Japan to introduce vacant house tax as early as 2026 as population declines

The possibility of introducing a so-called "vacant house tax" to impose a tax on vacant houses from 2026 has increased.

According to reports by NHK and Kyodo News on March 24th, Minister of Internal Affairs and Communications Matsumoto Takeaki agreed on the same day that Kyoto City would establish a new vacant house tax. Prior to this, in March last year, Kyoto City enacted ordinances related to the establishment of a new vacant house tax.

However, vacant houses with low valuations are exempt from the tax. The amount of tax imposed is determined by the value and location of the house, and annual tax revenue is estimated to reach 950 million yen.

Along with this, Kyoto City plans to collect taxes not only on vacant houses, but also on the owners of about 15,000 villas, such as villas that are not used on a daily basis.

Kyodo News reported, "Recently, housing prices have skyrocketed, and young people who can't secure housing are leaving Kyoto." With Japan's aging society and declining population, the number of vacant homes is on the rise.