1. What is registration and license tax?

When acquiring real estate, a registration and license tax must be paid to register the transfer of ownership at the Legal Affairs Bureau. This tax is always required at the time of filing for registration.

2. Tax rates and calculation method

The standard tax rate for land ownership transfer is 2.0% of the assessed value. For buildings, the standard rate is also 2.0%, but under certain residential conditions it may be reduced to 0.3%.

For example, if the assessed value of land is 30 million yen, the registration and license tax is 600,000 yen.

3. Example case

A buyer acquired a new house for 40 million yen. The assessed building value was 25 million yen, and the residential reduced rate of 0.3% applied, resulting in a building tax of 75,000 yen. For the land portion, 30 million yen × 2.0% = 600,000 yen was taxed, bringing the total payment to 675,000 yen.

Conclusion

Registration and license tax can be a significant cost, so it is essential to simulate it during the purchase planning stage. The availability of residential tax reductions can greatly affect the total burden, so always confirm eligibility beforehand.