Your Trusted Tax Advisor for Real Estate in Japan
Expert tax support for your property.
We highly recommend our experienced Japanese Certified Public Tax Accountant, who specializes in real estate taxation for foreign property owners in Japan.
Key Tax Services for Real Estate Owners
1. Rental Income Tax Filing (Individual)
- Rental income from Japanese properties is considered domestic income.
- Deductible expenses include:
- Depreciation
- Fixed asset tax
- Property management fees
- Fire insurance
- Mortgage interest
- Tax filing deadline: March 15 (following year)
- Penalties apply for late or missing filings.
Why work with a professional?
Accurate filing and tax-saving strategies require expert knowledge.
2. Blue Form Tax Return (Special Tax Deduction)
- Up to ¥650,000 in tax deductions available.
- Requirements:
- 5+ rental buildings or 10+ units (business scale)
- E-filing
- Double-entry bookkeeping
- Advance application with the tax office
- Non-business scale deduction: ¥100,000
Proper bookkeeping = Maximized tax benefits
3. Real Estate Capital Gains Tax
- Long-term (5+ years): 20.315%
- Short-term (≤5 years): 39.63%
- Special provisions include:
- ¥30M exemption for primary residence
- Reduced tax rates for inherited/vacant properties
Complex rules? Our expert helps you apply the right exemptions.
4. Tax Withholding for Non-Residents
- Selling property: 10.21% tax withheld by buyer (some exceptions apply)
- Rental income: 20.42% tax withheld (some exceptions apply)
- Refunds and filings must be handled through a tax agent
International owners need local expertise – we can help.
5. Corporate Real Estate Investment & Tax Filing
- Investment via companies offers:
- Broader deductions
- Loss offsetting
- Easier succession planning
- Requires accurate:
- Expense tracking
- Executive compensation reporting
- Consumption tax handling
Let a professional manage your corporate filings efficiently.
6. Inheritance Tax Planning & Filing
- Applies even if heirs or decedents live abroad
- Overseas assets may also be taxable depending on status
- Real estate is assessed below market value in most case → effective for tax reduction
Plan ahead with expert strategies for real estate inheritance.
Ready to Get Started?
Contact our certified tax specialist today for clear, tailored guidance on your real estate tax matters in Japan.
taxconsultation@core8eight.com
