Buying a property in Japan
by foreign citizens is achievable regardless if they have a permanent resident status or not in the country
. Foreign citizens can acquire a property in Japan
by following a relatively easy procedure, if they have their own financial means to cover the transaction.
Signing the contract to buy a property in Japan
Before signing any property purchase contract in Japan, it is important to understand all the important contractual matters.
According to the Japanese legislation, every property purchase contract has to be paired with an Explanation of Important Matters which has to be signed and sealed by a Real Estate Notary with a National License.
The Explanation of Important Matters includes:
• A summary of the property at the date of the contract;
• Different legal limits;
• The infrastructure arrangements for the real estate;
• The management of the property or the limitation of its utilization;
• The payment method agreed upon by both parts;
• The compensation for the contract infringement;
• The owner’s rights.
When buying a property in Japan, the buyer has to present the following items:
• A revenue stamp fee, which depends on the value of the sale;
• A seal;
• A deposit, usually between 10 to 20% of the sale price;
• A personal ID, a driver’s license or a passport.
Different costs involved in buying a property in Japan
Besides the initial 10 to 20% deposit of the sale value of the property, the costs of buying and then re-selling a property in Japan involve the following:
• A consumption tax: levied upon the sale of a real estate in the country. It is established at a flat rate of 5%;
• An acquisition tax: it is applied to the valuation of the real estate as established by the local government agencies. Generally, it is around 60 to 80% of the market value of the property;
• A registration tax: it is established at 2% for buildings;
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