Is My Family Home Affected? Neyagawa City's 'Vacant House Tax' Exemption Rules and What Owners Need to Know Now

Neyagawa City in Osaka Prefecture is in the news for moving forward with the introduction of a new tax called the Vacant House Circulation Promotion Tax. Some people may have sighed, thinking, 'Another tax hike...'
However, when you read the details, this isn't just a simple tax increase.

Rather, it is a system where 'properties that are being actively managed or marketed are exempt, and the tax only applies to properties that are left abandoned.'

Today, I would like to break down this situation from a practical perspective.

To begin with, why was such a tax created?

It is said that there are approximately 6,400 'inactive vacant houses' in Neyagawa City that are not planned for use and are not listed for sale.
This accounts for a significant portion of the city's total housing stock.

When such vacant houses are left abandoned, weeds grow, exterior walls crumble, and it becomes easier for intruders to enter.
This leads to anxiety for neighboring residents and risks regarding disaster prevention.
However, the city cannot strongly tell individuals to 'sell your property quickly' when it is their private asset.

That is why they came up with an approach to 'have owners take action through the mechanism of taxation.'

The point is that the goal is not to increase tax revenue.
What the city is really aiming for is 'behavioral change,' which means 'getting owners who are leaving properties abandoned to stop and think about it.'

I understand this as an attempt to increase the number of homes available for young generations and child-rearing families, improve the city's crime and disaster prevention standards, and redesign these efforts as part of 'urban management.'

How much is the actual burden?

The question on everyone's mind is, 'So, how much will it cost?'

For a standard detached house, an additional annual burden of approximately 40,000 to 70,000 yen is expected.
The tax rate is equivalent to 50% of the fixed asset tax amount (calculated based on the building tax and building location tax), and it is applied every year.

This is by no means a small amount.
The design is such that if an owner thinks, 'I have to keep paying 70,000 yen every year even though I'm not managing it,' they will be forced to take action.

However, 'not all vacant houses are subject to the tax'

This is an important point.

It is often misunderstood that 'you will be taxed just for owning a vacant house,' but this system has exemption provisions.
In other words, properties that are being properly managed or circulated are exempt.

The main cases for exemption are as follows.

• Properties within one year of starting recruitment for sale or rent

• Properties within 3 years of inheritance(3 fiscal years starting from January 1st of the year following the death)

• Properties currently being used for business or planned for such use

Even if you have just inherited your family home and haven't decided anything yet, there is a 3-year grace period. Even at the stage where you are considering a sale and have started consulting with a real estate agent, you are eligible for a 1-year exemption.

The idea is that a state of being completely 'left abandoned and untouched' is what becomes subject to taxation.

How is it different from the 'Kyoto Vacant House Tax'?

A famous precedent is Kyoto City's 'Non-Residential Housing Utilization Tax (Vacant House Tax).' It has been in full effect since 2026 and is designed to broadly tax properties, including vacation homes and second houses. Since it also covers 'unused luxury homes' owned by the wealthy, it casts a very wide net.

Neyagawa City's model is a bit different. It targets more specifically, focusing on 'vacant houses that are stagnant but should be able to return to the market.' Rather than 'taxing the entire city to generate revenue,' it is a practical design intended to 'get properties that are blocking circulation moving.'

If the Kyoto model is 'wide and deep,' the Neyagawa model gives the impression of 'narrowing down and moving.' It is not a matter of which is correct, but rather a reflection of the differences in the scale of the city and the sense of the issues at hand.

What is the schedule?

As of now, the outlook is that the process of submitting the ordinance proposal and conducting public comments will proceed during 2026, with the goal of starting taxation in fiscal year 2029.

You might think, 'That's still a long way off, right?' but inheritance procedures, sales preparations, and considering renovations all take time. 2 to 3 years pass in the blink of an eye.

It is worth checking early, especially for those who thought, 'This doesn't apply to me.'

How will this system change the field?

What I am paying attention to is not the system itself, but the 'changes in the market once this spreads.'

If this model functions well in Neyagawa City, more municipalities will likely consider similar systems. While the creation of ordinances for vacant house countermeasures is already progressing nationwide, if a mechanism with the coercive power of a 'tax' spreads, properties that have not moved until now may suddenly hit the market.

For real estate agents, this may mean an increase in brokerage opportunities; for renovation and demolition contractors, an increase in construction projects; and for management companies, an increase in new requests. Since cases involving inheritance procedures will also increase, demand for professionals (judicial scriveners, administrative scriveners) will likely rise as well.

Conversely, businesses that do not prepare a 'system to support moving vacant houses' starting now may miss the boat when this wave arrives.

A small step owners can take today

If you are wondering, "Does my family home fall under this system?", please first check the following points.

• Is the property currently being advertised for sale or rent?

• How many years have passed since the inheritance?

• Are you using it for something, or do you have plans to use it?

If you can say "yes" to even one of these, you will not be subject to taxation immediately. However, if you have been in a "no to everything" state for many years, it might be time to go talk to the city office, a real estate agent, or a consultation desk for vacant houses.

The problem is not the vacant house itself, but the state of it being left abandoned.
Just taking action will change the situation significantly.

For business operators, I believe that watching the movements of such systems and preparing mechanisms to support "owners who start taking action" now will lead to a big difference in the future.

So, today I wrote about Neyagawa City's "Vacant House Circulation Promotion Tax."
I would be happy if you read this not with the thought of "another tax," but from the perspective of "how can I act to get an exemption" and "what will change with this trend."

The system has just started moving. But it is never too early to start preparing.

▼ Thank you for reading to the end.
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