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    Posted May 1, 2014 by

    Westward Group for Tax and Estate Planning Advisors Tokyo Tips: Real Estate Purchases and The Various Taxes In Japan

    I would like to summarize a basic point for several times from this time about taxes which are charged to purchasing real estate in Japan mainly for people overseas. There are various types of purchasing real estate by foreigners in Japan. For example, foreigners who have permanent residence in Japan, they purchase real estates as their residencies. Also, improvement of the Japanese economy is recently seen due to a depreciation of the yen and rising of stock prices. And, the Tokyo Olympics will be held in 2020. These cases cause land values to be raised in urban areas, and some foreigners consider purchasing real estate such as condominiums or apartment houses for purposes as their investments.

    However, on the other hand, there is a characteristic of having many taxes being related to real estate in Japan and said as “real estate is the mass of tax”. Therefore, it is important to understand about tax management in order to purchase and manage real estate without worries.

    So, basic information about real estate and the taxes in Japan will be summarized several times. I am happy for foreigners to understand about real estate taxes in Japan in this series starting at this time.

    Of course, as this is basic information about real estate taxes in Japan, it is useful to read this for Japanese people who are interested in real estate taxes also. At first, a tax which is occurred at the time of a real estate purchase is described.

    3 types of necessary taxes of a real estate purchase in Japan

    There are basically 3 types of taxes at the time of a real estate purchase in Japan. They are real estate acquisition tax, stamp duty, and registration license tax. The real estate acquisition tax is duty. And stamp duty and registration license tax do not always occur legally. In terms of whether a legal obligation, there are two groups of real estate acquisition tax, and stamp duty and registration license tax. However, in order to have legal protection about real estate that has been purchased or traded, stamp duty and registration license tax are essentially generated virtually. After all, 3 types of taxes will be occurred for a real estate purchase. So, what are the 3 taxes specifically?
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