Overview of Inheritance tax in Japan

Inheritance tax may be imposed in Japan if the decedent (deceased) had a domicile or an address in Japan, if the heir (recipient of property) had a domicile or an address in Japan or inherits property (such as real estate) located in Japan.

Even if a person living in a foreign country inherits property in Japan, inheritance tax will be imposed on the property in Japan. For example, if you inherit real estate or bank deposits located in Japan, you will be subject to Japanese inheritance tax.

The Japanese inheritance tax rate is progressive, ranging from 10% to 55%.
Basically, the tax is imposed on the portion of the assessed value of the estate that exceeds the basic exemption (30 million yen + 6 million yen x number of legal heirs under Japanese civil law).

Inheritance tax must be declared and paid within 10 months of the decedent's death.