For individuals who live outside Japan
Selling or renting out Japanese property from overseas?
You may still need to file a Japanese tax return, even if you live abroad. We prepare and file it for you, by email in written English.
Individuals only. Japanese tax only. No calls.
Please note: Our tax accountant does not speak English. We work in writing only and do not offer phone or video calls. We write to you in English and handle the translation on our side.
Is this you?
- You live outside Japan, and you are selling or have sold a home or investment property in Japan.
- You live outside Japan and receive rent from property in Japan.
- Your buyer or tenant withheld tax, and you do not know what happens next.
- Your tenant pays the full rent, and you have never filed a Japanese tax return.
- You moved abroad, kept your former home in Japan, and you are thinking about selling it.
In Japanese tax law, a non-resident has no domicile in Japan and has not stayed here for a year or more in a row. A job abroad expected to last a year or more usually makes you one. For more, read Your Tax Status in Japan.
How the tax works
Japan taxes income from property in Japan, wherever you live. Tax is often withheld first, and your final tax return (kakutei shinkoku) settles the amount.
Withholding on a sale and on rent
Selling
- Tax withheld: 10.21% of the full sale price, including surtaxes.
- Who withholds: The buyer, whether a company or an individual.
- Main exception: An individual buys a home for themselves or a relative, and the price is ¥100 million or less.
- Tax return: Required in principle.
Renting out
- Tax withheld: 20.42% of the rent, including surtaxes.
- Who withholds: The tenant, whether a company or an individual.
- Main exception: An individual rents a home for themselves or a relative to live in.
- Tax return: Required when your income in Japan is more than your deductions.
In both cases, the filing period is February 16 to March 15 of the next year.
Example: Maria sells an apartment for ¥60,000,000
- At the sale: The buyer withholds 10.21%, which is ¥6,126,000. Maria receives ¥53,874,000.
- Her gain: ¥60,000,000 − ¥30,000,000 (purchase cost after depreciation) − ¥2,000,000 (selling costs) = ¥28,000,000.
- Income tax on the gain: ¥28,000,000 × 15.315% = ¥4,288,200.
- In the tax return: ¥6,126,000 − ¥4,288,200 = ¥1,837,800. This amount may be refunded after a tax return is filed.
Maria is a fictional example. She owned the property for more than five years as of January 1 of the year of sale. She has no other income in Japan and uses no special rule. For five years or less, the rate is 30.63%.
Rent works in a similar way. On rent of ¥3,000,000 a year, withholding is ¥612,600. Your return then works out the tax on rent after expenses, such as management fees, repairs and depreciation. If you are a non-resident for all of 2026, your basic deduction is at most ¥620,000.
If you sell a home you used to live in, a deduction of up to ¥30 million may apply, even if you now live abroad. You must sell by December 31 of the year that contains the third anniversary of the day you moved out. If you moved out in April 2023, the last day is December 31, 2026. Other conditions apply, and the buyer may still withhold 10.21%.
If you need to file, you must appoint a tax agent and notify the tax office (zeimusho). The agent handles filing, tax office mail and payments for you. It can be a person living in Japan, such as a relative, or a Japanese corporation. A refund is paid into the agent's account, so choose someone you trust.
If you do not have anyone in Japan who can act as your tax agent, we can act for you. The fee is ¥60,000 per year (¥66,000 with consumption tax).
Common mistakes
- Treating the withholding as the end of the matter. Nothing is settled until a return is filed, and you may owe more tax.
- Filing nothing because nothing was withheld. A tenant who rents a home to live in does not withhold, but you may still need to file.
- Relying on your residence record (juminhyo). Your tax status depends on where your life is based. Tell your buyer the facts before the contract.
- Losing your purchase documents. Without them, you may have to use 5% of the sale price as your cost. In Maria's example, her tax would rise to ¥8,423,250. Instead of a refund, she would owe about ¥2.3 million on top of the withheld tax.
- Missing the ¥30 million deadline. The date is counted from the day you moved out, so check it before you set a sale date.
What you can do yourself, and where you need a professional
You can do this yourself
- Check whether your buyer or tenant will withhold tax.
- Collect the sale contract, the purchase contract and broker invoices.
- Collect rental statements, repair invoices and property tax notices.
- Decide who could act as your tax agent.
You need a professional when
- It is not clear whether you are a non-resident.
- You want to use the ¥30 million deduction or another special rule.
- The property was inherited, was rented out, or has several owners.
- You need to work out depreciation on the building.
What we do
Most property documents are in Japanese. We read them in the original, so you do not need to translate them.
- Work out your purchase cost, depreciation, selling costs or rental expenses from your documents.
- Check special rules and their time limits.
- Settle the withheld tax against your actual tax.
- Send you a written English summary, and file after you approve it.
- Tell you in writing what to pay, or what refund to expect, and by when.
Your return is prepared and signed by Yuma Komatsu, Certified Public Accountant (No. 43196) and Licensed Tax Accountant (No. 151214).
We help individuals only, with Japanese tax only, and we do not offer calls. You may also need to report this income where you live. We do not handle that return, so please ask an adviser in that country.
Fee examples
These are the fees for our English-language service.
| Example | Fee |
|---|---|
| Living overseas, ¥3 million of rent from one property | ¥100,500¥110,550 with tax |
| Living overseas, property sold for ¥50 million | ¥195,000¥214,500 with tax |
Your fee depends on your documents. Consumption tax is included in the second figure. Using the ¥30 million deduction adds ¥22,500 (¥24,750 with consumption tax). These fees are for your return only. If we act as your tax agent, that fee is ¥60,000 per year (¥66,000 with consumption tax). We confirm your fee by email after we review your documents. These are regular fees. If you apply by December 31, 2026, you get 10% off, down to the minimum fee.
How it works
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Get a free written quote
Tell us about the property and where you live. We aim to reply in written English within two business days, Japan time. Answers about your own tax position come after you engage us.
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Sign the engagement letter
You review the terms and sign. We then start work on your return.
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Upload documents
We send you a checklist and a secure upload folder. If something is missing, we ask by email.
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Review the English summary
Before filing, you check a written English summary and approve it. If the English and Japanese differ, the Japanese original applies.
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We file your return
We sign your Japanese return and file it with the tax office.
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Receive your copies
We send you copies of the filed return, with what to pay or what refund to expect.
Frequently asked questions
Will the 10.21% be refunded?
It depends on your actual tax. Withheld tax may be refunded after a tax return is filed, if it is more than the tax on your gain. If your tax is higher, you pay the difference.
Do I need to file if I made a loss on the sale?
A return may not be required. However, withheld tax is only settled through a return, so you need to file if you want it refunded.
My tenant pays the full rent and nothing is withheld. Do I still file?
You may need to. No tax is withheld when an individual rents a home to live in. You still file if your income in Japan is more than your deductions.
Can I use the ¥30 million deduction while I live abroad?
You may be able to, if you lived in the home and meet the other conditions. You must sell by December 31 of the year that contains the third anniversary of the day you moved out.
Who can be my tax agent?
A person living in Japan, such as a relative, or a Japanese corporation. If you do not have anyone in Japan who can act as your tax agent, we can act for you. The fee is ¥60,000 per year (¥66,000 with consumption tax).
How do I pay Japanese tax from overseas?
You can pay by credit card if the amount is less than ¥10 million. You can send yen from abroad, after arranging it with the tax bureau. Your tax agent can also pay for you. Direct payment and internet banking need a bank account in Japan.
See your fee before you decide
Answer a few questions and get your fee in 60 seconds, or send your details for a free written quote.