If I register at my own home, how much will house tax and land value tax rise? How can I reduce it?

If a company is already registered there: house tax is already at the 3%–5% business rate and land value tax at 10‰, so registering another company changes nothing.

If it was fully owner-occupied: after registering a company, house tax rises from the 1.2% residential rate to 3%–5%, and land value tax from 2‰ to 10‰. But most startups do not use the whole home as an office, so depending on the industry you can apply for "one-sixth business use" or try to "keep full residential status".

When can I apply for "one-sixth business use"?

• Service businesses that can work from a single computer generally qualify.
• If the local tax bureau finds a company registered at a fully residential property, it may automatically reclassify it as one-sixth or fully business use and send a letter to the registered address notifying the owner. About a month after incorporation, watch for house tax and land value tax adjustment letters and check the assessment.

When can I "keep full residential status"?

In our experience, only pure online sellers with no inventory on site have a chance, and all of the following must hold:

• The industry code on the tax registration is related to online shopping
• The owner is the responsible person, their spouse or a direct relative
• No employees and no business equipment
• All business activity is done on mobile devices
• The officer will usually inspect the registered address