News Kyoto to introduce empty home tax

[thomas]

The Municipality of Kyoto has applied with the Ministry of Internal Affairs to introduce a provision allowing the city to tax the owners of empty homes and holiday houses. If the tax provision is approved, Kyoto will become the first in Japan to implement such a system. The new tax, set for introduction in 2026 at the earliest, aims to boost the property market amid an exodus of young people struggling to secure housing in Kyoto. It could serve as a reference for other cities facing similar problems if effective.

Kyoto has strict building regulations to preserve its landscape, resulting in a supply shortage and the departure of the city's younger residents, many of whom cannot secure housing amid skyrocketing prices.

In addition to vacant properties, the non-statutory tax will also target vacation homes and unoccupied secondary residences, with factors such as the property's value and location taken into consideration when calculating the amount to be taxed. Levied on top of property tax, the addition is expected to increase the tax burden on owners by around 50%. Properties of low value and traditional townhouses — known as machiya and popular among foreign tourists — will be exempt. The Kyoto municipal government estimates that the tax on a vacant 40-year-old apartment, 60 square meters in size and struggling to be sold, would be around ¥24,000 ($181) a year. Meanwhile, a five-year-old condominium on the top floor of a central high-rise building, 100 square meters in size and used several times a year as a vacation home, would attract an annual tax bill of roughly ¥939,000.

Kyoto to introduce Japan's first empty homes tax

The new tax, set for introduction in 2026 at the earliest, aims to boost the property market amid an exodus of young people struggling to secure housing in the city.

www.japantimes.co.jp

Kyoto eyes empty homes tax to stem exodus of young people

The western Japan city of Kyoto plans to introduce a tax on empty homes and holiday houses to boost the property market amid an exodus of young people struggling to secure housing.

english.kyodonews.net