What taxes apply when you acquire or build property in Japan? Mainly three — acquisition tax, registration & license tax, and stamp tax. Rates have guide figures and homes get reductions. Because rates/reductions change, always confirm with the NTA and your prefecture.
The three purchase-time taxes
| Tax | When | Guide rate | Paid to |
|---|---|---|---|
| Acquisition tax | On acquiring / building (once) | Assessed value × 4% (3% special for home/land) | Prefecture (local) |
| Registration & license tax | At registration | 0.4% preserve / 2.0% transfer / 0.4% mortgage (principle) | National |
| Stamp tax | When the contract is made | Fixed amount by contract value | National |
Separately, the building cost carries consumption tax, and after purchase you pay annual fixed-asset & city-planning tax (holding tax: property-tax simulator / holding & tax).
1. Real-estate acquisition tax (prefectural)
A local tax charged once when you acquire or build. The base is generally the fixed-asset assessed value; the standard rate is 4%, with a 3% special rate for homes and land (land often assessed at ½). Qualifying homes get reductions (floor-area etc.). Conditions and expiry change — confirm with your prefecture's tax office (e.g. Osaka). Overseas residents are still taxed when acquiring Japan-located property.
2. Registration & license tax (national)
A national tax on registering ownership or a mortgage at the Legal Affairs Bureau. Base: assessed value (mortgage: the loan amount). Guide principle rates: ownership preservation 0.4%, transfer by sale 2.0% (land reduced), mortgage 0.4%. Qualifying residential buildings get reductions (verify conditions/expiry). Registration is usually handled by a judicial scrivener (shihō-shoshi).
3. Stamp tax (on contracts, national)
A national tax paid by affixing revenue stamps to real-estate sale contracts and construction contracts, as a fixed amount by the stated contract value (e.g. a few ¥10,000s at the tens-of-millions scale), sometimes reduced. Electronic contracts need no stamp tax. Confirm the brackets with the NTA.
What Osaka & overseas owners should note
- Assessed-value guide — the assessed value that most of these taxes use runs about 50–60% of building cost and ~70% of the land's market price (a guide; actual by assessment).
- Registration → a judicial scrivener; tax amounts/specials → a tax accountant. As your design-build contact we can help coordinate the specialists.
- Overseas residents are taxed — acquisition, registration and holding taxes all apply to Japan-located property (sale & inheritance tax / foreign-owner tax).
FAQ & things to watch
| Common misconception | The reality |
|---|---|
| "The only purchase tax is consumption tax" | Acquisition, registration & stamp tax also apply |
| "Tax is based on the purchase price" | Mostly the assessed value (differs from price) |
| "Homes are taxed at the same rate" | Homes/land have reductions (conditions apply) |
| "Overseas = no Japan tax" | Japan-located property is taxable |
Purchase-time tax depends on assessed value, residential reductions and special-measure expiry. We build in Osaka and help you frame the whole cost picture. Always confirm the exact amounts and reductions with the NTA, your prefecture, a tax accountant and a judicial scrivener.
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