If you are planning on investing in real properties in Japan, like 民泊 private lodging, taxes are essential to know.

1. Real Estate Acquisition Tax

This tax is calculated by multiplying a real estate valuation by 4% of the standard rate. However, by the end of March 2027, 3% of the special rate will be applied to lands and houses. Also, if the condition meets some terms, the tax will go down even more. By the way, a real estate valuation is made by cities and is about 70% of the current value.

2. Registration and License Tax

When purchasing real estate, you have to register it in Japan. This tax is acquired at that time. It is calculated by multiplying real estate evaluation by 0.4% of the standard rate for the new house and building and by 2.0% of the used one and lands. Also, if meeting some terms, there is a special rate.

3. Consumption Tax

First, a deal of land is not taxed because it does not match the nature of consumption tax. Also, if a seller is not a business, it is not taxed. Only the deal of buildings and houses with businesses, including individual businesses, is taxed. The tax rate is 10% of deal value.