The Death of Japan's 6x Tax Loophole
And a Very Good Boy.
I took this photo in March of 2024. I thought the building was tenanted then, and it may well have been.
However, it is well and truly not anymore.
Because now the building looks like this:
At least they had the decency to clean it up. Many places don’t. Although that has clearly been changing. I guess that’s the Japanese 6x Tax loophole for residential properties coming to an end. In the past, properties with a structure still on them received a massive tax break. Knocking the house down meant the plot was reclassified as “empty”, and that came with a tax bill sometimes 6x higher than when a building was on it… ouch.
Or not.
Until now, that is.
Mark Kennedy does a deep dive on this, highly recommend reading it, but the lowdown is this (from Gemini):
If a house has broken windows, cracked walls, or completely overgrown jungle-like weeds, it gets flagged.
If the owner ignores the local government’s warnings to clean it up, they lose their residential tax break immediately.
The Penalty: An Overnight 4x to 6x Tax Hike
Once a property is officially hit with a “recommendation” for poor management, the tax discount vanishes. The owner’s property tax jumps by roughly 4 to 6 times the following year—even though the house is still standing.
In more depth:
This plot was commercial, I assume, so it’s a bit different, but still! That view!
I’ve noticed a huge uptick in the number of buildings being taken down. I’m in two minds about it because many of the buildings are really cool looking. But then again, they’re also abandoned. They much be a real hassle to live next to for starters. I guess I need to get my fix of abandoned building porn while I can. Get my camera out and get a few photos, in other words.
Anyway…
This photo was taken in the same spot :)
What a good boy!
Related:
Daily Yamabushi Posts for May 8 to 14, 2026
Daily Yamabushi posts for May 8 to 14, 2026.
More Daily Yamabushi at timbunting.com/daily-yamabushi. See all Japan Deep Dives here.
That good boy looks like he would happily occupy the empty site - for awhile, anyway. Very cute.
Thanks for the mention.