Considering that there is a concept that marital property is formed by the cooperation of the couple, that there is little awareness of gifts between spouses, and that gifts are often made with the intention of guaranteeing the retirement of the spouse, a taxation has been established to reduce gift taxes on gifts of residential real estate such as a home made between a husband and wife. 

Specifically, when a gift of residential real estate or money to acquire residential real estate in Japan is made between a married couple who have been married for 20 years or more, up to 20 million yen can be deducted from the taxable value of the residential real estate, etc. that was gifted. This spousal deduction can be applied only once in a lifetime for a gift from the same spouse.

1. The gift must be from a spouse who has been married for 20 years or more.
2. The property given by the spouse must be residential real estate or money to acquire residential real estate. Note that the house and the land do not have to be gifted together, and a gift of only the residential house or its land is also eligible.
3. In the case of acquisition of residential real estate, the recipient must reside in the property by March 15 of the year following the year in which the gift is received, and must be expected to continue to reside in the property thereafter.
4. In the case where the recipient has acquired money to acquire residential real estate, the donor must have actually acquired and resided in the residential real estate by March 15 of the year following the year, and is expected to continue to reside in the property thereafter.

A gift tax return must be submitted to the tax office with jurisdiction within the reporting period. The tax return must be filed even if no gift tax amount is due.

1. The amount equivalent to the spousal deduction for gift tax is excluded from the addition to the estate taxable value of property gifted within three years prior to the commencement of inheritance (see note).
2. The 20 million yen spousal exemption, together with the basic exemption, allows for gifts of up to 21.1 million yen to be given tax-free.
3. If you receive a gift of a store and residence, you may file a tax return with the spousal deduction applied as if you received the gift in priority from the residential portion. In addition, if the residential portion is generally 90% or more, the entire property can be treated as residential property.
4. When only the land of the residential house is gifted, the husband or wife must own the residential house, or a relative living with the donated spouse must own the residential house.

(Note) For gifts made on or after January 1, 2024, the "within 3 years before the start of inheritance" will be revised to "within 7 years before the start of inheritance.