Frequently Asked Questions (Property Tax)

QuestionI (A) entered into a sales contract with the seller (B) for the purchase of land in October 2017, and completed the transfer of ownership registration in B's name in February 2018. Who will be liable for the Property Tax and City Planning Tax for the relevant land for the fiscal year 2018?

Response

The Property Tax and City Planning Tax for the fiscal year 2018 will be levied on Mr. A.

According to the provisions of the Local Tax Law, for registered properties, the Property Tax and Urban Planning Tax for the relevant year will be levied on the person registered as the owner in the registry as of the assessment date (January 1st of each year).

In the case of buying and selling land or buildings, the issue of who pays the Property Tax and Urban Planning Tax for that fiscal year is a matter of private law, and it is common for the parties involved in the transaction to determine who bears the costs and in what proportions at the time of the contract.