Glossary of Essential Japanese Real Estate Terms

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In this article, we introduce Japanese terms you should know when considering purchasing real estate in Japan.

General Terms

Japanese(ro-maji)EnglishDescription
不動産 (fudōsan)Real EstateLand and Buildings
東京 (Tōkyō)TokyoThe Capital of Japan
購入 (kōnyū)PurchasePurchase.
外国人 (gaikokujin)ForeignerPerson without Japanese Nationality
メリット (meritto)Merit / AdvantageAdvantages / Strengths
デメリット (demeritto)Demerit / DisadvantageDisadvantages / Weaknesses
手続き (tetsuzuki)Procedure / ProcessProcess
買付証明書 (kaitsuke shōmeisho)Purchase Application / Letter of Intent to BuyDocument Indicating Intent to Purchase
重要事項説明 (jūyō jikō setsumei)Explanation of Important MattersPre-contract detailed explanation of the property and contract terms by a licensed real estate transaction specialist
売買契約書 (baibai keiyakusho)Sales and Purchase AgreementLegally binding contract for real estate sale and purchase
手付金 (tetsukekin)Deposit / Earnest MoneyDeposit (earnest money) paid by the buyer to the seller at the time of the sales contract
登記 (tōki)RegistrationOfficially recording the property rights with the Legal Affairs Bureau
所有権移転登記 (shoyūken iten tōki)Ownership Transfer RegistrationRegistering the transfer of property ownership from the seller to the buyer
司法書士 (shihō shoshi)Judicial ScrivenerLegal professional specializing in real estate registration procedures
税金 (zeikin)TaxTaxes incurred when purchasing, owning, or selling real estate
印紙税 (inshi zei)Stamp DutyTax imposed on the sales contract (e.g., stamp duty)
登録免許税 (tōroku menkyo zei)Registration and License TaxTax imposed at the time of real estate registration (e.g., registration license tax)
不動産取得税 (fudōsan shutoku zei)Real Estate Acquisition TaxOne-time tax levied at the time of real estate acquisition (acquisition tax)
固定資産税 (kotei shisan zei)Fixed Asset TaxTax imposed on property owners as of January 1 each year (fixed asset tax)
都市計画税 (toshi keikaku zei)City Planning TaxTax imposed on property owners within urban planning areas, collected together with fixed asset tax (city planning tax)
ローン (rōn)LoanLoan for purchasing real estate (e.g., mortgage loan)
納税管理人 (nōzei kanrinin)Tax Agent / Tax AdministratorPerson who handles tax procedures on behalf of a non-resident taxpayer (tax agent)
宣誓供述書 (sensei kyōjutsu sho)AffidavitDocument authenticated by a notary public in the non-resident’s home country submitted instead of a residence certificate or seal registration certificate
在留カード (zairyū kādo)Residence CardIdentification card (Residence Card) issued to foreigners residing in Japan for the medium to long term
住民票 (jūminhyō)Certificate of ResidenceCertificate of residence issued by a Japanese municipality (Jūminhyō)
印鑑証明書 (inkan shōmeisho)Seal CertificateCertificate of registered seal (Inkan shōmeisho)
宅地建物取引業法 (takuchi tatemono torihiki gyōhō)Real Estate Transaction Business ActLaw regulating real estate transactions (e.g., the Real Estate Brokerage Act)
外国為替及び外国貿易法 (gaikoku kawase oyobi gaikoku bōeki hō) / 外為法 (gaitamehō)Foreign Exchange and Foreign Trade ActLaw stipulating reporting obligations for real estate acquisition by non-residents (e.g., Foreign Buyers’ Reporting Act)
重要土地等調査法 (jūyō tochi-tō chōsa hō)Important Land Survey LawLaw that sets forth regulations on the transaction of land important for national security (e.g., Act on Regulation of Land Transactions)
区分所有法 (kubun shoyū hō)Building Unit Ownership ActLaw governing the rights and management of condominium (unit ownership) buildings (e.g., the Condominium Law)
管理組合 (kanri kumiai)Management AssociationManagement organization composed of condominium unit owners (owners’ association)
管理費 (kanrihi)Management FeeFees for daily maintenance and management of a condominium (monthly maintenance fee)
修繕積立金 (shūzen tsumitatekin)Repair Reserve FundReserve fund for major repairs of a condominium (repair reserve fund)
内覧 (nairan)Property Viewing / InspectionVisiting the property in person (property viewing)
現状有姿 (genjō yūshi)As-is ConditionDelivering the property in its current (as-is) condition
仲介手数料 (chūkai tesūryō)Brokerage Commission / Agent FeeCommission paid to the real estate agent
賃貸 (chintai)Lease / RentLeasing or renting real estate
家賃 (yachin)RentFee paid when renting a property (rental fee)

Tax Related Terms

Name of Tax(Japanese・English)課税時期課税標準標準税率(概算)外国人購入者への主な注意点
印紙税 (Stamp Duty)At time of purchaseContract amountVaries based on the contract amountAffixed to the sales contract
登録免許税 (Registration & License Tax)At time of purchaseAssessed value of fixed assets (ownership) and secured claim amount (mortgage)0.4%~2%Paid via a judicial scrivener at the time of registration
不動産取得税 (Real Estate Acquisition Tax)After purchaseAssessed value of fixed assets3%~4%Reduction measures available; prefectural tax
固定資産税 (Fixed Asset Tax)AnnuallyAssessed value of fixed assets1.4% (standard)Taxed to the owner as of January 1; non-residents require a tax agent
都市計画税 (City Planning Tax)AnnuallyAssessed value of fixed assetsUp to 0.3%Within an urban planning area; taxed together with the fixed asset tax; non-residents require a tax agent
所得税(賃貸収入)(Income Tax on Rental Income)Annually (upon filing a tax return)Rental income (gross income – necessary expenses)Progressive taxationNon-residents are taxed only on Japan-sourced income; may be subject to withholding; a tax agent is required
住民税(賃貸収入)(Resident Tax on Rental Income)AnnuallyPrevious year’s rental incomeApproximately 10%Japanese residents are taxed; non-residents have no income-based levy (may have only the per-capita levy)
譲渡所得税 (Capital Gains Tax)At saleCapital gains (sale price – acquisition cost – transfer expenses)Short-term: 39.63%, Long-term: 20.315%If the seller is a non-resident, the buyer withholds tax (10.21%) (exceptions apply); file a final return through a tax agent
相続税 (Inheritance Tax)At inheritanceValue of inherited assetsProgressive taxationReal estate in Japan is generally subject to taxation. International rules are complex; consultation with a specialist is essential
贈与税 (Gift Tax)At giftValue of gifted assetsProgressive taxationReal estate in Japan is generally subject to taxation. International rules are complex; consultation with a specialist is essential