Taxes at the time of purchasing a property
There are 3 taxes of Stamp Tax, Registration Tax and Property Acquisition Tax.
The stamp tax is paid by affixing revenue stamps on a sales and purchase contract document. The rates by purchase prices are as below in general.
- Not more than 10M JPY・・・ 5,000 JPY
- Not more than 50M JPY・・・ 10,000 JPY
- Not more than 100M JPY・・・30,000 JPY
It is a tax for an ownership transfer whose rate is determined by a property`s appraisal value. A judicial scrivener does the general process of the ownership transfer.
3．Property Acquisition Tax
It is a tax for an acquisition of a property. The tax is principally 4% of assessed value of fixed assets. It comes a bill for the tax 2-3 months after the ownership transfer, which is one time payment.
Taxes at the time of holding a property
There are 2 taxes of Fixed Asset&City Planning taxes and Income tax for every year`s payment when you hold a property.
1．Fixed Asset Tax・City Planning Tax
The fixed asset tax is imposed 1.4% and the city planning tax is 0.3% respectively of assessed value of the land and the building. The rate is determined on the 1st of Jan. every year and billed to pay in May.
2．Rental Income Tax
It is imposed every year to the taxable rental income which is calculated from the annual income less maintenance fee・repair fund・management fee, etc. The rates by taxable annual incomes are as below in general.
- Annual rental income less than 1,950,000 JPY・・・5％
- 1,950,001 JPY～3,300,000 JPY・・・ 10％（deduction 97,500 JPY）
- 3,300,000 JPY～6,950,000 JPY・・・ 20％（deduction 427,500 JPY）
Taxes at the time of selling a property
When selling a property,「Income Tax on Capital Gain」is imposed.
1．Income Tax on Capital Gain
It is imposed to the capital gain by selling a property. The capital gain is calculated from the selling price less the purchase price and the overall expenses for the purchase and the sale. The tax rate is determined by the holding-property period (whether to hold a property over 5 years).
Formula for the calculation
Capital Gain＝Selling Price -（Purchase Price＋expenses at the purchase＋expenses at the sale）
①Capital gain on a long term holding（if the property holding period is over 5 years ）
・Capital Gain×15％（Tax Rate）
②Capital gain on a short term holding（if the property holding period is less than 5 years）
・Capital Gain×30％（Tax Rate)