To the business operator
Customers considering purchasing real estate
2. Documents necessary for real estate purchase
3. Tax related to purchase of real estate
1. Real estate purchase flow
Financing plan-
- Let's choose real estate that matches your investment objective and asset situation
(Is it for investment or for residence?)
- Let's choose real estate that matches your investment objective and asset situation
Collect property information-
- Let's carefully choose property selection at the time of purchase as it determines the success of real estate investment
- FrontDoor deals with many profitable properties mainly in Tokyo
Field visit-
- Be sure to visit the property and see with your own eyes.
- Since the real estate market is always in circulation, I introduce it as soon as a new property comes out
Purchase application-
- If there is a property you like, submit it to the seller with the purchase price desired in the purchase certificate
- Priority negotiation rights will occur with the seller in the order of purchase application
- It is not a sales contract at this stage
- In discount negotiations it is customary in Japan to issue a purchase certificate
Preliminary examination to financial institution-
- As non-resident foreigners are hard to get loans from Japanese banks, cash handling is common.
- In the foreign finance period of the Department and nonbanks there are also loans to non-resident foreigners.
- Loans can be used by customers who have permanent residency in Japan.
- Customers of individual business owners need a settlement letter.
Important matter explanation-
- It is an important explanation to be done before the contract.
- FrontDoor will prepare translation and interpretation to your native language for those who wish to prevent trouble.
Agreement-
- At the time of contract, deposit (10% of the price of the property) half of the brokerage commission (brokerage commission: 3% + 60,000 yen when the sales price is over 4 million yen, at the time of settlement of the remaining half), stamp fee prepared please.
- Other necessary documents depend on the attributes of the purchaser, so please check.Required documents are here
- FrontDoor will prepare translation and interpretation to your native language for those who wish to prevent trouble.
- You can also create an agent. (Request for proxy from principal to proxy)
Application for loan-
- As non-resident foreigners are hard to get loans from Japanese banks, cash handling is common.
- There is one loan to foreigners who are non - residents in one foreign financial period and non - bank.
Settlement · Delivery-
- If you do not have a bank account in Japan, it is common to pay from the account on the day of settlement on the settlement day (it will take more than one week) to transfer to the deposit account of the real estate company in Japan from abroad in advance.
- Settlement is carried out at financial institution on weekdays and registration procedure of ownership transfer is done on the same day. (Documents after completion of registration will be mailed overseas)
Leasing management agency · remodeling agent-
- We will respond to those who wish to lease management agency.
- Introduction of leasing management agency of other companies is also possible.
- In order to maximize investor's income gain, we will introduce high-quality cheap remodeling company.
- Even if it is 1 yen, it keeps costs low, and I will devote to a partner to pursue many profits even at 1 yen.
Investment analysis-
- We will conduct investment analysis with a view to selling to maximize gains on sale even after purchase.
(The regular intermediary does not do the service so far!)
- We will conduct investment analysis with a view to selling to maximize gains on sale even after purchase.
2.Documents necessary for real estate purchase
| Individuals living in Japan | A corporation with a company in Japan |
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| Individual not living in Japan | A corporation without a company in Japan |
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Willing to corporate in Japan and thinking about real estate investment business |
3. Taxes related to real estate purchase ~ sale
Even if you are not in Japan, a tax administrator (a tax accountant who handles taxes) will do it on your behalf.
Taxes incurred when acquiring real estate
| Real estate acquisition tax | |
|---|---|
| ・When purchasing real estate Land ・Taxed on building |
Tax rate: Land and building property property tax Evaluation amount × 3% Tax Payment Method: After Real Estate Registration Tax notice will be sent from the municipality within 6 months |
| Registration license tax | |
| ・Taxed when registering real estate when purchasing real estate | Tax rate: Land and building property property tax Evaluation amount × 2% Tax payment method: tax payment when registering real estate |
| consumption tax | |
| ・Only buildings are taxed when purchasing real estate | Tax rate: Building property tax assessment amount × 8% Tax payment method: Seller charged |
What is property tax revaluation amount?: The fixed asset tax evaluation value is not the trading price but the municipality has decided the price on January 1st every year. Appraisal value is roughly 50% to 70% of trading price.
Tax on real estate ownership
| Property tax | |
|---|---|
| ・Taxed on an annual basis during the holding period of real estate | Tax rate: Land building property tax assessment amount × 1.4% Tax payment method: Tax notice will be issued from municipalities, municipalities around May every year |
| City planning tax | |
| ・Taxed on an annual basis during the holding period of real estate | Tax rate: Land building property tax assessment amount × 0.3% Tax payment method: Notified along with property tax and paid with property tax |
| consumption tax | |
| ・When renting real estate, tax is imposed on the income of non residential (offices, shops) | Tax rate: 8% for income (income - expense) Tax payment method: Tax return by tax department by yourself by March 31 every year and voluntarily pay tax |
| Inhabitant tax | |
| ・If you lease real estate, you will be taxed ・Nonresident aliens will be exempt |
Tax rate: 5% to 10% of income (income - expense) Tax payment method: Tax payment from municipalities, municipalities around June every year Notification will be mailed |
Tax on real estate sale
| income tax | |
|---|---|
| ・When real estate is transferred, the tax on the transfer is taxed | Tax rate: If the holding period is within 5 years, 30% If it is over 5 years it will be 14% Tax Payment Method: Tax return will be made by the tax office by yourself by March 15, and will be voluntarily taxed |
| Inhabitant tax | |
| ・When real estate is transferred, the tax on the transfer is taxed ・Nonresident aliens will be exempt |
Tax rate: If the holding period is within 5 years it is 9% If it is over 5 years it will be 6% Tax payment method: Tax notice is mailed every year from municipalities, towns and villages around June |
| consumption tax | |
| ・When real estate is transferred, the tax on the transfer of the building is taxed | Tax rate: 8% for income (income - expense) Tax payment method: Tax return by tax department by yourself by March 31 every year and voluntarily pay tax |
Reconstruction special income tax: There is an additional tax of 2.1% in the tax amount in the withholding income tax and the severe income tax with the reconstruction special income tax in 2013 to 2037 years