Many investors purchased properties in Japan with the anticipation of an optimistic growth in the real estate market driven by 2020 Olympics in Tokyo.
With a few months left to 2020 Olympics, investors are curious about the value of their properties. Today, I am going to introduce the expenses that comes along with property selling in Japan.
Brokerage Fee
This is a fee paid to the broker who conducts the selling process on behalf of the owner. The maximum amount is stated by the real estate brokerage act.
For transactions over 4,000,000JPY, the fee is as below.
Final sale price x 3% + 60,000JPY *sales tax apply
Please be aware that brokerage fee differs depending on the transaction amount.
Revenue Stamp Fee
Tax is collected on certain agreement such as agreement regarding loan, stocks, and real estate. Of course, it is necessary to place a revenue stamp on the sale and purchase agreement as well. The required amount of revenue stamp depends on the amount stated on the agreement.
For a sale and purchase agreement of a property that is over 50,000,000JPY and under 100,000,000 JPY, the revenue stamp is 30,000JPY.
Since one revenue stamp is required for each agreement, the buyer and seller often share one agreement and split the fee of revenue stamp.
*Fee is subject to change after March 31st, 2020.
Capital Gain Tax and Residence Tax
Capital gain tax differs based on the period of time a property is owned. For instance, for ownership that is over 5 years, the rate of capital gain tax is 15.315%.
Please also be aware that residence tax applies if you have a registered home address in Japan.
Miscellaneous
If you current address (even if you live aboard) is different from the one you have registered on the agreement at purchase, a fee is required to update the address.
If you have any plans to sell your property in the near future, or if you are curious at the current value of your property, Art Avenue will be glad to offer a free estimate.
We can also provide you with a detailed breakdown of the expenses involved in the selling process.
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