Glossary
Jouto-shotoku-zei (capital-gains tax on property)
The tax on profit when you sell property, with a much higher rate if you've owned it five years or less.
Jouto-shotoku-zei is the tax on the gain when you sell real estate — sale price minus your acquisition cost and selling expenses. The rate hinges on how long you held it, measured to January 1 of the sale year, not the literal anniversary. Short-term holdings of roughly five years or less are taxed at around 39 percent combined (national plus local); long-term holdings above that drop to around 20 percent. That cliff is large enough to reshape an exit plan, so the holding-period count is something to confirm before you list. Non-residents face withholding at sale and should plan for it in advance with a tax professional.