Rent Paid to an Overseas Landlord in Japan: 20.42% Withholding Rules in 2026
Rent paid for Japanese real estate to a non-resident individual or foreign corporation can trigger a withholding obligation for the payer.
General 20.42% rule
NTA guidance states that rent for Japanese real estate paid to a non-resident or foreign corporation is generally subject to 20.42% withholding at the time of payment. The payer can be a company or an individual.
Residential exception for individuals
An individual who rents the property for the individual’s own residence or that of a relative does not have to withhold on the rent. Corporate leases and office use should not assume this exception.
Remittance deadline
Tax withheld from rent paid in Japan is generally remitted by the 10th day of the following month. Certain payments made abroad can still be treated as domestic-source payments when the payer has a residence, place of business or similar presence in Japan.
For properties owned by overseas landlords, the landlord’s tax residence and the tenant’s use should be checked when the lease is arranged. This article was reviewed against official NTA guidance on September 2, 2026.