As Sales of Japanese Temples and Shrines Surge, Authorities Crack Down on Bad-Faith Buyers

Written by Mariko Katsumura

SANBAGAWA, Japan – The dilapidated 420-year-old temple belonging to Benmou Suzuki sits quietly in the depths of the forest, far from bustling urban life in a small Japanese mountain village. Despite its unassuming appearance, Suzuki was recently approached by two individuals claiming to be real estate brokers, inquiring if he might be interested in selling the property.

Suzuki suspects their interest lies not in the temple’s historical and cultural significance, but rather in the unique tax benefits associated with owning a religious site. "There are individuals out there who want a temple, even one as remote as this. Given the value of its religious corporation status, this temple could be worth a substantial amount," stated the 52-year-old monk.

With Japan’s population declining and fewer people engaged in religious practices, the financial support for many temples and shrines has dwindled. Suzuki’s Mikaboyama temple, for instance, is situated in Sanbagawa, a location three hours from Tokyo that is home to only 500 residents and several other religious sites, including three, Buddhist temples, a Shinto shrine, and a church.

This trend has led to concerns among Japanese authorities about the increasing number of religious properties being put on the market. Officials are worried that potential buyers might not have genuine religious intentions, fearing that many are seeking opportunities for tax evasion or even money laundering.

"It’s already a significant concern for us and the religious community," remarked a representative from Japan’s Agency for Cultural Affairs, which oversees religious properties.

Instances of temples or shrines being repurposed for non-religious uses have sparked public outrage. For example, a temple in Osaka that was sold in 2020 was subsequently demolished, and graves were relocated for a real estate project. In Kyoto, a temple’s transformation into a parking lot made headlines this year.

In Japan, owning a temple, shrine, or church designated as a religious corporation can bring substantial tax advantages. Businesses associated with such entities that provide religious services, such as funerals, are exempt from taxes, while other non-religious businesses can benefit from favorable tax rates. This opens the door to various commercial activities, ranging from restaurants to hotels.

As of the end of 2023, Japan had approximately 180,000 religious sites recognized as corporations. Interestingly, the number of so-called inactive corporations—those that haven’t held religious events in over a year—has surged by a third to more than 4,400. Typically, when monks or priests pass away without a successor, the governing religious group will either appoint someone new or surrender the site’s corporate status.

However, there are about 7,000 independent religious sites that are viewed as particularly easy targets for buyers, according to the cultural affairs agency and specialized brokers. The agency has intensified efforts to dissolve the corporate status of inactive sites to prevent them from attracting dubious purchasers.

In the wake of major earthquakes that often damage temples and shrines, agency officials have been reaching out to religious organizations in affected areas, cautioning them against becoming victims of opportunistic buyers.

Last year, 17 religious corporations opted for voluntary dissolution, with six others mandated to dissolve. Officials expect this number to rise as scrutiny increases in the coming years.

While it might seem logical for Japan to enact more stringent regulations concerning the purchase of religious properties, the government is hesitant to modify laws regarding religion, as this could be perceived as an infringement on the freedom of religion guaranteed by the constitution.

A review of various platforms that specialize in the sale of religious properties reveals hundreds of listings. Most properties are described in vague terms online, as sellers prefer to handle transactions privately.

Takao Yamamoto, an Osaka-based broker, noted a growing demand for these properties. A religious corporation license can fetch around 30 million yen (approximately $210,000). Certain sites, particularly those with profitable burial grounds, may be listed for millions.

"Anyone can purchase independent sites as long as they have the funds… even foreigners are capable of buying them. Recently, there’s been significant interest from Chinese buyers," Yamamoto stated.

Suzuki, however, has no intention of selling Mikaboyama temple and is instead exploring ways to fund its upkeep. "Temples are places for local people to gather and build connections. We just can’t afford to lose them," he emphasized.