What is a nozei kanrinin, Japan's tax representative?
The nōzei kanrinin (nōzei kanrinin, literally « tax payment manager ») is the person or company, resident in Japan, who handles all tax formalities on behalf of a taxpayer who has neither a domicile (jūsho, 住所) nor a place of residence (kyosho, 居所) in the country. The obligation is set out in Article 117 of the Act on General Rules for National Taxes (kokuzei tsūsoku-hō, 国税通則法) for national taxes, and in Article 355 of the Local Tax Act (chihōzei-hō, 地方税法) for fixed asset tax.
Four duties
- Receiving tax correspondence: assessment notices, information requests, formal demands. This is the critical one, because the Japanese tax authorities notify by post to a Japanese address.
- Paying the taxes from funds you make available, or from rental income.
- Filing returns, first and foremost the annual income tax return, the kakutei shinkoku (kakutei shinkoku).
- Receiving refunds, which cannot be wired to a foreign bank account.
What the role is not
A crucial point that is widely misunderstood: your tax representative is not liable for your tax debt. They act in your name; they do not become the debtor in your place. That is precisely what makes the role acceptable for a friend or family member on the ground — their own assets are not at stake. They do, however, take on liability if they knowingly file false information.
Do not confuse the role with two other players either: the zeirishi (zeirishi, licensed tax accountant), who may serve as your representative but whose profession is to compute and optimise; and the property management company, which collects rent and maintains the building but holds no automatic tax capacity. Our complete guide to buying property in Japan maps out every party involved, from the shiho shoshi who handles land registration to the agency.
Who must appoint a tax representative in Japan?
The rule is easy to state: anyone liable for a Japanese tax but without an address in Japan must appoint a representative. In practice this covers virtually every foreign buyer who has not relocated — including those with no rental income at all.
| Your situation | National taxes (tax office) | Fixed asset tax (city hall) |
|---|---|---|
| You buy a second home and do not rent it out | Case by case (acquisition tax, future resale) | Yes, mandatory |
| You let the property long term | Yes (annual return) | Yes |
| You run short-term rentals (minpaku, guesthouse) | Yes | Yes |
| You buy an akiya to renovate, left empty | Usually no, until resale | Yes |
| You leave Japan for over a year while keeping a property | Yes, to be filed before departure | Yes |
| You hold through a foreign company | Yes | Yes |
| You live in Japan on a residence status | No | No |
The most common case: the non-resident cash buyer
Someone who buys a Kyoto house or a machiya to restore outright and flies home a month later is concerned immediately: from the 1 January following registration they become liable for Japanese fixed asset tax, whose notice is mailed out in spring. With no representative declared at city hall, that notice lands nowhere.
The trap for departing residents
A resident who leaves Japan while keeping a property changes tax status overnight. The appointment must be filed before departure; failing that, they must file an early return (jun-kakutei shinkoku, 準kakutei shinkoku) covering 1 January to the date they leave the country. Many discover this the following year, penalties included.
Two separate filings: the tax office and the city hall
This is the number one mistake foreign owners make: assuming a single filing covers everything. National and local taxes are administered by two different authorities, with two forms, two counters and two calendars. You must do both.
| Criterion | National taxes | Fixed asset and city planning tax |
|---|---|---|
| Authority | Tax office (zeimusho, zeimusho) with jurisdiction over the property | City hall of the municipality where the property sits (local tax division) |
| Legal basis | Art. 117, Act on General Rules for National Taxes | Art. 355, Local Tax Act |
| Form | Notification of appointment or dismissal of a tax representative for income tax and consumption tax | Nōzei kanrinin shinkokusho (nōzei kanrinin申告書), or an approval application (承認申請書) depending on the municipality |
| Taxes covered | Income tax, consumption tax, withholding tax, capital gains on disposal | Fixed asset tax (kotei shisanzei, kotei shisan-zei) and city planning tax (toshi keikakuzei, toshi keikaku-zei) |
| Filing fee | Free | Free |
| Can be filed from abroad | Yes, by post | Yes, by post (form downloadable from the city website) |
A municipal nuance worth knowing
The nature of the local procedure changes from town to town. If your representative lives in the same municipality as the property, a simple declaration (shinkoku) is enough. If they live elsewhere in Japan, many city halls require an approval application (shōnin shinsei, 承認申請) that the mayor may, in theory, refuse. Always check the « nōzei kanrinin » page of the relevant city's website before sending your file: forms and supporting documents are not standardised nationally.
Documents usually required
- The form signed by the owner and the representative, with their seal — the hanko used for the property purchase — where the municipality requires it.
- A copy of the representative's ID and proof of their Japanese address.
- The cadastral reference of the property, as shown in the toki-bo land register.
- The reason for the appointment (residence abroad) and sometimes a copy of the owner's passport.
When to file: the calendar that matters
There is no single deadline but a series of checkpoints. The guiding principle: file before the first notice is issued, not after.
| Milestone | What happens | Action |
|---|---|---|
| Closing and registration day | You become the registered owner | File at city hall right away, with the shiho shoshi's help |
| 3 to 6 months after purchase | Real estate acquisition tax notice (fudōsan shutokuzei, fudōsan shutoku-zei), issued by the prefecture | The representative receives and pays |
| Following 1 January | Assessment date: whoever is registered that day owes the year's fixed asset tax | The filing must already be done |
| April to June | Fixed asset tax notice mailed out, payable in four instalments | The representative receives, pays or forwards |
| Before leaving Japan | For a resident relocating abroad | Filing mandatory before exiting the country |
| 16 February to 15 March | Filing of the previous year's income tax return | The representative files the kakutei shinkoku |
If you rent the property out, the filing mechanics are covered in our article on the kakutei shinkoku for rental income, and the tax computation in the one on rental income tax for non-residents.
Expert tip. Get the appointment form signed on closing day, while you are physically in Japan with the agency, the shiho shoshi and your future representative. A signature chased remotely four months later costs three follow-ups, an international mailing and sometimes a translation.
What you risk without a tax representative
Having no representative does not trigger an immediate, dramatic fine. It produces something more insidious: you become unreachable, and the consequences stack up quietly for years.
1. Tax notices vanish
The municipality mails the notice to the last known address. With no usable Japanese address, mail bounces or is never delivered — but the tax remains due. You are late without knowing it.
2. Late interest accrues
Japan applies late payment interest (entaizei, 延滞税) on a two-tier basis: a reduced rate for the first two months, then a markedly higher rate. Those rates are revised annually and published by the National Tax Agency; in recent years the orders of magnitude have been roughly 2–3% a year for the first period and 8–9% thereafter. On a fixed asset tax bill forgotten for three years, the amount owed nearly doubles.
3. The failure-to-file penalty
Where an income tax return was due and was not filed, an additional penalty for non-filing (mushinkoku kasanzei, 無申告加算税) applies, heavier when the authorities discover the omission than when you come forward voluntarily.
4. Official appointment, in force since 2022
This is the change few foreign buyers know about. The 2021 tax reform, effective 1 January 2022, gave the authorities an appointment power: where a taxpayer required to name a representative has not done so by the date set by the tax office, the district director may designate a « designated tax representative » (tokutei nōzei kanrinin, 特定nōzei kanrinin). Eligible candidates include an adult spouse or relative sharing the taxpayer's household, or a person closely connected to the taxpayer by a contract bearing on the tax base. In other words: your agency, your property manager or a relative can be handed a role you never asked them to take on.
5. False filing: a criminal penalty
Knowingly filing false information, or obtaining local approval by fraudulent means, exposes you to a fine of up to ¥300,000 (~€2,000) under Article 356 of the Local Tax Act. Many municipalities also provide, in their own by-laws, an administrative fine for failing to file at all — check locally.
6. Ultimately, seizure
Unpaid local tax is recovered by enforcement, including seizure and public auction of the property. It is rare and slow, but it is the logical end of the chain — and the origin of part of the stock found in Japanese kyobai property auctions.
Who to choose: a relative, a manager or a tax accountant?
The law imposes no particular qualification: the representative simply needs an address in Japan and must accept the role. Three profiles dominate, with very different logics.
| Profile | Indicative annual cost | Strengths | Limits |
|---|---|---|---|
| A relative living in Japan | Free | Immediate, no contract; sufficient if the property is not rented | No tax expertise; risk of ignored mail; strain on a personal relationship |
| Property management company | Often included, or a modest add-on to the management mandate | Already receives the property's mail; pays out of collected rent | Usually does not file the income tax return; often declined for properties they do not manage |
| Licensed tax accountant (zeirishi) | Order of magnitude ¥30,000–100,000 (~€200–670) for representation alone; ¥50,000–150,000 (~€330–1,000) more for the annual return | Full coverage, professional liability, optimisation of building depreciation | Recurring cost; few firms work in English |
Indicative ranges observed on the Japanese market for services to non-resident owners, to be confirmed by quotation: fees vary widely by city, number of properties and complexity of the return.
How to decide, in three questions
- Does the property generate income? If so, an annual return is due: go with a zeirishi, the only party able to file it properly. If the property is empty, a reliable relative is more than enough.
- Do you plan to resell in the medium term? A disposal triggers capital gains tax on Japanese property and, almost always, withholding by the buyer. A professional avoids expensive mistakes here.
- Can your representative read administrative Japanese? Notices are never translated. A representative who cannot understand what arrives is not performing the function.
Expert tip. Require your representative to scan and forward every single letter received, even those they settle themselves. It is your only window onto your Japanese tax position — and the evidence you will need in a dispute or at resale.
Worked example: a 25-million-yen machiya in Kyoto
Take a concrete, costed case. Camille, a French resident, buys a machiya (machiya, traditional townhouse) in Kyoto in March for ¥25,000,000 (~€167,000), in cash — Japanese mortgages being reserved for salaried residents of Japan. She flies home ten days after closing and plans to run the property as a short-term rental.
Year one in numbers
| Item | Amount | Who receives the notice? |
|---|---|---|
| Purchase price | ¥25,000,000 (~€167,000) | — |
| Acquisition costs (registration tax, fees, stamps), capped at 6% | up to ¥1,500,000 (~€10,000) | Settled at closing |
| Real estate acquisition tax, notified 3–6 months later | Depends on the assessed value and applicable reliefs | The tax representative |
| Fixed asset + city planning tax, year 2 | around ¥130,000 (~€870) after residential relief | The tax representative |
| Representation fees (zeirishi, annual return included) | around ¥100,000 (~€670) | — |
The fixed asset tax figure deserves an explanation, because its modesty often surprises. The tax base is not the price paid but the assessed value (kotei shisanzei hyōkagaku, kotei shisan-zei hyōka-gaku), materially lower than market price. On residential land under 200 m², the law further applies a reduction bringing the base down to one sixth for fixed asset tax and one third for city planning tax. With a hypothetical assessed value of ¥8,000,000 for the land and ¥6,000,000 for the building, the base comes to roughly ¥7,330,000 taxed at 1.4%, or close to ¥103,000, plus city planning tax at 0.3% — hence the ¥130,000 (~€870) a year order of magnitude. The full mechanism is set out in our article on fixed asset tax in Japan, and you can test your own assumptions with our yield simulator.
What about rental income?
Camille operates as a minpaku (minpaku, registered short-term rental): guests are individuals paying through a platform, so no withholding applies, but an annual return is due on the profit. Had she instead leased the house to a Japanese company to house an employee, the tenant would have had to withhold 20.42% at source on every rent payment — withholding is not required when the tenant is an individual renting as their own home or that of a relative. Either way, the March filing is due, and the representative is the one who files it.
And at resale?
When Camille sells, the buyer must in principle withhold 10.21% of the sale price and remit it to the tax office as an advance on her capital gains tax — unless the buyer is an individual purchasing as their own residence or a relative's and the price does not exceed ¥100,000,000 (~€667,000). With no tax representative in place, reclaiming any excess becomes an ordeal: refunds cannot be wired abroad. Our article on selling a property in Japan walks through the whole sequence.
The no-representative scenario
Camille files nothing. The acquisition tax notice goes to the address on the register, in France, and is lost. The year-two fixed asset tax notice meets the same fate, then year three's. Three years later she returns to start the renovation: she discovers three years of arrears, plus late interest, plus a failure-to-file penalty on the rental income. The representative she would not pay ¥100,000 a year has cost her several times that.
Common mistakes to avoid
- Doing only one of the two filings. Filing with the tax office and forgetting city hall (or the reverse) is the most widespread error. The two administrations do not share the information.
- Assuming an empty property is exempt. An akiya bought for renovation generates fixed asset tax from the following 1 January, even boarded up and without running water.
- Naming your estate agent by default. The agency's job ended at handover; it has no ongoing duty and often stops responding after a few months.
- Appointing a relative without briefing them. A representative who lets envelopes pile up in a drawer exposes you exactly as if you had filed nothing.
- Forgetting to update after a move. If your representative moves house or resigns, a fresh filing is needed — dismissal follows the same formalities as appointment.
- Waiting for the first notice to act. The first notice is precisely the one you will never receive.
- Not opening a Japanese bank account. A representative can front the money, but the mechanics are far simpler with a local account — see our guide to opening a bank account in Japan as a foreigner.
- Confusing tax representation with property management. Two contracts, two scopes: our article on managing a Japanese rental remotely draws the line.
Conclusion: the formality that protects everything else
A tax representative in Japan is neither a planning subtlety nor a negotiable constraint: it is the channel through which the Japanese state speaks to you. Until one exists, you own a property whose notices, demands and refunds never reach you — and since 2022, the authorities can fill that gap without asking your opinion.
Best practice fits in one line: appoint your representative on closing day, file both declarations within the month, and insist that every letter received be scanned to you. The cost is nil if you rely on a relative, modest through a professional, and nothing like the price of regularising three years later.
If you are preparing a purchase, settle this before making an offer, alongside zoning, structural condition and the 180-night minpaku licence if short-term rental is the plan. This is exactly the kind of point we handle upstream in our personalised support, and that you will see reflected in our completed projects. To browse properties already analysed through this lens, see the akiyas tracked by immoJapon.
Frequently asked questions
Does the tax representative have to be a Japanese national?
No. There is no nationality requirement. The only condition is holding an address in Japan — a domicile, residence or place of business — and accepting the role. A French expatriate living in Tokyo can perfectly well represent a non-resident owner.
How much does a tax representative in Japan cost?
Nothing if you entrust the role to a relative living there. Through a licensed tax accountant, expect an order of magnitude of ¥30,000–100,000 (~€200–670) a year for representation alone, plus ¥50,000–150,000 (~€330–1,000) if the annual income tax return is included. Always ask for a quotation: fees vary by city and by number of properties.
Can I appoint my real estate agency as tax representative?
Technically yes if they agree, but it is rarely a good idea. A transaction agency's mission ends at handover and it has no long-term duty of follow-up. A property management company under mandate is a far sounder choice, since it already receives the building's mail.
What happens if I do not appoint a tax representative?
Your tax notices go to an undeliverable address, the debt remains due and late interest accrues. A failure-to-file penalty may be added where an income tax return was expected. Since 1 January 2022, the tax office may also designate a representative for you from among your relatives or contractual partners in Japan.
Do I need a tax representative if my property stays empty?
Yes, for the local side. Fixed asset tax is owed by whoever is the registered owner on 1 January, whether the property is occupied, empty or under renovation. The city hall filing is therefore necessary from the first year of ownership, even with no income at all.
How do I file for a tax representative from abroad?
Both forms can be downloaded online — the National Tax Agency's for national taxes, the relevant city's for fixed asset tax — and sent by post. They must carry the owner's signature and the representative's, with their seal where the municipality requires it.
Does the tax representative pay my taxes out of their own pocket?
No, and they are not legally liable for your debt. They act in your name using funds you make available, usually from a Japanese bank account or from collected rent. That is what makes the role acceptable for a friend or relative.
Does having a tax representative grant any Japanese visa rights?
No, there is no connection. Neither buying property, nor appointing a tax representative, nor paying tax in Japan creates any right of residence. Ownership status and residence status are governed by two entirely separate sets of rules.
Official sources
Put numbers on it
Move from the rules to the numbers: immoJapon's simulator estimates income, net yield, cash-flow and resale — in yen and euros — then check it against the Akiyas actually on the market.