No Property Tax
Land and buildings owned by a religious corporation and used for religious purposes are exempt from property tax under Japanese law. However, if the assets are used for non-religious or profit-generating activities, they may become taxable. We help you make the most of these tax benefits responsibly. Note: purchasing solely for tax avoidance is prohibited.

Income Under 80 Million Yen is Tax-Free
Religious corporations with annual income under 80 million yen, primarily from donations or offerings related to religious activities, are exempt from income and corporate taxes. No tax filing is required under these conditions. However, if income exceeds the threshold or involves business activities, tax obligations may apply.

Favorable Tax Treatment
Religious corporations enjoy a wide range of tax benefits. Donations and offerings are non-taxable, and land or buildings used for religious purposes are exempt from property taxes. Unless operating a profit-generating business, no corporate or consumption tax applies. We provide expert advice and M&A support to help you maximize these advantages.

We assist acquirers with the following key considerations:
Point. 1
Financial Condition
When purchasing a religious corporation, the first thing to examine is its financial condition. Due to declining followers and visitors, many temples and shrines have experienced a sharp drop in income. If stable revenue cannot be expected after the acquisition, continuous deficits may lead to a greater financial burden. Be sure to check the annual income and expenditure reports as well as financial data from the past few years to assess the soundness of the revenue base.
Point. 2
Asset Status
Next, it is important to review the asset status. Check the location and size of owned real estate, the amount of cash or bank deposits, and the condition of facilities used for religious activities. For real estate, always review the property registry to confirm legal ownership and whether any mortgages or liens are attached—this helps avoid legal risks.
Point. 3
Debt Situation
Understanding the debt situation is a crucial step to minimize acquisition risks. Although religious corporations generally cannot borrow from financial institutions, some may have private debts, which require careful attention. It is essential to investigate not only the corporation’s liabilities but also the personal debts of its representative or administrator.
Point. 4
Independent Corporation
When considering the acquisition of a religious corporation, focus only on independent (non-affiliated) religious corporations. For incorporated religious bodies under umbrella organizations, internal religious approvals are required, making it difficult for general buyers to become successors. In contrast, independent corporations operate autonomously, offering greater post-acquisition flexibility. Understand this distinction clearly and choose your target corporation carefully.