What Buying a Home in Japan Really Costs

Quick Answer: The price on the listing is not what you pay. On top of it, budget roughly 6–10% of the price for a used home (about 3–7% for a new one) in one-time costs — mostly the agent fee (3% + ¥60,000 + tax), acquisition tax, registration tax, and stamp duty. Then plan for ongoing annual property tax and, for a mansion, monthly management and repair-reserve fees that rise over time.

This is the second guide in our series on buying a home in Japan as a foreigner or couple. The first covered whether you can get a mortgage; this one covers the costs that catch people out — the ones that don't appear on the property listing but decide whether the purchase actually fits your budget.

This is educational information, not financial or tax advice. Rates, thresholds, and reductions vary by municipality, property, and year, and many reductions have expiry dates — confirm current figures with the seller's agent, your municipality, the NTA, or a qualified professional.

How much should you budget beyond the price?

As a working rule, the one-time costs of buying land in Japan run about 6–10% of the price for a used property, and roughly 3–7% for a new one. Used homes cost more, mainly because they almost always involve an agent fee that a brand-new home bought directly from a developer often doesn't.

So on a ¥30 million used home, you're realistically looking at ¥1.8–3 million in extra cash on top of the price and deposit — money that mostly can't be borrowed and has to be ready at signing and closing. Getting this number right early is the difference between a comfortable purchase and a stressful one.

What are the one-time costs when you buy?

Here's where that 6–10% goes:

What does it cost to keep the home every year?

Owning doesn't stop the bills. Every year you'll pay:

For a mansion (condominium), add the monthly charges that never go away:

A detached house has no management fee, but the flip side is that you fund every repair — roof, exterior, water heater — so it's wise to set aside your own reserve.

Why do used homes cost more to buy than new ones?

It's mostly the agent fee. New homes sold directly by a developer frequently carry no brokerage fee, while used homes almost always involve an agent taking the full 3% + ¥60,000. Registration costs can also run a little higher on older buildings. That single line item is why the "extra costs" percentage jumps from around 3–7% on a new home to 6–10% on a used one — worth remembering when you compare a new build against an older place with a lower sticker price.

How this fits your FI plan

These costs are exactly why a home's price tells you so little about whether buying beats renting. Fold the full picture — upfront costs, annual tax, and rising reserves — into the decision using our Buy vs Rent in Japan guide and the Buy vs Rent calculator, then see how the commitment reshapes your timeline in the PlanTogetherFI calculator. And if you haven't yet checked whether a bank will lend to you, start with can foreigners get a mortgage in Japan.

PlanTogetherFI is for educational planning only. It is not financial, legal, or tax advice. Tax rates, reductions, and fees depend on the property, the municipality, and the year, and several reductions have expiry dates — confirm current figures with the agent, your municipality, the NTA, or a qualified professional.

Frequently Asked Questions

How much are the extra costs when buying a house in Japan?

Budget roughly 6–10% of the price for a used home and about 3–7% for a new one. On a ¥30 million used home that's around ¥1.8–3 million on top of the price, mostly for the agent fee, acquisition tax, registration tax, and stamp duty.

How much is the real estate agent fee in Japan?

For properties over ¥4 million, the legal maximum is 3% of the price + ¥60,000, plus 10% consumption tax. On a ¥30 million home that's about ¥1.056 million. New homes bought directly from a developer often have no agent fee.

What is fixed asset tax (固定資産税) and how much is it?

An annual tax of 1.4% of the property's assessed value, billed by your municipality. Land under a home is heavily discounted — small residential lots up to 200㎡ are assessed at one-sixth of value — and new buildings get the building portion halved for the first few years. City planning tax of up to 0.3% may also apply.

What are management and repair-reserve fees on a Japanese mansion?

Monthly charges owners of a condominium pay on top of any mortgage. Nationally they average roughly ¥11,500 (management) and ¥13,400 (repair reserve) per month, and the repair reserve typically rises as the building ages. Always review the building's long-term repair plan before buying.

Can these costs be added to the mortgage?

Some lenders let you roll certain costs into the loan, but many upfront costs — especially the agent fee and taxes — are expected in cash at signing and closing. Plan to have the 6–10% available rather than assuming you can borrow it.

Sources and further reading

Details reflect rules and averages as of mid-2026 and can change; several reductions expire in March 2027. Always confirm the figures for your specific property with the agent, your municipality, the NTA, or a qualified professional.