If a House Is Empty, Tax Imposed... Japan Introduces 'Binjipse' for the First Time

Tax Imposition on Vacant House Owners is Japan's First
Aimed at Promoting Sales and Rentals and Alleviating Housing Shortage

The city of Kyoto, Japan, is reportedly planning to impose a tax on vacant houses starting in 2026. This measure aims to promote the sale and rental of vacant homes and address the housing shortage.

On the 24th, Kyodo News and local public broadcaster NHK reported that Takeaki Matsumoto, Japan’s Minister for Internal Affairs and Communications, agreed to Kyoto City’s introduction of a "vacant house tax."

While Atami City in Shizuoka Prefecture has previously imposed taxes on vacation homes, Kyoto City is the first to levy taxes on owners of vacant houses.

Earlier, in March of last year, Kyoto City enacted an ordinance related to the establishment of the vacant house tax. Accordingly, Kyoto plans to collect taxes from approximately 15,000 owners of not only vacant houses but also vacation homes that are not used regularly.

Kyoto-si, Japan

The vacant house tax devised by Kyoto City primarily involves taxing 0.7% of the assessed value of unused vacant houses or vacation homes. The tax amount will be determined based on the value and location of the property, and vacant houses with low assessed values will be exempt from taxation. The annual tax revenue is expected to reach 950 million yen (approximately 950 million KRW).

Considering the time required for developing the tax system and promoting it, Kyoto City anticipates that the actual implementation will take place after 2026.

Kyoto City plans to use the vacant house tax to stimulate the sale and rental of vacant homes and alleviate the housing shortage. Kyodo News reported, “Kyoto has strict architectural regulations to preserve its landscape, resulting in insufficient housing supply. Recently, housing prices have surged, causing young people who cannot secure housing to leave Kyoto.”

Vacant houses are a significant social issue in Japan, where the population is declining. It is estimated that there are about 3.49 million long-term neglected houses in Japan, and the government is also promoting measures to facilitate their reuse and demolition.