The seller obtains a certificate of evaluation for fixed asset tax of the real property at a local tax office
Agency: Tax Authority
The owner of the property must obtain the latest certificate of evaluation for fixed asset tax of the real property before to apply for registration. Registration license tax will be calculated based on the most updated value resulting from evaluation. The certificate is obtained from the relevant local tax authority.
Time and cost: 1 day, JPY 500 (JPY 400 for land + JPY 100 for building (for two or more certificates of the same type of the certificate in one application, it will cost JPY 100 per certificate from the second certificate))
Prepare the sale agreement and obtain the stamp tax
Agency: Legal Affairs Bureau, post offices or convenience stores
It is not a legal requirement for title registration to prepare a written sales agreement. However, it is common in practice to make the agreement between the parties. The agreement is subject to the stamp tax. Taxpayers can buy stamps in various places such as post offices, Legal Affairs Bureaus and convenience stores and receive an imprint on the agreement.
Time and cost: 1 day, JPY 60,000
Obtain a corporate registry certificate
Agency: Legal Affairs Bureau
The parties (as companies) obtain a corporate registry certificate issued within 3 months before the registration application. In November 2015, the Real Property Registration Order was revised. As a result, the parties can submit the corporate identification number for title registration instead of the certificate. However, it is still common to obtain the certificate for due diligence. The certificate is obtained at the Legal Affairs Bureau.
Time and cost: Less than one day (online), JPY 960
- JPY 480 each copy (Applying online and obtaining the certificate at the Legal Affairs Bureau),
- JPY 500 each copy (Applying online and receiving the certificate by post),
- JPY 600 each copy (Applying and obtaining the certificate at the Legal Affairs Bureau)
Two copies needed (480×2)
Obtain a certificate of Seller’s seal impression (inkan shomei)
Agency: Legal Affairs Bureau
The seller must obtain a certificate of its seal impression to be attached to the application for registration of transfer of the title. The certificate must be issued within 3 months before the application. It can be obtained from the Legal Affairs Bureau.
Time and cost: Less than one day (online), JPY 780
- JPY 390 for each copy (Applying online and obtaining the certificate at the Legal Affairs Bureau),
- JPY 410 for each copy (Applying online and receiving the certificate by post),
- JPY 450 for each copy (Applying and obtaining the certificate at the Legal Affairs Bureau).
Two copies needed (390×2))
File an application at the Legal Affairs Bureau
Agency: Legal Affairs Bureau
An application for registration is filed at the Legal Affairs Bureau. The Legal Affairs Bureau will register the title under the name of the new owner. The parties can apply for the registration by themselves. However, it is common to retain a judicial scrivener (Shiho-Shoshi) for the application because the registration process requires legal knowledge. The registration and license tax are paid at the Legal Affairs Bureau.
There is an 8% (from April 2014) consumption tax in Japan. Sales or leases of land are exempted from consumption tax. However, sales or leases of buildings are subject to consumption tax. In case the transaction includes the sales or lease of the building, the consumption tax is imposed only on the price of the building.
The application can be made online. However, most of the attachments necessary for the application should be submitted to the Legal Affairs Bureau by mail or in person. It takes between 7 and 10 days.
The necessary documents for the application are:
- Information certifying the reason of registration
- Certificate of registration of seller’s title of the real property (Toukizumi kenri sho) or registration identification code (Touki shikibetsu joho) (Already in his possession)
- Certificate of corporate registry or corporate identification numbers of the parties (if any of them is a corporation) (obtained in Procedure 3)
- Certificate of the seller’s seal impression (obtained in Procedure 4)
- Certificate of evaluation for fixed asset tax of the real property (obtained in Procedure 1)
- Power of attorney of the parties (if a judicial scrivener applies for the registration on behalf of any of the parties)
Time and cost: 9 days, JPY 3,939,687.52 (2% of building value + 1.5% of land value evaluated for fixed asset tax (registration and license tax))
Payment of the real property acquisition tax
Agency: Metropolitan Tax Office
This is a post-closing matter. The purchaser will receive a tax paper from the Metropolitan taxation office after the registration. The real property acquisition tax must be paid by the deadline stated on the tax paper at the tax office.
4% is the normal tax rate. Since 2006, the 3% reduced tax rate is applicable for lands and residential buildings. The reduced rate is applied from April 1, 2006, to March 31, 2021 unless the law providing such reduced rate is extended.
Time and cost: 1 day, JPY 7,879,375.04 (4 % of building value + 3 % of land value)
