This is a translation of the Japanese original. The Japanese version is authoritative; figures follow Japanese tax law.
When you receive money from a parent or grandparent to buy a home, there is a special rule under which no gift tax applies on up to 10 million yen for energy-efficient (qualified) housing, or up to 5 million yen for other housing. This rule is set to end with gifts made by December 31, 2026 (Reiwa 8), and whether it will be extended will not be known until the ruling parties' tax reform outline at the end of the year. Even if you receive the gift within the year, it is not tax-free unless you acquire the home and start living in it by March 15 of the following year. Using National Tax Agency (NTA) materials, we work backwards from the deadlines to show what has to be done and by when.
Bottom line: receive the gift within the year, then acquire and move in by March 15 of the next year
| Item | Details |
|---|---|
| Tax-free amount | Energy-efficient (qualified) housing: 10 million yen / other housing: 5 million yen (cumulative per recipient) |
| Deadline for the gift | Receive the gift by December 31, 2026 (the rule runs from January 1, Reiwa 6 to December 31, Reiwa 8) |
| Use of the money | Funds to build, acquire or renovate a home you will live in yourself. The entire amount must be applied to it |
| Deadline for acquisition and residence | Acquire the home by March 15 of the year following the gift and live in it by the same date (at the latest, move in by December 31 of that following year) |
| Recipient | A child, grandchild or other lineal descendant who is 18 or older on January 1 of the year of the gift. Total income for that year must be 20 million yen or less (10 million yen or less where the floor area is 40 to under 50 sq m) |
| Requirements for the home | Floor area of 40 sq m to 240 sq m, with at least half used as your own residence. A used home must have been built in 1982 (Showa 57) or later, or meet earthquake-resistance standards |
| Procedure | File a gift tax return between February 1 and March 15 of the following year (filing is a requirement even when the tax is zero) |
Source: NTA No.4508, "Exemption for gifts of housing acquisition funds from lineal ascendants (parents or grandparents)" [NTA No.4508]
This special rule can be combined with the 1.1 million yen basic deduction. That means you can receive up to 11.1 million yen for energy-efficient (qualified) housing, or up to 6.1 million yen otherwise, tax-free in a single year.
A backwards calendar: can you still make it this year?
The requirements turn on three dates: the gift, the acquisition and the move-in. The order and the deadlines look like this.
| Your situation now | Can you still use the 2026 rule? |
|---|---|
| You have signed, or can sign this year, a contract for a completed house or condominium | Yes. Receive the gift within the year, then take handover and move in by March 15 |
| A custom-built house that will not be finished by March 15 | For new construction, a house counts as "acquired" once the roof is on and the frame has been raised (it need not be finished). Move in without delay, and by December 31 at the latest |
| The condominium will not be completed until April 2027 or later | For a condominium unit, there is no acquisition until handover. A 2026 gift cannot be made tax-free |
| You want to receive the gift in 2027 | Possible only if the rule is extended. Whether it is extended will be decided in the tax reform outline in mid-December 2026. If you assume no extension, receive the gift within the year |
The difference between "the frame is up, so it counts as acquired" for a custom-built house and "handover is required" for a condominium comes from how the NTA defines acquisition as a condition of the exemption. If your case is borderline, check with the tax office or a tax accountant before you sign.
Whether it is 10 million or 5 million yen depends on "energy-efficient (qualified) housing"
The tax-free allowance doubles based on the performance of the home. Energy-efficient (qualified) housing means a home that meets one of the standards for energy efficiency, earthquake resistance or barrier-free design; for homes newly built from 2024 onward, the energy standard is "insulation performance grade 5 or higher and primary energy consumption grade 6 or higher"[NTA No.4508]. Proof requires a copy of a housing performance certificate or a construction housing performance evaluation report, so it is safer to ask the seller or builder at contract time whether they will issue the certificate needed for the gift tax exemption.
Receiving 12 million yen from your father to buy energy-efficient (qualified) housing (gift during 2026)
Special exemption: 10 million yen
Basic deduction: 1.1 million yen
Taxable gift: 12 million yen - 11.1 million yen = 900,000 yen -> gift tax is 900,000 yen x 10% = 90,000 yen (the special rate for children aged 18 or older)
If the home is not energy-efficient (qualified) housing: 12 million yen - 6.1 million yen = 5.9 million yen -> gift tax is 880,000 yen (5.9 million yen x 20% - 300,000 yen). The performance certificate alone changes the tax by about 800,000 yen.
For gift tax rates and the 1.1 million yen basic deduction, see the gift tax exemption allowance.
For funds above 10 million yen, stack on settlement-at-inheritance taxation
If you are receiving more than the exempt allowance, you can combine it with settlement-at-inheritance taxation (sozoku-ji seisan kazei), under which up to a cumulative 25 million yen is free of tax at the time of the gift and is settled at inheritance. For gifts of housing acquisition funds (gift for buying a home), there is a special rule that lets you elect settlement-at-inheritance taxation even where the donor is under 60[NTA No.4503]. From 2024, settlement-at-inheritance taxation also has an annual basic deduction of 1.1 million yen, and that 1.1 million yen is not added back to the estate.
Advantages of stacking settlement-at-inheritance taxation
- No gift tax even when you receive a lump sum above 10 million yen (up to 25 million yen)
- The 10 million yen covered by the special exemption is not added back to the estate
Points to watch
- Once you elect it, gifts from that donor can never go back to calendar-year gift taxation (the 1.1 million yen allowance)
- Anything above 25 million yen is taxed at a flat 20%, and settled at inheritance
- Electing it requires a gift tax return and a notification form
In families that stay within the basic estate tax deduction (30 million yen plus 6 million yen per statutory heir), moving funds early through settlement-at-inheritance taxation normally results in no inheritance tax at all. For the full picture on inheritance, see the basic estate tax deduction and ways to cut inheritance tax.
Typical ways the exemption gets revoked
- You did not file a gift tax return - filing by March 15 of the following year is a requirement even when the tax is zero. Without a return the special rule does not apply and ordinary gift tax is charged.
- You used the money to repay a mortgage - the rule covers funds applied to the "consideration for acquisition", not the repayment of a loan already taken out.
- A parent bought only the land and handed it to the child - a gift of cash is required; a gift of the real estate itself is not covered.
- A gift from your spouse's parents - the rule is limited to gifts from lineal ascendants (parents or grandparents), so a gift from your spouse's parents is not exempt. If each spouse receives from their own parents and the home is registered in joint names, each can use their own allowance.
- You were not living there by December 31 of the following year - you can still file even if you cannot move in by March 15, but if you are not living there by December 31 of that year an amended return is required.
- Your income exceeded 20 million yen - this is judged on total income for the year of the gift. Be careful in a year when retirement pay or gains on shares push you over.
What happens from 2027
This rule has been extended repeatedly in two-year steps, but the end of 2026 is the current deadline. The Ministry of Land, Infrastructure, Transport and Tourism's Reiwa 9 tax reform request only asks the government to "consider what is needed and take the necessary measures" for this exemption; the request document does not state whether it should be extended or what the allowance should be. The decision will come in the ruling parties' tax reform outline in mid-December 2026. Because the exempt allowance has been trimmed at each past extension, anyone who can use the 10 million yen allowance now is safest receiving the gift within the year. We track the full set of requests in the Reiwa 9 tax reform requests and their impact on households.
What to do today
- Ask the seller whether the home you plan to contract for can be handed over and moved into by March 15. For a condominium the test is handover; for a custom-built house it is raising the frame.
- Check whether a certificate for energy-efficient (qualified) housing will be issued. If not, plan around the 5 million yen allowance.
- Receive the gift within the year by bank transfer and keep the passbook record. Put the gift tax return, due between February 1 and March 15 of the following year, on your calendar.
Frequently asked questions
I will receive the gift in December 2026, but the home will not be handed over until April 2027. Is it still tax-free?
For a condominium unit or a completed home, handover (acquisition) by March 15 of the following year is a requirement, so it is not tax-free. For a custom-built house, if the frame has been raised by March 15 the acquisition requirement is met, and you can file on the basis that you are expected to move in without delay even if moving in is late. The answer changes with the type of property, so check with the tax office or a tax accountant before you sign.
If the gift tax is zero, can I skip the return?
No. This rule requires you to file a gift tax return with the necessary documents attached; without a return the rule does not apply and ordinary gift tax is charged. The deadline is February 1 to March 15 of the year following the gift.
Can both spouses receive money from their own parents?
Yes. The allowance belongs to each recipient, so if the husband receives from his parents and the wife from hers, each can use the exemption. However, unless the home is registered in joint names in proportion to what each contributed, it may be treated as a gift between the spouses.
Will the same rule exist in 2027?
The current rule applies to gifts made by December 31, 2026, and it has not been decided whether it will be extended from 2027. An extension will be judged in the tax reform outline in mid-December 2026. Even if it is extended the allowance may be trimmed, so if you can receive the gift within the year, it is safest to do so.
Reference links (sources)
This article is based on the materials below. The rules change, so please check the latest information before making a gift.
Note: this article is general information, not tax advice. How the timing of acquisition is judged and what certificates are required vary with individual circumstances. Please confirm with the tax office or a tax accountant before you sign.
