Neyagawa City in Osaka Prefecture plans to introduce a vacant home circulation promotion tax targeting owners of properties without residents [1].
The measure aims to tackle the growing problem of abandoned houses by forcing owners to either utilize the properties or sell them. By increasing the cost of holding empty real estate, the city hopes to stimulate market circulation, and attract new residents to the area [1], [2].
City officials said the new tax will specifically target owners of homes where there is no actual residence [1], [4]. This fiscal strategy is designed to incentivize owners to move their properties back into the active housing market, thereby reducing urban blight, and creating opportunities for new settlers [2], [4].
Mayor Keisuke Hirose said the vacant home tax will serve as a "switch for behavioral change" [2]. The administration believes that financial pressure will compel owners who have previously ignored their properties to take action.
According to city representatives, the goal is to implement this unique tax system by the 2029 fiscal year [3], [4]. This timeline represents the earliest target for the rollout of the policy [3].
Officials from the city's public relations department said the introduction of the vacant home circulation promotion tax will push the marketization of empty houses [3]. The city intends for this to be a pioneering effort, with representatives noting the goal is to establish a first-of-its-kind local tax of this nature in Japan by the 2029 fiscal year [4].
“"The vacant home tax will serve as a 'switch for behavioral change'"”
This policy reflects a shift in Japanese local governance toward aggressive fiscal measures to combat 'akiya' (vacant homes). By removing the financial incentive to hold onto unproductive land, Neyagawa is attempting to reverse the trend of rural and suburban decay. If successful, this model may be adopted by other municipalities facing similar demographic declines and housing surpluses.
