Frequently Asked Questions

Q1. Can I purchase property in Japan?

Yes. Any foreign national can purchase real estate in Japan. There are no restrictions on ownership in Hokkaido. There is no Foreign Investment Review Board (FIRB) for the purchase of property. The Japanese title system is similar to the Australian Torrens title system and the transfer of title is relatively simple and straight forward. When you purchase a property with Niseko Property will send you a copy of our guide to purchasing property in Japan that will 'walk' you through the process. Our sales team will guide you through the process from your initial enquiry through to completion and property management.

Q2. How does the sales process operate when buying property in Japan?

Niseko Property 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, providing a swift, seamless experience.

The sales process:

  • Contact us to discuss your potential purchase.
  • Ensure you have the finance in order.
  • An offer is made and communicated to the vendor.
  • Contracts are in Japanese and will be completely translated in English we can assist you with a local solicitor if you require.
  • Prior to settlement, the remaining funds are due and your solicitor will place them in a trust account.
  • A deposit is required to secure the property, which is placed in Niseko Property's trust account until, contracts are approved and signed.
  • Upon the signing of contracts, the deposit is released to the vendor.
  • Prior to settlement, the remaining funds are required and the funds are placed in a trust account.
  • On the allocated day, the Niseko property team will arrange for the transfer of funds and the exchange of title.
  • The title deed will be sent to you within a week.
  • At settlement Japanese Stamp Duty and Real Estate Acquisition Tax is payable, these are one off charges. Real Estate Acquisition Tax is approximately 3-4% of the properties registered value, this value is derived from registered council records, not the purchase price.
  • After sales is where Niseko Property will continue to be of service to you. We can assist you with managing your property.

Q3. What are the general costs of building in Japan?

Please contact us directly and we can provide you with estimates, on a per square meter basis, using a variety of building materials. The cost of building in Niseko varies between 2000 US and 3000 US dollars per m2 as an estimate. We can also assist you with Project management, design and the tendering process. Our experience in this area will ensure that you not only build your dream house but that your house or apartment is marketable. Please ask us for information on local building companies.

Q4. Is the land in Niseko free hold title?

Yes, the majority of land in Niseko is free hold title. The exception is Annupuri Village and Rusutsu, where most property in the vicinity of the lifts is perpetual lease.

Q5. Is it possible for foreigners to obtain financing through a Japanese bank?

It is extremely difficult for foreigners to obtain financing through a Japanese bank, particularly without permanent residency.

So how do you finance your purchase?

Ideally a yen loan is the best way to purchase your property. Japanese interest rates are at historically low levels and many banks will provide a loan in yen. However many people also finance their purchase in Niseko in their home country using their existing finance arrangements.

When you obtain finance outside of Japan it is not possible to use the Japanese property as collateral. It is anticipated that in 2008/2009 that some of the Australian International banks will start to partially finance property in Hirafu.

Australia
The NAB appears to be the most progressive at providing loans in Japanese yen at Japanese interest rates. In Australia the NAB appear to be the most helpful.

The loan will be secured against a nominated asset in your country of residence. The asset should have a value of 120% of the amount of the loan and you should have a good relationship with the bank and a good income history. There is no centralized contact and we strongly suggest you discuss financing prior to coming to Niseko.

Hong Kong
In Hong Kong the Westpac bank and Commonwealth Banks are the most progressive banks and will provide Yen loans with the appropriate collateral depending on your financial situation.

The loan can be serviced in Japanese yen through your Japanese income which will minimize your exposure to currency fluctuations.

Japan and Australia

The Australian and New Zealand Banking Group Ltd (ANZ) have offices in Tokyo and Osaka, so are on the ground in Japan to assist with your requirements.

ANZ Japan Expat Mortgage Summary

Their standard Expat Dual Currency Mortgage requires the borrowers main source of income to be JPY. For certain clients who are investing in Japanese property they are able to seek an exception to that requirement enabling ANZ to assist Australian (or other) tax residents. All clients need to provide an Australian or New Zealand property as security to release equity which can be used to purchase Japanese property.

ANZ can:

  • Offer JPY finance secured against approved Australian or New Zealand property.
  • Offer JPY interest rates based on ANZ cost of funds plus 1-1.25% margin.
  • Apply standard Expat Mortgage terms for Japan based investors.
  • Consider Australian or New Zealand based applicants on a case by case basis.
  • Provide a loan structure that generally allows for trusts and companies.
  • Provide approval/pre-approval within 5-7 working days, followed by a 4-6 week settlement process.

Please note: All applicants are subject to ANZ's prevailing charges, credit criteria and standard terms & conditions.

Contact ANZ's Tokyo based Relationship Managers on how they can assist.


Natalie Foxwell Michelle Quin
E: foxwelln@anz.com E: quinm@anz.com
Ph: +81 3 6212 7761 Ph: +81 3 6212 7762

Q6. What services does the solicitor provide?

The solicitor represents you in Japan and does the following:

  • Checks the contents of the Important Matters and the Contract on request
  • Is responsible for title registration in the buyer's name
  • Confirms that the property is unencumbered.
  • Provides the title deed
  • Provides trust fund services
  • Provides independent objective advice
  • We recommend that you use Satoshi Yoshida. Satoshi speaks English and will be able to assist you with your purchase. Satoshi's office is located in Kutchan.

Satoshi Yoshida
Telephone: 0136 21 7333
Address: Nishi 1 chome, Minami 1 jou, Kutchan-cho, Abuta-gun, Hokkaido 044-0031, JAPAN
E-mail: sat@oosys.net

If you are looking for independent advice in Niseko you may also wish to use Michael Davenport's services, Michael is an independent consultant in Niseko and can assist you with a range of services.

Michael Davenport
Telephone: 090-5987-7390
Address: 163-45 Aza Yamada, Kutchan, Abuta-gun, Hokkaido, 044-0081, JAPAN
Web: www.nisekoconsulting.com
Email: michael.davenport@nisekoconsulting.com

  • Independent advice
  • Translation services
  • Project management assistance
  • Renovation/construction quotations
  • Importation
  • Land surveys and boundary marker placement
  • Title deed searches

Q7. Are there any building restrictions in Niseko?

The following building restrictions have been proposed for Hirafu village.

Upper Hirafu village
Building footprint: 40%
Coverage ratio: 250%
Building height: 22m (flat roof 18m)

Middle and lower Hirafu village)
Building footprint: 40%
Coverage ratio: 150%
Building height: 13m

We are able to provide a translation of the building regulations upon request.

Q8. What is a Tsubo?

A Tsubo is a measure of land and area in Japan and one tsubo is the equivalent of 3.33 m2. This term is used in the measurement of land and buildings. You will commonly here of the 'price per tsubo' which is the common currency of land values in Japan.

Q9. What about Taxation in Japan?

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. Niseko Property will provide an outline of all the taxes and charges payable by the purchaser in relation to each property in the sales section of our website.

Japan and Australia have a taxation treaty so you will not be double taxed on income earned in Japan.

Capital Gains Tax
CGT applies to sales by non residents and is up to 30% for sales within 5 years of purchase and drops to 19% after 5 years. There is an exception to this rule if you use the property as your principal residence and you have residency status in Japan.

Acquisition tax
An acquisition tax of 3% is applied to property sales and is paid post sale.

Consumption tax
Japanese GST is paid on the sale of buildings both new and used at a rate of 5%. However it is not charged on the sale of land. Companies who have been established for less than 3 years may have an exemption on consumption tax.

Stamp duties
Levied on sales of land and buildings, they are generally small in the vicinity of ¥200,000 per transaction.

Annual Property Taxes & Rates
The only ongoing/Annual fee for the ownership of land/houses is an Annual fixed Asset tax of 1.4% of the statutory valuation of the land. Statutory values are generally 50% lower than actual values.

A small fee is charged for the provision of local services such as rubbish collection and snow removal. It is necessary to allocate a management company to manage these taxes as the notices are sent in Japanese.

SkiJapan & Niseko Property will manage the payment of taxes for you as part of our management service. Please ask us about our rates and services.

Travel Deductions
If you travel to Hokkaido annually to inspect your property as part of your holiday, you are able to offset part of your travel expenses against your income.

Withholding Tax
A 10% withholding tax may apply to the sale of property from foreign vendor's pending payment of the necessary capital gains tax.

Japanese personal income tax
Non residents who own property in Japan are required to file a tax return and pay the relevant tax at the applicable rate. Rental payments made to an owner who is a non resident of Japan maybe subject to a withholding tax, however this maybe offset against the income tax accrued and is refundable if no income tax is payable in Japan. The deduction of withholding tax rarely occurs where the lessee and lessor are foreign nationals.

Income earned as rent is taxable as personal income. However it is possible to offset taxes with accelerated depreciation expenses during the first five years. Interest payments may also be offset against rental income.

Australian Taxation
Australian residents are liable to pay tax on their worldwide sources of income. Rental income from Japanese property will constitute assessable income. Where deductions claimed exceed rental income a taxation loss arises and this loss may be offset against other income.

Please contact us if you would like a more detailed explanation.

Q10. What about depreciation?

The contents of your house or apartment maybe 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.

Q11. Who will manage my property?

If you own land in Niseko you will be required to nominate a company to manage the property on your behalf. Niseko Property can manage this for you for a nominal fee.

If you own a house or apartment and would like it managed on your behalf, Niseko Property will manage your house or apartment at competitive rates. We have a dedicated bilingual property manager who will establish an account at the local bank for you and manage your property in the most efficient manner.

If your apartment or house is going to be used for holiday letting it will need to comply with Japanese inn keepers licence regulations. We have detailed information available about these regulations on request.

If your property is best suited for holiday letting we recommend that you use the largest inbound operator to Niseko Ski Japan.

Q12. What is the Innkeepers licence?

The Japanese Innkeepers licences are regulations that apply to hotels. These regulations were originally thought not to apply to apartments and houses in Niseko but the local authorities have applied these regulations in Niseko and it is necessary that your apartment comply with these regulations if you wish to rent it as holiday accommodation.

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This information is intended as a guide only. Niseko Property recommends that you seek the services of financial and legal professionals to verify this information. No liability can be implied against Niseko property regarding the provision of this information.