Kotei-shisanzei (fixed-asset / property tax)

Kotei-shisanzei is the annual property tax levied by the municipality on both land and building. The headline rate is 1.4% of the government's assessed value — not the market price, and assessed value typically runs well below what you paid. It's billed to whoever is the registered owner on January 1, in four installments, so at purchase the year's tax is usually pro-rated between buyer and seller at settlement. Residential land and newer homes qualify for meaningful reductions, so the actual bill is often lower than the sticker rate suggests. Treat it as a fixed annual holding cost when you model net yield.