EXCLUSIVE: Japan to Expand Tax Breaks for Vacant House Sale

Tokyo, Aug. 25 (Jiji Press)–Japan’s land ministry plans to propose expanding tax breaks for inherited vacant houses to cover such homes that comply with revised earthquake-resistance standards as part of fiscal 2027 tax system reform. Currently, tax breaks are applied when houses that were built on May 31, 1981, or earlier, under old quake-resistance standards, are sold. Under the proposal, the program will cover houses built in or after June 1981. The ministry will also seek to extend the tax break program, set to expire at the end of 2027, by four years. To qualify for the tax breaks, vacant houses must be renovated to meet earthquake-resistance standards or demolished to create vacant plots. The ministry hopes to encourage more homes to undergo seismic retrofitting, as many vacant houses that comply with the revised standards, which were introduced in June 1981, are growing old and at risk of damage. Under the program, income and other taxes are exempted if the selling price of a house minus various expenses stands within 30 million yen. The same measure is applied to cases of demolishing a vacant house and selling the plot of land where the house once stood. A 2024 survey by the ministry found that about 60 pct of vacant house owners acquired their properties through inheritance. Due to the declining population, many houses are unoccupied in both urban and rural areas. To address the risks associated with old vacant houses, the ministry aims to encourage people to renovate the houses and to put the properties up for sale in the secondhand housing market. END [Copyright The Jiji Press, Ltd.]