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Basic Cost Items When Buying Property in Japan

This page outlines the main cost items associated with purchasing real estate in Japan, particularly for overseas buyers.
Costs vary depending on the property, service providers, and individual circumstances. Please confirm actual amounts with your agent, broker, or judicial scrivener.

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Cost Items During the Purchase Process

These costs are usually paid before or at the time of settlement (handover):

  • Deposit
    Paid at the time of contract signing, usually 10% of the purchase price.
    The exact amount is set during negotiations.

  • Remaining Balance
    Final payment due at settlement. Combined with the deposit, this makes up the full purchase price.

  • Brokerage Fee
    The standard brokerage fee is 3% of the purchase price plus ¥60,000, plus consumption tax.
    For properties priced at ¥8,000,000 or less, a flat fee of ¥300,000 plus consumption tax applies.
    This amount will be confirmed before the contract is signed.

  • Stamp Duty
    A tax applied to the sales contract using a physical stamp.
    Amount depends on the contract price.

  • Fixed Asset Tax Adjustment
    A prorated adjustment between buyer and seller based on the handover date.
    Usually confirmed shortly before settlement.

  • Management Fee Adjustment (for condominiums)
    Prorated monthly management and reserve fund fees for the month of settlement.

  • Registration Fees
    Includes Registration and License Tax and judicial scrivener’s fee for ownership registration.
    The estimate is typically provided by the judicial scrivener after the contract is signed.

Examples of Cost Items After Handover

  • Real Estate Acquisition Tax
    A one-time local tax assessed after the transaction, based on the property’s fixed asset value.
    The rate is typically 3% to 4%, depending on the type and location of the property.
    The notice is usually sent by the local tax office within two to several months after settlement.

  • Tax Representative (for non-residents)
    Required for handling tax matters.
    Appointing a tax representative is the buyer’s responsibility.

  • Property Management Fees
    Optional, based on whether the property will be rented out or left vacant.
    Management arrangements must be made separately.

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