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01 | Check ownership and records
Collect registry details, title identification records, the original purchase contract, acquisition costs and repair history. If a loan remains, confirm repayment and mortgage discharge arrangements. Check whether a registered address or name change must be recorded.
For tenanted property, review the lease, rent, security deposit, management fees, reserve contributions and arrears. Tenant rights and deposit transfers affect sale terms.
02 | Valuation and sale options
Base valuation on comparable completed transactions and the property's age, transport access, management, repairs and permitted uses. Advertised asking prices are not necessarily achieved prices.
Compare brokerage sales with direct purchases by property companies in terms of price, timing and conditions. For occupied investments, consider rent, net yield and lease succession. Work backwards from your target net proceeds.
03 | Selling costs and net proceeds
Estimate brokerage, stamp duty on a paper contract, registration and judicial scrivener fees. Separately list loan repayment, unpaid charges and any necessary clearance or survey costs.
For a brokerage calculation base of JPY 10 million, excluding consumption tax included in the property price, the ordinary maximum charged to the seller is JPY 396,000, including consumption tax on the brokerage service. For properties priced at JPY 8 million or less, an applicable low-value-property exception permits up to JPY 330,000 including tax, with prior agreement when appointing the broker.
| Item | Record separately |
|---|---|
| Sale price | The price agreed in the contract |
| Settlement payments | Brokerage, registration, loan repayment and other actual costs |
| Withholding | Deducted by the buyer where applicable; separate from fees |
| Final income tax | Calculated on filing, with withholding credited |
Estimate cash received at settlement, then reserve for possible additional tax after filing. Sale price, available cash and taxable gain are different figures.
04 | Individual gains tax versus corporate tax
An individual selling held land or buildings generally calculates capital gains using acquisition cost, adjusted for building depreciation, and direct sale expenses. The long-term or short-term classification depends on ownership exceeding five years as of January 1 of the sale year.
For a company-owned property, sale proceeds and related costs generally enter the company's taxable income for its fiscal year. The individual long-term and short-term capital-gains rates do not automatically apply.
Owner-occupied home relief differs from investment property treatment. Individual, overseas corporate and Japanese corporate sellers require separate tax reviews.
05 | Consumption tax on business property
Transfers of land are generally exempt from Japanese consumption tax. The building portion depends on the seller's taxable-business status and whether the building is a business asset. Selling residential or commercial rental buildings can also be within scope.
A private individual selling a personal-use home is treated differently from a taxable business selling rental or operating premises. Do not automatically add 10% consumption tax to the entire land-and-building sale price.
Consumption-tax refunds depend on taxable-business eligibility, deductible input tax and filing rules. They are distinct from refunds of income tax withheld on property sale proceeds.
06 | Nonresident withholding, filing and remittance
When buying Japanese real estate from a nonresident seller or foreign corporation, buyers generally withhold 10.21% of the consideration. An exception applies where the price does not exceed JPY 100 million and an individual buyer acquires it for personal or family residential use.
The 10.21% is withholding on the sale consideration, not the final tax on profit. A Japanese tax return may settle the amount, with a possible refund where withholding exceeds the final assessed liability.
Overseas owners should confirm identity and address documents, signature certification or authorization, a tax representative, bank account and remittance procedures. Tax reporting in the country of residence may also be relevant.
07 | From sale enquiry to handover
Records and valuation → brokerage agreement → marketing and enquiries → offer and negotiation → sale contract → final payment, title registration and handover → tax filing.
Share the following details when discussing a sale. If your price is undecided, you can start with a valuation request.
- Location, property type and whether owner-occupied, tenanted or vacant.
- Individual or corporate ownership, joint owners, loan balance and registration records.
- Desired price, handover deadline and viewing availability.
- For a tenanted property: lease, rent records, deposits and outstanding repair matters.
TUKISUMI will confirm brokerage and local support for the property and request. See Japan property tax for withholding and record preparation.