How capital gains tax works in Japan
Japan does not use one universal capital-gains rate. Listed shares, investment trusts and many financial instruments are generally subject to separate self-assessment taxation at 15.315% national tax, including the reconstruction surtax, plus 5% local inhabitant tax, producing 20.315%.
Individuals can use a designated securities account where a broker calculates and withholds tax. Listed-share losses can in appropriate cases be carried forward or offset against certain listed dividends, but the election and filing rules matter.
Gains from Japanese land and buildings are separated by the ownership period measured on January 1 of the sale year. Long-term gains after more than five years use 15% national tax plus 5% local tax, while short-term gains of five years or less use 30% national tax plus 9% local tax.
Real-estate gains are calculated after acquisition costs, selling expenses and available special deductions. A qualifying sale of a main home can use a ¥30 million special deduction, while replacement, loss, non-resident and related-party rules can change the result.
Cryptoasset gains from selling or using digital assets are generally classified as miscellaneous income unless they arise as part of a business or another income category. That usually puts them into the progressive income-tax system, with inhabitant tax and reconstruction surtax also relevant.
Tax rates at a glance
- Listed securities
- 20.315%Separate taxation
- Long-term land and buildings
- 20.315%
- Short-term land and buildings
- 39.63%
- Cryptoassets
- Progressive income rates
- Main-home special deduction
- Up to ¥30 million
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsProperty ownersCrypto holdersTradersCross-border families
Watch out for
- 20.315% is a common rate for listed securities, not a promise that every asset sale is taxed at 20.315%. Real estate, crypto, private-company interests, carried interests and business disposals have different classifications and reliefs.
- Property holding period is tested using January 1 of the sale year. A sale that looks like a five-year holding period from the purchase and sale dates can still be short-term under the statutory test.
- Crypto-to-crypto swaps, spending crypto, staking, lending, mining and airdrops can create taxable events or valuation questions. The annual exchange report does not always contain every transaction needed for the return.
- Foreign brokers and foreign withholding can create both Japanese reporting and double-tax-credit issues. Treaty relief does not automatically correct a missing Japanese return.
- A resident leaving Japan with securities and other assets worth at least ¥100 million can fall within Japan's exit-tax rules, subject to residence history and other conditions.
Frequently asked questions
What is Japan's capital-gains tax rate on shares?
The common individual rate on listed shares and many other securities is 20.315%, made up of 15.315% national tax and 5% local inhabitant tax. Designated accounts, loss offsets and filing elections can affect the final calculation.
How are property gains taxed in Japan?
Long-term land and building gains generally face 20.315%, while short-term gains generally face 39.63%. The ownership test uses January 1 of the sale year, and home-sale deductions or other special regimes may apply.
Does Japan tax crypto like stock-market gains?
Usually not. Cryptoasset profits are generally miscellaneous income and are taxed under the progressive income-tax system unless the facts support business income or another classification.