Breakdown

A breakdown of initial costs to rent a property in Japan.

Earnest Money Deposit：
手付金 (Tetsukekin)

Earnest money deposited to represent good faith in purchasing a property, which ranges between approx. 5-10% of the sale price.

Stump Duty：印紙税 (Inshizei)

Documentary stamp tax levied on a purchase agreement and a mortgage agreement. Its amount charged varies depending on the sale value stated in the agreement.

Brokerage Fee：
仲介手数料 (Chūkai-Tesuryō)

A fee charged by a broker to provide real estate services and execute transactions. It is usually 3% of the sale price + JPY 60,000 with a consumption tax.

Registration Fee：登記費用 (Tokihiyo)

A fee incurred on the registration preservation. Registration fee contains separate license tax and Judicial scrivener remuneration.

License Tax：
登録免許税（Toroku-Menkyozei）

A tax paid upon transfer of ownership, and establishment of a mortgage on a property, whose rate is 1.5% of the fixed asset value of the land, and 2.0% of the fixed asset value of the building.

Judicial Scrivener Remuneration：
司法書士費用（Shihosyoshi-Hiyo）

Remuneration to a judicial scrivener which is approx. JPY100,000-.

Administrative Fees for a Bank：
事務手数料 (Jimu-Tesuryo)

Fees for a loan lender. The amount of fees varies depending on the type of loan and the lender.

Housing Insurance Fee：
家財保険料 (Kazai hoken-ryo)

A fee for Housing Insurance required to take out when applying for a home loan.

Fixed Asset Tax & City Planning Tax：
固定資産税 (Kotei Shisanzei)
& 都市計画税 (Toshi Keikakuzei)

Taxes annually levied on fixed assets such as land and buildings on January 1st of each year. You will be required to pay the prorated taxes to the seller at the time of sale.

Management Fee & Repair Fund：
管理費 (Kanrihi)
& 修繕積立金 (Syuzen Tsumitatkin)

Monthly fees an owner is required to pay to the management association. You will be required to pay the prorated amount to the seller (or management association) at the time of sale.

Real Estate Acquisition Tax：
不動産取得税 (Fudosan-Syutokuzei)

A tax levied on acquisition of real estate, whose rate is 3.0% of the fixed asset value of the land and the building (tax relief measure can be applied). You will receive a payment notice within 6~12 months after purchase.