Tokyo Property for Sale

How to purchase Real Estate

Tokyo loft

CLOVER also specializing in houses, condominiums, apartments, and investment properties for sale in Tokyo. Total real estate services from consultation, contracts, mortgages, taxes and property management.

Any foreign national can purchase real estate in Tokyo, Japan. There are no restrictions on ownership in Tokyo. When you purchase a property with CLOVER will send you a copy of our guide to purchasing property in Japan that will 'walk' you through the process. Our sales team will guide you through the process from your initial enquiry through to completion and property management.

CLOVER manages the process from beginning to end, assisting in all aspects of the sale to overcome any language, legal and cultural issues that may arise, providing a swift, seamless experience.

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The sales process

  1. Contact us to discuss your potential purchase.
  2. Ensure you have the finance in order.
  3. An offer is made and communicated to the vendor.
  4. Contracts are in Japanese and will be completely translated in English we can assist you with a local solicitor.
  5. Prior to settlement, the remaining funds are due and your solicitor will place them in a trust account.
  6. A deposit is required to secure the property, which is contracts are approved and signed.
  7. Upon the signing of contracts, the deposit is released to the vendor.
  8. Prior to settlement, the remaining funds are required and the funds are placed in a trust account.
  9. On the allocated day, the CLOVER will arrange for the transfer of funds and the exchange of title.
  10. The title deed will be sent to you within a week.
  11. At settlement Japanese Stamp Duty and Real Estate Acquisition Tax is payable, these are one off charges. Real Estate Acquisition Tax is approximately 3-4% of the properties registered value, this value is derived from registered council records, not the purchase price.
  12. After sales is where CLOVER will continue to be of service to you. We can assist you with managing your property.

The general costs of building in Japan

Please contact us directly and we can provide you with estimates, on a per square meter basis, using a variety of building materials. The cost of building in South West of Central Tokyo varies between 8,500 US and 25,000 US dollars per m² as an estimate. Our experience in this area will ensure that you not only purchase your housing but that your house or apartment is marketable on investment basis. Please ask us for information on leasing market.

It is possible for foreigners to obtain financing through a bank?

It is extremely difficult for foreigners to obtain financing through a Japanese bank, particularly without permanent residency or Japanese spouse.

As of recent, financial institutions like the The Commonwealth Bank of Australia started granting mortgages to expats without permanent residency or a Japanese Spouse.

Japan Residential Property Loan

The solicitor represents you in Japan and does the following:

  1. Checks the contents of the Important Matters and the Contract on request.
  2. Is responsible for title registration in the buyer's name.
  3. Confirms that the property is unencumbered.
  4. Provides the title deed.
  5. Provides trust fund services.
  6. Provides independent objective advice.
  7. Able to provide a translation of the building regulations upon request.

Capital Gains Tax

Capital Gains Tax (CGT) applies to sales by non residents and is up to 30% for sales within 5 years of purchase and drops to 19% after 5 years. There is an exception to this rule if you use the property as your principal residence and you have residency status in Japan

Acquisition Tax

An acquisition tax of 3% is applied to property sales and is paid post sale.

Consumption Tax

Japanese GST is paid on the sale of buildings both new and used at a rate of 5%. However it is not charged on the sale of land. Companies who have been established for less than 3 years may have an exemption on consumption tax.

Withholding Tax

A 10% withholding tax may apply to the sale of property from foreign vendor's pending payment of the necessary capital gains tax.

Japanese Personal Income Tax

Non residents who own property in Japan are required to file a tax return and pay the relevant tax at the applicable rate. Rental payments made to an owner who is a non resident of Japan maybe subject to a withholding tax, however this maybe offset against the income tax accrued and is refundable if no income tax is payable in Japan. The deduction of withholding tax rarely occurs where the lessee and lessor are foreign nationals.

Income earned as rent is taxable as personal income. However it is possible to offset taxes with accelerated depreciation expenses during the first five years. Interest payments may also be offset against rental income.