Notes for private lodging business

Updated: July 2026, 8

When starting a private lodging business, the first thing you need to keep in mind is:Don't do it illegallyIt's a thing. With the rapid increase in inbound demand, the lack of accommodation facilities mainly in urban areas in Tokyo, Osaka, Kyoto, Fukuoka, etc. has become a serious problem, but there are similar cases where people are illegally accommodated for a fee. is also on the rise.
Repeatedly operating private lodging illegally violates the Hotel Business Act and can lead to penalties. Even if you say you didn't know or didn't do it intentionally, it won't work.

In addition to the Hotel Business Act, there are also obligations to comply with safety laws such as the Building Standards Act and the Fire Service Act, but if you do not comply with these laws and start operating your business illegally, what is the scariest thing you can do? This is when an incident or trouble occurs. If you are operating an illegal business, you may not be covered by insurance due to compensation issues.

The first point you must clear when starting a private lodging business is to establish a business structure that complies with the law, not only to ensure the safety of yourself but also of your guests.

At our company, we explain to our customers each step necessary to start a private lodging business, and we also advise them on when and what procedures are needed to carry out the business.

Cases related to unauthorized private lodging operations

To date, there have been cases related to unauthorized private lodging operations.
(From cases detected from 2014 to 2016)

1. Two corporations in Minato-ku, Tokyo, and six men and women, including executives of both companies, were sent to prosecutors for allegedly allowing travelers to stay in vacant rooms in private homes and operating private lodging businesses without obtaining permission from the Hotel Business Act.

2. As part of an incident in which a subsidiary of a listed company in Minato-ku, Tokyo, provided operating support to a "minpaku host" in violation of the Hotel Business Act, the subsidiary was also investigated by the Tokyo Metropolitan Police Department, and the company withdrew from the minpaku business. expressed

3. A total of three people, a woman and a married couple, were referred to prosecutors on suspicion of hosting tourists in Osaka City without obtaining permission from the Hotel Business Act.

4. Documents were sent to prosecutors on suspicion of operating an inn business by allowing approximately 44 tourists to stay in 36 out of 350 rental apartments in Kyoto City without obtaining permission from the Hotel Business Act.

5. A foreigner who offered three rooms on the first and second floors of his home to tourists for 1 to 2 yen per person per night was arrested for violating the Hotel Business Act and was given a summary order (fine of 3 yen). received

If the above case occurs, even if you want to start a business based on the law in the future, it may be difficult to obtain a business license, and if you are a foreigner, it may affect your ability to renew your residence status. It is also possible.

Penalties for violating the new Private Lodging Act (Private Lodging Business Act)

The new Private Lodging Act has been enacted, making it easier to start a private lodging business, but there are strict regulations regarding penalties for violating the law. Specific penalties are introduced below.

①For private lodging management companies and private lodging intermediaries

②For private lodging operators

Regarding taxes related to private lodging business

There are various taxes that may apply, so we will introduce some of the taxes related to private lodging. Detail isNational Tax Agency HPPlease refer to etc.

1. When purchasing real estate
① Real estate acquisition tax
→Tax levied when acquiring real estate
*Please note that in the case of buildings, preferential treatment will vary depending on whether it is new or used, and in the case of land, whether it is residential land or not.

②Registration license tax
→Tax on real estate registration. There are also preferential treatment for registration and license tax, so you need to check whether your property is applicable.

③Stamp tax
→This is a tax levied on documents such as contracts (applicable documents only)

2. Taxes levied after real estate acquisition
① Fixed asset tax/urban development tax
→This is a municipal tax levied on owners of fixed assets such as real estate, and must be paid every year as long as the property is owned.

②Income tax and resident tax
→Income earned from real estate rental, etc. is considered "real estate income." Office workers who want to start a private lodging business as a side job should be careful. Depending on the amount of income you earn from your side job, you may need to file a final tax return and pay the correct income tax and resident tax, as well as social insurance premiums such as employees' pension. Failure to do so may be considered tax evasion.

3. Taxes required when transferring real estate
① Capital gains tax
→This is a tax levied on income gained from the transfer of real estate, and is taxed separately from other income. Please note that even if other income is negative, income from the transfer of real estate will be taxed.

As mentioned above, taxes are charged on real estate whenever you buy it, operate it, and sell it, so it is important to know in advance how much tax you will pay.

Supporting inn and hotel business operators

At Support Administrative Scrivener Corporation, we provide application support and highly specialized consulting regarding inn business licenses for both those newly entering the inn business and those already in the inn business and hotel business. . Hotel business licenses are under the jurisdiction of each health center, and each health center has its own local rules. Our staff have experience applying in all prefectures across the country. Please contact us by all means.