South Korea Inheritance Guide for Nagoya (名古屋市)
This guide covers inheritance tax implications for South Korea nationals who own or inherit property in Nagoya, Japan. Central Japan's largest city and a major industrial hub. Home to many foreign workers in the automotive and manufacturing sectors.
South Korea nationals are among the top foreign communities in Nagoya, with the city home to approx. 88,000 foreign residents. The top nationalities in Nagoya are: Vietnamese, Chinese, South Korean, Brazilian, Filipino.
South Korea Inheritance Tax Status
Korea imposes inheritance tax at rates from 10% to 50%. Tax-free threshold: KRW 500 million (~¥55 million). Maximum rate of 50% applies to estates exceeding KRW 3 billion (~¥330 million).
Note: Japanese inheritance tax applies to property in Japan regardless of South Korea's domestic tax regime.
Property Values by District in Nagoya
| District | Land Value (路線価) |
|---|---|
| Naka-ku (中区) | ¥650,000/㎡ |
| Higashi-ku (東区) | ¥400,000/㎡ |
| Chikusa-ku (千種区) | ¥320,000/㎡ |
| Showa-ku (昭和区) | ¥280,000/㎡ |
| Minato-ku (港区) | ¥140,000/㎡ |
| Moriyama-ku (守山区) | ¥120,000/㎡ |
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.
Nagoya Overview for South Korea Nationals
Average Land Value
¥220,000/㎡
Value Range
¥120,000–650,000/㎡
Foreign Residents
~88,000
Estimated Tax (100㎡ at city average, 2 heirs)
¥0 (Tax-Free — within basic deduction)
Property Characteristics in Nagoya
Higher ratio of detached houses compared to Tokyo/Osaka. Lot sizes tend to be larger (80–150㎡ typical). Factory/warehouse properties near port areas may have industrial-use valuation affecting inheritance tax calculation.
Tax Treaty: South Korea & Japan
Japan-Korea Tax Treaty (日韓租税条約)
Covers income tax and corporate tax. Does NOT cover inheritance tax directly. Korea has its own inheritance tax (up to 50%), so double taxation risk is significant. Relief available through domestic foreign tax credit provisions.
Key Provisions:
- •Article 23: Foreign tax credit for income/corporate taxes
- •No inheritance tax coverage — domestic credit rules apply
- •Korea imposes inheritance tax up to 50% — total burden can be substantial
Applicable Law for South Korea 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.
South Korea's Civil Code (Book V: Succession) applies. Korean inheritance law provides for statutory shares and a forced heirship system.
Important: The applicable succession law is determined by nationality, not by the location of property. Even for property in Nagoya, South Korea succession law may govern inheritance rights — but Japanese tax law always determines the tax obligation on Japan-situs property.
Renvoi (反致): May Apply
Korean Private International Law refers inheritance to the decedent's national law. Renvoi may result in Japanese law applying in certain cases.
Tax Obligation in Nagoya
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 South Korea, 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 South Korea's domestic provisions.
Nagoya-Specific Inheritance Considerations
1.Many foreign workers in the automotive sector (Toyota-related) own property in surrounding cities — Nagoya tax offices handle a high volume of international cases
2.Brazilian community is concentrated in nearby Toyohashi and Hamamatsu but may own Nagoya property
3.Linear Chuo Shinkansen development is driving land value increases in certain areas
4.Aichi Prefecture has a comparatively high rate of detached house ownership among foreign residents
Filing Inheritance Tax in Nagoya
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 Nagoya:
- •Nagoya-Higashi Tax Office (名古屋東税務署)
- •Nagoya-Naka Tax Office (名古屋中税務署)
- •Chikusa Tax Office (千種税務署)
For South Korea nationals, additional documentation may be required including translated certificates from South Korea. Filing in Japanese is required — most South Korea nationals engage a tax accountant (税理士) to handle the filing.
Required Documents for South Korea Nationals
Korean Family Register (가족관계증명서)
Obtainable from Korean consulate in Japan or via online Korean government service.
Basic Certificate (기본증명서)
Proves identity and registration details of the person.
Apostille
Korea is a Hague Apostille Convention member. Korean documents can be apostilled.
Certified Japanese Translation
All Korean documents need certified Japanese translation.
Seal Registration Certificate (印鑑証明)
If the heir has registered a seal with a Japanese municipal office.
Frequently Asked Questions
How much is inheritance tax on property in Nagoya for South Korea nationals?
With an average land value of ¥220,000/㎡ in Nagoya, a 100㎡ property is valued at approximately ¥22.0 million. With 2 heirs, this falls within the basic deduction (¥42 million), so no tax would be owed. However, values in Nagoya range from ¥120,000/㎡ (Moriyama-ku (守山区)) to ¥650,000/㎡ (Naka-ku (中区)), so actual tax varies significantly by location.
Which law applies to South Korea inheritance in Nagoya?
South Korea's Civil Code (Book V: Succession) applies. Korean inheritance law provides for statutory shares and a forced heirship system. The location of property in Nagoya 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 South Korea nationals need to pay inheritance tax on property in Nagoya?
Yes, if the heir or decedent has a domicile in Japan. Japan has a tax treaty with South Korea that may provide relief from double taxation. For reference: Korea imposes inheritance tax at rates from 10% to 50%. Tax-free threshold: KRW 500 million (~¥55 million). Maximum rate of 50% applies to estates exceeding KRW 3 billion (~¥330 million).
Does the Japan-Korea Tax Treaty (日韓租税条約) cover inheritance tax?
No. The Japan-Korea Tax Treaty (日韓租税条約) covers income tax only, NOT inheritance tax. Covers income tax and corporate tax. Does NOT cover inheritance tax directly. Korea has its own inheritance tax (up to 50%), so double taxation risk is significant. Relief available through domestic foreign tax credit provisions.
Which tax office handles inheritance tax filings in Nagoya?
Inheritance tax returns in Nagoya are filed at the tax office that has jurisdiction over the decedent's last address. Main tax offices: Nagoya-Higashi Tax Office (名古屋東税務署), Nagoya-Naka Tax Office (名古屋中税務署), Chikusa Tax Office (千種税務署). The filing deadline is 10 months from the date of death.
What are typical land values in different parts of Nagoya?
Land values (路線価) in Nagoya vary significantly by district: from ¥120,000/㎡ in Moriyama-ku (守山区) to ¥650,000/㎡ in Naka-ku (中区). These are the NTA assessed values (路線価), which are approximately 80% of market value.
Need Help with Inheritance in Nagoya?
Get connected with English-speaking tax professionals experienced in international inheritance cases in the Nagoya area.
South Korea Guides for Other Cities
Nagoya 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.