Firstly, the buyer signs a Commitment to Purchase document. This assures the real estate agent that they can take the property off the market and prepare the necessary documentation. It takes about one week for the real estate agent to draw up the statement of important matters and real estate contract. Upon signing (or stamping) the contract, a deposit of 10% or 20% is payable. In Japan, the deposit is paid directly to the seller. The remaining balance is paid about four weeks later. At this time, the solicitor registers the transfer of title and creates the title deed.

If the buyer changes their mind after signing the contract, the penalty is usually a forfeit of deposit. Prior to signing the contract, the buyer is entitled to cancel the purchase although he/she may be obliged to buy if a Commitment to Purchase was signed.

The majority of land in Niseko is freehold. Some land in Annupuri is leased by the Chuo Bus company.

These represent building restrictions of the area in question. The footprint is the actual land area that one is permitted to build on, calculated as a percentage of the total land area. The floor area ratio is the permitted floor area of the entire building, again calculated as a percentage of the total land area. Please note that there are other building restrictions.

One tsubo = 3.305785 square metres. Divide the tsubo amount by 0.3025 for an accurate calculation. Most land prices in Japan are quoted per “tsubo”.

The solicitor is responsible for checking the real estate contract and statement of important matters. They prepare the necessary information, register the title transfer and create the title deed. They also check that the real estate in question is free of debt. Strictly speaking, the "solicitor" involved during a real estate transaction is actually a judicial scrivener. The legal responsibility of ensuring all the information regarding the property is correct lies with the real estate agent and their transaction manager. They can be held legally responsible for providing false information, intentionally or negligently.

At purchase, a buyer will need to pay acquisition tax. This is 3% of the council’s evaluation of the real estate in question. In the larger Niseko area, this is payable at the Shiribeshi Government Office approximately 3 months after title transfer. From January 1st of the year following the purchase, the buyer will be eligible to pay fixed asset tax. This is 1.4% of the council’s evaluation and is payable in May of the same year. In certain areas, there are additional city planning taxes. Fixed asset tax is payable at the town office. Council evaluations are usually much less than the real estate sales price.

If a buyer normally resides outside of Japan, it is necessary to appoint a tax manager in Japan who can pay for the taxes outlined above. Failing to appoint a tax manager can result in repossession of real estate.

Capital gains tax varies depending on the length of time the property has been held and whether it has been used as a place of residence or not. The basic calculation is 39% if the property is sold within 5 years and 19% if it is sold after 5 years. If the place is lived in by the owner for 12 months or more, capital gains are exempt up to 30 million yen. There are other mitigating factors and it is best to confirm all tax payments with a registered tax accountant.

Any money made through selling real estate in Japan is taxable under Japanese jurisdiction. Therefore, this profit must be declared through a private or corporate annual tax return. Please note that investors must declare this income and pay the tax in Japan, not their residing country. Many countries have a tax agreement with Japan so that investors do not need to pay double tax. It is best to engage a registered tax accountant for assistance with Japanese tax returns. If, when selling a property, the money is put in escrow in Japan, the body holding the money is legally obliged to pay 10% withholding tax to the local tax office.

Often, a land survey is performed at the time of sale and paid for by the seller. However, land is also sold utilising the registered details. If land is to be subdivided, an area survey will be necessary. For more complex developments, a topographical survey is necessary.

In Japan, most houses and apartments are suitable for long term rentals without special license. However, for short term rentals, an innkeeper's license is necessary as the property is recognized as a “hotel” under Japanese law. If the building was originally designated as a residential property at construction, it will need to be changed to a hotel in order to receive the license. This involves an inspection by the fire department to ensure that the property conforms to the necessary standards (such as fireproof carpets, exit lighting, etc.). In addition, the innkeeper’s license needs to be registered to someone who resides in Japan. As the details differ depending on the type and size of building, please contact us for more details.

The building restrictions in Kutchan were passed as law under Quasi-Urban Planning in early 2008. The following documents were created by the Kutchan Town Office. Please note that these are subject to change - please check the Kutchan Town Homepage for the latest information.
- Map of Quasi-Urban Planning Area (156 KB pdf)
- Building regulations 1 (52 KB pdf):
East Iwaobetsu
West Iwaobetsu
Asahi Hanazono
North Hills
Hanazono village
- Building regulations 2 (60 KB pdf):
Centre Village
Yamada I & II
Kabayama
Pension village
Yotei-no-Sato
Futogoyama
- Calculating building height (56 KB pdf)
- Building considerations (1.5 MB pdf)
- Kutchan colour restrictions (32 KB pdf) refer to the Wikipedia page on the Munsell colour system.

All kinds of renovation and construction can be work can be completed and there are many local project managers. Any work involving changes to building structure or external painting may need building approval.

In Japan, most property owners will charge a 1 or 2 month deposit. The real estate agent will charge up to 1 month's rent (usually shared between owner and tenant). The owner may also request "key" money which is a non-refundable payment, usually of 1 month's rent. Therefore, you can expect to pay anywhere up to 5 month's rent to move in to a property. It is important to remember, however, that all these fees are negotiable and the owner will want to fill their property.

Fixed-term commercial leases have 3 month's rental deposit as standard. The tenant should expect to pay property management fees and all utility payments on top of this. Also, when leaving the property, the tenant will be obliged to return the property to its original state at their own cost.

We have experience in almost every aspect of life and investment in Niseko and we are happy to provide information regarding any questions you may have.

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