Vietnamese Homeowners in Japan: How Does Inheritance Work, and What About Inheritance Tax?
A detailed guide to inheriting real estate in Japan for Vietnamese nationals: inheritance tax rates, mandatory registration rules introduced in 2024, wills, and documentation for relatives living in Vietnam.
Aug 7, 2026·✍️ olablog·⏱ 11 min read
A detailed guide to inheriting real estate in Japan for Vietnamese nationals: inheritance tax rates, mandatory registration rules introduced in 2024, wills, and documentation for relatives living in Vietnam.
After years of hard work in Japan, more and more Vietnamese people are becoming homeowners, whether by purchasing a condominium apartment (mansion) or a detached house (ikkodate). However, when settling long-term or building up assets in Japan, a very practical question—one that is often avoided—eventually arises: “Years from now, if something happens to me, how will this house be transferred to my spouse, children, or parents in Vietnam? Is inheritance tax in Japan expensive, and what is the procedure for changing the registered owner?”
This article from the OlaChill editorial team will help answer all your questions about Japanese inheritance law for real estate, the latest mandatory registration rules, how inheritance tax is calculated, and what to do when the heirs are living in Vietnam.
1. Vietnamese Homeowners in Japan: Which Inheritance Law Applies?
This is the first legal concern for most Vietnamese homeowners. When a foreign national dies and leaves real estate in Japan, which country’s laws govern the distribution of the estate?
Applicable Civil Law (Private International Law)
Under Japan’s Act on General Rules for Application of Laws (法の適用に関する通則法 - ho no tekiyo ni kansuru tsusokuho), the general principle for inheritance is to apply the law of the nationality of the deceased (本国法 - hongokuho).
This means that if the homeowner was a Vietnamese national, determining the legal heirs and their respective shares of the estate under civil law will primarily be based on Vietnam’s Civil Code. However, if Vietnamese law refers the matter back to the law of the country where the real estate is located (Japan), or if the parties agree on how to divide the estate, the procedure for registering ownership of the property in Japan must comply with the legal procedures of the Japanese Legal Affairs Bureau (法務局 - homukyoku).
Applicable Tax Law
Regardless of which country’s law governs the civil division of the assets, Japanese tax law applies absolutely to all real estate located in Japan. Whether the deceased or the heir is Vietnamese, and whether they live in Japan or Vietnam, a house in Japan remains subject to Japanese inheritance tax (相続税 - sozokuzei), administered by the National Tax Agency (国税庁 - Kokuzeicho).
2. How Is Inheritance Tax in Japan (Sozokuzei) Calculated as of August 2026?
Japan is known for having one of the highest inheritance tax rates in the world, reaching up to 55%. However, Japan’s tax system also provides a relatively large basic deduction (基礎控除 - kiso kojo), meaning that many families with moderate assets do not have to pay inheritance tax.
Basic Deduction (Kiso Kojo)
As of August 2026, the formula for calculating Japan’s basic inheritance tax deduction is:
Basic deduction = ¥30,000,000 + (¥6,000,000 × Number of statutory heirs)
(Reference conversion: 30.000.000 JPY ~ 4,9 billion VND; 6.000.000 JPY ~ 980 million VND)
Practical example: Nam, a Vietnamese national with Permanent Resident status in Tokyo, dies and leaves behind a house valued at ¥40,000,000 (~6,5 billion VND). His statutory heirs are his wife and 2 children, making a total of 3 heirs (法定相続人 - hotei sozokunin).
- Nam’s family’s basic deduction = 30.000.000 + (6.000.000 × 3) = ¥48,000,000 (~7,8 billion VND).
- Because the total value of the estate (¥40 million) is less than the deduction (¥48 million), Nam’s family does not have to pay any inheritance tax.
Progressive Inheritance Tax Rates (Updated 2026)
If the total assets, after deducting debts and funeral expenses, still exceed the basic deduction, the excess amount is taxed according to the following progressive tax table:
| Taxable assessed value per person (Yen) | Tax rate | Fixed deduction (Yen) |
|---|---|---|
| Up to 10.000.000 Yen (~1,63 billion VND) | 10% | 0 Yen |
| Over 10.000.000 to 30.000.000 Yen | 15% | 500.000 Yen |
| Over 30.000.000 to 50.000.000 Yen | 20% | 2.000.000 Yen |
| Over 50.000.000 to 100.000.000 Yen | 30% | 7.000.000 Yen |
| Over 100.000.000 to 200.000.000 Yen | 40% | 17.000.000 Yen |
| Over 200.000.000 to 300.000.000 Yen | 45% | 27.000.000 Yen |
| Over 300.000.000 to 600.000.000 Yen | 50% | 42.000.000 Yen |
| Over 600.000.000 Yen (~98 billion VND) | 55% | 72.000.000 Yen |
Special Relief for Spouses (Haigusha no Keigen)
The Japanese government offers inheritance tax relief for a legal spouse (配偶者の軽減 - haigusha no keigen). A spouse does not have to pay inheritance tax on inherited assets worth up to ¥160,000,000 (~26 billion VND) or the statutory inheritance share (50%), whichever is greater.
Tax Filing and Payment Deadline
- Deadline: Within 10 months of the date you learn of the death of the deceased.
- Failure to file and pay on time may result in late-payment tax (延滞税 - entaizei) and penalties for underreporting or failing to report.
3. Mandatory Inheritance Registration (Sozoku Toki) from 2024: Rules and Penalties
Previously, Japan had no mandatory deadline for changing the registered owner of inherited real estate (相続登記 - sozoku toki). Many families left properties registered in the names of grandparents who had died decades earlier without completing the necessary procedures, contributing to a growing number of properties with unclear ownership.
Mandatory Rules from 01/04/2024
From 01/04/2024, Japan’s Real Estate Registration Law was officially amended:
- Registration obligation: Anyone who inherits real estate must complete the ownership-transfer procedure (Sozoku Toki) at the Legal Affairs Bureau (法務局 - homukyoku).
- Deadline: Within 3 years of learning that they have inherited the real estate.
- Penalty (過料 - karyo): If the heir fails to do so within 3 years without a justifiable reason, they may be fined up to ¥100,000 (~16,3 million VND).
- Retroactive application: For properties inherited before 01/04/2024 that have not yet been transferred, the final deadline for completing the procedure is 31/03/2027.
Benefits of Acting Early
Once the property is registered in your name on the Certificate of Registered Matters (登記事項証明書 - tojijiko shomeisho), you will have full authority to sell it, use it as collateral for a bank loan, or rent it out. If you wait too long, family disputes may arise or another family member may die, making the legal paperwork extremely complicated.
4. Making a Will in Japan (Igonsho) to Avoid Legal Complications
For Vietnamese people living in Japan, preparing a will (遺言書 - igonsho) in advance is a highly practical and responsible step. It helps prevent relatives from facing confusion or disputes later.
There are 2 common and secure ways to make a will in Japan:
1. Notarized Will (公正証書遺言 - kosei shosho igonsho)
- How it works: Visit a notary office (公証役場 - kosho yakuba) with 2 witnesses. A Japanese notary will draft the document based directly on your wishes.
- Advantages: It offers the highest level of legal validity, cannot easily be lost, and when it is used to transfer ownership of real estate or withdraw money from a bank account, there is no need to go through the Family Court for verification (検認 - kennin).
- Cost (as of August 2026): Notarization fees range from ¥30,000 to ¥100,000 (~4,9 - 16,3 million VND), depending on the value of the assets.
2. Handwritten Will Deposited with the Legal Affairs Bureau (自筆証書遺言書保管制度)
- How it works: Write the entire will by hand, including the date, signature, and seal or fingerprint, then submit it to the Legal Affairs Bureau (法務局) for safekeeping.
- Advantages: The cost is very low—only ¥3,900 per deposit—and the will is safely stored by the Legal Affairs Bureau. It is also exempt from Family Court verification when the testator dies.
5. When Relatives Live in Vietnam: What Are the Documentation and Ownership-Transfer Procedures?
A very common situation is that a Vietnamese homeowner in Japan dies while the heirs—their parents, spouse, or children—are living in Vietnam. The following points require particular attention when handling the paperwork:
Required Documents from Vietnam
To prove their inheritance relationship to the Japanese Legal Affairs Bureau, relatives in Vietnam need to prepare:
- Death certificate (死亡診断書 / 除籍謄本 equivalent): Confirms that the homeowner has died.
- Documents proving family relationships: Birth certificate (proving the parent-child relationship) and marriage certificate (proving the spousal relationship).
- Proof of residence / Citizen Identity Card: Used in place of Japan’s resident record (住民票 - juminhyo).
Translation and Legal Certification
- All documents in Vietnamese must be translated into Japanese.
- The documents must undergo consular legalization (領事認証 - ryoji ninsho) or certification at the Japanese Embassy/Consulate in Vietnam (or the Vietnamese Embassy in Japan).
Signature Certificate (Shomei Shomeisho)
People living in Vietnam do not have a personal seal (印鑑 - inkan) or a seal registration certificate (印鑑証明書 - inkan shomeisho) issued by the Japanese authorities. When signing the Agreement on the Division of Inherited Property (遺産分割協議書 - isan bunkatsu kyogisho), heirs in Vietnam must visit the Japanese Embassy/Consulate in Hanoi or Ho Chi Minh City to obtain a signature certificate (署名証明書 - shomei shomeisho) as authentication.
Registering a Contact Address in Japan (Kokunai Renrakusaki)
Since April 2024, when an heir living overseas becomes the registered owner of real estate in Japan, a contact address/person in Japan (国内連絡先 - kokunai renrakusaki) must also be registered in the property records so that the authorities can send annual fixed asset tax notices.
Frequently Asked Questions
Q. Can someone with an Engineer visa or Student visa inherit a house in Japan?
Answer: Yes. Japanese law does not restrict the ownership or inheritance of real estate based on visa type or nationality. Whether you hold an Engineer visa, a Technical Intern visa, or are living in Vietnam, you still have the full right to inherit and register real estate in Japan in your name.
Q. What should I do if I cannot afford to pay the inheritance tax?
Answer: Inheritance tax must be paid in cash within 10 months. If most of the estate consists of real estate and you do not have enough cash, you may apply to pay in installments (延納 - enno) over a period of up to 20 years, or use the real estate itself to pay the tax instead of cash (物納 - butsuno). Another practical option is to sell the house, use the proceeds to pay the tax, and divide the remaining amount among the heirs.
Q. How much does it cost to hire a professional to transfer ownership of inherited real estate (Sozoku Toki)?
Answer: You should hire a judicial scrivener (司法書士 - shihoshoshi) who specializes in real estate procedures. As of August 2026, professional fees for an inheritance case involving foreign elements (Vietnam - Japan) generally range from ¥100,000 to ¥250,000 (~16,3 - 40,8 million VND), excluding the registration and license tax (登録免許税 - toroku menkyozei), which is 0,4% of the property’s assessed value.
Q. Should I renounce the inheritance (Sozoku Hoki) if the house is in a remote area and burdened with debt?
Answer: If the house has little value, is located in a remote area where it is difficult to sell, and the deceased left debts exceeding the value of the assets, you can apply for renunciation of inheritance (相続放棄 - sozoku hoki) at the Japanese Family Court. The deadline for this procedure is within 3 months of learning that you have inherited the estate.
Conclusion
Owning real estate in Japan is a proud achievement for Vietnamese people building a life abroad. However, to ensure that this achievement becomes a solid foundation for the next generation rather than a legal burden, you should understand the rules on inheritance tax deductions, the mandatory registration obligation introduced in 2024, and consider making a notarized will well in advance.
If you are researching Japan’s real estate market, planning to settle down, or preparing to purchase your first property, be sure to explore the in-depth guides on the OlaChill Blog. For practical advice and insights into life in Japan, don’t forget to visit the OlaChill homepage or treat yourself to a relaxing trip with a Day tour from Tokyo!
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