How Much Are the Hidden Costs When Buying Property in Japan？

When buying real estate in Japan, many first-time buyers focus on the property price alone.
However, there are several additional costs—some of them unexpected—that can significantly increase your total expenses.

Here’s a simple breakdown of the hidden (but essential) costs you should prepare for when buying property in Japan.

1. Registration and License Tax

What it is: A national tax for registering ownership with the Legal Affairs Bureau.
Typical cost: Around 0.4% to 2.0% of the property’s assessed value (not the purchase price).
This is paid when you officially transfer ownership.

2. Judicial Scrivener Fees

What it is: Payment to a legal professional who handles the ownership transfer.
Typical cost: ¥50,000 to ¥150,000 depending on the complexity and property value.
A judicial scrivener is essential for ensuring legal accuracy.

3. Real Estate Agent Commission

What it is: A fee paid to your broker or real estate agency.
Standard rate:
(Property price × 3%) + ¥60,000 + tax
This fee is usually paid at the time of contract or closing.

4. Property Acquisition Tax

What it is: A local government tax on property purchases.
When it’s paid: Within a few months after registration.
Typical rate:

• Land & house: 3–4% of assessed value
• Reductions may apply for residential use or newly built homes

5. Stamp Duty (Revenue Stamp)

What it is: A small tax on the sales contract.
Cost: Usually between ¥1,000 to ¥100,000 depending on the property price.
It’s paid by attaching a stamp to the contract.

6. Other Possible Costs

Depending on your situation, you might also need to pay:

• Loan-related fees (if borrowing from a bank)
• Home insurance premiums
• Maintenance fees (especially for condominiums)
• Renovation or repair costs
• Utilities and moving costs

Example: Hidden Costs for a ¥30,000,000 Home

Conclusion

When buying a property in Japan, the actual cost is more than just the price tag.
Being aware of hidden costs allows you to budget accurately and avoid surprises.

Our office can help you calculate total expenses and guide you through the legal steps—so you know exactly what to expect.

📩 Have questions? Contact us anytime for a consultation in English.