Quick Facts
Last Updated: March 2026
If you’re a Singaporean thinking about buying property in Japan—or researching buying property in Japan as a Singaporean—you’re part of a clear trend. Singaporeans now make up a large share of foreign buyers at major Japan investment firms—and the main reason is cost. Singapore’s 60% Additional Buyer’s Stamp Duty (ABSD) makes local investment property brutally expensive, while Japan has no equivalent foreign buyer tax and gives full ownership rights. I looked at both markets before buying; the maths for a S$1 million budget was stark.
This guide explains why so many Singaporeans are turning to Japanese real estate, how the purchase process works for Japan real estate for foreigners, and what you need to know about tax in both countries. For a direct comparison, see our Japan vs Singapore real estate analysis. One caveat: tax treatment of foreign income and remittance can be nuanced; treat this as a map and get advice from someone familiar with both systems.
Can Singaporeans Buy Property in Japan?
Can foreigners buy property in Japan? Yes—with no extra restrictions. Singaporeans can buy property in Japan with the same rights as Japanese citizens. No foreign buyer stamp duty, no ownership caps, no residency or visa requirement, and no government approval for most residential purchases. That contrasts sharply with Singapore, where foreigners (and citizens buying second or third properties) face heavy ABSD.
So for the same S$1 million budget, you can put roughly S$910,000 into Japanese property after transaction costs. In Singapore, as a foreigner, that S$1 million leaves you with only about S$400,000 of effective property value after 60% ABSD. The difference in entry cost is the single biggest reason Singaporeans are looking at Japan.
Why Singaporeans Are Flocking to Japanese Real Estate
The shift isn’t random. ABSD has made Singapore punishing for investment: 60% for foreigners, 30% for PRs on a second property, 20% for citizens on a second property, 30% for third and beyond. Japan charges 0% equivalent. The weak yen has also helped: the Singapore dollar has strengthened; at late-2025 rates you get roughly 12% more yen per dollar than a few years ago. Japan’s rental yields in Tokyo and Osaka are competitive with or better than Singapore’s, and you’re not giving 60% of your purchase price to the government before earning a dollar of rent. Add familiarity (many Singaporeans visit Japan often), direct flights, and a growing number of Singapore-based agencies with Japan operations, and the flow makes sense.
Singapore’s 60% ABSD vs Japan’s Zero Foreign Buyer Tax
Putting numbers on it: on a S$1 million budget, in Japan you pay no ABSD, roughly 10% in transaction costs, and end up with about S$900,000 of property. In Singapore as a foreigner you pay 60% ABSD (S$600,000) plus BSD and other costs—effective property value is around S$350,000. So for every S$1 you put in, you get about 2.6x more property in Japan than buying as a foreigner in Singapore. Even for citizens buying a second property (20% ABSD), Japan often offers better value.
Some people say Singapore’s lack of capital gains tax makes up for ABSD. Maybe in theory—but you need 60% price appreciation just to break even on the ABSD. Japan’s long-term CGT (20.315% after 5 years) applies only to gains, not the whole purchase. For most investment horizons, Japan’s lower entry cost wins.
Singapore-Japan Tax Treaty Benefits
The Singapore–Japan Avoidance of Double Taxation Agreement prevents you from being taxed twice on the same income. For rental income, Japan has primary taxing rights as the source country; Singapore’s territorial system generally doesn’t tax foreign-sourced income that isn’t remitted. For capital gains, Japan taxes gains on Japanese property; Singapore doesn’t have a general CGT. So in practice you pay Japan on rental income and on gains when you sell; whether Singapore taxes the rental income depends on remittance and your situation—consult IRAS or a tax professional. The treaty and Singapore’s rules together are generally favourable for holding Japanese property, but you need to keep clear records of what you earn and whether you bring it into Singapore.
IRAS Tax Obligations on Japanese Property
Singapore taxes on a territorial basis. Rental income kept in Japan is typically not taxable in Singapore; if you remit it, it may become taxable under certain conditions. Capital gains on the sale of the property are not taxed in Singapore. Overseas assets may need to be declared in some circumstances; if you’re running property investment as a trade or business, different rules can apply. GST doesn’t apply to overseas property purchases. Keep clear records of Japanese income and remittance so you can support your position if IRAS ever asks.
Rental Income: Tax Treatment in Both Countries
In Japan, non-resident landlords often face 20.42% withholding when the tenant is a corporation; for individual residential tenants there’s usually no withholding and you file an annual return. The withholding is a prepayment—your final liability may be lower after deductions. In Singapore, if you keep the rental income in Japan and don’t remit it, it’s generally not taxable. If you bring it in, get advice. For many Singaporean investors the effective setup is: pay Japanese tax (withholding and/or annual return), no additional Singapore tax if income stays overseas, and no Singapore CGT when you sell. That’s often more favourable than paying 60% ABSD upfront and then Singapore income tax on local rental income.
Capital Gains: Singapore’s Advantage Explained
Singapore doesn’t tax capital gains. So when you sell your Japanese property you pay Japan CGT (39.63% if held under 5 years, 20.315% if over 5 years) and nothing extra in Singapore on the gain. The 5-year threshold in Japan is crucial—holding just over 5 years nearly halves the Japanese rate. Plan your exit with that in mind. Even with Japan’s CGT, the total tax drag over the life of the investment is often lower than Singapore’s ABSD alone.
Step-by-Step Property Buying Process for Singaporeans
Allow a few months from research to keys. (1) Research and budget (1–2 months): compare Japan vs Singapore for your goals, pick target areas (Tokyo and Osaka are most popular), budget in SGD and watch JPY, consider forward contracts. (2) Professionals (2–4 weeks): choose a Singapore-based agency with Japan operations or a Japan-based English-speaking agent, and a tax adviser who knows both systems. (3) Property selection (1–2 months): many Singaporeans focus on central Tokyo (Shinjuku, Shibuya, Minato) for appreciation and Osaka (Namba, Umeda) for yield, often 1K/1LDK as entry. View in person on a Japan trip or by video. (4) Offer and contract (2–4 weeks): submit 買付申込書, review 重要事項説明書 (ask for English), sign, pay 5–10% deposit. (5) Funds: use mid-market services (Wise, InstaReM, etc.); bank wires can cost S$10,000+ in hidden fees on a ¥50 million property. (6) Completion (1–2 weeks): pay balance and costs, judicial scrivener does registration, appoint tax representative, set up management if renting.
The first time I moved a large sum I used my bank; the spread was painful. For the next purchase I used a specialist—the saving was in the five figures. Don’t assume your bank is giving you a fair rate.
Required Documents for Singaporean Buyers
Typically: Singapore passport; notarised affidavit (identity and address) from a Singapore notary or Japan consulate; proof of address (e.g. utility or bank statement); bank statements for source of funds; power of attorney if completing remotely (notarised); tax representative form from your agent or scrivener.
Mortgage and Financing Options
Getting a Japanese mortgage as a non-resident Singaporean is difficult. Most banks want residency. Options in practice: cash (most common); SMBC Prestia for some high-net-worth clients (often 30–50% down); Singapore bank financing secured on Singapore property; or Japan residence (work visa or PR) with 10–20% down. Many Singaporean non-residents buy in cash or use CPF/cash; some release equity from Singapore property. See our guide on getting a mortgage in Japan without PR for more.
Currency Strategy: SGD to JPY
At around 117 yen per Singapore dollar (late 2025), purchasing power is roughly 12% higher than a few years ago. A property that might have cost S$500,000 in 2022 can be around S$440,000 now. Use Wise, InstaReM, or a broker rather than a Singapore bank for large transfers—banks often add 2–3% above mid-market. On a S$500,000 transfer that can be S$10,000–15,000 extra. For a purchase, a forward contract can lock the rate once you’ve chosen the property.
Total Costs: Japan vs Singapore Comparison
In Japan, budget 8–12% on top of the price: agent commission (3% + ¥60,000 + tax), registration tax, acquisition tax, stamp duty, scrivener fees. Full breakdown: property tax guide and hidden costs of buying property in Japan. In Singapore, as a foreigner you face 60% ABSD plus BSD (tiered, up to 6%) and legal fees—total can exceed 66%. On a S$1 million budget, Japan gives you roughly S$900,000 of property after costs; Singapore as a foreigner leaves about S$340,000. Japan offers about 2.6x more property per dollar of investment.
Common Mistakes Singaporean Buyers Should Avoid
Comparing headline prices without including ABSD in the Singapore side. Using Singapore bank wires and losing 2–3% to spreads. Assuming Japan is like Singapore—buildings depreciate (land often doesn’t), post-1981 is preferred for earthquake codes, management and fees work differently. Ignoring Japan’s 5-year CGT threshold (under 5 years ≈ double the rate). Not appointing a tax representative in Japan (non-residents need one). Skipping professional management (5–10% of rent)—you can’t handle tenants from Singapore. Buying in areas you don’t know; stick to places you’ve visited or established markets with strong rental demand.
Popular Investment Areas for Singaporeans
Tokyo: Shinjuku, Shibuya, Minato, Chiyoda—typically 3–4% yields, strong tenant demand and capital growth. Osaka: Namba, Umeda, Shinsaibashi—often 4–5% yields, higher than Tokyo. Many Singaporeans start in Tokyo for familiarity and add Osaka for yield.
FAQ: Singaporeans Buying Property in Japan
Can foreigners own property in Japan?
Yes. Foreigners, including Singaporeans, can own property in Japan with full freehold rights. No visa or residency is required to purchase, and there are no ownership caps or foreign-buyer stamp duty. Japan treats overseas buyers the same as domestic buyers for most residential purchases.
Do I have to pay ABSD when buying property in Japan?
No. Japan has no equivalent to Singapore’s ABSD. There is no additional foreign buyer stamp duty. That’s the main reason many Singaporeans invest in Japan—you keep far more of your capital in the asset than when buying in Singapore as a foreigner.
Is Japanese property income taxable in Singapore?
Generally not, if you keep the income in Japan. Singapore’s territorial system usually doesn’t tax foreign-sourced income that isn’t remitted. If you bring the money into Singapore, it may become taxable depending on the facts. Consult IRAS or a tax professional for your case.
Can Singaporeans get a mortgage in Japan?
It’s difficult for non-residents. Most Japanese banks require residency. Singaporean buyers typically pay cash or use equity from Singapore property. SMBC Prestia sometimes lends to high-net-worth foreign clients with substantial assets and 30–50% down.
Why are so many Singaporeans buying in Japan?
Three main reasons: (1) Avoiding Singapore’s 60% ABSD for foreign or additional property. (2) The weak yen giving roughly 10–15% more purchasing power than in recent years. (3) Japan offering competitive rental yields with full freehold ownership and no foreign buyer restrictions.
A common misconception is that Japan’s property market works like Singapore’s—same stability, same “property only goes up” narrative. Japan has different dynamics: building depreciation, earthquake risk (mitigated by insurance and post-1981 construction), and currency risk. Returns and risks are real; due diligence and professional management matter.
What are the risks of buying property in Japan?
Main risks: currency (a stronger yen would reduce SGD returns), building depreciation (especially older stock), earthquake damage (mitigate with insurance and post-1981 buildings), and managing from overseas (hence the need for a good manager). None of this is unique to Singaporeans; most can be managed with the right research and structure.
Related Guides
- Japan vs Singapore Real Estate Comparison — Market comparison for Singaporean investors
- Complete Guide to Buying Property in Japan — Step-by-step for foreign buyers
- Hidden Costs of Buying Property in Japan — Fees and expenses
- Japan Property Tax Guide for Foreigners — Annual tax obligations
Use our ROI Calculator to compare returns and the Complete Guide to Buying Property in Japan for the full process. This guide is for general information only and is not tax or legal advice; consult qualified Singapore and Japanese professionals for your situation.