real estate japan　shiftjapan

Management fees refer to expenses necessary for the routine maintenance and management associated with managing apartments and are collectively called “management fees,” which include management consignment fees and equipment maintenance fees paid to the management company, as well as electricity and water bills for common space. Fees vary depending on the property, but are approximately JPY 200 per square meter of occupying area.

Reserves for repairs are put aside adequately enough to mitigate the primary cost burden of major repairs that may be implemented. Such expenses vary depending on the age and state of the building, but should be around 3% of rent.

The insured amount varies considerably depending on the insurance company and options. If you set the insured amount at JPY 20 million, the insurance premium would be approximately JPY 15,000 annually as a rough estimation.

Fixed property tax is a tax paid by the owner of the land, house or depreciable asset (collectively called “fixed assets”) as of January 1 each year (known as “base date for assessment”) to municipalities where the fixed asset is located, with the tax amount being calculated based on the price of the fixed asset.

City planning tax is a municipality tax levied locally on land and house owners by municipalities of different levels of jurisdictions for earmarking for expenses required in city planning projects and land readjustment projects.

Income tax is based on an individual’s yearly income derived during the year between January 1 and December 31. Corporate tax is a national tax that is applied to income earned during the corporate entity’s fiscal year.

Remittance charges are paid to banks when making remittances from Japan to overseas. Expenses vary depending on the bank, but are around JPY 5,000.

Remuneration for licensed tax accountants vary depending on the amount of real estate income.

The amount would be around one month’s rent as a rough estimation.