If you live outside Japan and earn rental income from real estate located in Japan, you may need to file a Japanese income tax return.
Kudan Partners supports non-resident property owners with Japanese rental income tax filings, tax representative services, and communication with Japanese tax authorities.
Rental Income and Withholding Tax
Rental income from real estate located in Japan is generally treated as Japanese-source income for non-residents.
In certain cases, the payer of rent may withhold Japanese income tax from rent payments. The withheld tax is then settled through the annual Japanese income tax return.
For example, when rent is paid by a company to a non-resident owner, withholding tax may apply at the rate of 20.42 percent, subject to the applicable rules and facts of the case.
Common Deductible Expenses
- Property management fees
- Repair and maintenance costs
- Fixed asset tax and city planning tax
- Depreciation of buildings and facilities
- Insurance premiums related to the rental property
- Loan interest related to the property
- Professional fees related to tax filing
- Other expenses directly related to rental operations
Documents Required for Rental Income Tax Filing
- Lease agreement
- Annual rental income statement
- Property management company statements
- Fixed asset tax notice
- Purchase agreement
- Building and land allocation information, if available
- Loan statement and interest information
- Repair and maintenance invoices
- Insurance documents
- Prior-year Japanese tax return, if any
- Withholding tax records, if any
Important notice: Please do not send tax returns, contracts, bank documents, or other sensitive documents through the initial inquiry form. We will provide a secure method for document sharing after confirming the engagement.
How We Support Your Tax Filing
- We review your rental status and tax filing history.
- We confirm whether a tax representative notification is required.
- We collect rental income and expense documents.
- We calculate taxable rental income under Japanese tax rules.
- We prepare and file the Japanese income tax return.
- We provide guidance on tax payment instructions or refund procedures as needed.
Request Rental Income Tax Filing Support
If you receive rental income from Japanese real estate while living outside Japan, please contact us with your property location, rental status, and prior filing history.
Fees for the Rental Property Tax Filing Package start from JPY 550,000 for the first year and from JPY 440,000 per year from the second year, assuming one property and one owner. View fees.
Official References
External official references are provided for general information. The application of Japanese tax rules depends on the specific facts of each case.
Communication policy: Our services are generally provided by email and secure online communication. Video meetings and phone calls are not included in the standard service unless separately agreed.
Disclaimer: The information on this website is provided for general informational purposes only and does not constitute tax, legal, or investment advice. Japanese tax treatment depends on the specific facts and circumstances of each case. A professional engagement with Kudan Partners begins only after the scope of work, fees, and engagement terms are agreed in writing.