Sadly I inherited 2 properties in Italy where my father is still living in, but from a tax perspective, despite i`m resident in Japan, I have to pay taxes on these properties to Italy every year. I would like to know if you have any experience on possibility to deduct these or other related expenses when at the end of the year in Japan we do the "End of the year taxes".
thanks in advance
When inherited a property outside Japan
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carla.alinei
- Newbie
- Posts: 13
- Joined: Wed Dec 16, 2020 12:42 am
Re: When inherited a property outside Japan
I am not sure about the details of your situation but I will try to answer based my experience with foreign property.
If you receive income from these properties and have been declaring this income in Japan as well as Italy then yes, you can deduct costs related to them.
If you have declared this Italian income in Japan which appears to have a taxation treaty with Italy, it can reduce your annual income tax here. Your 県民税市民税 , however, will increase and the deductions will not apply. So you end up paying a lot more for these other taxes, and higher 国民健康保険 too. But if you already declared this income in previous years, there will be no change.
I hope this helps.
If you receive income from these properties and have been declaring this income in Japan as well as Italy then yes, you can deduct costs related to them.
If you have declared this Italian income in Japan which appears to have a taxation treaty with Italy, it can reduce your annual income tax here. Your 県民税市民税 , however, will increase and the deductions will not apply. So you end up paying a lot more for these other taxes, and higher 国民健康保険 too. But if you already declared this income in previous years, there will be no change.
I hope this helps.