Buying Japan Property from a Non-Resident: 10.21% Withholding Tax Rules in 2026
When the seller of Japanese real estate is a non-resident individual or foreign corporation, the buyer may have a Japanese withholding obligation. Under National Tax Agency guidance reviewed in September 2026, the general withholding rate on consideration paid for Japanese land and buildings is 10.21%.
General rule
The rule can apply to corporate and individual buyers and covers land, rights over land, buildings and related structures. The withholding is collected when the consideration is paid.
Limited individual-buyer exception
An individual buyer does not have to withhold when the property is acquired for the buyer’s own or a relative’s residence and the consideration is JPY100 million or less. This exception does not apply simply because the buyer is an individual; both conditions matter.
Payment deadline
For payments made in Japan, withheld tax is generally remitted by the 10th day of the following month. Cross-border payment arrangements can require separate timing analysis.
Because the withholding obligation is imposed on the payer, the seller’s residence status should be checked before closing and reflected in the settlement statement. This article was reviewed against official NTA guidance on September 2, 2026.