More and more people are owning second homes in Karuizawa as a base to enjoy their leisure time, but some people also own them as assets. How much can you actually use it? I heard that there are tax savings if you build it as a corporation...? It's a big purchase, so you want to make a meaningful choice without making any mistakes if possible.
So, what should you pay attention to when purchasing or building a vacation home or second home?
This time, we will introduce not only the appeal and points to be aware of for "business managers" and "private doctors" but also the tax savings of building a vacation home as a corporation , as well as the more strategic ways of using vacation homes that Forest Corporation is promoting to companies in big cities!!
INDEX
◇ Should business owners and practicing physicians buy a vacation home? Three attractions and two things to keep in mind
The three charms of a villa
①Refresh your mind and body
For busy people like you, a villa is the perfect place to refresh yourself. Time spent at a villa away from the hustle and bustle and forgetting about work is sure to soothe your tired mind and body. A villa surrounded by nature, isolated from everyday life, will help you relieve the fatigue of your daily hard work and give you new energy for the next day.
② Deepen ties with family
In today's lifestyle, you may be busy working from early in the morning until late at night, and even on weekends, so you may not have much time to spend with your family. If you have a vacation home, you can have fun with your family on your rare days off and deepen your bonds with them.
Your family will surely be satisfied if you enjoy walking in a place surrounded by nature, forest bathing, and active activities such as fishing and playing in the river. It will be a perfect place for you and your whole family to enjoy and deepen your bonds with your close friends.
3. Residence after retirement ⇒ As an important base for living in the two regions
The image of a vacation home is that it is attractive as a base to enjoy the second half of life after retirement. However, recently we are seeing many business owners who are based in both the city and Karuizawa and are effectively using the Karuizawa community as an important base for their business.
A villa in Karuizawa is not just a home for retirement, but an asset with broader value , providing mental relaxation and business development while you are still working.
▼ Check out the video "A house to enjoy the weekend with friends"!
Two things to keep in mind when owning a vacation home
1. "I bought a vacation home, but I don't use it as much as I thought I would."
There are three main possible causes for this:
◆ It's too far away to go there, so it's a hassle
If the distance is long and it takes hours to travel, it may become a hassle to go there over time. It is important to choose a vacation home that is within a reasonable distance so that travel is not a burden.
◆ There is nothing to do other than stay at the villa
Being surrounded by nature is the best way to relax. However, sometimes that alone is not enough to refresh you. For example, being in an environment where you can enjoy various leisure activities such as golf and skiing nearby will increase the enjoyment of going to your vacation home and allow you to use it for a longer period of time.
◆ There is no place to enjoy meals
Cooking your own meals every time you go to a villa is a hassle, so if there are no restaurants nearby to enjoy a meal, you may tend to avoid going there.
Delicious food is also important for refreshing both body and mind, so it's a good idea to check the restaurants in your area .
② Be careful when saving on taxes when buying a vacation home
You may have heard that "buying a vacation home can save you money on taxes." However, that is only if you purchase it under a corporate name. If you purchase a vacation home under a corporate name, there are some parts that can be recorded as expenses , so it can save you money on corporate tax.
However, expenses that are not related to the corporation's business may not be recognized as expenses, so it is necessary to carefully consider the purpose.
As a resort facility
If you purchase a vacation home as an employee retreat, you can deduct the management and maintenance costs as employee benefits expenses. However, you should make sure that all employees have equal access to the facility and create a facility usage management sheet .
Points to note: It is not possible to build a resort in a Type 1 low-rise residential exclusive zone, so careful consideration is required when choosing land. [Building a villa in a Type 1 low-rise residential exclusive zone under the name of a corporation] requires the submission of a pledge . Reference: Saku Construction Office, Architecture Division
<<Rental villa for business purposes>>
If you purchase a villa for the purpose of investing in real estate as a rental property, you can save on taxes by recording it as an expense. You can deduct management fees, repair costs, fire insurance premiums, and interest on loans if you purchase it with a loan. You can use it as your own villa or a retreat for employees when you want to use it, and earn income as a rental property at other times , depending on the property and your company's situation.
Furthermore, if you are renting a villa, it will be even more advantageous if it has good transport links and there are places nearby for sightseeing and leisure activities.
Points to note In Karuizawa Town, vacation rentals are considered detached houses that are rented out to unspecified people for periods of one month or more, and as a general rule, vacation rentals are not permitted in Type 1 low-rise residential areas.
In addition, the establishment of private lodging facilities that rent out on a daily basis, such as Airbnb, is prohibited throughout the town . *If you obtain a hotel business license, you can operate a lodging facility. Reference: Karuizawa Town Landscape and Environmental Protection
As long as the management of a vacation home can compensate for its disadvantages, it is an attractive asset that we would highly recommend to business managers and practicing physicians.
There is an option to build a third office as a corporation!!
We have talked about the benefits and points to be aware of when building a business as a corporation rather than as an individual, and for those people we recommend the "third office" offered by Forest.
The future of vacation homes will be third offices built by corporations!!
Used by staff and employees at work,
Used by business partners,
Of course, it's something you can use to make your dreams come true!!
Recruiting and retaining talent
The villa can be used casually by employees and staff only.
This leads to job satisfaction, motivation, and growth for employees and staff.
This allows you to recruit and retain talented personnel.
◆ STEP 1 Recruitment
◆ STEP 2: Retaining talent
◆ STEP 3 Owner ⇔ Employee Communication
◆ STEP 4: Employees' awareness of management participation
Expanding business partners and building strong relationships
Karuizawa is an extraordinary place located just a short distance from Tokyo.
We invite business partners and business associates there to provide a special atmosphere of hospitality.
Build strong relationships and grow your business even further.
Tax Savings *Please check with your tax accountant regarding tax savings.
① By building a villa as a corporate welfare facility, various expenses can be treated as corporate expenses.
・Building depreciation
・Travel expenses, food expenses, utility expenses, meeting expenses, cleaning and linen expenses, etc.
・Land and building fixed property tax
② By building it as a corporation, you may be able to get a refund of the consumption tax paid on the construction of the villa.
It's easy to get financing
Corporations are more likely to obtain loans from financial institutions than individuals.
Easy to deal with inheritance
It is easier to deal with inheritance if the property is in a corporate name than in an individual name, and the assessed value may be reduced.
Subsidies from Nagano Prefecture available
For third offices, you can receive subsidies of up to 300 million yen for building expenses through the ``ICT Industry Location Subsidy'' and ``Head Office Relocation Promotion Subsidy'' if you meet the conditions.
For more information, please contact the staff at the Karuizawa branch.
The third office is a strategic base with three elements
This is not a resort facility, resort office, satellite office, or workcation, but a vacation home built by a corporation, a "third office!!"
① Employee/Staff Motivation: Employee/Staff Satisfaction Motivation
②Building relationships with business partners: business development partnership
③Building a network of managers: Manager's Villa Connection
▼ Check out the video "Two Days at Third Office Karuizawa"!
summary
It takes just 64 minutes from Tokyo Station to Karuizawa Station.
In the midst of abundant nature, you can enjoy walking your pet, playing with your children in the spacious garden, or trying your hand at vegetable gardening... The environment of Shinshu Karuizawa, where you feel with your whole body as part of the ecosystem of nature, offers an extraordinary lifestyle that you cannot experience in the city.
Furthermore, the sense of distance that comes with a detached villa, rather than a resort hotel or other lodging facility, fosters deep connections with family and friends. "Third Office" provides villas that foster such strong connections not only to individuals but also to companies.
Choosing a corporate vacation home is not just about tax savings and asset management, but also about providing a place for managers to refresh themselves and build relationships, which will lead to the development of the company and become a new strategic base for the future. Why not consider the possibility of building a vacation home as a corporation rather than as an individual?
For more information about Third Office, please visit the Thirdoffice official website.
Our company has also received recognition from many quarters, including the Nikkei New Office Promotion Award, the Good Design Award for seven consecutive years, and the Japan Service Awards Regional Revitalization Minister's Award.
We provide consistent support, from assisting with land selection to design, construction, after-sales maintenance, and facility operation support.
We also offer "Karuizawa Guided Tours" and "Third Office Accommodation Experiences," so please feel free to contact us.
First, the "Third Office" Karuizawa showroom We look forward to seeing you there!
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