05/04/2026
Dreaming of owning a home or a beautiful Machiya in Kyoto? 🇯🇵🏡
While buying property in Japan is an exciting journey, the terminology and tax systems can be quite different from your home country.
Here is a deeper dive into the upfront costs and rules you need to know! 👇
💰 1. The 6-8% Closing Costs
As a general rule, expect to pay an additional 6% to 8% on top of the property’s purchase price. For example, for a ¥30,000,000 property, you should budget around ¥32,400,000 in total.
✨ Good News: If you are buying for personal use (not renting it out), you will NOT be subject to the 20.42% withholding tax on rental income that usually applies to non-resident investors!
📝 2. The Breakdown of Fees
• Brokerage Fee: Typically 3% of the purchase price + ¥60,000 + 10% tax.
• Stamp Duty: A tax affixed to your official sales contract.
• Registration & Legal Fees: Paid to a Judicial Scrivener to legally transfer the title to your name.
🌏 3. Making Sense of Taxes
If you are from countries like Australia, these might sound familiar:
• Real Estate Acquisition Tax: A one-time tax billed 3-6 months after purchase (Exactly like Stamp Duty/Transfer Duty in Australia!).
• Pro-rated Property Taxes: You reimburse the seller for the property tax for the remaining days of the year from your settlement date (Just like pro-rata adjustments for Council/Water rates!).
⚠️ 4. The “Kyoto Rule”
Kyoto City is introducing a new “Vacant Home Tax” (Tax on Non-Resident Housing). If you plan to use your property as a vacation or second home rather than living there full-time, make sure to factor this into your future maintenance budget!
Buying property abroad doesn’t have to be overwhelming when you have the right guidance. 🤝 #
💡 Have any questions about buying real estate in Kyoto?
📩 Send me a DM or leave a comment below! Let’s find your dream home in Japan.
