The short answer: Buying a home in Japan typically costs an extra 6-10% of the price in one-time fees and taxes, paid mostly at contract and settlement. Owning it then costs property tax of about 1.4% of the government's assessed value each year (often far less than the market value), plus insurance, utilities and upkeep. For an older rural house, yearly running costs are often a few hundred thousand yen, and the biggest surprise for most buyers is maintenance, not tax.

Here's what a ¥10 million older wooden house in the countryside might cost, used as a holiday home. We've assumed the city's assessed values are ¥2.5 million for the land and ¥1.5 million for the building, and that no home-buyer tax reliefs apply.

Yearly, the same house might cost roughly ¥56,000 in property tax, ¥40,000 for fire and earthquake insurance, ¥60,000 in basic utility charges, ¥120,000 for a caretaker/ property manager and ¥200,000 set aside for repairs: about ¥475,000 a year. Your numbers will differ; the point is that upkeep and property management usually outweigh tax.

Agent commission. The legal maximum is 3% of the price + ¥60,000 + 10% consumption tax for homes over ¥4 million. Since July 2024, agents can charge up to ¥330,000 including tax on homes priced at ¥8 million or less, if they explain and agree it with you in advance. That's usually the formula on very cheap homes, so expect it on akiyas. Commission is often paid half at contract and half at settlement.

Stamp duty. A revenue stamp on the sale contract, based on the price. Under reduced rates until March 2027 it's ¥1,000 for ¥1-5 million, ¥5,000 for ¥5-10 million, ¥10,000 for ¥10-50 million and ¥30,000 for ¥50-100 million.

Registration and license tax. Paid when the judicial scrivener registers you as owner, as a percentage of the assessed value, not the price:

The home reliefs need proof that you live there (usually a residence certificate), so a holiday home or a purchase by a non-resident normally pays the standard 2% on the building.

Judicial scrivener's fee. Usually ¥50,000-150,000, depending on the property and how many registrations are needed. Overseas buyers may pay more for extra document checks.

Property tax adjustment. The seller has already paid this year's property tax, so you reimburse your share from settlement day to the end of the year. In most of Japan the year is counted from 1 January; in some areas, such as Kansai, from 1 April.

Real estate acquisition tax. A one-off prefectural tax, billed usually 3-6 months after you buy. The rate is 3% of assessed value for homes and residential land (reduced from 4% until 31 March 2027), and residential land is assessed at half its value. Homes you live in can get large deductions based on when they were built, which often brings the tax on an older house very low. Holiday homes don't usually qualify.

Building inspection. Optional but strongly recommended: roughly ¥50,000-150,000.

Optional help. An English-speaking intermediary or translator, often 5-10% of the price or a flat fee. Overseas notarisation of documents is usually a small fee at a notary or embassy.

Fixed asset tax is 1.4% of the assessed value of your land and building, charged to whoever owns the property on 1 January. City planning tax of up to 0.3% is added in urban planning zones; many rural areas don't charge it. The city mails the bill around April to June, and you can pay in one go or in four installments.

Land with a home on it is taxed far less. Under the residential land reduction, the first 200 m² of land under a home is taxed on one-sixth of its assessed value (one-third for city planning tax). Land beyond 200 m² is taxed on one-third (two-thirds for city planning tax).

Three things affect whether you get that reduction:

Very cheap properties may pay nothing. If the total assessed value in one municipality is under ¥300,000 for land or ¥200,000 for buildings, that part isn't taxed at all. Some rural akiya fall below this.

Assessed values are reviewed every three years, and older wooden buildings keep falling in value until they reach a floor, so tax on an old house tends to stay low or drop. The seller can show you the latest tax bill, and you can request the assessment certificate to see the exact figures before you buy.

Fire insurance isn't compulsory unless you have a mortgage, but it's essential. Most policies cover fire, lightning, typhoon wind, hail and snow damage; flood cover is usually optional, and worth adding if the hazard map shows any risk.

Earthquake insurance can only be bought together with fire insurance, and the cover is set at 30-50% of the fire insurance amount (up to ¥50 million for the building). It's backed by the government, and the Ministry of Finance confirms the cover and premium are the same at every insurer. The premium depends on where the house is and how it's built, with discounts of 10-50% for newer or earthquake-resistant buildings.

Tell the insurer if the house will sit empty for long periods. Some policies limit cover for unoccupied homes, and a claim can be refused if they weren't told.

Electricity, gas and water all have monthly basic charges that continue when you're away, typically a few thousand yen a month in total. Some water suppliers let you pause the contract. In cold regions, pipes must be drained before winter or they can burst, which is one of the most common and expensive problems for absentee owners.

This is where most owners underestimate:

A common rule of thumb is to set aside about 1% of the home's value a year for repairs. For old wooden houses bought cheaply, it's safer to budget a fixed amount, such as ¥150,000-300,000 a year, because repair costs don't shrink with the price.

Condos charge two monthly fees: a management fee for cleaning, staff and shared areas, and a repair reserve for future major works. Together they're often ¥20,000-40,000 a month in cities, and resort condos can be higher. Check the building's repair plan and reserve balance; an underfunded reserve means future increases or a one-off levy.

In Japan, a wooden house loses most of its value on paper within 20-25 years, so older homes are cheap to buy and cheap to tax, but expensive to keep. Newer homes cost more up front and in tax, and much less to maintain.

The rule of thumb: an old house is cheap to buy and own on paper, but plan your budget around the renovation it will need. A newer house costs more today and less every year after.

Many buyers buy an old house now, use it for a few years, then renovate or rebuild. Here's how to plan that, and what each stage costs.

Timing tip: property tax is set by what stands on the land on 1 January. If the old house is gone and nothing is under construction on 1 January, the land can lose the residential reduction for that year and the tax can jump. Schedule demolition so construction has started by then, and ask the city tax office how they'll treat it.

Here are three ways to spend ten years in a Japanese home. All three are second homes used regularly (so the residential land reduction applies), bought for cash, with no home-buyer tax deductions assumed. Taxes and fees use the official rates above. Renovation, building, insurance and upkeep figures are estimates: the ¥30M rebuild is a modest home, below the national average for custom builds. Your town, house and builder will change them.

Assumptions

Extra rebuild costs in C: ¥2M demolition, ¥30M construction, about ¥210,000 to register the new building, and about ¥450,000 acquisition tax on it.

Ten-year totals

Selling costs the same agent commission as buying. Any gain is taxed at about 39% if you've owned the home five years or less, and about 20% after that (counted from 1 January of the year you sell). If the seller is a non-resident, the buyer usually withholds 10.21% of the price for tax, unless an individual is buying it to live in for ¥100 million or less. Many older homes sell for less than they cost, so there's often no gain to tax. If a house can't be sold as it is, demolition of an old wooden house can cost millions of yen.

How much does it cost to buy a house in Japan on top of the price? Usually 6-10% of the price for agent commission, stamp duty, registration tax, the judicial scrivener and acquisition tax. On homes of ¥8 million or less, fixed fees make up a bigger share.

How much is property tax in Japan? Fixed asset tax is 1.4% of the city's assessed value each year, plus up to 0.3% city planning tax in urban zones. Assessed values are usually well below market price, and land under a home is taxed at a reduced rate.

Do foreigners pay more tax on property in Japan? No. Property taxes are the same for foreigners and Japanese owners. Non-residents may miss reliefs that require living in the home, and must appoint a tax representative.

Do I pay property tax if I don't live in the house? Yes. Whoever owns the property on 1 January pays that year's tax, wherever they live. A house used only as an occasional holiday home may pay more, because it may not get the residential land reduction.

Is earthquake insurance worth it in Japan? For most owners, yes. It can only be bought with fire insurance, covers up to half the fire insurance amount, and costs the same at every insurer.

What is the biggest hidden cost of owning a house in Japan? Maintenance. Repairs, caretaking, weeds, snow and septic tank servicing usually cost more each year than property tax, especially for older homes owned from abroad.

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Keep reading: How to Buy a House in Japan as a Foreigner

Taxes and fees

Insurance and upkeep

Renovation and building

Property manager, utility, termite, demolition and repair-reserve figures are our own estimates from local experience; get quotes for your property.

Shogun Homes is not a licensed real estate brokerage, tax adviser or insurer, and this guide is general information, not tax, legal or financial advice. Figures are approximate and rules change; confirm with your agent, judicial scrivener, the local tax office or a tax accountant before you buy. Last updated 9 October 2026.