Selling inherited property in Japan from overseas. Deadlines, taxes and a step-by-step plan.

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Key takeaways

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Can you sell from abroad? Yes, and here is how it works

A judicial scrivener (司法書士) can register the inheritance under a power of attorney. A licensed broker can value, market and sell the property, with the contract and settlement signed by proxy or at a Japanese embassy or consulate. A tax agent (納税管理人) files your Japanese return. The sale proceeds are wired to your overseas account. The sequence takes several months, and the document gathering usually takes longer than the sale itself. If you need the wider market context first, read Can foreigners buy property in Tokyo? The 2026 rules and Investing in Tokyo real estate in 2026.

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First, the deadlines you cannot ignore

Mandatory inheritance registration (相続登記の義務化)

Since 1 April 2024, under Article 76-2 of the amended Real Property Registration Act, anyone who acquires real estate by inheritance must apply for registration within 3 years of learning of it. Failure without a justifiable reason can lead to an administrative fine of up to ¥100,000 (Article 164). The duty is retroactive: for inheritances you learned of before 1 April 2024, the Ministry of Justice sets the deadline at 31 March 2027. It applies regardless of the heir's nationality or where they live.

If the heirs have not yet agreed how to divide the estate, one heir can file a simplified heir declaration registration (相続人申告登記). It satisfies the duty for now, but it does not transfer title, so you still cannot sell until a full inheritance registration is made.

Address and name changes (住所等変更登記の義務化)

Since 1 April 2026, registered owners must update a change of address or name within 2 years, with a fine of up to ¥50,000. Changes that occurred before April 2026 must be updated by 31 March 2028. Overseas heirs who left Japan years ago often have outdated addresses on the register, which has to be fixed before a sale.

FEFTA report and nationality declaration

Since 1 April 2026, a non-resident who acquires Japanese real estate, including by inheritance or bequest, must report the acquisition to the Minister of Finance through the Bank of Japan within 20 days, even when the amount is zero. Since 5 October 2026, an heir who registers ownership also declares their nationality to the Legal Affairs Bureau, with a passport or residence-certificate copy; the nationality is not shown on the public register. Owners who live abroad are also asked to register a domestic contact person in Japan.

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Your four options

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Step by step: selling without flying to Japan

1. Gather the documents. The deceased's family registers (戸籍) from birth to death, the heirs' own registers or birth certificates, and proof of each heir's address and signature. Heirs without a Japanese seal usually substitute a notarised affidavit or a signature certificate from their embassy, with a Japanese translation.
2. Agree the division of the estate. The estate division agreement (遺産分割協議書) is signed by all heirs.
3. Register the inheritance. The judicial scrivener files under power of attorney. The registration tax is 0.4% of assessed value (NTA No. 7191). Since October 2026 the application carries a nationality declaration; a non-resident heir also files the FEFTA report within 20 days.
4. Appoint a tax agent (納税管理人), required for non-resident tax filings.
5. Valuation and listing. GAISAPP coordinates the valuation; its licensed partner Livmo markets and brokers the sale.
6. Sign and settle remotely. By power of attorney, or with signatures certified at the embassy or consulate. Funds are wired abroad after settlement.
7. File a Japanese tax return between 16 February and 15 March of the year after the sale, to settle capital gains tax against the amount withheld.

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Taxes when a non-resident sells

10.21% withholding

According to National Tax Agency Tax Answer No. 2879, a person who buys Japanese land or buildings from a non-resident must withhold 10.21% of the price (income tax plus reconstruction surtax) and pay it to the tax office by the 10th of the following month. There is one exception: an individual buying the property as a home for themselves or their relatives, at a price of ¥100 million or less, does not withhold. From tax year 2027 the withheld amount will also include the new defence special income tax, so the breakdown changes. Withholding is a prepayment, not the final tax: your liability is computed in your return, and any excess is refunded.

Capital gains tax

Taxable gain = sale price − (acquisition cost + selling costs) − special deductions. If the original purchase price cannot be documented, 5% of the sale price may be used as a deemed acquisition cost. The rate depends on ownership at 1 January of the sale year, and for inherited property the deceased's acquisition date and cost carry over to the heir:

The inherited vacant-house deduction (空き家特例)

Under NTA Tax Answer No. 3306, up to ¥30 million can be deducted from the gain (¥20 million per heir if three or more heirs inherited the house, for sales from 1 January 2024). The deduction applies to sales made by 31 December 2027, and the main conditions are: the sale takes place by 31 December of the third year after the death; the price is ¥100 million or less; the deceased lived alone in the house; the house is detached and was built on or before 31 May 1981; and it is made earthquake-compliant or demolished, which since 2024 the buyer may do by 15 February of the following year. Condominium units do not qualify.

Inheritance tax basics

The basic deduction is ¥30 million + ¥6 million per statutory heir; rates are progressive from 10% to 55%; the return is due within 10 months of learning of the death (NTA Tax Answers No. 4152 and 4155). Whether a non-resident heir is taxed on worldwide assets or only on Japanese assets depends on nationality and residence history, so take professional advice.

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Worked example: selling an inherited ¥80 million Tokyo condo

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What is the property worth? Tokyo market context

The value of an inherited Tokyo home depends heavily on ward and building. In September 2026 the 23-ward resale condo asking price (70 m² equivalent) was ¥126.29 million, just off May's record of ¥128.49 million, after four monthly declines (Tokyo Kantei). The central 6 wards stood at ¥177.86 million after five declines. Residential land in the 23 wards rose 8.7–9.0% in 2026's two official surveys, led by Minato at over 16%. The 23-ward new-condo average was ¥136.13 million in 2025 (REEI). With prices this close to the top and asking prices drifting down since June, delaying a sale carries real downside risk; it is a cooling, not a fall, but the direction has changed.

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Japan's akiya problem, and why central Tokyo is the exception

The Statistics Bureau's 2023 Housing and Land Survey (final results, 25 September 2024) counts 9,002,000 vacant homes, 13.8% of all housing, both records, up from 8.49 million (13.6%) in 2018. Of these, 3,856,000 (5.9% of the stock) are "other" vacant homes, meaning not for rent, sale or seasonal use; inherited houses make up much of this category. Rural akiya can be hard to sell at any price, which is why, since 1 July 2024, brokers may charge up to ¥300,000 plus tax on transactions of ¥8 million or less, from both seller and buyer. A neglected house can also be designated as poorly managed, which removes the residential land-tax reduction. Central Tokyo inherited condominiums are the opposite case: they are liquid, in demand from both domestic and overseas buyers, and priced near record highs.

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Frequently asked questions