If you live outside Japan and sell real estate located in Japan, you may need to file a Japanese income tax return for capital gains.
Kudan Partners supports non-resident owners with Japanese property sale tax filings, calculation of capital gains, review of purchase and sale documents, and tax representative procedures.
Withholding Tax on Sale Proceeds
When a non-resident sells real estate located in Japan, withholding tax may apply to the sale proceeds in certain cases.
The withheld amount may be settled through the Japanese tax return filing process. Depending on the calculation result, additional tax payment or a refund may arise.
In general, sale proceeds paid to a non-resident seller may be subject to withholding tax at 10.21 percent, unless an exception applies.
Importance of Purchase Documents
To calculate capital gains, it is important to review documents related to the original acquisition of the property.
If purchase documents are missing, the tax calculation may become more complex. We recommend collecting purchase agreements, settlement statements, registration costs, renovation records, and other acquisition-related documents as early as possible.
Documents We May Request
- Sale and purchase agreement for the sale
- Original purchase agreement
- Settlement statements
- Real estate registration documents
- Brokerage fee invoices
- Renovation or improvement invoices
- Fixed asset tax notices
- Loan repayment information, if relevant
- Documents showing ownership structure
- Prior-year Japanese tax returns, if any
- Withholding tax records related to the sale
Important notice: Please do not send contracts, tax notices, 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 Property Sale Tax Filing
- We review the sale structure and ownership information.
- We confirm whether withholding tax applies.
- We review acquisition cost and sale-related expenses.
- We calculate Japanese capital gains tax.
- We prepare and file the Japanese tax return.
- We provide guidance on tax payment instructions or refund procedures as needed.
This service is often combined with tax representative support in Japan when the owner lives outside Japan.
Request Property Sale Tax Filing Support
If you are planning to sell or have already sold Japanese real estate while living outside Japan, please contact us before the filing deadline.
Fees for the Property Sale Tax Filing Package start from JPY 770,000 per transaction. View fees.
Official References
- National Tax Agency: Withholding tax when purchasing real estate from non-residents
- National Tax Agency: Sale of Japanese real estate by non-residents
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.