How is land valued for inheritance tax in Japan?

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Inheritance tax in Japan is progressive.  Therefore the exact value of the inherited assets must be clear before the tax can be accurately calculated.  For some assets, like bank accounts, this valuation is easy.  In other cases, like real property, the value can be less clear.  In general, inheritance tax for real property will usually be calculated based upon the value used for property tax purposes.

However, some types of land, such as land owned and occupied by religious organizations, are exempt from property tax and current government estimates of its value may not exist.  In these cases it is always best to discuss the options with an attorney to ensure that the assets are divided equally and the correct amount of tax is paid.

If you have any questions about probate in Japan, please contact our office for a legal consultation.