# Capital gains tax in Japan for foreigners: selling property or shares

URL: https://japanhow.com/money/tax/capital-gains-tax-japan-foreigners/
Author: JapanHow editors
Updated: Oct 29, 2026

## Summary

As of October 2026, Japan taxes gains on land and buildings separately: 15% income tax if you held the property more than 5 years on 1 January of the sale year, 30% if 5 years or less, plus 2.1% reconstruction surtax on the income tax and, for long-term gains, 5% resident tax. Share gains are 20% (15% + 5%). Non-residents selling Japanese land have 10.21% withheld by the buyer and generally file a return.

## Key facts

- Property, held over 5 years: 15% + 5% resident tax
- Property, held 5 years or less: 30% income tax
- Shares: 20% (15% + 5%)
- Home deduction: Up to ¥30 million

Japan has no single capital gains tax. Gains on **land and buildings** and gains on **shares** are each taxed separately from your salary (申告分離課税). As of October 2026, property held **more than 5 years** (counted at 1 January of the sale year) pays 15% income tax and 5% resident tax; property held 5 years or less pays 30% income tax. Share gains pay 20% (15% + 5%). Your nationality doesn't matter; whether you are a **resident or non-resident** when you sell does.

**Long-term property gains:** 15% + 5% (Income tax 15% plus 2.1% reconstruction surtax on it, plus 5% resident tax. Held more than 5 years at 1 January of the sale year.)

## Which category are you in?

The National Tax Agency (国税庁, NTA) sorts individuals into three groups:

| Group | Taxed in Japan on |
|---|---|
| Resident (居住者) | All income, wherever earned. Resident = address in Japan, or continuous residence of 1 year or more. |
| Non-permanent resident (非永住者) | Japan income, plus foreign-source income paid in or remitted to Japan. Applies if you lack Japanese nationality and lived in Japan 5 years or less in the past 10. |
| Non-resident (非居住者) | Japan-source income only. |

For your own classification, see [Japan tax residency for foreigners](/money/tax/japan-tax-residency-foreigners/).

## Selling land or a house

Gain = sale price minus (what you paid + selling costs) minus any special deduction. Then:

| Held at 1 January of the sale year | Income tax | Resident tax |
|---|---|---|
| More than 5 years (long-term) | 15% | 5% |
| 5 years or less (short-term) | 30% | not confirmed on the sources used |

Reconstruction surtax is 2.1% of the income tax, filed together with it.

### The ¥30 million home deduction

If you sell your own home, you can deduct up to ¥30 million from the gain. The NTA conditions are about the property and the sale, not nationality:

- It's the home you live in, or you sell it by 31 December of the year containing the third anniversary of moving out.
- You don't sell to family, cohabiting relatives, an unmarried partner or certain related companies.
- You haven't used this deduction in the previous two years.
- It isn't a vacation home, temporary housing or a home bought mainly to claim the deduction.

If your resident-register address differed from the property's on the day before the contract, the NTA asks for extra documents, such as a copy of the family-register supplement (戸籍の附票の写し).

## Selling shares

Gains on shares are taxed at 20% in total (15% income tax plus 5% resident tax) with 2.1% reconstruction surtax on the income tax. Listed and unlisted shares are calculated separately, and losses generally can't cross over.

In a **withholding specific account** (特定口座・源泉徴収あり), your broker withholds 15.315% income tax and 5% resident tax on each gain, and you can skip filing. You must file if you want to offset another account or carry a loss forward. The withholding election has to be submitted before your first sale of the year and can't change mid-year. For setting one up, see [opening a securities account](/money/investing/securities-account-japan-foreigners/), and for tax-free gains see [NISA for foreigners](/money/investing/nisa-for-foreigners/).

If you sell shares through an **overseas broker** while you are a resident, the NTA says they are taxed as domestic sales, and you can claim a foreign tax credit with documents.

## Selling as a non-resident

If you leave Japan and then sell Japanese real estate, Japan still taxes the gain. The NTA describes:

- The **buyer withholds 10.21%** of the price (income tax plus reconstruction). An individual buying for their own or a relative's home at ¥100 million or less doesn't withhold. The NTA notes a further defense special income tax applies from 2027, which may change the withholding rate.
- You **generally file a return** between 16 February and 15 March of the next year. If too much was withheld, the same return claims a refund.
- You must **appoint a tax agent** (納税管理人) and notify your tax office before filing.

Also note the **exit tax** (国外転出時課税): since 1 July 2015 it applies to certain people who lived in Japan more than 5 of the past 10 years and leave holding securities and similar assets worth ¥100 million or more. See the NTA page No.1478.

**Check before you sign:** Timing and residency status change the tax a lot. Because this is general information, ask a licensed tax accountant (税理士) before selling, ideally before you move abroad. See also the [leaving Japan checklist](/visa/leaving/leaving-japan-checklist/).

## Questions people ask

### Do foreigners pay capital gains tax in Japan?

Residents are taxed on gains wherever they arise. Non-residents are taxed only on Japan-source income, which includes gains from selling Japanese real estate. Nationality is not the test; residency status is.

### What is the capital gains tax rate on real estate in Japan?

Held over 5 years on 1 January of the sale year: 15% income tax, 2.1% reconstruction tax on that amount, and 5% resident tax. Held 5 years or less: 30% income tax, plus surtax and resident tax.

### Can I claim the ¥30 million home sale deduction as a foreigner?

The conditions in the NTA guidance are about the home, not nationality: you must have lived in it, or sold it by 31 December of the year containing the third anniversary of moving out, and not sold it to a relative or partner.

### What happens if I sell my Japanese property after leaving Japan?

As a non-resident you are taxed on the gain. The buyer generally withholds 10.21% of the price, and you generally file a return between 16 February and 15 March of the next year, using a tax agent (納税管理人) in Japan.

### How are share profits taxed for foreign residents?

Separately at 20% in total (15% income tax and 5% resident tax), plus 2.1% surtax on the income tax. In a withholding account (特定口座), your broker deducts it and you can skip filing.

## Sources

- [No.1440 譲渡所得(土地や建物を譲渡したとき)](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1440.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.3208 長期譲渡所得の税額の計算](https://www.nta.go.jp/taxes/shiraberu/taxanswer/joto/3208.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.3302 マイホームを売ったときの特例](https://www.nta.go.jp/taxes/shiraberu/taxanswer/joto/3302.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.1463 株式等を譲渡したときの課税(申告分離課税)](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1463.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.1476 特定口座制度](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1476.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.1937 居住者が海外で株式等を売却した場合の課税関係等](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1937.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.2879 非居住者等から土地等を購入したとき](https://www.nta.go.jp/taxes/shiraberu/taxanswer/gensen/2879.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.1932 海外勤務中に不動産を売却した場合](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1932.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)
- [No.2010 納税義務者となる個人](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/2010.htm), National Tax Agency (国税庁) (accessed Oct 29, 2026)