What Taxes and Fees Do You Pay When Buying a Home in Japan? Estimating an Extra 7–10% in Costs
A complete overview of all taxes and additional costs (shohiyou) involved in buying a home in Japan. A detailed guide to calculating acquisition tax, brokerage fees, registration fees, and an example calculation for a 30-million-yen home.
Aug 7, 2026·✍️ olablog·⏱ 13 min read
A complete overview of all taxes and additional costs (shohiyou) involved in buying a home in Japan. A detailed guide to calculating acquisition tax, brokerage fees, registration fees, and an example calculation for a 30-million-yen home.
Many Vietnamese people in Japan become excited about searching for a home once they have saved enough money or qualify for a bank loan. However, quite a few experience a mild “sticker shock” when they receive a cost estimate from a real estate company: the home is listed at 30 million yen (equivalent to approximately 5.1 billion VND at the exchange rate as of August 2026), but the actual total comes to 32–33 million yen!
That difference of several million yen consists of taxes and additional costs—known in Japanese as 諸費用 (shohiyou). If you do not understand each item from the outset, you may easily find yourself financially unprepared or short of cash when completing the contract procedures. In this article, OlaChill breaks down each mandatory tax and fee in detail, explains the tax rates applicable as of August 2026, and provides a concrete estimate for a 30-million-yen home so that you can plan your budget with confidence.
What Are Additional Costs (Shohiyou) When Buying a Home in Japan, and What Percentage Do They Represent?
Additional costs—諸費用 (shohiyou)—are the combined taxes paid to the government, service fees charged by intermediaries and banks, and insurance premiums incurred when buying a home or plot of land in Japan.
These costs generally range from 5% to 10% of the total property value, depending on the type of home you choose:
- Newly built homes (新築 - shinchiku): Additional costs generally amount to around 3% - 7%. This is because newly built homes purchased directly from the developer usually do not incur brokerage fees and often qualify for various new-home tax incentives.
- Used homes / Older properties (中古 - chūko): Additional costs generally range from 6% - 10%. Since most used-home transactions go through a real estate agency, you also have to pay a relatively substantial brokerage commission.
For example, if you buy a used home for 30 million yen, you should prepare an additional 2.1 to 2.7 million yen in cash or apply for a loan that includes these costs (equivalent to 350 - 460 million VND).
Mandatory Taxes When Buying Property in Japan
When you become the registered owner of a home or plot of land in Japan, you must meet your tax obligations to the national government and local authorities.
1. Stamp Tax (印紙税 - inshizei)
This is the stamp tax payable when signing a real estate purchase and sale agreement (売買契約書 - baibai keiyakusho) and a bank loan agreement (金銭消費貸借契約書 - kinsen shōhi taishaku keiyakusho).
The stamp tax depends on the contract value. As of August 2026, the stamp-tax reduction for paper real estate purchase and sale contracts remains in effect:
- Contract value from 10 million - 50 million yen: The stamp tax for the purchase and sale agreement is 10.000 yen (instead of the standard 20.000 yen).
- Bank loan agreement (for a 30-million-yen loan): 20.000 yen.
Tip: If you use an electronic contract (電子契約 - denshi keiyaku), you are completely exempt from stamp tax.
2. Registration and License Tax (登録免許税 - tōroku menkyo zei)
When ownership is transferred at the Legal Affairs Bureau (法務局 - Hōmukyoku), you must pay registration tax to record the transfer of ownership (所有権移転登記 - shoyūken iten tōki) and register the bank mortgage (抵当権設定登記 - teitōken setteitōki).
The standard rates are calculated based on the assessed value for fixed-asset tax (固定資産税評価額 - kotei shisan zei hyōkagaku—usually 50-70% of the market price):
- Land ownership transfer registration: 1,5% (a reduced rate from 2,0% applicable through March 2027).
- Residential building registration (transfer of a used home): 0,3% (if the home meets the residential standards).
- Mortgage registration for a loan: 0,1% of the total bank loan amount.
3. Real Estate Acquisition Tax (不動産取得税 - fudōsan shutoku zei)
This is a prefectural tax (都道府県税 - todōfuken zei) imposed on the acquisition of real estate.
- Standard tax rate (as of August 2026): 3% for land and residential buildings (reduced from the standard rate of 4% through 31/03/2027).
- When it is paid: Unlike costs paid immediately when the home is handed over, the real estate acquisition tax notice is generally sent to your home 3 to 6 months after you take possession.
- Exemptions/reductions: If the home meets the required size (from 50m² to 240m²) and earthquake-resistance standards (耐震 taishin), 12 million yen is deducted from the taxable value of the building. In many cases involving a home purchased for personal residence, the acquisition tax on the building can be reduced to 0 yen.
4. Fixed-Asset Tax and City Planning Tax Settlement (固定資産税・都市計画税の清算金 - kotei shisan zei / toshi keikaku zei no seisankin)
Property owners in Japan must pay Fixed-Asset Tax (固定資産税 - kotei shisan zei) and City Planning Tax (都市計画税 - toshi keikaku zei) every year, based on ownership as of January 1.
When a home is purchased in the middle of the year, the buyer and seller prorate the taxes according to the actual number of days each party owns the property, calculated from the handover date (引き渡し日 - hikiwatashi bi). The buyer must reimburse the seller for the portion corresponding to the remaining days of the year.
Service Fees and Insurance When Completing the Contract
In addition to taxes, third-party service costs also account for a significant share of a home-buying budget.
1. Real Estate Brokerage Fee (仲介手数料 - chūkai tesūryō)
If you buy a home through a real estate agency rather than directly from a construction company, you must pay a brokerage commission. Under Japan’s Real Estate Brokerage Act, the maximum fee for properties priced above 4 million yen is calculated using the following simplified formula:
$$\text{Brokerage fee (before tax)} = (\text{Home price} \times 3%) + 60.000\text{ yen}$$
A 10% consumption tax (消費税 - shōhizei) is then added.
For a 30-million-yen home: $(30.000.000 \times 3% + 60.000) \times 1,1 = \mathbf{1.056.000\text{ yen}}$ (approximately 180 million VND).
2. Judicial Scrivener’s Fee (司法書士報酬 - shihō shoshi hōshū)
In Japan, transferring the title and registering a mortgage with the Legal Affairs Bureau generally must be handled by a judicial scrivener (司法書士 - shihō shoshi) to ensure legal protection for the buyer, seller, and bank.
- Service fee: Usually between 70.000 and 150.000 yen, depending on the number of documents and the complexity of the case.
3. Bank Loan Fees (住宅ローン関連費用 - jūtaku rōn kanren hiyō)
When you use a home loan (住宅ローン - jūtaku rōn), you may incur the following costs:
- Loan guarantee fee (保証料 - hoshōryō) or loan processing fee (融資手数料 - yūshi tesūryō): Usually around 2,2% of the total loan amount (approximately 660.000 yen for a 30-million-yen loan).
- Electronic contract fee / bank notarization fee: Approximately 10.000 - 30.000 yen.
4. Fire and Earthquake Insurance (火災保険・地震保険 - kasai hoken / jishin hoken)
Banks in Japan require home-loan borrowers to take out fire insurance (火災保険 - kasai hoken). Earthquake insurance (地震保険 - jishin hoken) is optional but strongly recommended.
- Term: Fire insurance is generally purchased in 5-year packages (the current maximum term), while earthquake insurance is paid for 1-5 years at a time.
- Cost: Approximately 150.000 to 300.000 yen for a 5-year package, depending on the structure of the home (wooden or reinforced-concrete).
Summary Table of Taxes and Fees When Buying a Home in Japan
The table below summarizes the additional costs (shohiyou) to give you a complete overview as of August 2026:
| Fee name (Vietnamese) | Japanese name (Romaji) | Payment timing | Estimated fee / tax rate |
|---|---|---|---|
| Stamp tax | 印紙税 (inshizei) | When signing the purchase and sale & loan agreements | 10.000 - 30.000 yen |
| Brokerage fee | 仲介手数料 (chūkai tesūryō) | Paid in 2 installments: Contract signing & Handover | Maximum (Home price × 3% + 6万) × 1,1 |
| Registration tax | 登録免許税 (tōroku menkyo zei) | Home handover date (paid through the judicial scrivener) | Land 1,5%, Building 0,3%, Mortgage 0,1% |
| Judicial scrivener’s fee | 司法書士報酬 (shihō shoshi hōshū) | Home handover date | 70.000 - 150.000 yen |
| Bank loan fee | 融資手数料 / 保証料 (yūshi tesūryō) | On the date the bank disburses the loan | Approximately 2,2% of the loan |
| Home insurance | 火災保険・地震保険 (kasai/jishin hoken) | Before the home handover date | 150.000 - 300.000 yen (5 years) |
| Tax settlement payment | 固定資産税清算金 (kotei shisan zei seisankin) | Home handover date | Prorated by the actual number of days (~50k - 100k yen) |
| Real estate acquisition tax | 不動産取得税 (fudōsan shutoku zei) | 3 - 6 months after moving in | 3% (Usually substantially reduced or exempt for residential homes) |
Estimated Additional Costs for a 30-Million-Yen Home in Japan
Assume that you purchase a detached used home (一戸建て - ikkodate) priced at 30.000.000 yen (approximately 5.1 billion VND) in Saitama or Kanagawa, financing the full 30 million yen through a 35-year bank loan:
| Cost item | Calculation / basis | Estimated amount (Yen) | Estimated conversion (VND) |
|---|---|---|---|
| Real estate brokerage fee | (30.000.000 × 3% + 60.000) × 1,1 | 1.056.000 JPY | ~ 180 million VND |
| Bank loan processing fee | 30.000.000 × 2,2% | 660.000 JPY | ~ 112 million VND |
| Registration tax + Judicial scrivener’s fee | Estimate for land + building + mortgage + professional fee | 380.000 JPY | ~ 65 million VND |
| Fire & earthquake insurance (5 years) | Standard home insurance package | 220.000 JPY | ~ 37 million VND |
| Stamp tax (Purchase agreement + Loan agreement) | 10.000 + 20.000 | 30.000 JPY | ~ 5 million VND |
| Fixed-asset tax settlement | Average amount remaining for the year | 80.000 JPY | ~ 13,6 million VND |
| Real estate acquisition tax (paid after 4 months) | Standard residential deduction applied | 0 - 50.000 JPY | ~ 0 - 8,5 million VND |
| TOTAL ADDITIONAL COSTS (SHOHIYOU) | Rate: approximately 8,1% of the home’s value | ~ 2.426.000 JPY | ~ 412 million VND |
Takeaway: To purchase a 30-million-yen home, you therefore need to prepare approximately 32.426.000 yen in total, including both the home price and additional costs.
Tips for Saving on Additional Costs When Buying a Home in Japan
- Look for properties sold directly by the developer (売主物件 - urinushi bukken): If you buy a new home directly from the developer, you can immediately save 100% of the brokerage fee (around 1 million yen for a 30-million-yen home).
- Compare loan packages from different banks: Some banks charge a fixed processing fee (50.000 yen) instead of applying a rate of 2,2% of the loan amount, which can significantly reduce your upfront costs.
- Apply for tax reductions (軽減措置 - keigen sochi): Ask the real estate company or judicial scrivener to help you apply for a residential building certification (住宅用家屋証明書 - jūtakuyō kaoku shōmeisho) so that you can receive reduced registration and acquisition tax rates.
- Prepare all personal documents in advance: A residence certificate 住民票 (juminhyo), seal registration certificate 印鑑証明書 (inkan shōmeisho), and tax certificate 課税証明書 (kazei shōmeisho) will help the loan and registration procedures proceed quickly and prevent extension fees.
Frequently Asked Questions
Q. Do foreigners without permanent residency (eijūken) have to pay higher taxes and fees when buying a home than Japanese citizens?
No. Japanese law applies the same tax rates (stamp tax, registration tax, and real estate acquisition tax) and brokerage fees equally to foreign nationals and Japanese citizens. The only difference is generally the bank loan interest rate or the approval rate for the loan application.
Q. Can additional costs (shohiyou) be included in a bank home loan?
Yes. Many Japanese banks now offer loans that include additional costs (諸費用ローン - shohiyou rōn) or allow these fees to be added to the overall home-loan limit (住宅ローン). However, bundling these costs into the loan may slightly increase the interest rate by around 0.1% - 0.2%.
Q. Which Japanese personal documents should I prepare before signing a home purchase agreement?
You should prepare your Residence Card (在留カード - zairyū kādo), passport (パスポート - pasupōto), registered personal seal (実印 - jitsuin), seal registration certificate 印鑑証明書 (inkan shōmeisho), and residence certificate 住民票 (juminhyo), obtained from your local city or ward office (shyakusho/kuyakusho).
Summary and Further Reading
Buying a home in Japan is a major step toward establishing a stable life. Understanding the details of each tax and fee, which together account for 7-10% of the home’s value, will help you create a sound financial plan and avoid being caught unprepared.
To best prepare for life and long-term settlement in the Land of the Rising Sun, you may also find these useful articles and services:
- Learn more about everyday life, administrative procedures, and personal finance at the OlaChill Blog.
- If you are looking for short trips to unwind with your family, explore Day Tours from Tokyo with Vietnamese-language guidance.
- Browse the full range of services supporting Vietnamese residents on the OlaChill homepage.
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