Asia

JAPAN Abandoned Japanese temples tempt the real estate market

With the population declining and the indifference towards religion growing, they are increasingly sought after for the tax breaks that benefit them. Of the 180,000 registered religious sites, 4,400 have been out of use in the past year. Benmou Suzuki, a monk at Sanbagawa: “Places where local people gather and build ties must be protected.” The Cultural Affairs Agency has stepped up its controls.

Rome (/Agencies) – With the Japanese population inexorably declining (the birth rate has not stopped for thirteen years) and interest in religion declining, fewer and fewer people are contributing to the upkeep of the country’s many Buddhist and Shinto temples and shrines. For this very reason – as reported Reuters – The controversial phenomenon of buying and selling these sites is growing in the country, in order to take advantage of the considerable tax benefits that arise from the management of a religious property.

“There are people who want a temple, even a mountain temple like this,” says Benmou Suzuki, a 52-year-old monk at Sanbagawa Temple, a 420-year-old sacred structure located near a small village deep in a forest three hours’ drive from Tokyo. “Considering the value of the religious property status, it could make quite a bit of money,” he says. Two real estate brokers have recently contacted him. Suzuki says he has no intention of selling the temple and is trying to raise funds for its upkeep. “Temples are places where people gather and bond. We can’t get rid of them,” he protests.

The rise in religious properties for sale has raised fears among Japanese authorities that buyers are not interested in them for spiritual purposes but to evade taxes or even launder money. These are difficult phenomena to combat because, as the Japanese Agency for Cultural Affairs says, the government is cautious about changing directives on religion, for fear that this could be seen as a violation of freedom of worship.

“The sales are a sign of a crisis for us and the religious society,” said an official at the Agency in charge of overseeing religious sites, which is keeping a close eye on the situation. One of the tax advantages of owning a temple or shrine recognized as a religious society in Japan is the ability to conduct activities related to religious services, such as funerals, without paying taxes; but other non-religious societies within these sites also enjoy preferential tax treatment. Permitted activities include restaurants, hair salons and even hotels. In recent years, the sale and conversion of temples and shrines in Japan has sparked considerable public outrage. In Osaka, for example, a temple that had been sold in 2020 was demolished and the graves moved to build a new residential complex. And in Kyoto, the transformation of a temple into a parking lot caused a stir.

According to the agency’s data, Japan had around 180,000 religious sites registered as societies by the end of 2023. However, the number of so-called “dormant societies” – places where religious events have not been held for more than a year – is increasing, with more than 4,400 now, up by a third from previous years. When a monk or priest dies without a successor, the religious group that runs the temple usually appoints a replacement or renounces the society status. However, around 7,000 religious sites operate independently of these groups and are considered more vulnerable to being acquired for speculative purposes.

The Agency has stepped up its efforts to dissolve the status of inactive sites as societies, in order to prevent purchases by suspicious entities. In addition, when earthquakes occur, which often damage temples and shrines, the Agency warns local religious groups about the risk of selling to potential buyers engaged in speculation. As of 2023, 17 religious societies have voluntarily dissolved, while another six have received a dissolution order. The Agency stated that these numbers will undoubtedly continue to grow in the coming years as a result of more rigorous controls. Even Reuters The agency has found that there are numerous religious properties on the real estate market. Takao Yamamoto, a real estate broker, told the agency that a license for religious societies alone can cost up to 30 million yen ($210,000).



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