe. Please submit your comments to core8eight@gmail.com. Dear Rica, I am seriously thinking about buying a home in Japan—either a condo or a house. I have always been a renter, so buying my first home in a foreign country is a bit unnerving. What are some of the major differences between buying a home in Japan and elsewhere, say the U.S. Nervous Nellie Thanks for the great question! As the lead English-speaking real estate agency in the greater Kobe area, CoreEight is very aware of anxiety foreign buyers feel when buying a home in Japan, especially if this is your first time! …
If you have a bit of extra money on your hands and are looking for new investment possibilities, you should consider the possibility of real estate investment in the Kobe area. Now is a prime time to invest in the Kobe area where the prices are relatively low compared to real estate investment in other countries and the ROI can be relatively high. Foreign real estate investment in Japan has soared in the past few years. Real estate deals in Japan in 2014 totaled JPY 5.6 trillion, representing an increase of 16% over 2013. One reason for this unprecedented level of foreign investment was the 14% plunge of the value …
Get Answers about Owning, Renting and Living in Greater Kobe. Please submit your comments to core8eight@gmail.com. Dear Rica, I am a 50-something foreign professional and have lived in Japan for the past 20 years. I like it here and would like to retire here. I have a small nest egg that I would to invest, possibly in real estate investment. I have been warned by friends that there may be restrictions on foreigners’ owning or investing in real estate in Japan. Is this true? Todd S. Hi Todd, Now is the perfect time to join the wave of foreigners (mostly from China and other places in Asia) who are investing in …
