Any foreign national can legally purchase real estate in Hokkaido without restriction. The transfer of title is straightforward and absolute.
Finance is not available in Japan. Japanese banks do not lend to foreign clients. If you require finance we suggest you contact your bank to enquire about a loan in Yen.
The price quoted on our website is the listing price that the Vendor has put the property on the market for.
Once a purchase price has been agreed upon by you and the Vendor, there will be additional costs - Purchase Related Costs.
The Purchase Related Costs are:
Solicitor / Translation fees
Most transactions are handled through the office of the local solicitor Satoshi Yoshida and his English speaking staff.
Standard Commissions in Japan
The standard commission in Japan is 3% of the purchase price plus ¥60,000
Plus government consumption tax of 5% of the above calculation
The commission is calculated using the following banding system;
Once the commission is calculated we collect an additional 5% of that figure. This is for consumption tax which is paid to the government by the agent on your behalf.
In Japan the agent not only manages the sales and marketing of your property but they will manage the sales contracts, trust fund and the conveyancing.
Contract Stamp Duty
A number of government revenue stamps are required for each contract, these are affixed to the Sales Contract and Statement of Important Matters documents.
Title Registration Stamp Duty
A duty (or tax) charged by the government which is calculated on the value of the property (not the purchase price).
Title Registration Certificate Charge
A fee of ¥1,500 will apply to every block of land purchased. An additional fee of ¥1,500 will apply if there is a building on that block of land.
For example:1 block of land = ¥1,500; 1 block of land + building = ¥3,000
Annual Fixed Assets Tax
The rateable value of the property determined by the government paid on an annual basis (also known as 'rates' or 'property tax' in other countries).
Property Acquisition Tax
Approximately 6-12 months after you become the new Title holder you will be responsible for an acquisition tax payment. This is a one-time payment charged by the government on the purchase of property in Japan.
Fixed Asset Tax
In addition, you will be responsible for an annual fixed assets tax of 1.4% of the statutory valuation of the land. Statutory valuations are generally 50% lower than the purchase price.
If you do not reside in Japan, you are required to nominate a ‘Tax Manager’ to pay the annual fixed assets tax.
Investment owners want to ensure maximum return on their investment and require a professional, experienced management company to efficiently handle bookings, cleaning, snow clearing, and guest management.
There are a range of property management companies in Niseko that can assist with management, we can provide introductions to property management companies.
The following information is intended as a guide only. We recommend that you seek advice from a tax professional if you have more specific questions.
Japanese Income Tax
Non-residents who own property in Japan are required to file a tax return and pay the relevant taxes at the applicable rate.
Rental income may be subject to withholding tax. This may be offset against the income tax accrued and is refundable if no income tax is payable in Japan.
Income earned as rent is taxable as personal income. However, it is possible to offset taxes with accelerated depreciation expenses during the first five years. Interest payments may also be offset against rental income.
Withholding tax is 10% of the sales price, in lieu of capital gains tax made to foreign transfers of sales proceeds. Withholding tax maybe refunded wholly or partly after the sellers final taxation is calculated.
Capital Gains Tax
Net gains realised from selling properties held for less than five years are subject to a minimum capital gains tax of 30%.
The taxable gain is computed by deducting the acquisition costs and related expenses, improvement costs, and transfer costs from the gross sales price.
Net gains from the sale of properties held for more than five years will be taxed at a minimum of 20%.
The contents of your property may be depreciated over 10 years at a rate of 10% per annum.
New developments are depreciated over a 39 year period at a rate of 2.6% per annum.
The cost of building in the Niseko Resort Area can vary considerably depending on the quality of building materials. As a guide, current costs are between ¥300,000 and ¥255,000 per m2.
The Niseko Resort Area has been designated a “Special Heavy Snowfall Region”. Building regulations for the climate and a local scenery preservation ordinance are in place.
The following building regulations are currently in place for the Niseko Resort Area.
|Location||Minimum Block Size sqm||Maximum Footprint (%)||Maximum Floor-Area Ratio (%)||Maximum Height (m)|
|Upper Hirafu Village||-||40||300||22|
|Middle Hirafu Village||-||50||200||13|
|Lower Hirafu Village||-||50||200||13|
|St Moritz I & II||330||40||200||13|
|Izumikyo I, II & Stage||330||40||200||13|
|Outer Hirafu (Ruheil)||330||40||200||13|
|Hanazono North Hills||1000||30||100||13|
Building set-back and eaves restrictions also apply. These rules vary depending on the location, size of the block, and may affect the maximum allowable floor size.