Property Purchase Costs in Japan: The Full Breakdown (≤ 6%)

How much should you budget? Never more than 6% of the price

In Japan, the ancillary purchase costs (shohiyō, shohiyō) add up to at most 6% of the property price — and often less on higher-priced properties, because several taxes are calculated on the official tax assessment value, which sits far below market price. That is much cheaper than France, where notary fees plus agency commission easily exceed 10% on existing homes.

Six items make up the bill:

• the agency commission chūkai tesūryō — the largest item;
• the real estate acquisition tax fudōsan shutoku-zei;
• the registration tax tōroku menkyo-zei;
• the shihō shoshi shihō shoshi professional fee;
• the stamp duty inshi-zei;
• the pro-rated property tax settlement kotei shisan-zei seisan-kin.

Each item is detailed below; the full transaction process, step by step, is covered in our guide to buying property in Japan.

The agency commission (chūkai tesūryō): 3% + ¥60,000 + tax

The real estate agency's commission is capped by the Real Estate Brokerage Act takuchi tatemono torihiki gyō-hō (Takuchi tatemono torihiki gyō hō). For a property above ¥4M, the legal maximum is:

3% of the price + ¥60,000 + 10% consumption tax

Worked example on a ¥30M property

3% × 30,000,000 + 60,000 = ¥960,000, plus 10% consumption tax (shōhi-zei): ¥1,056,000, roughly €7,000. Nearly every agency charges the full cap — treat it as the standard market rate.

The special rule for low-priced properties

Since July 2024, on properties priced ¥8M or below (typically vacant houses), agencies may charge up to ¥330,000 including tax even where the standard formula would give less: on a ¥3M akiya, the commission therefore weighs proportionally more. The properties we hand-pick in our listings (Les pépites) always show the asking price excluding closing costs.

The three purchase taxes: acquisition, registration, stamp duty

fudōsan shutoku-zei — the real estate acquisition tax

Levied once by the prefecture, it amounts to 3% of the official tax assessment value (kotei shisan-zei hyōka-gaku) for land and residential buildings — not 3% of the price you paid. That assessment is usually far below market value, and for residential land the taxable base is additionally halved (a relief extended until March 2027). As a result, the tax is often well under 3% of the actual price, sometimes under 1%. The tax notice arrives by post 3 to 6 months after the purchase: keep it in your budget.

tōroku menkyo-zei — the registration tax

Due when the ownership transfer (shoyūken iten tōki) is recorded in the property register: 2% of the assessed value for land and 0.3% to 2% for the building depending on the case (reduced rates exist for a qualifying primary residence). Again, the base is the tax assessment, not the sale price.

inshi-zei — the stamp duty

A revenue stamp is affixed to the sale contract (baibai keiyakusho): ¥10,000 to ¥60,000 depending on the price. At the reduced rates currently in force: ¥10,000 for a contract between ¥10M and ¥50M, ¥30,000 between ¥50M and ¥100M, ¥60,000 between ¥100M and ¥500M.

The shihō shoshi: the legal expert who secures the transfer

There is no notary in a Japanese property sale. The shihō shoshi (shihō shoshi), a licensed legal specialist in registration matters, verifies the identity of both parties, checks the title, and records the ownership transfer at the Legal Affairs Bureau on settlement day (kessai).

The professional fee is around ¥100,000–150,000 (€670–1,000), on top of which come the registration taxes described above, which the shihō shoshi collects and pays on your behalf. Never economise on this: the shihō shoshi is your main protection against title fraud.

The pro-rated property tax settlement (kotei shisan-zei seisan-kin)

In Japan, the annual property taxes (kotei shisan-zei + toshi keikaku-zei) are owed by whoever is the registered owner on 1 January. By near-universal custom, the buyer reimburses the seller for the portion covering the period from settlement day to 31 December, pro-rated by day (kotei shisan-zei seisan-kin).

Example: ¥30M property, annual tax around ¥100,000, settlement on 1 July → about ¥50,000 reimbursed to the seller. The exact figure appears on the settlement statement prepared by the agency.

Worked example: a ¥30M property (≈ €200,000)

Here is the complete bill for a ¥30M property (≈ €200,000 at 150 ¥/€), assuming a typical tax assessment. Tax amounts are orders of magnitude: the exact assessment varies from property to property.

Item	Basis / rule	Estimated amount
Agency commission chūkai tesūryō	3% + ¥60,000 + 10% tax	¥1,056,000 (≈ €7,040)
Acquisition tax fudōsan shutoku-zei	3% of assessed value (land base halved)	≈ ¥250,000 (≈ €1,670)
Registration tax tōroku menkyo-zei	2% land / 0.3–2% building, on assessed value	≈ ¥220,000 (≈ €1,470)
Shihō shoshi shihō shoshi	professional fee	≈ ¥120,000 (≈ €800)
Stamp duty inshi-zei	contract between ¥10M and ¥50M	¥10,000 (≈ €65)
Pro-rated property tax kotei shisan-zei seisan-kin	settlement day to 31 December	≈ ¥60,000 (≈ €400)
Total	—	≈ ¥1,716,000 (≈ €11,400), i.e. 5.7%

Comfortably under the 6% ceiling. To measure how these costs affect your net yield, run your numbers through our yield simulator; and if you would like guidance from property search to key handover, see our personalised buying support.

Frequently asked questions

Are there notary fees when buying property in Japan?

No — notaries play no role in a Japanese property sale. The ownership transfer is secured by a shihō shoshi shihō shoshi, whose fee is around ¥100,000–150,000 (€670–1,000). The registration taxes tōroku menkyo-zei come on top, calculated on the property's official tax assessment value.

Is the 3% agency commission negotiable in Japan?

The "3% + ¥60,000 + tax" figure is a legal ceiling set by the Real Estate Brokerage Act takuchi tatemono torihiki gyō-hō, not a mandatory fee. In practice almost every agency charges the maximum; a few online brokers discount it. Note that for properties of ¥8M or less, a special cap of ¥330,000 including tax has applied since July 2024.

When do you pay the real estate acquisition tax (fudōsan shutoku-zei)?

Not on closing day: the prefecture mails the tax notice roughly 3 to 6 months after the ownership transfer. Set the money aside, because this bill surprises many buyers. It is paid in one instalment, at a bank, convenience store or online.

Do foreigners or non-residents pay higher purchase costs in Japan?

No — taxes and commissions are identical regardless of nationality or residence. A non-resident should however budget for a few practical extras: translation or interpreting, power of attorney and document notarisation in their home country, and international money transfer fees.

Is there consumption tax (VAT) on the purchase price in Japan?

Land is never subject to consumption tax. For the building, the 10% tax only applies when the seller is a business (developer or dealer) — and it is then already included in the advertised price. A resale home sold between private individuals carries no consumption tax.