Quick answers
- How much are real estate agent fees in Japan?
- For a property sold for more than JPY 4 million, the legal maximum a broker may charge its client is 3% of the price + JPY 60,000, plus 10% consumption tax.
- Does the buyer pay the real estate agent in Japan?
- Yes, in Japan each party pays the broker working for it: the seller pays the broker it appointed to sell, and the buyer pays the broker that handled the purchase, each within the legal cap.
- What is the brokerage fee for cheap properties or vacant homes under JPY 8 million in Japan?
- Since July 2024, to help bring vacant and lower-priced homes to market, a broker may charge up to JPY 330,000 including tax on a property priced at JPY 8 million or less, even where the tiered formula gives a lower figure.
We gather data objectively from the latest available sources and share what we find useful.
We hope it helps anyone looking for a home in Japan, or considering a business built around property.
For a property sold for more than JPY 4 million, the most a broker in Japan may charge its client is set by law:
Maximum fee including tax. Brokers may charge less; the fee for each transaction is agreed in the brokerage agreement.
How the System Works
Japan regulates brokerage fees more closely than many markets. Three features stand out for buyers:
- A published legal cap. The maximum is set by a Ministry of Land, Infrastructure, Transport and Tourism notice under the Real Estate Brokerage Act, so the upper limit is the same everywhere in the country.
- Paid on success. The fee becomes payable only when a sale is concluded. In practice it is often split between contract signing and settlement.
- A licensed explanation before every contract. The explanation of important matters, given by a licensed real estate transaction specialist, is part of the service the fee pays for.
The cap is calculated in tiers on the sale price, excluding tax:
| Portion of the sale price | Rate | Including tax |
|---|---|---|
| Up to JPY 2 million | 5% | 5.5% |
| JPY 2 million to 4 million | 4% | 4.4% |
| Above JPY 4 million | 3% | 3.3% |
For prices above JPY 4 million, the three tiers add up to the shortcut “3% + JPY 60,000”, before tax.
To help bring vacant and lower-priced homes to market, a broker may charge up to JPY 330,000 including tax on a property priced at JPY 8 million or less, even where the tiered formula gives a lower figure. The rule applies to both the seller and the buyer, and the broker must explain the fee and obtain the client's agreement in advance, in the brokerage agreement.
Example: on a JPY 3 million property the tiered cap is JPY 154,000 including tax; under this rule it can be up to JPY 330,000.
Who Pays the Broker: Japan and the United States
In Japan, each party pays the broker working for it: the seller pays the broker it appointed to sell, and the buyer pays the broker that handled the purchase, each within the cap. When one broker acts for both parties, it may charge each of them within the cap.
| Japan | United States, traditionallyUS, before Aug 2024 | United States, since Aug 2024US, since Aug 2024 | |
|---|---|---|---|
| Seller's broker | Paid by the seller | Paid by the seller | Paid by the seller |
| Buyer's broker | Paid by the buyer | Paid from the seller's commission | Agreed in writing with the buyer; the seller may still contribute |
| Fee level | Capped by law | Negotiable | Negotiable, not set by law |
United States: National Association of Realtors settlement, practice changes effective 17 August 2024. Offers of buyer-broker compensation are no longer shown on MLS listings, and buyers sign a written agreement with their agent before touring homes.
In the United Kingdom and Australia, the seller's agent is paid by the seller, and buyers generally pay an agent only if they hire their own buyer's agent.
What the Fee Covers, and What It Does Not
- Introducing properties and arranging viewings
- Investigating the property: title, legal restrictions, building and management records
- The explanation of important matters by a licensed real estate transaction specialist
- Preparing the sales contract and negotiating terms
- Coordinating the process through to settlement and handover
- Ordinary advertising of the property
- Registration by the judicial scrivener, and the scrivener's fee
- Taxes: stamp duty, registration and license tax, real estate acquisition tax
- Mortgage fees and guarantee charges
- Land surveys and building inspections
- Legal, tax and accounting advice
- Property management after purchase
- Special advertising or travel the client asks for, with prior agreement
- Consulting outside brokerage, under a separate contract
For what a purchase costs in total, see How Much Does It Cost to Buy a JPY 100 Million Property in Japan? Rentals follow a separate cap: one month's rent plus tax in total, shared between landlord and tenant.
Frequently Asked Questions
How much are real estate agent fees in Japan?
For a property sold for more than JPY 4 million, the legal maximum a broker may charge its client is 3% of the price + JPY 60,000, plus 10% consumption tax. That is JPY 1,716,000 on a JPY 50 million property and JPY 3,366,000 on a JPY 100 million property. Brokers may charge less; the fee is agreed in the brokerage agreement.
Does the buyer pay the real estate agent in Japan?
Yes, in Japan each party pays the broker working for it: the seller pays the broker it appointed to sell, and the buyer pays the broker that handled the purchase, each within the legal cap. When one broker acts for both parties, it may charge each of them within the cap. The fee becomes payable only when a sale is concluded.
What is the brokerage fee for cheap properties or vacant homes under JPY 8 million in Japan?
Since July 2024, to help bring vacant and lower-priced homes to market, a broker may charge up to JPY 330,000 including tax on a property priced at JPY 8 million or less, even where the tiered formula gives a lower figure. It applies to both seller and buyer. For example, on a JPY 3 million property the tiered cap is JPY 154,000 including tax.
What does the brokerage fee cover when buying property in Japan?
The fee covers introducing properties and viewings, investigating title, legal restrictions and building records, the explanation of important matters by a licensed specialist, preparing the contract and negotiating terms, and coordinating settlement and handover. Registration and the judicial scrivener's fee, taxes, mortgage fees, surveys and inspections, legal and tax advice and property management are paid separately.
How are real estate commissions in Japan different from the United States?
In Japan, brokerage fees are capped by law and each side pays its own broker. In the United States, the buyer's broker was traditionally paid from the seller's commission; since National Association of Realtors settlement practice changes took effect on 17 August 2024, buyers sign a written agreement with their agent, the seller may still contribute, and fees are negotiable rather than set by law.
Sources
General information only, not legal, tax or investment advice.