If you inherit Japanese real estate or bank deposits while living abroad, both the tax and the legal procedures run on deadlines. It pays to map out the whole sequence early and proceed according to plan.
The ten-month inheritance tax deadline
The inheritance tax return is due within ten months of the day after you become aware of the death. An heir living abroad files and pays through a tax representative (nōzei kanrinin — see the separate article).
The four-month quasi-final return
In addition, if the deceased had income for the year (rental income, for example), the heirs must file the deceased’s income tax return — the quasi-final return — within four months of the day after becoming aware of the death. Note that this deadline arrives before the ten-month inheritance tax deadline.
Documents that replace the seal system
On the procedural side: where there are several heirs, who takes which asset is decided by agreement among all of them and recorded in a written estate division agreement. Each heir affixes their registered seal and attaches a seal registration certificate. Heirs living abroad, however, cannot use Japan’s seal registration system and so cannot produce either. The standard substitute is a signature certificate and a certificate of residence obtained at a Japanese embassy or consulate in the country where they live.
Inheritance registration is now compulsory
For inherited real estate, registration of inheritance became compulsory in April 2024: the application must be made within three years of becoming aware that you acquired the property by inheritance. Leaving the registration undone can attract an administrative fine. Registration is the province of the judicial scrivener (shihō-shoshi), and it is best carried forward in parallel with the tax work, with the professionals coordinating.
How assets are valued
Valuation follows Japanese rules (the National Tax Agency’s basic valuation rules): Japanese real estate is valued by the roadside land price or multiplier methods, deposits at their balance. Where the estate includes real estate located abroad, no roadside land price exists; instead the value is estimated by reference to comparable sales or an appraisal by a local expert, or — where this causes no distortion for tax purposes — by a reasonable value based on the acquisition or transfer price adjusted to the valuation date.
Time differences and the international movement of documents all take time. Start early.
Facing a Japanese inheritance from abroad?
We act as tax representative and prepare inheritance tax filings, coordinating with judicial scriveners — by email.
Every enquiry is read and answered personally by the principal — first reply within 3 business days.
Get in touch