How to Establish 50/50 Joint Ownership of Real Estate with Your Spouse or Child

Wilson Estate
Dec 15, 2025
3 min read

When purchasing real estate, one option is to register the property under shared ownership with your spouse or child, with each holding a 50 percent share. This approach can be an effective way to make the most of Japan’s tax system, especially when considering benefits such as mortgage deductions and tax advantages when you eventually sell the property.

Below is a clear explanation of how to set up a 50/50 joint ownership structure, along with the steps involved and points to watch out for.

Key advantages of 50/50 joint ownership

The biggest benefit of shared ownership is that both parties can take advantage of tax incentives.

One major advantage is that each person can receive a mortgage deduction. For example, by using a pair loan or an income-combined loan and matching the ownership shares at fifty percent each, both individuals can apply the mortgage deduction, increasing the overall tax benefit.

Another advantage appears when selling the property. Japan’s special tax exemption allows up to 30 million yen of capital gains to be exempt when selling a primary residence. With shared ownership, each owner may be able to apply this exemption, giving you access to a combined total of up to 60 million yen in deductions. This can significantly increase the amount you receive after selling the property.

How to set up a 50 percent shared ownership structure

To properly establish 50/50 joint ownership, you need to align two things: the actual contribution of funds and the way the ownership is recorded in the property registry.

First, the ownership share must match the amount of money each person contributes. If your spouse or child is to hold half of the ownership, they must also provide half of the funds used for the purchase. Bank records or other documentation that clearly show their contribution should be kept.

If you are using a mortgage, both parties need to take on half of the loan. This is usually done through pair loans or income-combined loans. The loan burden and the ownership shares must match. Simply assigning half the property to someone who didn’t contribute would be considered a gift and could trigger gift tax.

Next is the registration process. After the property is handed over, you file for ownership transfer at the Legal Affairs Bureau. You list the shares as half for each owner. Required documents include the purchase agreement, identification documents, certificates of registered seal, residence certificates, and documents showing the flow of funds. Most people choose to work with a judicial scrivener to ensure everything is handled correctly.

Important points

While shared ownership has clear benefits, it also comes with potential risks if not handled carefully.

Any major decision regarding the property—selling, renting, or significant repairs—requires the agreement of all owners. To avoid disputes later, it helps to discuss future plans in advance and put them in writing so expectations are clear.

Another issue arises when one owner passes away. Their share is inherited by their heirs, which can complicate the ownership structure. Preparing a will and discussing inheritance plans ahead of time can prevent future complications.

Finally, if the contribution of funds does not match the ownership share, gift tax may apply. Consulting a tax professional who specializes in real estate can help ensure that everything is structured correctly.

Conclusion

Shared ownership is a practical way to take advantage of tax benefits such as mortgage deductions and capital gains exemptions. To make the most of these advantages, it’s essential to match financial contributions with ownership shares, complete the registration accurately, and prepare for potential future situations.

With proper planning, you can enjoy the full benefits of 50/50 joint ownership. If you need further assistance or advice, feel free to reach out anytime.