RetireJapan

Hi Retire Japan. I'm planning on selling my mansion soon and I am trying to find out about what capital gains tax (CGT) I will pay if I make a profit when I sell. I have owned my place for 3 years. According to the internet, home owners need to pay around 40% CGT if you have owned the property for less than 5 years and around 20% CGT if you have owned the property for longer than 5 years. There is also an exception to the above if the property is your primary residence. In that case you can apply a deduction of 30m when calculating CGT. I estimate that I will make around 15m profit if I sell my mansion so hopefully I will not have to pay CGT.

Have I got this right? Does anyone have any experience with paying capital gains tax when selling a property in Japan?

Yes, you can use capital gain tax deduction if the property is your primary residence. I am selling my place and I confirmed this with my selling agent. The downside is you won't be able to use jyutaku loan kojo (mortgate loan tax deduction) for your new place for a few years (I was told I can still apply after 3-5 years or something).

See this link for more info https://suumo.jp/article/oyakudachi/oya ... manenkojo/ (you can use google translate)