What is the 30 million yen special deduction when transferring a vacant house?

2025年5月19日 2025年5月19日

tsuzukizeirishi

There is a system in place that allows you to deduct 30 million yen from the amount of capital gains when transferring a vacant house.

Here are some quick highlights.

Eligible vacant houses and land conditions

The special exemption applies to vacant houses and land that meet the following conditions:

The building and land where the deceased lived were acquired through inheritance or bequest
The deceased lived alone in the building until just before the start of the inheritance (or before moving into a nursing home)
The building was constructed before May 31, 1981
The building is not a condominium unit
(condominiums are not eligible for the special exemption)
The house has been vacant since the deceased stopped living there until the time of transfer
(During this time, it cannot be used for business, rental, or residential purposes)

The requirements for an eligible transfer are as follows:

The transfer must be made by December 31 of the year in which three years have passed since the start of the inheritance
The transfer price must be less than 100 million yen
The seller must make seismic retrofits or demolish the building by the time of the transfer
(or the buyer must make seismic retrofits or demolish the building by February 15 of the year following the transfer)

*If the seller demolishes the building and transfers the land,
the land cannot be used for business or rental purposes by the time of the transfer

The special exemption for the acquisition cost surcharge on the inheritance tax must not be applied when calculating the transfer income

You can deduct 30 million yen from the amount of capital gains.

If there are multiple people who have acquired property through inheritance or bequest,

We have briefly explained the key points of the special system that allows for a 30 million yen deduction when transferring a vacant house.

Please note that you will need to file a tax return to apply for the special system.

Please contact us if you have any questions.