High-rise homes in Japan to face higher tax under new rule

Inheritance tax change seeks to raise condo assessments nearer to market value

20230626N Tokyo condos

Japan's current tax rules can value condominiums in high-rise buildings at just one-third of their actual market price. (Photo by Konosuke Urata)

TOMOSHIZU KAWASE, Nikkei staff writer

TOKYO -- Rules for taxing high-rise homes in Japan are poised to change as early as next year in a way that could raise the inheritance tax burden on these popular investments, Nikkei has learned.

The National Tax Agency aims to introduce a new assessment method meant to bring property valuations used as the basis for tax calculations closer to market value -- which is often much higher. The new rule would take effect Jan. 1.

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