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At Fukuoka Properties, our services do not end upon client receiving their land title rights. We understand that Clients who are landlords now will need someone whom they can rely on to manage their properties as well as incomes receivables and tax issues in Japan.

We strongly encourage our clients to engage the services of the management agency and tax accountant, as for a minimal fee, our clients can have the experience and expertise of local property management personnel to deal with the hassle of looking after their overseas investments

For our part, Fukuoka Properties after sales role will continue to be the facilitator between the Japan Counter Parties and the Clients to make sure that any queries regarding the properties will be handled in a time and cost efficient manner.

We will advise on all matters regarding the properties under management and report to our clients accordingly.

There are 3 recurring fees that we will arrange for deduction from the rental incomes so that our clients do not have to worry about the hassle of making monthly payment for these fees.

One of the most important strategy in securing a good yielding overseas investments is to engage the services of reliable real estate management agencies based in Japan. They will be your "Hands" and "Legs" to handle and run the necessary duties as a landlord.

For our part, we will coordinate between the real estate management agencies and our clients so that any instructions and decisions made by you will be transmitted to them and we will be the "Eyes" to monitor and make sure that all matters are handled in an efficient and cost effective manner and report to you.

For Your part, you will be the brain to make the decisions and to instruct us and we will solve the problems, if any, for you.

Like most countries, the apartments in the building are run by a committee appointed by the owners of the apartments in the building. This is the Building Management Fee, which is compulsory for all owners need to pay and covers services such as lobby staff, security, and general issues.

The other fee is the Building Savings Fee, this is the fund that all owners contribute monthly and when there is major repairs that needs to be carried out on the building, the committee will be able to draw down from this savings fund to carry out the works.

This two fees are paid to the building committee itself and they are stated in the reports on the properties on sale. The fees varies according to age and conditions of the properties.

Fukuoka Properties will translate and send in English reports on the summary of Yearly Revenue collected from the managed properties. We will also arrange to engage Tax Accountant on our clients' behalf so that all revenues earned from the property will be properly documented and reported to the Fukuoka city's Tax office to ensure no irregularities. At the same time, by having a tax accountant to handle the tax matters, you can minimize your property income tax in Japan by claiming various tax deductible allowances so as to maximize your income.

As with any other country in the world, all incomes are subjected to taxes. For non-residents of Japan, the tax rate is much more favorable than residents. Here is a brief summary on the types of taxes that will be levied on your property and rental income.

This is a 1 time off tax that you pay to the tax office approximately 6 months after your acquisition. It is an estimated 2% of the land registry assessed value of your property.

(A)Fixed Asset Tax
Fixed asset tax is levied on land, buildings and depreciable assets for business use(hereinafter "fixed assets") as of January 1 of every year. The annual tax rate is 1.4% applied to the tax value of the fixed assets and tax payment must be made in April, July, December and February of the following year.

(B) City Planning Tax

City planning tax is levied on land and buildings in certain areas as a surtax to the fixed asset tax. The annual tax rate is 0.3% which applies to the tax asset value for fixed asset tax purpose.

(C) Income tax (%) on Rental

Below is a chart that summarizes the tax levied on the average income on a rental apartment/property in the country for non-residents. The figures are arrived based on a set of assumptions and deductibles and allowances applicable to individual country.

(D) Capital Gain Tax

Capital Gain Tax applies when you sell your properties in Japan for a profit.
In Japan for foreigners/ non-residents, for properties (not principal residence) owned for less than 5 years, the capital gain tax is at 30% and for properties owned for more than 5 years, the capital gain tax is at 15%. However, a variety of allowances and deductibles can be claimed to minimize this tax with the use of an experienced accountant.


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