How to stop property tax on a house you don't live in
Options for selling or utilizing
Receiving property tax notices every year even though no one lives there—this is a common problem for many owners of inherited family homes, vacant houses, or unused land.
Property tax is incurred every year simply for owning an item.The only way to stop property taxes on a house you don't live in is to "give up ownership."This page will clearly explain specific options such as selling or utilizing the property.
The annual costs of continuing to own a house you don't live in
- Property tax and city planning tax:Tens of thousands to hundreds of thousands of yen per year (varies depending on the property and location)
- Management fees and repair reserve funds (for condominiums):10,000 to 30,000 yen per month x 12 months = 120,000 to 360,000 yen per year
- Fire insurance premium:Several tens of thousands of yen per year
- Fees for grass cutting, cleaning, and regular maintenance:From several tens of thousands of yen per year
- If designated as a specific vacant house:Property tax incentives will be removed, potentially causing taxes to skyrocket by up to six times.
*It's not uncommon for these costs to add up to several million yen if you continue paying them for 10 years.
If a property is designated as a "specific vacant house," the property tax can increase by up to six times.
Vacant houses that are not properly managed may be designated as "specific vacant houses" by the local government. If a property is designated as a specific vacant house, the property tax reduction measures for residential land that were previously applied (reducing the assessed value of the land to up to one-sixth) will be removed.Property taxes could jump up to six times higher.
Cracks in the exterior walls, roof deterioration, overgrown weeds, and littering can all be deemed indicative of "improper maintenance," potentially leading to the property being designated as unsuitable for inspection. The longer the neglect continues, the higher the risk.
5 ways to stop property tax
Method 1| Sell on a personal trading website
The most reliable way to stop property taxes on a house you don't live in is to sell it. Among these, private sales areNo brokerage fee, includes remaining items, sold as-is.Because you can put it up for sale, you can minimize the initial costs associated with selling.
Even low-priced properties that real estate companies are reluctant to sell because they are "unprofitable" can be directly marketed to buyers who want to purchase them as-is, such as DIY enthusiasts and investors. This service can reach not only domestic buyers but also international buyers.
- After the sale, property taxes and management fees will immediately become zero.
- Maximize your net earnings with zero brokerage fees.
- Items left behind; sold as is.
- Direct appeal to domestic and international buyers
Method 2| Sell to a buyer
For those who simply want to stop paying property taxes as soon as possible, there is the option of using a property buyer. While the price is often lower than the market value,Items left behind; sold as is.You can quickly convert it to cash.
Considering the annual property taxes and management fees, selling the property early, even at a slightly lower price, is often more advantageous overall.
Method 3| Rent it out and generate income
One way to offset property taxes is to rent out the property instead of selling it, using rental income to offset property taxes. Depending on the location and condition of the property...Revenue exceeding property taxesYou may be able to obtain it.
However, renovations may be necessary before renting it out, and it also requires management effort. For those living far away, management can be difficult. Another option is to use it as a short-term rental (Airbnb) or shared house.
Method 4| Donate or transfer to local government or community organizations
If the property has low value, another option is to donate or transfer it free of charge to the local government or community organization. However,Local governments are only able to accept a limited number of cases.Properties that incur high management costs are almost always rejected.
If you are considering transferring ownership to an NPO or local community organization, we recommend that you first consult with your local government.
Method 5| Considering inheritance renunciation/relinquishment of ownership
If you have only recently inherited the propertyRenunciation of inheritanceThis is one option. However, to renounce an inheritance, you must file a petition with the family court within three months of becoming aware of the inheritance.
Furthermore, the "Inherited Land Reversion System" began in April 2023, creating a system where land meeting certain conditions can be transferred to the government. However, the screening process is strict and involves fees, so it is recommended to consult with a judicial scrivener first.
Summary and comparison of 5 methods
| method | Suitable people | Property tax |
|---|---|---|
| 1. Personal trading site | I want to sell it with no commission and in its current condition. | Instantly zero |
| 2. Buyers | I want to cash it in quickly and stop spending. | Instantly zero |
| 3. Rental and Utilization | I want to monetize it without selling it. | It can be offset by rent. |
| 4. Donations and Transfers | I want to get rid of a property with low value. | Zero, depending on the conditions |
| 5. Renunciation of inheritance / Reversion to the national treasury | Land that meets the conditions immediately after inheritance | Zero, depending on the conditions |
You're losing money by continuing to pay property taxes.
Property taxes on unoccupied homes will not stop on their own. The more the building deteriorates, the lower the selling price will be, and if it is designated as a specific vacant house, the tax amount will skyrocket.The best time to stop paying property taxes is "now".Try listing your property for free on J Home 2 U, where there are no brokerage fees, items are included, and you can sell it as is.