Subsidies and Loans for Shibuya Ward Businesses 2026 — ¥2,500,000 for Opening a Shop, Loans at Near-Zero Interest
Among Tokyo's 23 wards, Shibuya's business support is exceptionally focused on "opening a new business." The flagship program is the Store-Opening Support Subsidy (Shibuya Local Street Project), which covers four-fifths of eligible expenses, up to ¥2,500,000, for interior and exterior construction and similar work. Its loan programs are equally aggressive: the startup support loan caps the borrower's interest rate at 0.1% per year (the ward subsidizes 1.6 points), and the emergency loan for businesses hit by rising prices is effectively interest-free. That said, the subsidy comes with conditions unique to Shibuya, such as a mandatory adoption of Hachi Pay and, for shops inside a shopping district, mandatory membership in the local shopping association. This article covers what each program offers, the order in which to apply, and the bookkeeping and tax treatment after you receive the money.
First, the Big Picture — Think in Three Layers: National, Tokyo, and Ward
Support for businesses comes in a three-tier structure: national government, Tokyo Metropolitan Government, and the ward. To avoid wasting time being told at the ward counter that "that's a Tokyo program," it helps to sort them out up front.
The Flagship: Store-Opening Support Subsidy (Shibuya Local Street Project)
For people opening a new shop, this program covers four-fifths of eligible expenses, up to ¥2,500,000[Shibuya Ward]. A subsidy rate of 4/5 is among the highest of any of the 23 wards — spend ¥3,000,000 on interior construction, for example, and ¥2,400,000 comes back.
| Item | Details |
|---|---|
| Subsidy rate / cap | 4/5, ¥2,500,000 |
| Eligibility | Individuals or businesses opening a new shop in one of the eligible business categories designated by the ward. Must be pre-opening or have been open for less than 10 years |
| Required conditions | Located in a high-foot-traffic commercial area / joining the local shopping association is mandatory if inside a shopping district / adopting Hachi Pay (the ward's digital local currency) is mandatory |
| Eligible expenses | Interior and exterior construction, plumbing and electrical work, fixed fixtures and built-in counters, etc. (movable equipment is not eligible), advertising production costs (initial costs only, such as a new website or flyers) |
| Application windows | Round 1: April 15 – June 1, 2026 (must open by January 31, 2027) / Round 2: July 15 – August 31, 2026 (must open by March 31, 2027) |
| How to apply | Apply by email ([email protected]) → receive an upload URL → submit documents by the deadline |
This subsidy is only for new store openings and cannot be used to renovate an existing shop. Applications are also limited to two rounds a year, each about a month and a half long, and close early once the budget is used up. Fiscal 2026's second round closed on August 31, so if you're aiming for the next opportunity, the realistic move is to target fiscal 2027's first round (typically mid-April) and lock in your property and construction estimate ahead of time.
Loans — Shibuya Is Pushing Interest Rates Toward Zero
Shibuya Ward's SME business loan referral program has the ward subsidize interest so that the maximum rate the borrower actually pays is set separately for each program[Shibuya Ward].
| Loan type | Limit | Rate paid by borrower | Key points |
|---|---|---|---|
| Startup support loan | ¥20,000,000 | Up to 0.1% | Ward subsidizes 1.6 points. For prospective founders or those who founded less than a year ago. Credit guarantee fee also 2/3 subsidized by Tokyo |
| Emergency SME support loan | ¥20,000,000 | Effectively 0% | Ward subsidizes up to 1.7 points. Requires that sales over 3 months have fallen 10% or more due to labor costs or rising prices |
| Business succession support loan | ¥20,000,000 | Up to 0.4% | Ward subsidizes 1.3 points. For those planning to succeed the business within 3 years, or who completed succession within the past 5 years |
| Low-emission vehicle special loan | ¥10,000,000 | Up to 0.4% | For vehicles that meet Tokyo's environmental standards |
| Working capital loan | ¥15,000,000 | Up to 1.2% | Ward subsidizes 0.5 points. 5-year repayment (6-month grace period) |
| Equipment loan | ¥20,000,000 | Up to 1.2% | 7-year repayment. Credit guarantee fee also 2/3 subsidized by Tokyo |
| Small-sum loan (shopping association members) | ¥20,000,000 | Up to 0.2% | Ward subsidizes 1.5 points. Requires remaining a shopping association member |
| Refinancing loan | ¥40,000,000 | Up to 1.2% | Requires having repaid at least 50% of an existing ward-referred loan |
Numbers in perspective: borrowing ¥10,000,000 for 7 years at startup
A typical business loan (assuming 2.0% per year): total interest of roughly ¥700,000-plus
Shibuya Ward's startup support loan (up to 0.1%): total interest of under ¥40,000
→ Even though it isn't a subsidy, the effect comes close to nearly ¥700,000 in support.
You book online through the Shibuya My Portal (business version), go through several interviews at the counter, and receive a referral letter (valid for 30 days) to take to a financial institution. From consultation to disbursement typically takes about a month, so plan backward from the date you actually need the funds.
Starting a Business — The Certificate Brings Four Real Benefits
Completing Shibuya Ward's startup support seminar (five full days, no absences or late arrivals allowed) earns you a "Certificate of Specified Startup Support Business"[Shibuya Ward]. The benefits are the same four you'd find in wards like Chuo.
- The registration tax for incorporating a company is cut in half (0.7% → 0.35%)
- You can apply for the credit guarantee association's startup-related guarantee starting 6 months before opening
- You become eligible for low-interest loans from the Japan Finance Corporation and similar lenders
- You become eligible for the national Sustainability Subsidy, startup track (up to ¥2,000,000)
As of June 1, 2026, if you plan to start a business outside the ward, the representative is now required to live within Shibuya Ward. In addition, the fiscal 2026 seminar (starting in September) has already reached capacity and closed applications. The certificate application itself is still accepted year-round through Smart Application (within one year of completing the support). For the broader process of starting a business, see our guide to starting a sole proprietorship, and for deciding whether to incorporate, see timing your incorporation.
Support for Shopping Districts and Capital Investment
| Program | Subsidy rate / cap | Key points |
|---|---|---|
| Shopping District Revitalization Grant | Up to ¥100,000,000 | Up to 2/3, capped at ¥100,000,000 for federations; 2/3, capped at ¥20,000,000 for voluntary shopping associations. Covers street lighting, arches, colored paving, website creation, and even community spaces or childcare facilities set up in vacant storefronts |
| Shopping District Challenge Strategy Support | Up to ¥8,250,000 | Regular events: 2/3, up to ¥6,000,000 (up to twice a year); organizational revitalization: 11/12, up to ¥8,250,000; youth and women's division support: 11/12, up to ¥1,375,000 |
| EV charging equipment installation subsidy | ¥100,000 per unit | Up to 5 units for corporations and organizations. For SMEs, sole proprietors, and management associations registered in the ward. Application must be filed before construction begins |
| Hachi Pay merchant registration | No fee | Free registration, and no transaction fee is charged to the business (100% of sales go to the business). Also a mandatory condition of the store-opening subsidy |
The fact that Hachi Pay has no transaction fee matters in practice, and each ward-run resident campaign (up to 30% cashback at shopping districts in September 2026) also drives extra foot traffic. See our article on Shibuya Ward's Hachi Pay for details.
Shibuya Ward appears to have no ward-specific subsidy for IT/DX, no rent assistance for businesses, and no solar/battery subsidy for businesses (renewable energy assistance exists only for individuals). For these three areas, look instead to the national IT Adoption Subsidy, Tokyo's Startup Grant (which covers rent as an eligible expense), and the Tokyo-based Cool Net Tokyo's assistance for businesses. The ward itself positions its "subsidy auto-matching system" as a way to direct businesses toward national and Tokyo programs.
[Most Important] Bookkeeping and Taxes After You Receive a Subsidy
The program overview ends here. What follows is the part most sites don't cover. A subsidy isn't the end of the story once you receive it.
1. Corporate/income tax — generally taxable, with compressed entry accounting as the exception
A subsidy is included in taxable income (gross income for sole proprietors) in the fiscal year it's received. The tricky case is a subsidy tied to equipment or interior work. If you receive a ¥2,500,000 store-opening subsidy and use it for interior construction, the interior itself becomes an expense gradually through depreciation, while the subsidy alone gets taxed up front in year one — creating a lopsided tax burden.
Compressed entry accounting (Corporate Tax Act Articles 42–44) exists to smooth this out.
Example: ¥3,000,000 of interior construction, funded by a ¥2,400,000 subsidy (4/5)
Without compressed entry accounting: the ¥2,400,000 subsidy adds to taxable income; the asset is depreciated based on ¥3,000,000
With compressed entry accounting: the ¥2,400,000 is booked as a compression loss that offsets the income; the asset's book value becomes ¥600,000, so future depreciation is smaller
→ The tax doesn't disappear — it's deferred to later years.
The requirements are: 1) it must be confirmed that no repayment will be required; 2) the subsidy must have been used to acquire or improve a fixed asset; 3) the required entry must be made on the tax return. If confirmation that repayment isn't required slips into the following period, it's handled with a "special reserve." Sole proprietors must attach a "statement of non-inclusion of national/local government subsidies in gross income" to their return — without it, the treatment can't be applied[National Tax Agency No.2202]. Note also that a subsidy for an expense that doesn't create a fixed asset, such as advertising production costs, is not eligible for compressed entry accounting and is simply booked as income.
2. Consumption tax — outside the scope of tax, but "repayment" can occur
A subsidy has no consideration attached to it, so it's outside the scope of consumption tax. However, if you claimed the input tax credit on the consumption tax portion of the subsidized expenses, that reduces your effective tax burden, so you may be asked to repay that portion.
| Your tax status | Consumption tax repayment |
|---|---|
| Taxable business under the general (principle) method | Can be subject to repayment |
| Taxable business under the simplified method | Not applicable |
| Tax-exempt business | Not applicable |
For a ¥2,500,000 subsidy, roughly 10/110 of it (about ¥220,000) could be subject to repayment. It's safer to set that portion aside rather than spend the full amount. Check which method applies to you in our article on the simplified versus general consumption tax methods.
3. What about loans and interest subsidies?
- Borrowed funds — not income, so they aren't taxed. Interest you pay is a deductible expense.
- Interest subsidies and guarantee-fee subsidies — in principle, the amount the ward covers on your behalf counts as an economic benefit and is treated as income. However, since an equivalent amount of interest or guarantee fee is also booked as an expense, the net effect is often small.
How the Year Unfolds — an Application Calendar
- Mid-April: Round 1 of the store-opening subsidy (through early June). The main window for anyone planning to open.
- April and fall: Tokyo's Startup Grant (up to ¥4,000,000). Each application window is short, about 10 days.
- Mid-July: Round 2 of the store-opening subsidy (through end of August). A backup for those who missed round 1.
- Year-round: loan referrals. Reservation → interview → referral letter takes about a month; plan backward from when you'll need the funds.
- Within the fiscal year: EV charging equipment and shopping district support. Both require consulting or applying before construction or implementation begins.
- At closing: decide on compressed entry accounting. The treatment differs depending on whether the subsidy arrives in the same fiscal year as the asset purchase or straddles two years.
Do this today
- Book a business consultation through the Shibuya My Portal (business version) — free, weekdays 10am–3pm. This is the entry point for both loans and subsidies.
- If you're planning to open a shop, start preparing your property, construction estimate, and Hachi Pay adoption now, aiming for fiscal 2027's Round 1 (typically mid-April).
- In any year you receive a subsidy, set aside 10/110 of the subsidy amount as a buffer in case a consumption tax repayment is required.
Frequently Asked Questions
I want to renovate my existing shop — is there a subsidy for that?
The Store-Opening Support Subsidy is limited to new openings, so it can't be used. For equipment upgrades, consider a loan (the equipment loan, up to ¥20,000,000, capped at 1.2%), and for shopping-district-wide projects, the Shopping District Revitalization Grant is an option. The national Small Business Sustainability Subsidy (up to ¥500,000, standard track) can also cover part of a store renovation.
Summary
- The flagship program is the Store Opening Support Subsidy: four-fifths of eligible costs, up to 2.5 million yen, limited to new store openings — renovations of existing stores are excluded.
- Adopting the Hachi Pay payment system is mandatory, and shops within a shopping district must also join the local shopping association. The second round for FY2026 closed August 31; the next round typically opens in mid-April.
- For loans, the Startup Support Fund caps interest at 0.1%, while the Emergency SME Support Fund is effectively 0% (limit of 20 million yen).
- From June 1, 2026, if the business is started outside the ward, the representative's residency within the ward becomes a requirement for Specified Startup Support.
- Subsidies are, in principle, recorded as income, and interior fit-out costs qualify for compressed-entry accounting. Under the standard consumption tax method, set aside 10/110 of the subsidy amount in case of refund.
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References
This article was prepared by checking the following published materials. Application periods, remaining budgets, and interest rates can change during the fiscal year, so please always confirm the latest official information before applying.
- Shibuya Ward — Store-Opening Support Subsidy (Shibuya Local Street Project)
- Shibuya Ward — SME Business Loan Referral Program
- Shibuya Ward — Emergency SME Support Loan
- Shibuya Ward — Certificate of Specified Startup Support Business
- Shibuya Ward — Shopping District Revitalization Grant
- Shibuya Ward — EV Charging Equipment Installation Subsidy
- National Tax Agency — Tax Answer No.2202, on receiving national/local government subsidies (in Japanese)
- National Tax Agency — Corporate Tax Basic Circular, Chapter 10 Section 2, compressed entry accounting for assets acquired with national/local government subsidies (in Japanese)
*This article is general information and does not guarantee any individual tax or administrative outcome. Whether compressed entry accounting applies and how much consumption tax must be repaid depends on the specific subsidy's terms and your own tax filing method. Please consult your tax accountant or local tax office for advice on your specific situation.