Selling Japanese property while living overseas involves two tax checks: withholding from the sale proceeds and a Japanese income tax return for the gain. Completing one does not automatically complete the other.

This checklist is for individual owners who are non-residents for Japanese income tax purposes. Before signing or settlement, check your residence status, the buyer and payment arrangements, purchase records, tax representative procedures and any missing rental income returns. Co-ownership, inheritance and incomplete records may require additional review. Company-owned property requires a separate assessment.

If you have already sold, locate the settlement and withholding records and confirm the filing year and deadline. For assistance, see our Japanese property sale tax return filing service for non-residents.

Does 10.21% Withholding Apply?

In principle, proceeds paid to a non-resident for the sale of land or buildings located in Japan may be subject to withholding at 10.21%. The buyer generally deducts this from the payment to the seller. The withholding calculation concerns the sale proceeds, not the gain.

The residential purchase exception requires all three conditions
Individual buyer

The buyer is an individual.

Home for the buyer or relatives

The property is acquired as a home for that individual or their relatives.

JPY 100 million or less

The sale price does not exceed JPY 100 million.

A price below JPY 100 million alone is insufficient. Confirm the buyer, intended use and price together. Payment arrangements and co-ownership need their own checks.

Withholding is not the final income tax calculation. The withheld amount may be settled through the Japanese return, potentially resulting in an additional payment or a refund procedure. The outcome depends on the calculation and records. Kudan Partners does not guarantee a refund or tax saving.

Do You Still Need a Japanese Tax Return?

The sale of Japanese real estate is generally treated as capital gains, and a final income tax return is generally required. Even if the buyer does not withhold, the seller's filing position must still be checked: the withholding exception does not itself exempt the gain from Japanese income tax.

The general filing period is February 16 to March 15 of the year following the sale. Confirm the applicable dates for your filing year and review tax representative procedures before filing. Prior-year rental income, previous Japanese returns, co-ownership, inherited property and missing purchase records can affect the review.

Sale Proceeds and Taxable Gain Are Different Amounts

The starting point for the gain calculation
Sale proceeds

Start with the amount received for the property sale.

Less acquisition cost

Review the supported acquisition cost. The building portion is reduced by depreciation for the ownership period.

Less qualifying selling expenses

Review expenses that qualify for the gain calculation and the documents supporting them.

The resulting gain needs further review for the holding period and any applicable relief. Simply subtracting the original purchase price can give the wrong result. Missing acquisition records make the review more complex.

Records to Collect

Collect these records before sale or as early as possible after settlement. For a broader list, see Documents Needed for Japanese Tax Filing by Non-Residents.

Open the 11-item property sale checklist
  • 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. We will provide a secure document sharing method after the engagement is confirmed.

Arrange Tax Representative Procedures Before Filing

The National Tax Agency explains that, before submitting a final return, a non-resident must appoint a tax representative and notify the tax office with jurisdiction over the non-resident's tax place. Review the required timing for your circumstances.

After notification, tax office documents are sent to the representative, who can be an individual or corporation. Appointment does not transfer the taxpayer's obligation to pay Japanese taxes. See Tax Representative in Japan for Non-Resident Property Owners for the service scope.

Cases That Need Additional Review

Check whether any of these circumstances apply
  • 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 closed and the filing deadline is near.
  • Withholding records are unclear.
  • A refund is expected but acquisition documents are unavailable.
  • The case involves a dispute, legal representation or foreign tax advice.

These circumstances 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 to Prepare for the Free Eligibility Check

Start with basic, non-sensitive facts:

  • Residence and property: your country of residence and the property's city or ward, without room numbers.
  • Current position: whether the property is rented, vacant, personally used or already sold, and the sale timing or expected closing date.
  • Records: whether withholding tax was or may be applied and whether purchase documents are available.
  • Japanese procedures: whether you have filed prior-year Japanese returns and already have a tax representative.

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

Fees and Written Case Review

The standard Property Sale Tax Filing Package is JPY 346,500 per transaction (JPY 315,000 plus consumption tax where applicable), including the necessary national tax representative work for the agreed period. This applies to one property owned by one individual with complete acquisition records and more than 45 days before the filing deadline, subject to the conditions on our Fees page. Included national tax representative work is not charged again. Other cases, local tax work, refund receipt and overseas return arrangements, and additional work are quoted separately.

A free scope check and quotation are available. A paid Written Case Review is optional and is not required for a standard quote. If requested, we agree its 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, even when national tax representative work is included.

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 covers service suitability, scope and quotation. It does not include tax advice, calculations or document review. A paid written review is optional.

Check Whether We Can Assist

Official References

Tax references checked on October 3, 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.