Australia Inheritance Guide for Tokyo (東京都)
This guide covers inheritance tax implications for Australia nationals who own or inherit property in Tokyo, Japan's capital and largest city, home to the highest concentration of foreign residents. Land values in central wards (Minato, Shibuya, Shinjuku) are among the highest in the world.
Tokyo is home to approx. 620,000 (largest in Japan) foreign residents, predominantly from Chinese, South Korean, Vietnamese. While Australia nationals are a smaller community, the same inheritance tax rules apply to all foreign nationals with property in Tokyo.
Australia Inheritance Tax Status
Australia abolished inheritance/estate tax in 1979. No inheritance tax is imposed. However, Capital Gains Tax (CGT) may apply when inherited assets are sold (with a cost base reset at date of death).
Note: Japanese inheritance tax applies to property in Japan regardless of Australia's domestic tax regime.
Property Values by District in Tokyo
| District | Land Value (路線価) |
|---|---|
| Minato-ku (港区) | ¥2,200,000/㎡ |
| Chuo-ku (中央区) | ¥1,800,000/㎡ |
| Shibuya-ku (渋谷区) | ¥1,500,000/㎡ |
| Shinjuku-ku (新宿区) | ¥1,200,000/㎡ |
| Setagaya-ku (世田谷区) | ¥500,000/㎡ |
| Ota-ku (大田区) | ¥450,000/㎡ |
| Edogawa-ku (江戸川区) | ¥280,000/㎡ |
| Adachi-ku (足立区) | ¥220,000/㎡ |
路線価 (rosenka) is the NTA assessed land value, approximately 80% of market value. Basic deduction with 2 heirs: ¥42,000,000. Calculate for your specific address.
Tokyo Overview for Australia Nationals
Average Land Value
¥600,000/㎡
Value Range
¥220,000–2,200,000/㎡
Foreign Residents
~620,000 (largest in Japan)
Estimated Tax (100㎡ at city average, 2 heirs)
Approximately ¥18.0 million
Property Characteristics in Tokyo
Heavy concentration of high-rise condominiums (タワーマンション) in central wards. Average property age 25+ years in residential areas. Leasehold (借地権) properties common in older neighborhoods — inheritance requires separate valuation of land rights.
Tax Treaty: Australia & Japan
Japan-Australia Tax Treaty (日豪租税条約, 2008)
Covers income tax only. Australia has no inheritance/estate tax (abolished in 1979), so double taxation on inheritance is unlikely. However, Australia imposes CGT on disposal of inherited assets.
Key Provisions:
- •Income tax credit provisions only
- •Australia has no estate/inheritance tax — no double taxation risk on inheritance itself
- •Capital Gains Tax (CGT) may apply when inherited assets are later sold
Applicable Law for Australia Nationals
Under Japan's Act on General Rules for Application of Laws (法の適用に関する通則法, Article 36), the inheritance of a person is governed by the national law of the decedent.
Australian succession law varies by state/territory. Generally follows common law principles.
Important: The applicable succession law is determined by nationality, not by the location of property. Even for property in Tokyo, Australia succession law may govern inheritance rights — but Japanese tax law always determines the tax obligation on Japan-situs property.
Renvoi (反致): May Apply
Australian law refers movable property to the law of domicile and immovable property to lex rei sitae.
Tax Obligation in Tokyo
Unlimited Taxpayer (無制限納税義務者)
Taxed on all worldwide assets.
Applies if: domiciled in Japan, OR foreign national with residence visa who has lived in Japan for 10+ years.
Limited Taxpayer (制限納税義務者)
Taxed only on assets in Japan.
Applies if: not domiciled in Japan, OR foreign national who has lived in Japan for less than 10 years.
Double Taxation Warning: While Japan has a tax treaty with Australia, it does not cover inheritance tax. Relief must be claimed under Japan's domestic foreign tax credit (相続税法 第20条の2) or Australia's domestic provisions.
Tokyo-Specific Inheritance Considerations
1.Tokyo's extreme land value range (¥220K–¥2.2M/㎡) means inheritance tax varies dramatically by ward
2.Minato-ku properties frequently exceed the basic deduction even for small plots
3.The Kougu Shotoku Jutaku Tochi (小規模宅地) special deduction can reduce land valuation by up to 80% for the primary residence
4.Tower mansion tax reform (2024) changed valuation rules for high-rise condominiums — upper floors are assessed higher
5.Tokyo has the highest density of English-speaking tax professionals in Japan
Filing Inheritance Tax in Tokyo
Inheritance tax returns must be filed within 10 months of the date of death at the tax office with jurisdiction over the decedent's last address.
Relevant Tax Offices in Tokyo:
- •Azabu Tax Office (港区)
- •Shibuya Tax Office (渋谷区)
- •Shinjuku Tax Office (新宿区)
- •Setagaya Tax Office (世田谷区)
For Australia nationals, additional documentation may be required including translated certificates from Australia. Filing in Japanese is required — most Australia nationals engage a tax accountant (税理士) to handle the filing.
Required Documents for Australia Nationals
Grant of Probate
Australian court order for estate administration.
Apostille
Australia is a Hague Convention member.
Certified Japanese Translation
English documents translated.
Frequently Asked Questions
How much is inheritance tax on property in Tokyo for Australia nationals?
With an average land value of ¥600,000/㎡ in Tokyo, a 100㎡ property is valued at approximately ¥60.0 million. With 2 heirs, the basic deduction is ¥42 million. The taxable amount would be approximately ¥18.0 million. However, values in Tokyo range from ¥220,000/㎡ (Adachi-ku (足立区)) to ¥2,200,000/㎡ (Minato-ku (港区)), so actual tax varies significantly by location.
Which law applies to Australia inheritance in Tokyo?
Australian succession law varies by state/territory. Generally follows common law principles. The location of property in Tokyo does not change the applicable law — it is determined by the decedent's nationality. However, Japanese inheritance tax applies to property located in Japan regardless of which country's succession law governs.
Do Australia nationals need to pay inheritance tax on property in Tokyo?
Yes, if the heir or decedent has a domicile in Japan. Japan has a tax treaty with Australia that may provide relief from double taxation. For reference: Australia abolished inheritance/estate tax in 1979. No inheritance tax is imposed. However, Capital Gains Tax (CGT) may apply when inherited assets are sold (with a cost base reset at date of death).
Does the Japan-Australia Tax Treaty (日豪租税条約, 2008) cover inheritance tax?
No. The Japan-Australia Tax Treaty (日豪租税条約, 2008) covers income tax only, NOT inheritance tax. Covers income tax only. Australia has no inheritance/estate tax (abolished in 1979), so double taxation on inheritance is unlikely. However, Australia imposes CGT on disposal of inherited assets.
Which tax office handles inheritance tax filings in Tokyo?
Inheritance tax returns in Tokyo are filed at the tax office that has jurisdiction over the decedent's last address. Main tax offices: Azabu Tax Office (港区), Shibuya Tax Office (渋谷区), Shinjuku Tax Office (新宿区), Setagaya Tax Office (世田谷区). The filing deadline is 10 months from the date of death.
What are typical land values in different parts of Tokyo?
Land values (路線価) in Tokyo vary significantly by district: from ¥220,000/㎡ in Adachi-ku (足立区) to ¥2,200,000/㎡ in Minato-ku (港区). These are the NTA assessed values (路線価), which are approximately 80% of market value.
Need Help with Inheritance in Tokyo?
Get connected with English-speaking tax professionals experienced in international inheritance cases in the Tokyo area.
Australia Guides for Other Cities
Tokyo Guides for Other Nationalities
This tool provides rough estimates only. It does not constitute tax advice or tax filing services. Actual tax obligations may differ significantly. Please consult a licensed tax professional (税理士) for accurate calculations. Land values are based on NTA published data and may not reflect current market conditions.