The Japanese property market has seen unprecedented levels of interest from both resident and non-resident investors in recent years, underpinned by strong growth in J-REITS and private offerings of real estate funds. Grant Thornton Taiyo Tax Corporation’s Real Estate Services team is experienced in providing domestic and cross-border advisory, transaction and tax support to investors of all shapes and sizes.
Grant Thornton Taiyo Tax Corporation provides the following services:
- Real Estate Structuring advice
- Preparation of tax opinion memorandums
- Preparation of agreements and other relevant documents
- Exit strategy planning
- Tax and accounting advisory services
- Advising on withholding and consumption tax implications
- Corporate, individual and consumption tax return filing
- Inheritance tax planning
- Valuation of real estate projects and holding companies
- Liaison with external professionals as required
Resident or non-resident; individual or corporate property; partnership or property trust investors
The structure used to hold the Japanese real estate will impact on the tax planning opportunities available and the level of tax compliance required. Our team is able to put in place the most tax efficient structure to suit your needs, whether it be asset protection, capital growth or a steady income stream. Our extensive international network allows us to provide advice on the repatriation of property investment income from Japan to almost any jurisdiction in the world.
Withholding and consumption tax
Japan source income repatriated overseas is generally subject to withholding tax, however this may be reduced depending on the classification of the income and the location of the recipient. Japanese consumption tax implications may arise on acquisition and / or rental depending on whether the property is commercial or residential. Planning opportunities may also be available.
The transfer of assets located in Japan on death will be subject to Japanese IHT. Therefore, for both residents and non-residents it is essential Japan inheritance tax is planned for. With careful planning, our experienced team will also ensure the most important people in your life see as much from your investment as they can.
Overseas Real Estate Investment
Japanese investors have long held an interest in offshore property investment. Our team is experienced in the outbound issues relevant to such investments and, along with Grant Thornton International’s global network, is able to provide investors with a complete advisory and support package.
Approached with the right structuring advice and support, Japan can be a very attractive location for overseas investors. To maximise opportunities from investing in Japan property, it is vital that investors consider as early as possible, both tax planning opportunities and specific tax obligations their investment in Japan real estate presents.