The "Forgotten" 5 Million Yen: Why You Must Plan with Tax in Mind

When discussing large numbers like "50 million yen," our sense of money can sometimes get paralyzed. But here is a sober reality check: Japan's Consumption Tax is 10%.

If the construction cost is 50 million JPY, the tax alone is 5 million JPY. This is enough to buy a luxury car.

The "Tax-Excluded" Trap

If you build your budget based on "Tax-Excluded" prices, you will face a 5 million yen deficit at the final contract stage. This can cause loan applications to fail. Always ensure you are discussing "Tax Included" (Zeikomi) prices.

Land vs. Building

• Land: No Consumption Tax. (0%)

• Building:10% Tax applies.

• Brokerage Fee: 10% Tax applies to the agent's commission (approx 3%).

• Other Taxes: Real Estate Acquisition Tax, Registration License Tax, etc.

Need a Quick Reality Check?

"So, roughly how much would it be?" If you are wondering, feel free to send us a simple message. Just tell us the "Location" and "Approximate Building Size." We can reply with a rough market estimate via chat. It is not a formal quote service, just a casual "reality check" to help your planning.