Inherited real estate cannot be sold until the title has been transferred through "inheritance registration" (sōzoku tōki). Inheritance registration has been mandatory since April 2024, and must be completed within three years of learning of the acquisition.
- Inherited real estate can't be sold until the title has been transferred through inheritance registration.
- Inheritance registration became mandatory in April 2024 and must be completed within three years of learning of the acquisition (as of 2026).
- Capital gains tax applies to any profit from the sale, and the acquisition cost carries over from what the deceased paid for it.
- If the contract can't be found, the deemed acquisition cost is 5% of the sale price, which tends to increase the tax burden.
- The vacant-home special deduction lets you deduct up to ¥30 million from capital gains if certain requirements are met (as of 2026).
Inherited Real Estate Requires a Title Transfer First
An inherited family home or other real estate can't be sold until the title has been transferred from the deceased to the heir through "inheritance registration" (sōzoku tōki). Inheritance registration has been mandatory since April 2024, and must be completed within three years of the date you learned the property was acquired (as of 2026). It's essential to keep this prerequisite in mind from the outset.
The Process Through to Sale
Selling inherited real estate generally follows this sequence. First, you hold an estate division discussion (isan bunkatsu kyōgi) to determine who will inherit the property. Next, you complete inheritance registration to transfer the title, and only then move on to appraisal and listing through a real estate company. Once a buyer is found, you sign the sale contract and proceed to handover.
The Mandatory Inheritance Registration Requirement
The requirement to complete inheritance registration took effect in April 2024. Without a valid reason, failing to complete inheritance registration within three years of learning the property was acquired can result in an administrative fine (as of 2026). This also applies to real estate inherited before the requirement took effect, so if you've left a property unregistered, it's worth taking action soon. Cases where inheritance took place in the past but registration was never completed can also be subject to this requirement, so if this applies to you, it's worth checking your situation early.
Tax Basics
If you make a profit (capital gain) from selling inherited real estate, capital gains tax (jōto shotoku zei) applies. As a rule, the acquisition cost carries over from the price the deceased originally paid for the property. However, if the original sale contract can't be found, the acquisition cost is deemed to be 5% of the sale price, which increases the taxable gain and tends to result in a heavier tax burden — something to be aware of.
The Vacant-Home Special Deduction
If certain requirements are met, a "vacant-home special deduction" is available that lets you deduct up to ¥30 million from the capital gain on the sale of a home the deceased had lived in. However, the requirements are detailed — for example, the building must have been constructed on or before May 31, 1981, and sectioned-ownership buildings such as condos are excluded (as of 2026). We'd recommend confirming with a tax accountant whether you qualify.
The Cost of Holding an Empty Property
If you keep an inherited family home without selling it, costs continue to accrue — property tax, the burden of upkeep, and ongoing deterioration. If you don't have plans to use the property going forward, deciding early on whether to sell can help keep those costs in check.
Frequently Asked Questions
Can I sell an inherited home without first transferring the title?
No, you can't. You'll need to go through an estate division discussion (isan bunkatsu kyōgi) and complete inheritance registration to transfer the title before selling. Inheritance registration has been mandatory since April 2024 (as of 2026).
What taxes apply when I sell an inherited family home?
Capital gains tax (jōto shotoku zei) applies to any profit from the sale. The acquisition cost carries over from what the deceased originally paid for the property, so it's important to track down the original sale contract.
Does the ¥30 million vacant-home deduction apply to condos too?
Sectioned-ownership buildings (condos) are excluded. Even for a detached house, the requirements — construction date, earthquake-resistance criteria, and so on — are detailed, so please confirm eligibility with a tax accountant (as of 2026).
Summary
Selling an inherited family home starts with transferring the title through inheritance registration, which has also been mandatory since April 2024. Capital gains tax and the vacant-home special deduction are among the tax rules involved, so it's worth understanding both the process and the tax system, and consulting a tax accountant or real estate company as needed. (Information as of 2026. Please check with the Legal Affairs Bureau, the National Tax Agency, or other relevant authorities for the latest details.)