Sell house Japan with confidence! Thinking of selling a house in Japan but unsure about the risks? Worried about the paperwork and complicated procedures? Many foreigners feel the same way.
The process to sell a house in Japan is mostly the same for foreigners as it is for Japanese citizens. However, there are some important differences—such as preparing specific documents and dealing with language barriers.
This article explains the full process of selling property in Japan, including required documents, key points for signing contracts, costs and taxes, and how to choose the right brokerage agreement.
If you’re a foreigner feeling unsure about selling real estate in Japan, this guide will help you understand the steps and avoid common mistakes.
Table of Contents
Profile of Writer
Meiki Sugiyama
Real Estate Transaction Specialist;
After gaining 12 years of experience in the real estate industry as a sales department manager and store manager, transitioned to become a web writer specializing in this field.
Extensive expertise in property sales, rental brokerage, new home sales, rental management, and property valuation, etc. Recognizing the complexity of the Japanese real estate industry, his focus is on delivering and sharing insights to make it more accessible to those who are not specialists in this field.
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Chapter 1: The Basic Process to Sell House Japan
If you’re planning to sell a house in Japan, here’s a step-by-step overview of how the process works.
1. Request a Property Valuation
To start the process to sell house Japan, you’ll need to know your property’s market value. Request a property valuation from a real estate company, either directly or through an online comparison platform that shows estimates from multiple agencies.
There are two types of valuations:
Desk valuation: Based on available documents and data only.
On-site valuation: Includes a visit to your property for a more accurate estimate.
For those looking to sell house Japan with confidence, an on-site valuation is usually the best choice.
2. Choose a Real Estate Agency
Once you receive the valuation, choose a real estate agency to represent you. Don’t base your decision solely on price—also consider the agent’s communication skills, area knowledge, and sales track record. Foreign sellers should look for multilingual support and flexible online services.
3. Sign a Brokerage Agreement
After selecting an agency, sign a brokerage contract. In Japan, there are three types:
Exclusive agreement（専属専任媒介契約）
Semi-exclusive agreement（専任媒介契約）
General agreement（一般媒介契約）
Each has its pros and cons. Choose one based on your sales goals and how involved you want the agency to be.
We’ll explain the differences between these three contract types later in this article.
4. Set a Price and Start Marketing
Next, decide on a selling price in consultation with your agent, using the appraisal and market trends as a guide. A realistic price helps you sell house Japan smoothly and avoid delays or losses.
The agency will promote your property online and arrange viewings. Make sure the property is clean and well-organized to highlight its appeal.
5. Finalize the Sales Contract with the Buyer
Once a buyer is found, you’ll negotiate the terms and proceed to sign the sales contract. At this stage, the Explanation of Important Matters (重要事項説明 / Jūyō Jikō Setsumei) will be provided by the real estate agent. The seller, buyer, and agent will go over the details together before signing the contract and applying personal seals (hanko). The earnest money (手付金 / tetsukekin) is typically paid at this time. Make sure to carefully review the contract and ask about anything you don’t fully understand before signing.
Curious about the role of hanko in Japan?
Read our guide to understand its importance in real estate transactions and daily life.
6. Transfer of Ownership
The final step in the sell house Japan process is the settlement and transfer of ownership. You’ll receive the remaining payment, complete the property registration, and hand over the keys to the buyer. Be sure to prepare all necessary documents and cancel any mortgage tied to the property.
Chapter 2: Costs and Fees
When you sell a house in Japan, various costs may arise depending on the situation. In this section, we’ll explain the fees you can expect when selling property in Japan.
Brokerage Fee
A brokerage fee is a success-based commission paid to the real estate agency. This fee is due once the sale contract is completed, and the maximum amount is legally regulated.
Maximum Brokerage Fee
The brokerage fee is calculated based on the property price using the following formulas:
| Property Price | Calculation for Maximum Brokerage Fee |
|---|---|
|
Over ¥4M |
Property Price × 3% + ¥60K + tax |
|
Over ¥2M up to ¥4M |
Property Price × 4% + ¥20K + tax |
|
¥2M or less |
Property Price × 5% + tax |
For example, if you sell a house in Japan for ¥30M, the brokerage fee is:
¥30M × 3% + ¥60K + tax
→ ¥1,056,000 including consumption tax.
The fee is usually paid in two parts:
one at the contract signing and the other at handover.
Registration-Related Costs
These include fees for removing a mortgage (抵当権抹消登記 / Teitōken masshō tōki), updating your address (住所変更登記 / Jūsho henkō tōki), and hiring a judicial scrivener (司法書士 / Shihō shoshi).
To remove a mortgage, a registration license tax of ¥1,000 per property is required.
Judicial scrivener fees are typically around ¥10,000 to ¥30,000.
If an address change is needed, additional registration costs will apply.
Because registration involves legal procedures, it is common to ask a judicial scrivener (Shihō shoshi) to handle them.
Optional Costs Like Demolition or Cleaning
Depending on the property’s condition and how you sell a house in Japan, additional costs may apply:
Demolition fees: If selling the land after tearing down an old house, expect to pay around ¥1M–¥3M.
House cleaning fees: If the property is handed over after cleaning, costs typically range from ¥50K–¥200K depending on the layout.
Other potential expenses include land survey fees, waste disposal costs, and moving expenses.
Note: These prices are general examples and may vary depending on the region, service provider, and property condition.
Chapter 3: Taxes When You Sell a House in Japan
When you sell a house in Japan, several taxes may apply. Here’s an overview of the main types of taxes to consider.
Stamp Duty (印紙税 / Inshi-zei)
Stamp duty is a tax applied to the official sales contract. The amount depends on the sale price written in the contract. Here’s a breakdown of the applicable tax rates:
| Property Price | Stamp Duty |
|---|---|
|
Over ¥1M and up to ¥5M |
¥1,000 |
|
Over ¥5M and up to ¥10M |
¥5,000 |
|
Over ¥10M and up to ¥50M |
¥10,000 |
|
Over ¥50M and up to ¥100M |
¥30,000 |
|
Over ¥100M and up to ¥500M |
¥60,000 |
|
Over ¥500M and up to ¥1 billion |
¥160,000 |
For example, if the property price in the sale contract is ¥30 million, the stamp duty would be ¥10,000; for ¥80 million, it would be ¥30,000. The stamp must be affixed to the contract and canceled with a postmark to complete the payment. Additionally, in cases where an electronic contract is used, stamp duty may not be required.
For more detailed information on stamp duty, check out our full article here.
Source: National Tax Agency JAPAN
Capital Gains Tax (譲渡所得税 / Jōto Shotoku Zei)
Capital gains tax applies when you make a profit from selling a property. The tax rate varies depending on the length of ownership, as follows:
| Income Category | Ownership Period | Tax Rate | Breakdown |
|---|---|---|---|
|
Short-Term Capital Gains (短期譲渡所得 / Tanki Jōto Shotoku) |
5 years or less |
39.63% |
Income Tax: 30%, Local Tax: 9%, Reconstruction Special Income Tax: 0.63% |
|
Long-Term Capital Gains (長期譲渡所得 / Chōki Jōto Shotoku) |
Over 5 years |
20.315% |
Income Tax: 15%, Local Tax: 5%, Reconstruction Special Income Tax: 0.315% |
Tax filing (確定申告 / Kakutei Shinkoku) is required when you make a profit from selling property or when utilizing special exemptions. The filing period is from February 16 to March 15 of the year following the sale.
If you miss the deadline, you may incur additional taxes such as the penalty for failure to file or late payment fees, so be sure to complete the process within the specified period. If you incur a loss, tax filing is not mandatory, but filing may offer benefits such as loss offsetting or carryover deductions, so it is recommended to file your tax return.
Chapter 4: Types of Brokerage Agreements to Sell a House in Japan
Each contract type has its own characteristics, advantages, and disadvantages, so choose the one that best fits your preferences and situation.
| Type of Agreement | Exclusive brokerage agreement | Semi-exclusive agreement | General exclusive agreement |
|---|---|---|---|
|
Japanese |
専属専任媒介契約 |
専任媒介契約 |
一般媒介契約 |
|
Romaji |
Senzoku-sennin baikai keiyaku |
Sennin baikai keiyaku |
Ippan baikai keiyaku |
|
Number of Agencies Involved |
1 |
1 |
Multiple agencies |
|
Ability to Find Buyer Yourself |
Not allowed – must go through the agency |
Allowed – can directly contract with buyer |
Allowed – can directly contract with buyer |
|
Registration with Real Estate System |
Required within 5 days |
Required within 7 days |
Not required |
|
Progress Updates |
Weekly updates required |
Bi-weekly updates required |
Not required |
|
Best for |
Quick sale, focused efforts from the agency |
Professional help while maintaining control |
Flexibility to find buyers yourself |
Chapter 5: What is a Sales Contract
In this section, we will explain the basic details of a sales contract, the required documents, and important points to pay attention to when signing the contract.
Basic Contents of the Sales Contract
The basic process of a sales contract is as follows:
Confirm the Important Matters Explanation (重要事項説明 / Jūyō jikō setsumei) with the buyer.
- Sign and seal the Sales Contract (売買契約書 / Baibai keiyaku-sho) to finalize the agreement.
Attach the revenue stamp to the Sales Contract (売買契約書 / Baibai keiyaku-sho).
- Receive the Earnest Money (手付金 / Tetsuke-kin).
Earnest Money is the money paid by the buyer to the seller at the time of the sales contract as proof of the contract’s establishment. It is typically around 10% of the total sales price.
Documents Required for Contract Signing
To sign a property sales contract, you’ll usually need the following:
Seal registration certificate (issued within the last 3 months)
Photo ID (such as a driver’s license or My Number card)
Copy of the property’s registration record
Title deed or property registration identification notice
Revenue stamp (for the contract)
Property tax notice
Land survey map or boundary confirmation document
Notes for Foreign Residents
If you cannot obtain a seal registration certificate, consult your country’s embassy or your real estate agent.
If you cannot attend the contract signing, you can assign someone to act on your behalf by preparing a power of attorney.
Chapter 6: What to Watch Out for When Selling Property in Japan
1. Cancellation Penalty
- Before signing the contract, check the cancellation penalty.
This is the fee you’ll need to pay if you cancel after signing.
It’s usually 10% to 20% of the sale price. - If the buyer is a real estate company, the legal limit is 20%.
- If the contract asks for more, it could be illegal—so read carefully.
2. Earnest Money (Deposit)
The earnest money is a deposit paid by the buyer when the contract is signed.
Before you sign, make sure you know:
- How much the deposit is
- The conditions for returning it
- The deadline for cancelling the contract using this deposit
3. Prepare Your Documents Early
Some documents—like the Seal Registration Certificate or Resident Record—are easy for Japanese citizens to get, but foreigners may not have access to them.
If that’s the case, you can often use alternative documents like:
- A sworn statement or signature certificate from your embassy
- A document from a notary in your home country
It’s best to confirm what’s needed with your real estate agent as early as possible.
Other Important Points
1.Contracts Are Written in Japanese
All contracts and legal documents will be in Japanese.
If you’re not comfortable with Japanese:
Ask for a translated version
Bring a trusted interpreter when signing
Never sign anything you don’t fully understand—it could lead to serious issues later.
2.You Can Use a Representative
If you’re not in Japan or don’t feel confident handling everything yourself, you can appoint a representative (such as a friend, family member, or legal advisor).
A representative can handle:
Signing the contract
Communicating with the buyer
Receiving the final payment
This is a great option if you want to avoid language or travel stress.
Chapter 7: Conclusion
This article has outlined the process and important tips for foreigners looking to sell property in Japan. While the basic steps are the same as for Japanese sellers, there are a few extra things to keep in mind—like preparing the right documents and making sure you understand contracts written in Japanese.
With the right preparation and support, selling your home in Japan can go smoothly and stress-free.
If you have any questions, feel free to leave a comment—we’re here to help!
