Select a question below to learn more about buying, selling, and renting real estate in Japan. If there is anything not covered here, please contact us.
Can foreign non-residents buy real estate in Japan?
Yes. Purchase of real estate in Japan is available even to foreign non-residents, with no restrictions.
Is the land in Hakuba a free hold title?
Yes, land is free hold title, with the exception of limited areas around in the Happo & Tsugaike areas where most property in the vicinity of the lifts is perpetual lease.
What are the fees involved in purchase of real estate in Japan?
Standard Japanese agent’s fee is 3% of sale price and 60,000 yen plus 8% consumption tax on this figure
– One-time stamp duty tax
– One-time real estate acquisition tax
– Registration charges
– Pro-rated fixed asset tax (property tax)
What is the general sales procedure to buy real estate in Japan?
Mominoki Real Estate will firstly appoint an English-speaking solicitor to represent you in Japan. The solicitor will go through the process of checking contracts, confirming the property mortgages are all cleared, and finalise your title deed registration.
During the parties contract approval stages, deposit monies are to be transferred to the solicitor’s trust account. Once the Vendor’s signature/authorized Japanese stamp is received, the deposit monies will be released to the Vendor. Mominoki Real Estate requests 50% of the agent’s fee payable at the time of the deposit, as well as the solicitor’s fee.
The contracts will be presented to you in Japanese with an English translation, with a copy for you to be signed and returned to the Vendor.
Once the deposit is received in the Solicitor’s Trust account, the Solicitor will then provide you with Power of Attorney and Statutory Declaration documents to be signed and required in order to complete the property title transfer and registration at settlement.
Balance funds are required to be transferred to the solicitor’s trust account prior to settlement date.
Settlement payment is made by the Solicitor on the appointed day, where the title deed will be transferred into your name. This registration will take 5 business days. A registered courier will deliver the Title Deed to you.
Upon settlement, final payments required will be one-time stamp duty tax, one-time real estate acquisition tax, registration charges as well as the pro-rated fixed asset tax (property tax) amount for the remainder of the calendar year.
At this time Mominoki Real Estate will also request the remaining 50% agent’s fee payment.
For a more detailed breakdown of the Japan property purchasing process, please contact us.
How are property taxes levied?
Fixed asset taxes are calculated and levied once a year based on the size and construction of the property or land. Hakuba village council calculates the amount of the tax which is calculated based on a 365 day year.
Initial fixed asset tax will be calculated from the date of contract until December 31st of the same year. Please note that if you do not reside in Japan, you are required to have a ‘tax manager’ to coordinate the payment of fixed asset tax.
What services does the solicitor supply?
The solicitor represents you in Japan and does the following:
1) Examines the contents of the Sale Contract
2) Is responsible for title registration in the buyer’s name
3) Checks that any existing debts have been erased from the property
4) Prepare the title deed
Are there any building restrictions in Hakuba?
The following building restrictions are in place for Hakuba Village (under the jurisdiction of Hakuba Village)
- Hakuba/Happo/Wadano/Echoland areas Footprint: 60%. Coverage ratio: 200%. Maximum height : 18m.
- Goryu/Donguri/Misorano areas Footprint: 20%. Coverage ratio: 40%. Maximum height : 13m.
- Meitetsu area Footprint: 30%. Coverage ratio: 50%. Maximum height: 12m.
These will differ according to the size of your building as well as the adjoining road.
Please contact us for details on building restrictions.