In the case you build a building on land of 200 ㎡ or less, the amount of property tax for land becomes 1/6th compared to vacant land. This land of 200 ㎡ or less is called “small scale residential land”. And if land areas is more than 200㎡, amount of property tax for land is 1/3rd of vacant land.
Assume that there is a vacant land of 400㎡ and amount of property tax is 600,000 yen. And you divide the land into two lands of 200㎡ and build apartments on each land. In this way, the land of 400㎡ becomes small scale land and amount of property tax becomes 100,000 yen (600,000 yen × 1/6).
Other than property tax, when you pay property tax, you also need to pay city planning tax(depending on city). As for city planning tax, in the case of 200㎡ or less, amount of tax is 1/3rd. In the case more than 200㎡, it is 2/3rd.