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 under separately scoped engagements.

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Tax Representative Service

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 may then be settled through the annual Japanese income tax return. Refund receipt, holding, or onward payout to clients is not currently handled by Kudan Partners. If the matter requires Kudan Partners to receive, hold, or pay out a refund to the client, we cannot accept the engagement under the current service.

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

  1. We review your rental status and tax filing history.
  2. We confirm whether a tax representative notification is required.
  3. We collect rental income and expense documents.
  4. We calculate taxable rental income under Japanese tax rules.
  5. We prepare and file the Japanese income tax return.
  6. We provide guidance on tax payment instructions. Refund receipt, holding, or onward payout to clients is not currently handled by Kudan Partners.

Related Articles

For a broader explanation of rental income filing and tax representative requirements, see the following English articles.

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.

Rental income tax return services are separately reviewed and individually quoted. The scope and fee depend on factors such as the number of properties and owners, prior-year filings, property sales, document completeness, and ownership structure. View fees.

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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.