Selling property in Japan while living overseas can involve two separate tax steps: withholding from the sale proceeds and a Japanese income tax return for the gain. Paying one does not automatically complete the other.

This checklist is for individual owners who are non-residents for Japanese income tax purposes. Review the buyer, sale timing and purchase records before settlement. If you have already sold, start by locating the settlement and withholding records and checking the filing year. Company-owned property requires a separate assessment.

Before Settlement: Six Checks for Non-Resident Sellers

Before signing or closing the sale, overseas owners should confirm:

  • whether the seller is a non-resident for Japanese income tax purposes,
  • whether withholding tax may apply to the sale proceeds,
  • whether purchase and improvement documents are available,
  • whether a Japanese tax representative notification is needed,
  • whether prior-year rental income filings are missing,
  • whether co-ownership, inheritance, foreign company ownership, or missing documents make the case complex.

Need help reviewing records and preparing the return? See our Japanese property sale tax return filing service for non-residents for the work we can undertake and the next step.

Does 10.21% Withholding Apply to Your Sale?

When a non-resident sells real estate located in Japan, Japanese withholding tax may apply to the sale proceeds in certain cases. The National Tax Agency explains that, in principle, sale proceeds paid to a non-resident seller of land or buildings located in Japan may be subject to withholding tax at 10.21 percent.

The buyer generally deducts the withholding tax from the amount paid to the non-resident seller. An exception applies where both conditions are met: the price is JPY 100 million or less, and an individual buyer acquires the property as a home for themselves or their relatives. A sale below JPY 100 million is not automatically exempt: the buyer and intended use also matter. Payment arrangements and co-ownership require their own checks.

Withholding tax is not the same as the final tax calculation. The withheld amount may be settled through the Japanese tax return filing process. Depending on the calculation result and supporting documents, an additional payment or refund process may arise. Kudan Partners does not guarantee a refund or tax saving.

Do You Still Need a Japanese Tax Return After the Sale?

The sale of Japanese real estate by a non-resident may require a Japanese income tax return for capital gains. The National Tax Agency explains that income from selling real estate is generally treated as capital gains, and that a final return is generally required.

The general filing period is February 16 to March 15 of the year following the year of sale. Confirm the applicable dates for your filing year. If the seller is outside Japan, tax representative procedures should be reviewed before filing. The filing position may also be affected by prior-year rental income, previous Japanese filings, co-ownership, inheritance-related acquisition, or missing purchase records.

Even if the buyer does not withhold tax, the seller's filing obligation still needs to be checked. The withholding exception does not itself exempt the gain from Japanese income tax.

For documents commonly needed for Japanese tax filing, see Documents Needed for Japanese Tax Filing by Non-Residents.

How Is the Gain Calculated, and Which Records Matter?

The starting point is sale proceeds minus the acquisition cost and qualifying selling expenses. The building portion of acquisition cost is reduced by depreciation for the ownership period, so simply subtracting the original purchase price can give the wrong result. The holding period and any applicable relief also need to be checked. Missing purchase documents can make this review more complex.

Documents to collect before the sale or as early as possible include:

  • sale and purchase agreement for the sale,
  • original purchase agreement,
  • settlement statements for purchase and sale,
  • real estate registration documents,
  • brokerage fee invoices,
  • renovation or improvement invoices,
  • fixed asset tax notices,
  • loan repayment information, if relevant,
  • documents showing ownership structure,
  • withholding tax records related to the sale,
  • prior-year Japanese tax returns, if any.

At the first inquiry stage, do not send contracts, tax notices, bank documents, My Number, passwords, or other sensitive information through the website form or ordinary email. After engagement is confirmed, we will provide a secure document sharing method.

Tax Representative and Filing Deadline Issues

A non-resident seller may need a tax representative in Japan for filing and receiving tax office communications. The National Tax Agency explains that, before submitting a final return, a non-resident must appoint a tax representative and submit the relevant notification to the tax office with jurisdiction over the non-resident's tax place.

After the notification is filed, tax office documents are sent to the tax representative. The tax representative can be an individual or a corporation. However, appointing a tax representative does not make that person or entity the taxpayer. The legal obligation to pay Japanese taxes remains with the taxpayer or property owner.

For tax representative service details, see Tax Representative in Japan for Non-Resident Property Owners.

Common High-Risk Cases

Property sale cases should be reviewed carefully when any of the following applies:

  • purchase documents are missing, incomplete, or inconsistent,
  • the property was inherited or gifted,
  • there are multiple owners or a co-owner living in another country,
  • the owner is a foreign company or asset-holding entity,
  • prior-year rental income filings may be missing,
  • the sale has already closed and the filing deadline is near,
  • withholding tax records are unclear,
  • the taxpayer expects a refund but cannot provide acquisition documents,
  • the case involves a dispute, legal representation, or foreign tax advice.

Some of these cases may require additional review, a higher fee, or coordination with other professionals. We do not provide foreign tax advice, legal representation, real estate brokerage, or immigration advice.

What Information to Prepare Before Contacting Us

For the Free Eligibility Check, please prepare basic, non-sensitive information first:

  • your country of residence,
  • the city or ward where the property is located, without room numbers at the first inquiry stage,
  • whether the property is rented, vacant, personally used, or already sold,
  • sale timing or expected closing date,
  • whether withholding tax was or may be applied,
  • whether purchase documents are available,
  • whether you have filed Japanese tax returns in prior years,
  • whether you already have a tax representative in Japan.

If the property is still rented before sale, see also Japanese Income Tax Return for Non-Resident Rental Income. If fixed asset tax notices are involved, see Fixed Asset Tax Notices for Overseas Owners of Japanese Property.

Fees and Written Case Review

Property Sale Tax Filing starts from JPY 550,000 per transaction (JPY 500,000 plus consumption tax where applicable) for a Standard Case that meets all conditions on our Fees page. For other cases, the Property Sale Tax Filing Package starts from JPY 770,000 per transaction (JPY 700,000 plus consumption tax where applicable). Document availability, ownership, prior filing issues, deadlines and tax representative setup affect the applicable scope and fee.

Property sales are listed among the matters that may need a Complex Written Case Review. We confirm any paid review's scope, fee and payment terms before it begins. Tax return preparation and filing require a separate engagement; the review-fee credit for eligible annual services does not apply to one-time property sale filing.

English communication is by email and chat only. English phone calls and online meetings are not available. If documents are needed, we will provide a secure sharing method after confirming the engagement.

Related Services

Start with a Free Eligibility Check

Planning a sale or already sold? Start with basic, non-sensitive facts about your residence, property location, sale timing and available records. The Free Eligibility Check confirms whether your matter may fit our service; it does not include tax advice, calculations, document review or a final quote.

Check Whether We Can Assist

Official References

Tax references checked on September 8, 2026. External official references are provided for general information. The application of Japanese tax rules depends on the specific facts of each case.

Disclaimer: The information on this page is provided for general informational purposes only and does not constitute tax, legal, real estate, investment, or foreign tax advice. A professional engagement with Kudan Partners begins only after the scope of work, fees, and engagement terms are agreed in writing.