Registration tax and its saving
When you purchase real estate in Japan, you have to pay registration tax (Touroku menkyo zei= 登録免許税).
Tax rate of Registration tax is 2% of government assessed value of the property (Hyoka gaku).
But now there is tax reduction.
As for ownership transfer of land caused by sales, tax rate is 1.5% of estimated value of the property.
So, as for building, it is still 2%.
And there is another tax reduction.
If a person purchases a house (Registered category is “residential”and Registered Room area is over 50 square meters, and it was built within 25 years. In the case of wooden house, it was built within 20 years. ) for his/her residence, and acquires certificate, registration tax rate is 0.3% of estimated value of the property.
For example if I buy an apartment of room number 202, and I transfer my legal address to 202 and acquire a certificate from city hall, registration tax rate is 0.3% as for building.
This 0.3% is not applicable to lot.
When you purchase an apartment, most of case, you will acquire ownership on the site.
So, when I will file registering of ownership of the apartment to you, ownership of building and site is transferred to you at the same time.
But as for site, tax rate is still 1.5 %.
And when buyer borrows money from bank to purchase real property, bank will establish mortgage on the property.
In this case, I will file registering of establishment of mortgage on the property.
Rate of registration tax is 0.4 % of the amount of claim ( Saiken gaku = 債権額 ).
Assumed a person purchases a property of 100 million yen and borrow 50 million yen from bank.
The amount of the claim is 50 million yen and the amount of registration tax is as below.
50 million yen × 0.4 % = 200,000 yen.
And if she purchases this property for her residence and acquires certificate, rate of registration tax is 0.1 %.
So, when the amount of the claim is 50 million yen, the amount of registration tax for establishment of mortgage is as below.
50 million yen × 0.1 % = 50,000 yen.
And if lender is 日本政策金融公庫, registration tax for establishment of mortgage is 0 yen.
( There are some conditions to satisfy. )
In general, these registration tax shall be paid by purchaser.
Purchaser pays the amount of registration tax to Judicial scrivener with his fee.
However in the case of Judicial scrivener who is located in Osaka, Kyoto area, he charges fee from seller, too.
It may be unreasonable custom in Osaka etc. So, when you sell real estate in Osaka, you can hire Judicial scrivener who is located in Tokyo.
Then, judicial scrivener will purchase revenue stamp at post office and he paste revenues stamp on the application paper for registration.
The money received by post office go to Japanese government.
In this way, purchaser can pay this registration tax.