The average existing マンション (manshon, Japanese usage for freehold condominium) in Greater Tokyo sold for ¥863,400 per square metre in March 2026, up 9.3% year-on-year, extending a run of consecutive monthly gains that now stretches more than 71 months. For a foreign buyer arriving in Tokyo without prior context, that single figure opens a series of questions that go well beyond the sticker price: what taxes are owed at purchase, what recurs annually, and what awaits at the exit? This guide answers all three, with specific rates, deadlines, and thresholds current as of April 2026.

Japan Flat Prices in 2026: Market Overview and Regional Breakdown

The japan real estate market 2026 is bifurcated in a way that matters to high-net-worth foreign buyers. Nationally, Japan’s official land prices rose 2.7% year-on-year in 2025 (residential land +2.1%, commercial +3.9%, industrial +4.8%), according to data published in early 2026. Tokyo’s 23-ward core has moved considerably faster than those national averages.

Apartment prices tokyo-wide vary sharply by ward and by whether a property is newly built or existing. In Minato-ku (港区), which covers Azabu (麻布), Hiroo (広尾), Shirokane (白金), and Roppongi (六本木), new-build マンション regularly list above ¥2 million per square metre at the upper end. A 120-square-metre unit in Azabudai Hills (麻布台ヒルズ), the 330-metre mixed-use tower completed in late 2023, has traded above ¥1 billion in the resale market in 2025 and 2026. At the entry point for the luxury segment, a 70-square-metre two-bedroom in Hiroo or Nishi-Azabu (西麻布) typically carries an asking price of ¥150 million to ¥250 million.

For context on the wider spectrum of japan housing costs, the nationwide average asking price for a new-build condominium in 2026 is approximately ¥40 million to ¥50 million, concentrated in regional cities. Tokyo’s 23 wards sit at a structural premium that shows no sign of narrowing. The 2026 land price data confirms that the most expensive residential parcels in Japan remain concentrated in a tight corridor running from Minami-Aoyama (南青山) through Omotesando (表参道) to Azabu.

Foreign buyers should also understand that tokyo condo prices are quoted in two ways: total price (総額) and price per square metre (坪単価 or 平米単価). Agents often use 坪 (tsubo, approximately 3.3 square metres) when quoting to Japanese clients, which can produce apparent discounts if a buyer misreads the unit. Always confirm the per-square-metre figure.

Fixed Asset Tax on Tokyo Condos: Annual Rates and Reductions

Fixed asset tax japan (固定資産税, kotei-shisan-zei) is the primary recurring ownership cost on any Tokyo property. The statutory rate is 1.4% of the 固定資産税評価額 (assessed value, kotei-shisan-zei hyouka-gaku), set by the local government and typically well below market price. In Tokyo’s 23 wards, a second levy applies: the 都市計画税 (toshi-keikaku-zei, urban planning tax), capped at 0.3% of the same assessed value. Combined, the maximum annual burden on a central Tokyo マンション is 1.7% of assessed value.

The assessed value itself is recalculated on a triennial cycle. The most recent 評価替え (hyouka-gae, property revaluation cycle) base year was FY2024 (令和6年度). FY2025 and FY2026 (令和8年度) carry those FY2024 figures forward unchanged, except for newly built, extended, or subdivided properties. The FY2026 land assessed values for 23-ward properties became publicly viewable from April 2026 at each ward’s 都税事務所 (to-zei-jimusho, metropolitan tax office).

The Small-Scale Residential Land Reduction

The single most important reduction for condominium owners is the 小規模住宅用地 (shokibo-jutaku-yochi, small-scale residential land) rule. For land up to 200 square metres per dwelling unit, the taxable base is reduced to one-sixth for 固定資産税 purposes and one-third for 都市計画税 purposes. Land over 200 square metres per unit (一般住宅用地, ippan-jutaku-yochi) receives a less generous reduction: one-third and two-thirds respectively.

Tokyo Metropolitan Ordinance adds a further layer: the 都市計画税 on 小規模住宅用地 is halved again, continuing through FY2026. In practice, for most condominium units in Minato-ku or Shibuya-ku (渋谷区), the land component of the annual tax bill is a fraction of what an uninitiated buyer might expect.

New Construction Tax Reduction

For newly built condominiums in reinforced-concrete or steel-reinforced-concrete structures of three storeys or more, the building portion of the fixed asset tax is halved for five years. The reduction applies to the floor area equivalent of 120 square metres per unit. Properties certified as 認定長期優良住宅 (nintei-choki-yuryo-jutaku, certified long-term quality housing) receive a seven-year halving on the building portion rather than five.

This new construction tax reduction is material. On a ¥500 million new-build unit in Kita-Aoyama (北青山) where the assessed building value might be ¥80 million, the annual saving over five years can reach ¥560,000 per year, or ¥2.8 million in aggregate.

Payment Schedule for FY2026

Fixed asset tax in Tokyo’s 23 wards is billed in four instalments. The 納税通知書 (nozei-tsuchisho, tax payment notice) arrives with the first instalment. Approximate deadlines for FY2026 are: end of June 2026 (first instalment), end of September 2026 (second), end of December 2026 (third), and end of February 2027 (fourth). Lump-sum payment at the first instalment is permitted and common among buyers who prefer to consolidate.

Real Estate Acquisition Tax: One-Time Costs at Purchase

Property acquisition tax japan (不動産取得税, fudosan-shutoku-zei) is a one-time prefectural tax levied when ownership transfers. The statutory rate is 3% for residential land and buildings, and 4% for non-residential buildings. The 3% rate is effective through 31 March 2027 (令和9年3月31日).

The taxable base for residential land is the assessed value multiplied by one-half, a reduction in force through 31 March 2027. For new residential buildings, a deduction of ¥12 million is applied to the building’s assessed value before the 3% rate is calculated. For properties certified as 認定長期優良住宅, that deduction rises to ¥13 million, though the enhanced figure expired on 31 March 2026 for most applications, so buyers of newly certified units after that date revert to ¥12 million.

A land credit further reduces or eliminates the land component. The credit is the greater of ¥45,000 or the result of: land price per square metre, multiplied by the dwelling floor area (capped at 200 square metres), multiplied by two, multiplied by 3%. For a standard new Tokyo condominium, these stacked deductions and credits frequently bring the net 不動産取得税 liability to zero. Buyers of existing properties with higher assessed values relative to the deduction thresholds will owe more, but the amount rarely exceeds 1% to 2% of the purchase price in practice.

Note that property acquisition tax japan is separate from the 登録免許税 (toroku-menkyo-zei, registration licence tax) paid at 登記 (touki, the transfer of legal title recorded at the Legal Affairs Bureau). Registration licence tax on ownership transfer runs at 0.4% of assessed value for newly built properties and 2% for existing ones, with reductions available for certain residential transactions through March 2026.

Capital Gains Tax on Property Sales: The Five-Year Holding Period Rule

Capital gains tax japan on real property is where the difference between an informed exit and an expensive one is most pronounced. The classification of a gain as 長期譲渡所得 (choki-joto-shotoku, long-term capital gains) or 短期譲渡所得 (tanki-joto-shotoku, short-term capital gains) determines the effective tax rate, and the boundary is a five-year holding period.

The critical detail that catches foreign sellers off guard: the holding period is assessed as of 1 January of the year of sale, not the actual sale date. A property acquired on 15 February 2021 and sold on 20 December 2026 is classified as short-term, because as of 1 January 2026 the owner had held it for fewer than five years. Waiting until 2 January 2027 to sign the sale contract would reclassify the same gain as long-term.

Tax Rates by Classification

For long-term capital gains (property acquired on or before 31 December 2020, as of 1 January 2026), the combined effective rate is approximately 20.3%: 15.315% income tax plus 5% 住民税 (jumin-zei, resident tax). For short-term capital gains (acquired on or after 1 January 2021), the combined effective rate rises to approximately 39.6%: 30.63% income tax plus 9% 住民税.

On a ¥200 million taxable gain, the difference in 住民税 alone is ¥8 million (¥10 million at the long-term rate versus ¥18 million at the short-term rate). The total tax differential between classifications on that same gain exceeds ¥38 million. For buyers who purchased in 2021 or 2022, the long-term rate does not apply until a sale completed on or after 1 January 2027. Timing the contract date carefully, in consultation with a Japanese tax accountant (税理士, zeirishi), is one of the most straightforward ways to reduce the exit cost on a Tokyo property.

One nuance relevant to inherited property: the deceased’s original acquisition date carries over to the heir. A property held by a parent since 2015 and inherited in 2025 qualifies immediately as long-term capital gains on any sale in 2026.

For foreign residents without 永住権 (eijuuken, Japanese permanent residency), the same tax rates apply to Japanese-source real estate gains. Japan has tax treaties with most OECD countries, but the treaty provisions for real property gains typically preserve Japan’s right to tax. Non-residents who have already left Japan remain liable for Japanese capital gains tax on Japanese property and must file a 確定申告 (kakutei-shinkoku, annual tax return) or appoint a 納税管理人 (nozei-kanrinin, tax agent) to do so on their behalf.

Vacant Property Risk and Tax Penalties for Foreign Owners

A risk that receives insufficient attention in English-language coverage of the japan real estate market 2026 is the vacant property designation. Under the 空家等対策の推進に関する特別措置法 (Act on Special Measures for Vacant Houses, 2015, amended 2023), local governments can designate a property as 特定空家等 (tokutei-akiya-tou, a specified vacant house) or 管理不全空家等 (kanri-fuzen-akiya-tou, an inadequately managed vacant house).

The tax consequence is severe. A designated property loses the 小規模住宅用地 one-sixth reduction on land assessed value. The land component of the annual fixed asset tax effectively multiplies by six. On a Minato-ku property where the land assessed value might be ¥100 million, the annual tax shift from the reduction to the full rate adds roughly ¥933,000 per year to the fixed asset tax bill, before the urban planning tax adjustment.

Foreign owners who purchase a Tokyo condominium as a pied-à-terre and leave it empty for extended periods face this risk, particularly as Tokyo’s 23 wards have become more active in identifying and designating vacant units since the 2023 amendment. Practical mitigations include short-term rental arrangements (subject to 民泊 (minpaku, home-sharing) licensing under the 住宅宿泊事業法), long-term lease agreements, or engaging a property management firm to maintain active occupancy records.

This is one area where the distinction between vacant property tax risk and normal condo ownership costs is not well understood by buyers arriving from markets where vacancy carries no penalty. The annual fixed asset tax on an occupied ¥500 million Hiroo condominium might be ¥700,000 to ¥1.2 million depending on assessed values and the new-construction reduction status. The same property designated as a specified vacant house could see that figure approach ¥5 million or more on the land component alone.

Total Cost of Ownership: Combining Taxes, Acquisition Costs, and Maintenance

A complete picture of japan housing costs for a foreign buyer of a ¥500 million existing マンション in Aoyama (青山) or Roppongi Hills (六本木ヒルズ) looks roughly as follows in 2026.

At acquisition: the 不動産取得税 will likely net to a modest figure or zero after deductions and credits, as described above. Registration licence tax (登録免許税) on an existing property runs at 2% of assessed value, which on a Minato-ku unit might represent ¥4 million to ¥8 million depending on the assessed figure. Agent fees (仲介手数料, chukai-tesuryo) are capped by statute at approximately 3% of the purchase price plus ¥60,000 plus consumption tax, so roughly ¥16.5 million on a ¥500 million transaction. Stamp duty (印紙税, inshi-zei) on the purchase contract is ¥150,000 for a contract value between ¥100 million and ¥500 million.

Annually: fixed asset tax and urban planning tax combined, typically 1.4% to 1.7% of the assessed value of land and building. For a ¥500 million market-price property in Minato-ku, the assessed value might be 30% to 50% of market, producing an annual tax bill in the range of ¥700,000 to ¥1.5 million, depending on age, size, and applicable reductions. Add 管理費 (kanri-hi, monthly building management fees) and 修繕積立金 (shuzen-tsumitate-kin, the long-term repair reserve fund), which on a well-maintained tower in central Tokyo typically run ¥30,000 to ¥80,000 per month combined, or ¥360,000 to ¥960,000 annually.

For buyers considering properties at a wider range of price points across Japan, the cost structure shifts considerably outside the 23 wards. Cheap houses in Japan’s countryside carry acquisition costs that are structurally different from Tokyo condos, including lower assessed values, minimal urban planning tax, and in some cases zero 不動産取得税 after deductions.

At exit: as detailed above, the capital gains tax rate is the dominant variable. On a ¥300 million gain held for more than five years (long-term classification), the combined income and resident tax is approximately ¥60.9 million. The same gain held for fewer than five years (short-term) produces approximately ¥118.8 million in tax. The holding period decision is, in most cases, the single largest financial lever available to a seller.

For buyers navigating the acquisition side of a transaction above ¥300 million, the due diligence process includes a 重要事項説明 (juuyou-jikou-setsumei, the statutory pre-contract disclosure meeting) that must be conducted by a licensed 宅建士 (takken-shi, Japan’s licensed real-estate transaction specialist). At Koukyuu, the licensed takken-shi who conducts that disclosure meeting is the same person who has managed the client relationship from the first consultation, reviewed the property, and led the negotiation. That continuity is not standard practice at most Tokyo agencies, where unlicensed salespeople handle the majority of the engagement and a takken-shi appears only at the legally required moment.

As tokyo condo prices at the ¥500 million to ¥1 billion level continue to attract international buyers in 2026, understanding the full tax architecture from acquisition through annual ownership to eventual exit is the prerequisite for any rational purchase decision. The numbers above are specific to the current statutory framework, but tax law changes. The 不動産取得税 residential rate of 3% is confirmed through 31 March 2027. The new-construction fixed asset tax halving is confirmed through 31 March 2026 for the building permit date threshold. Buyers transacting in late 2026 or early 2027 should verify the current status of any time-limited reduction with a qualified 税理士 before signing.

Koukyuu is a private buyer’s advisory for distinguished Tokyo residences in Omotesando (表参道), Aoyama (青山), Nishi-Azabu (西麻布), and Azabudai Hills (麻布台ヒルズ), focused exclusively on transactions of ¥300 million and above, with a licensed 宅建士 personally handling every stage from the first consultation through contract signing. Book a private consultation) to begin a confidential conversation about your acquisition.