Ministry of Land, Infrastructure, Transport and Tourism LAND AND PROPETY IN JAPAN

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Tax system on acquisition of land


Tax items Taxpayer Object of taxation Tax base Tax rate Special rules, etc.
Registered license tax
( National tax )
Applicant for registration Registration concerning preservation, transfer and others of ownership Value at registration
( Assessed value of fixed assets tax )
Registration of transfer
Main rule: 2%


Registration of ownership preservation
Main rule: 0.4%

*Until the 2007 fiscal year, the tax on registration of transfer by sales transaction concerning land, and registration of ownership trust should be reduced as follows:
– Registration of transfer by sales transaction: 1%
– Registration of ownership trust: 0.2%
*Until the 2006 fiscal year, the tax concerning residential buildings should be reduced as follows:
– Registration of transfer by sales transaction: 0.3%
– Registration of ownership preservation: 0.15%
Real estate acquisition tax
( Prefectural tax )
Individual or corporation that acquired real estate Land and building Price at acquisition
( Assessed value of fixed assets tax )
Main rule: 4% *Until the 2008 fiscal year, the tax rate on lands, both residential and nonresidential, should be reduced from 4% to 3%.
*Special rule on tax base concerning lands
– Reduced to half between 2006 and 2008
*Until the 2008 fiscal year, the tax rate on residential buildings should be reduced from 4% to 3%.
*Until the 2007 fiscal year, the tax rate on nonresidential buildings should be reduced from 4% to 3.5%.
*Special rule on tax base concerning residential buildings
– New houses: Deductible by 12 million yen
*Special rule on tax amount for residential lands ( Reduction of amount equal to 1/4 of tax amount, and deduction of the larger amount of 45,000 yen or the land price per square meter x floor area x 2 x 3/100 )
*Special rule on tax amount for residential lands ( Reduction of amount equal to 1/4 of tax amount, and deduction of the larger amount of 45,000 yen or the land price per square meter x floor area x 2 x 3/100 )
( Municipal tax )
Individual or corporation that acquired land Land Acquisition price of land 3%
( Amount equal to the real estate acquisition tax is deducted. )
*Tax imposition was temporarily stopped from the 2003 fiscal year.
*Tax collection postponement system concerning the land ( residential land, etc. ) for nontaxable purpose
*Tax collection postponement system and tax obligation exemption system concerning the land to transfer for serving as house or residential land, or to build a permanent building
*Tax collection postponement system in the case of land transfer or alteration of business plan
Inheritance tax
( National tax )
Individual who acquired property by inheritance or bequest All inherited properties including lands Value at acquisition
( Assessed value of inheritance tax )
Progressive tax rate of 10-50% Progressive tax rate of 10-50%
Special rule should be applied to a land up to 240 ㎡ ( up to 400 ㎡ for residential land for commercial use ).
[For residence]
– A relative living together continues to live: 80% reduction
– Others: 50% reduction
[For commercial ( except for real-estate lending )]
– In the case of continuing the business: 80% reduction
– Others: 50% reduction
– For real-estate lending: 50% reduction
* Extension of applicable period of special rule on conversion of agricultural land, etc. in the specially designated urbanization area, on which tax payment is postponed.
– In the case of converting land to a rental housing site, the postponement of tax payment is continued, and after a prescribed period, the tax payment is exempted.

Ministry of Land, Infrastructure, Transport and Tourism 2-1-3 Kasumigaseki, Chiyoda-ku, Tokyo 100-8918(Tel)+81-3-5253-8111 Copyright(c) 2008-2011 MLIT Japan. All Rights Reserved.