Posted on: 9 September 2025

Guide to Stamp Duty for Foreigners on Japan Property Deals

Buying real estate in Japan involves more than simply finding a property and signing a contract. Many costs accompany the purchase process, particularly taxes that both foreigners buying property in Japan and locals must understand clearly. One such cost is stamp duty—a national tax on certain contracts. Understanding these costs is a smart investment for anyone considering property in Japan.

Whether you plan to buy an apartment in Tokyo or purchase elsewhere in Japan, knowing about stamp duty helps avoid unexpected expenses.

What Is Stamp Duty In Japan

Stamp duty (印紙税, Inshi Zei) is a tax required under the Japanese Stamp Tax Act. Essentially it is levied on certain contracts and written documents—sales contracts, loan agreements, construction contracts, receipts under specified conditions, and other legally defined “taxable documents.”

The idea is simple: when you sign a contract of a certain form that involves a transaction over a threshold, you must affix a revenue stamp (収入印紙 shūnyū inshi) with the appropriate value, then “cancel” it by sealing or signing through the stamp so it cannot be reused.

When Stamp Duty Applies

Stamp duty is payable at various stages of a real estate transaction. Key moments include:

• When signing the sales contract for the real estate.
• When concluding a loan contract if you are borrowing funds to finance the purchase.
• Sometimes when entering into construction‑related contracts.

Not every contract will require it. For example, if the contract amount is below a certain threshold, or the document is not one of the recognised taxable types, stamp duty may not apply.

How Much Stamp Duty Might Be

Amounts vary depending on the value stipulated in the contract. Japan has introduced reduced rates for certain contracts valid until March 31, 2027, which lower the stamp duty in many cases.

Here are some indicative ranges (for a real estate contract or similar document) under current/reduced‑rate regimes:

Contract Amount (JPY)	Stamp Duty (Standard / Reduced Rate) Approximate
¥10 million – ¥50 million	about ¥20,000 / ¥10,000
¥50 million – ¥100 million	about ¥60,000 / ¥30,000
¥100 million – ¥500 million	about ¥100,000 / ¥60,000

These values are only for illustrative purposes; exact stamp duty depends on the precise contract type and the amount written in the contract. Also, if the contract is for very large or special‑purpose real estate, or includes other stipulations, the duty can go higher.

Stamp Duty In The Context Of Natural Person Tax And Other Real Estate Taxes

Stamp duty is one component among several taxes associated with property acquisition in Japan. The Natural Person Tax framework (for individuals, including non‑residents) covers many of these. For instance:

• Acquisition tax: a one‑time local tax when purchasing property. Rate generally around 4%, though reduced rates (e.g. 3%) may apply under certain conditions.
• Registration and license tax: levied when ownership is registered, or when a mortgage is registered.
• Fixed asset tax and city planning tax: recurring annual taxes on property ownership.

Stamp duty sits among these in the “contract‑signing / legal documentation” stage. Natural Person Tax rules for non‑resident real estate transactions confirm that stamp duty is required for sale and purchase contracts, loan contracts, and certain other prescribed documents.

What Foreign Buyers Should Note

Foreigners considering property in Japan should take special care with stamp duty and related documentation. Here are some pointers:

1. Understand the contract value clearly. The value written in the contract determines stamp duty, even if the market value is different. Negotiate carefully and ensure the contract reflects what you expect.
2. Watch for amendments. If changes are made to contracts (for example, adjustments to price, scope, or terms), each new version or original document may need its own revenue stamp.
3. Check reduced rate periods and exemptions. Reduced rates are in place until certain dates; also, some contracts under thresholds are exempt or attract a lower tax. Make sure your contract qualifies.
4. Ensure proper cancellation (postmark or seal). After affixing the stamp, the document must be cancelled via seal or signature to avoid legal issues or penalties.
5. Consider residency status and visa type. While stamp duty itself is national and generally applies similarly to residents and non‑residents, other taxes (acquisition, registration, etc.) and benefits or concessions can depend on whether you are a permanent resident or foreign non‑resident. The Natural Person Tax rules have different obligations depending on residency.

Penalty For Non‑Compliance

Failing to pay the correct stamp duty, or not cancelling the stamp properly, can lead to penalties. Typically, the penalty is twice the unpaid stamp duty. If the non‑payment is reported before a tax authority investigation, some leniency might apply (sometimes only 10% extra).

How Stamp Duty Affects Overall Costs

Stamp duty is only one part of transaction costs when buying real estate. Alongside it you will likely incur:

• Agent’s commission
• Loan‑related fees (if applicable)
• Registration and license tax
• Real estate acquisition tax
• Annual taxes (fixed asset tax, city planning tax)
• Administrative / legal fees

For many transactions, especially in Tokyo, these combined costs can add 5‑10% or more over the purchase price. Knowing the stamp duty component in advance helps with budgeting.

Conclusion: How To Move Forward With Confidence

Navigating the cost of stamp duty on Japanese real estate contracts requires care, especially for foreign individuals, non‑residents, or anyone who might need multiple versions of contracts. By understanding what types of documents are taxable, knowing the contract value thresholds, keeping track of reduced rate periods and complying with cancellation rules, it is possible to avoid surprises.

Working with experienced professionals helps: real estate agents, judicial scriveners, and tax advisors. For clear, up‑to‑date guidance on all the taxes and legal requirements around purchasing real estate, JP Homes provides insightful articles, useful tips, and assistance at each stage. Be sure to explore JP Homes’ resources and contact them when you are ready to move forward.