An overseas owner selling property in Niseko normally pays Japanese tax on the gain rather than on the whole price, yet the buyer withholds a larger amount at settlement, which the seller then reconciles by filing a Japanese tax return. Knowing that difference before you list makes it much easier to plan your cash and your timing.
Key points
- Tax applies to the gain. Taxable gain is the sale price less your acquisition cost and your transfer expenses, and the agent’s fee and contract stamp duty count as transfer expenses (NTA No.3208).
- Your holding period sets the rate. Property owned for more than five years on 1 January of the sale year is taxed at 15% income tax, and five years or less at 30%, before a 2.1% reconstruction surtax calculated on that tax (No.3208, No.3211).
- The buyer withholds 10.21% of the price. The exception is a purchase of ¥100 million or less where the buyer or a relative will live in the property (NTA No.1932).
- Withholding is settled afterwards. You file a return between 16 February and 15 March the following year through a tax representative, and withholding above your actual tax can be refunded (No.1932).
- Contract stamp duty is small. For contracts signed up to 31 March 2027 it is ¥10,000 to ¥60,000 for prices between ¥10 million and ¥500 million (NTA No.7108).
- Settlement usually takes four to six weeks in the Niseko area, according to Nisade’s FAQ.
Costs at a glance
Seven items make up most of what an overseas seller pays, has withheld or should check for. Only the first four are specific to the sale itself.
| Cost | Who pays | How it is calculated | When it falls due |
|---|---|---|---|
| Capital gains income tax | Seller | 15% (owned over 5 years) or 30% (5 years or less) of the gain, plus 2.1% of that tax | Return filed 16 February to 15 March the following year |
| Withholding at settlement | Seller, withheld by the buyer | 10.21% of the sale price, unless an exception applies | Taken from the price at settlement, reconciled when you file |
| Resident tax | Seller, if registered as a resident of Japan | 5% (long-term) or 9% (short-term) of the gain | Assessed locally, so confirm whether it applies to you |
| Contract stamp duty | Set by the contract terms | ¥10,000 to ¥60,000 for prices from ¥10 million to ¥500 million | At signing |
| Agent’s fee | Seller | As agreed in your listing agreement | Per your agreement |
| Fixed asset tax | Owner on 1 January | 1.4% of the government-assessed value | Annual, so ask how the current year’s bill is handled at settlement |
| Consumption tax | Only a seller registered for it | 10% on the building portion, not the land | Confirm with your tax adviser |
Rates are taken from National Tax Agency pages dated 1 April 2026 and from Nisade’s FAQ, and the full list of sources is at the end. Agent fees are agreed individually, so no rate is shown here.
Agent fees and stamp duty
Both costs are modest next to the tax on your gain, and both reduce that gain because the National Tax Agency treats the agent’s fee and the contract stamp duty as transfer expenses (No.3208).
Your agent’s fee is set in your listing agreement, so ask for the terms in writing before you sign.
Stamp duty depends on the contract amount. A temporary reduction applies to real estate sale contracts signed between 1 April 2014 and 31 March 2027, and the table shows both the reduced amount and the standard amount that would apply without it (No.7108, No.7140).
| Contract amount | Stamp duty with the reduction | Standard stamp duty |
|---|---|---|
| Over ¥10 million to ¥50 million | ¥10,000 | ¥20,000 |
| Over ¥50 million to ¥100 million | ¥30,000 | ¥60,000 |
| Over ¥100 million to ¥500 million | ¥60,000 | ¥100,000 |
If your contract may be signed close to the end of March 2027, check with your agent which rate applies.
Capital gains tax for non-residents
A non-resident is taxed in Japan on the gain from selling Japanese property, and the gain is calculated the same way as for a resident (NTA No.1932). The rate depends on how long you have owned the property on 1 January of the year you sell.
| Ownership on 1 January of the sale year | Income tax | Reconstruction surtax | Effective national rate |
|---|---|---|---|
| Over 5 years (long-term) | 15% | 2.1% of the income tax | 15.315% |
| 5 years or less (short-term) | 30% | 2.1% of the income tax | 30.63% |
The rates come from No.3208 and No.3211, and the effective rates are my arithmetic from them (15% x 1.021 and 30% x 1.021).
A few points shape the result.
- The gain. It is the sale price less your acquisition cost and your transfer expenses, which include the agent’s fee and the contract stamp duty.
- Acquisition cost. For a building, it is reduced by depreciation over your period of ownership. If the cost is unknown, or is below 5% of the sale price, 5% of the sale price may be used instead.
- Resident tax. The 5% and 9% shown alongside these rates on the NTA pages are a local resident tax, so confirm with your tax adviser whether it applies to you.
- Special deductions. None is normally available, apart from specific cases such as the main-home exemption.
- The five-year line. As an illustration, a property bought in June 2021 and sold in 2026 is short-term, because it had been owned for 4 years and 7 months on 1 January 2026. Selling in 2027 would make it long-term, because it would then be 5 years and 7 months.
Withholding on a non-resident sale
When a buyer pays a non-resident for Japanese land or buildings, the buyer must generally withhold 10.21% of the price, made up of 10% income tax and 0.21% reconstruction surtax (NTA No.1932). It is charged on the whole price, not on your gain, so it is usually larger than the tax you finally owe.
The exception is a sale of ¥100 million or less to a buyer who will live in the property themselves or house a relative there.
The withholding is reconciled when you file your Japanese return between 16 February and 15 March the following year. You must appoint a tax representative and notify the tax office before filing, and the representative can be an individual or a company. If more was withheld than you owe, you can claim the difference back through that return.
The NTA also notes that from the 2027 tax year the calculation includes a defence special income tax, so confirm the rate in force on your settlement date.
The example below shows why the cash you receive at settlement differs from your final position. It uses invented numbers and is not a Nisade listing or a forecast, and it ignores agent’s fees, resident tax and any other costs.
| Line | Owned over 5 years | Owned 5 years or less |
|---|---|---|
| Sale price | ¥100,000,000 | ¥100,000,000 |
| Acquisition cost after building depreciation | ¥70,000,000 | ¥70,000,000 |
| Transfer expenses | ¥3,000,000 | ¥3,000,000 |
| Taxable gain | ¥27,000,000 | ¥27,000,000 |
| Tax at the effective national rate | ¥4,135,050 | ¥8,270,100 |
| Withheld by the buyer at 10.21% of the price | ¥10,210,000 | ¥10,210,000 |
| Paid to the seller at settlement | ¥89,790,000 | ¥89,790,000 |
| Refund after filing | ¥6,074,950 | ¥1,939,900 |
From accepted offer to settlement
In the Niseko area, title transfer and closing normally take about four to six weeks, and the parties can agree a different timeline (Nisade FAQ). The steps below follow the process that FAQ describes, with the tax steps from the National Tax Agency added at the end.
| Step | What happens | Who acts |
|---|---|---|
| 1. Offer accepted | A formal offer is made and accepted | Buyer offers, seller accepts |
| 2. Documents drafted | The agent drafts the Sale and Purchase Agreement and the Statement of Important Matters | Agent, with both parties reviewing |
| 3. Contract signed | The agreement is signed and contract stamp duty applies | Seller and buyer |
| 4. Deposit paid | The buyer pays a deposit into a solicitor’s trust account | Buyer |
| 5. Legal documents | A power of attorney and an affidavit are executed and notarised | Parties and solicitor |
| 6. Settlement | Title transfers, and the buyer withholds 10.21% unless the exception applies | Buyer pays, seller receives the net amount |
| 7. After the sale | A tax representative is appointed and a return is filed between 16 February and 15 March the following year | Seller, through the tax representative |
Getting your proceeds out of Japan
Plan around the net amount you receive at settlement, because any withholding refund comes only after your return has been filed and processed.
Three practical points help.
- Keep every document that shows the amount withheld, since you will need it when you file.
- Appoint your tax representative early. Once the notification is filed, the tax office sends its correspondence to the representative, not to you (NTA No.1932).
- Ask your bank and your solicitor how to move funds to your overseas account. This article does not cover remittance procedures, and they depend on your bank and your circumstances.
Common questions
No. Tax is charged on the gain, but the buyer withholds 10.21% of the whole price at settlement, and the difference is settled when you file your return.
Only where the price is ¥100 million or less and the buyer will live in the property or house a relative there. That depends on the buyer’s plans, not on yours.
Ownership is measured on 1 January of the year you sell, so the timing of a sale can change which rate applies. Raise it with your tax adviser before you set a listing or settlement date.
Yes. You must appoint one and notify the tax office before you file your return, and the representative can be an individual or a company.
Before you act on this
This article is general information based on National Tax Agency pages dated 1 April 2026, and tax rules and rates can change. It is not tax or legal advice, so speak to a licensed Japanese tax adviser about your own position.
If you are thinking about selling, the simplest first step is to find out what your property is worth today. Request a confidential valuation from Nisade’s local advisors, or speak to the team directly.
