💡 Can I buy a house with company money?
If a business owner engaged in real estate leasing buys property for business purposes, there is no problem.
However, if other business owners borrow business funding and invest in real estate or stocks, it can be seen as a violation of loan regulations.
If the representative or special relationship resides in the house purchased in this way, it can be seen as a circumvention purchase to avoid increasing personal housing ownership in order to pay less tax, and if real estate is purchased unrelated to business and leased or sold, the loan can be recovered.
💡 What taxes do I pay if I buy a house with company money?
When acquiring a building, acquisition tax is imposed, and if a corporation purchases a house, a middle tax rate of about 12% acquisition tax is applied.
In some cases, such as when the standard value of the house is low, the middle tax may not apply.
Exception to middle taxation of housing paid transactions
- Comprehensive real estate tax
A corporation pays about 3-6% comprehensive real estate tax depending on the number of owned houses.
Article 9 (Tax Rate) of the Comprehensive Real Estate Tax Law
The housing owned by the employer (representative) provided to employees as a dormitory or for residential purposes is excluded from the comprehensive real estate tax calculation, but this only applies if certain conditions such as size or announced price are met, so you should check carefully.
If the employee is a close relative of the personal representative or a majority shareholder of the corporation where they work, this does not apply.
Exclusion of Housing for Employees, etc. from Combined Taxation
- Transfer tax, corporate tax
Individuals pay 6-45% transfer tax by default, and may pay more tax depending on the holding period and number of adjusted housing units.
Corporations pay a basic corporate tax of 10-25%, and when disposing of houses, etc., they pay an additional about 20% tax.
💡 Can I buy a house with company money?
If a business owner engaged in real estate leasing buys property for business purposes, there is no problem.
However, if other business owners borrow business funding and invest in real estate or stocks, it can be seen as a violation of loan regulations.
If the representative or special relationship resides in the house purchased in this way, it can be seen as a circumvention purchase to avoid increasing personal housing ownership in order to pay less tax, and if real estate is purchased unrelated to business and leased or sold, the loan can be recovered.
💡 What taxes do I pay if I buy a house with company money?
When acquiring a building, acquisition tax is imposed, and if a corporation purchases a house, a middle tax rate of about 12% acquisition tax is applied.
In some cases, such as when the standard value of the house is low, the middle tax may not apply.
Exception to middle taxation of housing paid transactions
A corporation pays about 3-6% comprehensive real estate tax depending on the number of owned houses.
Article 9 (Tax Rate) of the Comprehensive Real Estate Tax Law
The housing owned by the employer (representative) provided to employees as a dormitory or for residential purposes is excluded from the comprehensive real estate tax calculation, but this only applies if certain conditions such as size or announced price are met, so you should check carefully.
If the employee is a close relative of the personal representative or a majority shareholder of the corporation where they work, this does not apply.
Exclusion of Housing for Employees, etc. from Combined Taxation
Individuals pay 6-45% transfer tax by default, and may pay more tax depending on the holding period and number of adjusted housing units.
Corporations pay a basic corporate tax of 10-25%, and when disposing of houses, etc., they pay an additional about 20% tax.