Glossary
Japanese Property Terms, Explained in English
Buying, inheriting, or managing property in Japan means meeting a wall of Japanese legal and tax vocabulary. These are the terms non-resident owners actually run into — each with a plain-English definition of what it means and why it matters to you.
People and roles you must appoint
- Tax Representative — 納税管理人 (nōzei kanrinin)
- A person or company in Japan appointed to receive tax notices, file returns, and pay taxes on behalf of an owner who lives abroad. Non-resident owners of Japanese property are required to appoint one, and the appointment is filed with the tax office. Read more
- Domestic Contact — 国内連絡先 (kokunai renrakusaki)
- A Japan-based individual or company recorded in the property registry as a contact for an overseas owner. Required since April 2024 when a non-resident registers ownership of Japanese real estate. It is a reachability requirement, not an active management role. Read more
- Domestic Manager — 国内管理人 (kokunai kanrinin)
- A representative who acts for an overseas condominium owner within the building's management association — attending meetings and paying management fees. Applies only to condominium owners when the association requires it. Read more
- Judicial Scrivener — 司法書士 (shihō shoshi)
- A licensed legal specialist who handles property registration at the Legal Affairs Bureau (法務局), including transfers of ownership and inheritance registration. Every Japanese property transfer normally goes through one.
- Licensed Real Estate Transaction Specialist — 宅地建物取引士 (takkenshi)
- The national real estate licence in Japan. Only a licensed specialist may deliver the legally required explanation of important matters (重要事項説明) before a property contract is signed.
Signing and documents
- Registered Seal — 実印 (jitsuin)
- A personal seal registered with the local municipality, used to execute important contracts in Japan. Non-residents usually cannot obtain one because registration requires a Japanese residence record.
- Seal Certificate — 印鑑証明書 (inkan shōmeisho)
- A municipal certificate proving that a registered seal (実印) belongs to the person using it. Normally submitted together with the seal in property transactions.
- Signature Affidavit — 署名証明 / サイン証明 (shomei shōmei)
- A certificate confirming a person's signature, issued by a notary public abroad or a Japanese embassy or consulate. It is what non-residents use in place of a registered seal and seal certificate, and it is the key document for signing remotely. Read more
- Power of Attorney — 委任状 (ininjō)
- A document authorising someone in Japan to act on the owner's behalf — for example to sign a sale contract or attend a closing. Usually supported by a signature affidavit when the grantor lives abroad.
- Certificate of Registered Matters — 登記事項証明書 / 登記簿謄本 (tōki jikō shōmeisho)
- The official extract of the property register showing the current owner, land and building details, mortgages, and other registered rights. It is the primary proof of ownership in Japan.
- Explanation of Important Matters — 重要事項説明 (jūyō jikō setsumei)
- A legally mandated pre-contract briefing delivered by a licensed specialist, covering the property's legal restrictions, infrastructure, and contract conditions. It must be given before you sign a purchase contract.
Registration and taxes
- Transfer of Ownership Registration — 所有権移転登記 (shoyūken iten tōki)
- The registration that moves title from seller to buyer at the Legal Affairs Bureau. Ownership is not secure against third parties until this is filed, and it is normally handled by a judicial scrivener.
- Inheritance Registration — 相続登記 (sōzoku tōki)
- Registering inherited real estate in the heir's name. Mandatory in Japan since April 2024: heirs must register within three years, with an administrative fine of up to ¥100,000 for failure. Inheritances that occurred before April 2024 must be registered by 31 March 2027. Read more
- Fixed Asset Tax — 固定資産税 (kotei shisan zei)
- An annual municipal tax on land and buildings, charged to whoever owns the property on 1 January. Notices are sent in Japanese to a Japanese address, which is why overseas owners need a tax representative. Read more
- City Planning Tax — 都市計画税 (toshi keikaku zei)
- An additional municipal tax levied on property inside designated urbanisation areas, billed together with fixed asset tax.
- Real Estate Acquisition Tax — 不動産取得税 (fudōsan shutoku zei)
- A one-off prefectural tax charged after acquiring property. The bill typically arrives months after the purchase, which surprises overseas buyers who have already left Japan.
- Registration Licence Tax — 登録免許税 (tōroku menkyo zei)
- A national tax paid when registering a property transfer or mortgage, calculated from the assessed value of the property.
- Final Tax Return — 確定申告 (kakutei shinkoku)
- Japan's annual income tax return, normally due by 15 March for the previous calendar year. Non-residents with rental income or a property sale must file, and a tax representative handles it on their behalf.
- Non-Resident — 非居住者 (hikyojūsha)
- For Japanese tax purposes, a person who does not have a domicile in Japan and has not had a residence there for one year or more. Status is based on where you actually live, not on nationality.
Vacant houses and transactions
- Vacant House — 空き家 (akiya)
- An unoccupied home. Japan has roughly nine million of them — about 13.8% of the housing stock in the 2023 government survey — and they are the source of the country's famously cheap listings. Read more
- Poorly Managed Vacant House — 管理不全空家 (kanri fuzen akiya)
- A category created in December 2023 for neglected vacant homes. Once a municipality designates a property as such, it can lose the residential land tax reduction, raising fixed asset tax by up to six times. Read more
- Specified Vacant House — 特定空家 (tokutei akiya)
- The more serious designation for a vacant house that is dangerous, unsanitary, or badly damaging the surroundings. It can lead to loss of the tax break, administrative orders, and ultimately forced demolition at the owner's cost.
- Brokerage Commission — 仲介手数料 (chūkai tesūryō)
- The agent's fee, capped by law. The general maximum is 3% of the price plus ¥60,000 plus consumption tax; for low-value properties priced ¥8 million or under, the maximum is ¥330,000 including tax. Read more
- Foreign Exchange and Foreign Trade Act (FEFTA) — 外為法 (gaitame-hō)
- The law requiring certain cross-border transactions — including real estate acquisitions between a resident and a non-resident — to be reported to the Minister of Finance via the Bank of Japan, generally within 20 days. Read more
- Management Fee and Repair Reserve — 管理費・修繕積立金 (kanrihi / shūzen tsumitatekin)
- The two monthly charges every condominium owner pays: one for day-to-day building management, one into the long-term repair fund. They continue whether or not the unit is occupied.
Don't want to deal with any of this in Japanese?
Japan YES acts as your tax representative (納税管理人) and Japanese contact address, scans and translates your mail, and deals with agents, contractors, and tax offices in Japanese on your behalf.