![Capital gains = Selling price (income from the property sale)[ (Initial acquisition price-Depreciation costs) + Expenses for the initial acquisition + Expenses for the selling]](gif/base-cost.gif)
Property Selling Costs and Taxes
In order to sell a property, it is required that miscellaneous expenses such as agent commissions, taxes, ect. are calculated.
This page explains necessary costs and taxes for the selling of property in Japan, including explanations and examples.
Costs and taxes required in selling a property
The table below describes property selling costs and taxes for each stage of the property selling process; from the signing of a contract to the filing of an income tax return.
When signing a contract
| Stamp duty | Documentary stamp tax required for the contract. |
|---|
When the remaining balance is settled
| Agent commission | 3% of the sales price + 60,000 yen + consumption tax in accordance with property transaction regulations. |
|---|---|
| Registration costs |
|
When filing an income tax return
| Capital gain tax |
|
|---|
Other Costs
| Surveyor's commission(A/N) | The fee for land surveying to determine the boundary points. |
|---|---|
| Moving Costs | The costs depend on the amount of stuff you move. |
Examples of property selling costs and taxes
When you sell a property in Japan, miscellaneous costs such as commissions and taxes will arise. Your net profit is the amount from deducting miscellaneous fees and taxes from the sales price. Here are the examples of the necessary costs and taxes for selling a property in Japan.
| Property summary | |
|---|---|
| Property type | House built in 2006 |
| Land area | 73.31 sq.m. |
| Size of the house | 93.96 sq.m. |
*case with capital gain not arising
| Selling Price | ¥70,000,000 |
|---|---|
| Costs | ¥2,786,000 |
| Net Profit | ¥67,214,000 |
| Miscellaneous Costs | ||
|---|---|---|
| When signing a contract | Stamp duty | ¥45,000 |
| When balance is settled | Agent commission | ¥2,376,000 |
| Disposition of mortgage fee | ¥15,000 | |
| When filing an income tax return | Capital gain tax on property | None if selling profit is not gained |
| Other costs | Surveyor’s commission | ¥250,000 in the case of restoring 2 boundary points. |
| Moving costs | ¥100,000 dependent on the amount of stuff you move | |
| Total | ¥2,786,000 | |
Please be advised that above example is for reference purposes only and the situation may vary depending on the property and the financial institutions.
| Property summary | |
|---|---|
| Property type | Apartment built in 2000 |
| Land area（proportion of ownership） | 13.10 sq.m. |
| Size of apartment | 32.75 sq.m |
*case with capital gain not arising
| Selling Price | ¥29,500,000 |
|---|---|
| Costs | ¥1,119,500 |
| Net Profit | ¥28,380,500 |
| Miscellaneous Costs | ||
|---|---|---|
| When signing a contract | Stamp duty | ¥15,000 |
| When balance is settled | Agent commission | ¥1,039,500 |
| Disposition of mortgage fee | ¥15,000 | |
| When filing an income tax return | Capital gain tax on property | None if selling profit is not gained |
| Other costs | Surveyor’s commission | None |
| Moving costs | ¥50,000 dependent on the amount of stuff you move | |
| Total | ¥1,119,500 | |
- Withholding the tax of real estate sales by non-resident
- A tax imposed upon a foreigner (non-resident) who sells any real estate property in Japan.
- When a real estate property in Japan owned by a non-resident or a foreign corporation is sold, to prevent omissi...
