Understanding Fees and Taxes + Ongoing Costs of Owning Property in Japan

Understanding the upfront and ongoing costs ensures your investment stays profitable and free of surprises. Japan’s tax system is straightforward once broken down into categories. Non-resident owners are taxed the same as local owners.

One-Time Acquisition Costs

In the U.S., buyers are used to paying Escrow or closing costs, which combine title transfer, attorney/escrow services, recording fees, and prepaid taxes/insurance into one bundle. In Japan, there isn’t a single “Escrow fee.” Instead, the same functions are covered by itemized one-time costs:

日本語 Japanese	English	Explanation	Typical Amount
所有権移転費用	Ownership Transfer Fee	Judicial scrivener + registration tax when ownership is transferred.	~¥200,000
抵当権設定費用	Mortgage Registration Fee	Paid if financing is used to register a mortgage lien.	Depends on loan size and ¥0 for cash purchases
印紙税	Stamp Duty	Tax on purchase contract; varies with property price. With MPATHIAN’s referral partners, this fee will be waived.	~¥20,000+
火災保険料	Fire Insurance Premium	Annual fire coverage, often required by lenders. Optional but recommended for cash purchase.	~¥22,500 / 5 years
地震保険料	Earthquake Insurance Premium	Optional but recommended in quake-prone areas.	~¥6,000 / 5 years
ローン事務手数料	Loan Administration Fee	Bank handling fee for arranging a mortgage.	¥30,000–¥100,000 and ¥0 for cash purchases
事業者事務手数料	Agency / Admin Fee	Fee charged by the real estate company for processing paperwork, handover process with tenants and the property management company. With MPATHIAN’s referral partners, this fee may be discounted.	¥330,000
固都税等精算金	Prorated Fixed Asset & City Planning Tax	Reimbursement to seller for prepaid annual taxes.	~¥40,000–¥60,000
管理費等精算金	Prorated Management Fee	Buyer reimburses seller for monthly building fees already paid.	~¥20,000–¥30,000
不動産取得税	Real Estate Acquisition Tax	One-time prefectural tax, usually 3% of the assessed value, billed several months after purchase.	Varies by property

On-going Costs

After purchase, Japanese property owners face predictable ongoing expenses, much like U.S. homeowners do.

日本語 Japanese	English	Explanation	Typical Amount
建物管理費	Building Management Fee	Comparable to U.S. HOA (Homeowners Association) dues. Monthly fee for cleaning, security, and upkeep of shared spaces. It varies by property.	¥3,000–¥10,000 per month
修繕積立金	Repair Reserve Fund	Similar to a U.S. HOA’s reserve fund contributions. Ensures long-term building repairs (roof, elevators, structure) are covered without surprise assessments. It varies by property.	¥3,000–¥10,000 per month
不動産管理	Property Management Fee	Common Services Covered by Property Management in Japan: Tenant relations, rent collection, maintenance & repair, financial management, legal & contractual, emergency support. In Japan many investors use a property manager who collects rent and handles tenant payments. Various packages available comes with different pricing.	¥4,400 - 12% of Rent
固定資産税	Fixed Asset Tax	Equivalent to U.S. property tax. 1.40% based on property and land value (reassessed every 3 years). Based on government-assessed value, billed annually.	Varies by property
都市計画税	City Planning Tax	A smaller additional tax in designated urban zones, funding local infrastructure. No direct U.S. equivalent, but you can think of it like a local district levy and billed annually. 0.30% based on property and land value (reassessed every 3 years).	Varies by property

With proper planning, these costs are predictable and can be factored into your yield calculations.