H2 Group has been selling and developing land in Niseko since 2003. Niseko is well established as Japan’s premier resort. The facilities and infrastructure are in place to ensure that your property purchase is seamless.
There are no restrictions on foreigners purchasing property in Japan. All property is freehold title and all property companies in Niseko use the same method of conveyance.
We will guide you through the process from start to finish.
The Niseko Resort Area on the island of Hokkaido in northern Japan is Asia’s premier skiing experience. Consistent and plentiful powder snow conditions throughout the winter season with average temperatures of -7 º C make for ideal skiing and snow boarding. The Niseko United Ski Area is internationally recognised with terrain to suit all ability levels and is regarded as Asia’s best ski resort.
Due to its proximity to Asia and the South Pacific it has grown steadily for the last 15 years. Visitor numbers have increased annually and investment in new infrastructure and accommodation has been steady. Future plans include expansion of the resort, improved facilities, better transport to Japan and the region as a result of the 2020 Olympics and proposed winter Olympics in 2030.
One overlooked factor is the four seasons nature of Niseko, summer in Hokkaido is warm but not overly humid compared to the rest of Japan and there are an abundance of activities for the family including mountain biking, road cycling, golf and hiking or simply exploring the area via car.
Autumn is mild and the changing colour of the vegetation brings out the golden hues of red and gold.
Lush green potato and rice fields dominate the spring landscape. As the farmers grow a wide variety of crops in the rich volcanic soils.
The Niseko Resort Area is approximately 2 hours drive from New Chitose International Airport in summer and 3 hours in winter.
The price quoted on our website is the listing price. In addition to this price you will be required to pay some additional costs.
You should budget for 5% in fees and commission in addition to the purchase price.
Our commissions are 3% plus a consumption tax of 10%.
Once a purchase price has been agreed upon by you and the Vendor, there will be additional costs – Purchase Related Costs
Solicitor / Translation fees
The conveyance of the property is handled by local solicitor Satoshi Yoshida and his charges depending on the size and complexity of the sale.
Contract Stamp Duty
A number of government revenue stamps (literally like a postage stamp) which need to be purchased and then affixed to the Sales Contract and Statement of Important Matters documents.
Title Registration Stamp Duty
A duty (or tax) charged by the government, which is calculated on the value of the property (not the purchase price). This will vary from sale to sale.
Title Registration Certificate Charge
A fee of ¥1,500 will apply to every block of land purchased. An additional fee of ¥1,500 will apply if there is a building on that block of land.
1 block of land = ¥1,500
1 block of land + building = ¥3,000
Postal and courier charges
Approximately ¥ 5000 per sale.
Annual Fixed Assets Tax
The rateable value of the property determined by the government paid on an annual basis (also known as ‘rates’ or ‘property tax’ in other countries).
There will be a fee by the banks for handling the transaction. These fees vary depending on the transaction.
The process takes anywhere between 2 weeks to 3 months depending on the sale method.
Hokkaido Tracks Real Estate manages the process from beginning to end, assisting in all aspects of the sale to overcome any language, legal, and cultural issues that may arise.
Offer & Acceptance Stage
Both parties agree upon a price and timeframe. The deposit is placed in the trust account of the local lawyer. Upon receipt of the deposit the property is considered “sold”.
Contract Execution Stage
Approximately 6-months after your purchase you will be responsible for Property Acquisition Tax payment. This is a one time payment charged by the government on the purchase of property in Japan.
In addition you will be responsible for an annual fixed assets tax of 1.4% of the statutory valuation of the land. Statutory valuations are generally 50% lower than the purchase price.
If you do not reside in Japan, you are required to nominate a ‘Tax Manager’ to pay the annual fixed assets tax. Your accountant or property manager generally takes on this role.
We understand that owners want to ensure maximum return on their investment and require a professional, experienced management company to efficiently handle bookings, cleaning, snow clearing, and guest management. We can assist to recommend the right management company and structure for your investment.
The following information is intended as a guide only. We recommend that you seek advice from a tax professional if you have more specific questions.
Japanese Personal Income Tax
What about depreciation?
As a guide, the contents of your property may be depreciated over 10 years at a rate of 10% per annum. New developments are depreciated over a 39-year period at a rate of 2.6% per annum.
Withholding tax is 10.21% of the sales price, in lieu of capital gains tax made to foreign transfers of sales proceeds. Withholding tax maybe refunded wholly or partly after the sellers final taxation is calculated.
Capital Gains Tax
Net gains realised from selling properties held for less than five years are subject to a minimum capital gains tax of 30%.
The taxable gain is computed by deducting the acquisition costs and related expenses, improvement costs, and transfer costs from the gross sales price.
Net gains from the sale of properties held for more than five years will be taxed at a minimum of 15%.