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Did you know that there is a tax on the sale of land? 

Even if you sell your land, if you do not prepare for taxes, you may end up with an unexpected negative result due to tax payments. 

We will explain the taxes on land sales in Kutchan and Niseko, as well as points to be aware of to avoid unexpected losses when selling land.



■Tax on land sales



You may have the impression that when you sell land, you receive the proceeds from the sale. 

It is true that you can receive the proceeds from the sale of land, but you need to be careful as there will be taxes and expenses involved in the procedures and after the sale.



The following taxes apply when selling land in Kutchan/Niseko.



・Stamp duty is levied on the sale of land



When selling land, a stamp must be affixed to the sales contract. 

When selling land in Kutchan or Niseko, a stamp fee (stamp tax) is required.



・Registration and license tax is levied on the sale of land



When you sell land in Kutchan or Niseko, you will need to go through the process of transferring land rights from the seller to the buyer (ownership transfer registration). 

In addition, if a mortgage has been set on the land, procedures for cancellation of the mortgage (mortgage cancellation registration) are also required when selling the land. 

Generally, the buyer registers the transfer of ownership, but the seller generally registers the cancellation of the mortgage. 

During these registration procedures, a registration and license tax will be charged depending on the registration details.



・Land sales may be subject to capital gains tax



Capital gains tax is a general term for resident tax, income tax, etc. on real estate capital gains. 

If capital gains (profits) are generated from the sale of land in Kutchan or Niseko, capital gains tax will be levied. 

In cases where capital gains tax is applicable, a final tax return must be filed in the year following the sale of the land. 

If there is no capital gain and no tax is due, in principle there is no need to file a final tax return. 

We recommend that you check with your tax accountant or real estate company regarding whether or not you need to file a final tax return.



■Points to be aware of when selling land



When selling land in Kutchan or Niseko, you should be careful not only about taxes but also about costs. 

The costs that may be incurred when selling land in Kutchan/Niseko are as follows.



・Land surveying costs



When selling land, if the boundaries are not clearly defined, a survey will be required.

If a survey is required, a survey fee will be charged.



・Brokerage fee



If you sell land in Kutchan or Niseko through an intermediary, a brokerage fee will be charged. 

There is no brokerage fee when selling land through purchase. 

This is because a real estate company does not act as an intermediary in purchasing.



・Other expenses



When selling land in Kutchan/Niseko, there may be costs other than brokerage fees and surveying. 

Additional fees are required when investigating land pollution or demolishing an old house and selling the land.



■Finally



If you do not consider taxes when selling land in Kutchan or Niseko, you may end up in trouble, such as not having enough cash for taxes or not being able to raise the funds you had planned. 

If you can reduce your taxes, the amount of money you have will basically increase, so it is important to proceed with the procedure while taking measures such as reducing taxes.



Not only are we strong in the Kutchan/Niseko area, but we are also confident in our support.

If you are selling land in Kutchan or Niseko, please leave it to us, Niseko Field House, which can provide solid tax support.