When non-residents or foreign corporations sell real estates in Japan, a 10.21% withholding tax is to be deducted from the sale price.
In principle, both of corporate and individual sellers are required to withhold the tax when paying the price to such sellers.
However, in case that an individual buyer purchases real estates as his/her residences and that purchase price is less than 100 million JPY, such individual doesn’t need to withhold the tax.
In addition, many tax treaties concluded by Japan stipulate that the sale price of real estate can be taxable in the country where the real estate is located.
The withholding tax must be paid to the Japanese government by 10th of the following month when real estate transaction is done.