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Property tax in Japan

Property tax should be charged

When you own a real estate in Japan as of January 1st, you have to pay a property tax (Kotei shisan zei = 固定資産税=こていしさんぜい) to Japanese government.

When you buy a real estate at August 15th, 2015, you are not the owner as of January 1st 2015.

So, you do not receive a bill from Japanese government until 2016.

Japanese government sends bill after they know the owner as of January 1st.

When Japanese government knows that you are the new owner as of January 1st 2016, they will send bill to you around May 2016.

Even if you do not have Japanese nationality and/or address in Japan, you still have to pay property tax.

Some of you would say that you have real estate in Japan, but you have not paid property tax in Japan.

However, it is because you do not know about the tax law in Japan.

Japanese government knows that you have a real estate.

And if you do not pay property tax, they can seize your real estate without your permit.


How to calculate amount of property tax in Japan

Tax rate of property tax is 1.4% of valuation of fixed asset.

And if you have a real estate in an area designated for urbanization (Shigaika Kuiki = ), you also have to pay city planning tax (Toshi keikaku zei = 都市計画税).

Tax rate of city planning tax is 0.3% of valuation of fixed asset.

So, when tax value is 53,329 USD + 138,500 USD , Property tax + city planning tax =
(1.4% + 0.3%) × (53,329 USD + 138,500 USD ) = 3,261 USD

And when you do not live in Japan, and do not have Bank account in Japan, you can not pay property tax by bank withdrawal.

Because, You can not receive bill from Japanese authority.

In that case, you have to appoint  Administrator of tax payment. (Nozei kanrinin = 納税管理人).

This person can receive bill from Tax authority  and pays your tax.

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