FEES INCURRED WHEN SELLING A PROPERTY
Property sellers are required to pay certain taxes and brokerage fees.
These fees will be deducted from the proceeds of the property sale and the seller will receive the remaining amount.
For more details about the fees, please see "Contract-related fees."
When signing a contract
Fee for revenue stamps attached to the sales contract
¥10,000 to ¥160,000 (If the selling cost is ¥1 billion or less, the fee will depend on the selling cost)
Brokerage fee (half the amount)
(Brokerage fee = Selling cost x 3% + 60,000 x consumption tax.)
- Brokerage fee (balance)
- Fee for registration of relocation, registration of mortgage settlement / remuneration for the judicial scrivener
After handover of the property
Transfer tax (income tax and resident tax charged on capital gain from selling a property)
This tax is charged when "Selling cost – (Cost at time of purchase + Selling fees)" is larger than zero.
Please see "How to Calculate Capital Gain" below for transfer tax rates.
If the seller is a Non-resident in Japan and under certain circumstances the buyer withholds the tax amount of "10.21% of the selling price" and pays the tax on behalf of the seller.
For details, please see "Determination of The Duty to Withhold Taxes When Selling Real Estate" below. (The tax amount is adjusted the following year to reflect the actual taxable income)
HOW TO CALCULATE CAPITAL GAIN
- Capital gain (A) = Selling cost of real estate – (Acquisition cost + Transfer cost)
Taxable capital gain = Capital gain (A) – [Special reduction]
*Special reduction: Under certain circumstances, individuals who earned capital gain through the sales of their own home can deduct up to ¥30 million from the capital gain.
Tax amount (Separate taxation) = Taxable capital gain x Tax rate (Income tax, residential tax)
The tax rate depends on the length of ownership.
|5 years or less||Short-term capital gain||41.1%||30% income tax, 9% residential tax, 2.1% special income tax for reconstruction|
|Over 5 years||Long-term capital gain||20%||15% income tax, 5% residential tax|
|A reduced tax rate is applicable if ownership exceeds 10 years.|
*Please make sure to consult with certified tax accountants or the tax office for details.