Quick Fact: Japan has a tax treaty with Singaporean, which may prevent double taxation.
If you’re a Singaporean considering buying property in Japan, you’re joining a rapidly growing trend. Singaporeans now account for 50% of foreign property transactions at major Japan investment firms—and for good reason. While Singapore’s 60% Additional Buyer’s Stamp Duty (ABSD) makes local property punishingly expensive for investment, Japan welcomes foreign buyers with zero equivalent tax and full ownership rights.
This guide explains why Singaporeans are flocking to Japanese real estate, how to navigate the purchase process, and what tax obligations you’ll face in both countries.
Last Updated: February 2026
Can Singaporeans Buy Property in Japan?
Yes—with no restrictions whatsoever. Singaporeans can purchase property in Japan with identical rights to Japanese citizens. There is no additional foreign buyer tax, no ownership restrictions, and no government approval required for most residential purchases.
Key advantages for Singaporean buyers:
- Zero foreign buyer stamp duty (vs 60% ABSD in Singapore)
- Full freehold ownership of land and buildings
- No limit on number of properties
- No residency or visa requirements
- No government approval for standard residential purchases
This stands in stark contrast to Singapore’s property market, where foreigners (and Singaporeans buying second properties) face increasingly prohibitive stamp duties.
The Numbers: For a S$1 million property budget, you can buy approximately S$910,000 worth of Japanese real estate after transaction costs. In Singapore, that same S$1 million leaves you with only S$400,000 of effective property value after the 60% ABSD for foreigners (or significant ABSD even for citizen second properties).
Why Singaporeans Are Flocking to Japanese Real Estate
The surge in Singaporean investment in Japan isn’t accidental. Several factors have aligned to make Japan exceptionally attractive.
1. Escaping Singapore’s ABSD
Singapore’s ABSD has become punitive:
| Buyer Type | Singapore ABSD Rate |
|---|---|
| Foreigners | 60% |
| Singapore PRs (2nd property) | 30% |
| Singapore Citizens (2nd property) | 20% |
| Singapore Citizens (3rd+ property) | 30% |
Japan charges 0% equivalent. No foreign buyer stamp duty exists.
2. The Weak Yen Advantage
The Singapore dollar has strengthened significantly against the yen:
| Period | SGD/JPY Rate |
|---|---|
| Current (late 2025) | ~117 yen per S$1 |
| 3 years ago | ~103 yen per S$1 |
| Advantage | ~12% more purchasing power |
Your Singapore dollars stretch significantly further than they did just a few years ago.
3. Competitive Rental Yields
Japan offers yields competitive with—or better than—Singapore:
| Market | Gross Rental Yield |
|---|---|
| Tokyo | 3.44-3.59% |
| Osaka | 4.26-4.47% |
| Singapore | 3.29-3.36% |
And you’re not paying 60% of your purchase price in stamp duty before earning a single dollar of rent.
4. Familiarity and Accessibility
- Japan is a popular destination for Singaporean tourists (many visit multiple times per year)
- Direct flights from Singapore to Tokyo, Osaka, and other cities
- Growing network of Singapore-based agencies specialising in Japan property
- Strong bilateral relations between Singapore and Japan
Singapore’s 60% ABSD vs Japan’s Zero Foreign Buyer Tax
Let’s put real numbers to the ABSD impact.
Comparison: S$1 Million Investment Budget
| Item | Japan | Singapore (Foreigner) |
|---|---|---|
| Budget | S$1,000,000 | S$1,000,000 |
| ABSD/Foreign Tax | S$0 | S$600,000 (60%) |
| Other Stamp Duty | S$0 | ~S$45,000 (BSD) |
| Transaction Costs | ~S$100,000 (10%) | ~S$5,000 |
| Effective Property Value | ~S$900,000 | ~S$350,000 |
| Ratio | 2.6x more property | Baseline |
For every S$1 you invest in Japan, you get approximately 2.6x more property than buying as a foreigner in Singapore. Even for Singapore citizens buying a second property (20% ABSD), Japan offers significantly better value.
The Real Cost of Singapore’s ABSD
Many Singaporeans calculate: “I’ll pay 60% ABSD, but I won’t pay capital gains tax when I sell.”
True, but consider:
- You need 60% price appreciation just to break even on the ABSD
- Japan’s long-term CGT rate (20.315% after 5 years) is paid only on gains, not the entire purchase
- Singapore’s no-CGT advantage is offset by the massive entry cost
For most investment scenarios, Japan’s lower entry cost wins decisively.
Singapore-Japan Tax Treaty Benefits
The Singapore-Japan Avoidance of Double Taxation Agreement prevents you from being taxed twice on the same income.
Key Treaty Provisions
| Income Type | Where Taxed | Singapore Treatment |
|---|---|---|
| Rental Income | Japan (source country) | Generally not taxable in Singapore if not remitted |
| Capital Gains | Japan | No CGT in Singapore |
| Property Taxes | Japan | Not applicable to Singapore tax |
Singapore’s Territorial Tax System
Singapore operates a territorial tax system, meaning foreign-sourced income is generally not taxable unless remitted to Singapore. This can be advantageous:
- Japanese rental income kept overseas is typically not Singapore-taxable
- Capital gains are not taxed in Singapore regardless
- Consult IRAS or a tax professional for your specific situation
Important: Tax rules can be complex. If you remit Japanese rental income to Singapore, it may become taxable under certain circumstances. Always consult a qualified tax adviser.
IRAS Tax Obligations on Japanese Property
While Singapore’s tax system is generally favorable for overseas property investment, you should understand your obligations.
Income Tax Considerations
| Scenario | IRAS Treatment |
|---|---|
| Rental income kept in Japan | Generally not taxable in Singapore |
| Rental income remitted to Singapore | May be taxable—consult IRAS |
| Capital gains on sale | Not taxable in Singapore |
What You May Need to Report
- Overseas assets may need to be declared in certain circumstances
- If you’re conducting property investment as a trade/business, different rules apply
- GST is not applicable to overseas property purchases
Pro Tip: Maintain clear records of your Japanese property income and whether it’s remitted to Singapore. This documentation protects you if IRAS ever queries your tax position.
Rental Income: Tax Treatment in Both Countries
Understanding how rental income is taxed helps you calculate true returns.
Japan Tax on Rental Income
As a non-resident landlord in Japan:
| Situation | Tax Treatment |
|---|---|
| Corporate tenant | 20.42% withheld at source |
| Individual tenant (residential) | No withholding; annual return filing |
| Net effective rate | Often lower after deductions |
The 20.42% withholding is credited against your actual tax liability. If your effective rate (after deductions) is lower, you can file for a refund.
Singapore Treatment
- If you keep rental income in Japan (not remitted to Singapore), it’s generally not Singapore-taxable
- Singapore has no tax on overseas rental income not remitted to Singapore (for individuals)
- Consult IRAS if you plan to bring the income into Singapore
Combined Effect
For many Singaporean investors, the effective structure is:
- Pay 20.42% withholding in Japan (may be partially refundable)
- No additional Singapore tax if income stays overseas
- No capital gains tax in Singapore when you sell
This is significantly more favorable than Singapore property investment where:
- You pay 60% ABSD upfront
- Rental income is taxed at your marginal rate
- Still no CGT (but you need 60%+ appreciation to recover ABSD)
Capital Gains: Singapore’s Advantage Explained
One genuine advantage Singapore investors have: no capital gains tax in Singapore.
Japan CGT Rates
| Holding Period | Rate |
|---|---|
| Under 5 years | 39.63% |
| Over 5 years | 20.315% |
Practical Impact
When you sell your Japanese property:
- Pay Japan CGT (20.315% if held 5+ years)
- No additional Singapore tax on the gain
Planning tip: The 5-year threshold is crucial. Holding just over 5 years nearly halves your Japan CGT from 39.63% to 20.315%. Plan your exit accordingly.
Comparison vs Singapore Property
| Scenario | Japan Purchase | Singapore Purchase |
|---|---|---|
| Entry cost (S$1M budget) | ~10% transaction costs | 60%+ ABSD + fees |
| Rental income tax | ~20% in Japan | Your SG marginal rate |
| Exit tax (if sold at 30% gain after 5 years) | ~6% of original price | 0% |
| Total tax drag | ~26% over lifecycle | 60%+ upfront |
Even with Japan’s CGT, the total tax burden over an investment lifecycle is often lower than Singapore’s entry ABSD alone.
Step-by-Step Property Buying Process for Singaporeans
Step 1: Research and Budget Planning (1-2 months)
- Compare Japan investment vs Singapore (you’re likely reading this guide for this reason)
- Research locations: Tokyo and Osaka are most popular with Singaporean investors
- Calculate total costs in SGD, monitor JPY exchange rates
- Consider using forward contracts to lock favorable rates
Step 2: Engage Professionals (2-4 weeks)
Many Singaporean investors use:
- Singapore-based agencies with Japan operations (convenient, English-speaking)
- Japan-based English-speaking agents (often more local options)
- Tax advisers familiar with both Singapore and Japan systems
Step 3: Property Selection (1-2 months)
Singaporeans often invest in:
- Central Tokyo (Shinjuku, Shibuya, Minato) for capital appreciation
- Osaka (Namba, Umeda) for higher yields
- 1K/1LDK apartments as entry-level investments
View in person during your regular Japan trips, or via video tours.
Step 4: Offer and Contract (2-4 weeks)
- Submit purchase offer (買付申込書)
- Review Important Matters Disclosure (重要事項説明書)—request English explanation
- Sign purchase agreement
- Pay deposit (typically 5-10%)
Step 5: Transfer Funds
- Use mid-market rate services (Wise, InstaReM, etc.) rather than bank wire
- For a ¥50 million property, using banks could cost S$10,000+ in hidden fees
- Consider timing your transfer when SGD/JPY is favorable
Step 6: Completion (1-2 weeks)
- Pay remaining balance plus transaction costs
- Judicial scrivener handles ownership registration
- Appoint tax representative for ongoing tax matters
- Arrange property management if renting out
Required Documents for Singaporean Buyers
| Document | Purpose | How to Obtain |
|---|---|---|
| Singapore Passport | Identity verification | Already have |
| Notarised Affidavit | Certifies identity and address | Singapore notary or Japan consulate |
| Proof of Address | Verify Singapore residence | Utility bill, bank statement |
| Bank Statements | Prove source of funds | Your bank |
| Power of Attorney | If completing remotely | Notarised |
| Tax Representative Form | Appoint Japan agent | Provided by agent/scrivener |
Mortgage and Financing Options
Getting a Japanese mortgage as a non-resident Singaporean is challenging but possible for some.
Options Available
| Option | Requirements | Down Payment | Notes |
|---|---|---|---|
| Cash purchase | None | 100% | Most common for Singaporeans |
| SMBC Prestia | High net worth, bank relationship | 30-50% | For premium clients |
| Singapore bank financing | SG property as collateral | N/A | Use HDB/condo equity |
| Japan residence | Work visa or PR | 10-20% | If you relocate to Japan |
Practical Reality
Most Singaporean non-residents purchase with cash. Given Singapore’s high property prices, many investors have sufficient liquid assets or can tap CPF/cash for overseas investment.
Some investors release equity from Singapore property (if they own) to fund Japan purchases—the math often works given Singapore property values.
Currency Strategy: SGD to JPY
Smart currency management can save thousands.
Current Rate Advantage
At approximately 117 yen per Singapore dollar, your purchasing power is roughly 12% higher than 3 years ago. A property that would have cost S$500,000 in 2022 now costs approximately S$440,000.
Transfer Best Practices
| Method | Typical Cost | Recommendation |
|---|---|---|
| Singapore bank wire | 2-3% above mid-market | Avoid |
| Wise/InstaReM | 0.5-1% total fee | Good for most transfers |
| Currency brokers | Negotiable for large sums | Consider for >S$500,000 |
| Forward contracts | Lock rate for future | Useful once property selected |
Pro Tip: For a S$500,000 transfer, using your bank versus Wise could cost S$10,000-15,000 extra. That’s a significant amount that could cover most of your transaction costs.
Total Costs: Japan vs Singapore Comparison
Japan Transaction Costs (8-12% of purchase price)
| Cost | Typical Amount |
|---|---|
| Agent commission | 3% + ¥60,000 + 10% tax |
| Registration tax | 1.5-2% of assessed value |
| Acquisition tax | 1.5-2% of assessed value |
| Stamp duty | ¥10,000-¥480,000 |
| Scrivener fees | ¥100,000-200,000 |
| TOTAL | 8-12% |
Singapore Total Costs (For Foreigners)
| Cost | Amount |
|---|---|
| ABSD | 60% of purchase price |
| BSD | Up to 6% (tiered) |
| Legal fees | ~0.3-0.5% |
| TOTAL | ~66%+ |
The Bottom Line
On a S$1 million budget:
- Japan: Approximately S$100,000 in costs, buying ~S$900,000 of property
- Singapore (foreigner): Approximately S$660,000 in costs, buying ~S$340,000 of property
Japan offers approximately 2.6x better value for your investment dollar.
Common Mistakes Singaporean Buyers Should Avoid
1. Comparing headline prices without ABSD adjustment Always calculate total cost including Singapore’s ABSD when comparing investments. Japan looks even better when you factor this in.
2. Using Singapore bank wire transfers DBS, OCBC, and UOB charge significant margins on currency exchange. Use Wise, InstaReM, or similar services.
3. Assuming Japan property is like Singapore property Japanese buildings depreciate (though land typically doesn’t). Post-1981 buildings are preferred for earthquake standards. Management fees and structures differ.
4. Ignoring the 5-year CGT threshold Selling before 5 years means paying nearly double the CGT rate in Japan (39.63% vs 20.315%). Plan your investment horizon accordingly.
5. Not appointing a tax representative Non-residents must have a Japan-based tax representative. Your property management company can often handle this.
6. Forgetting property management You can’t handle tenant issues from Singapore. Budget 5-10% of rent for professional management—it’s essential, not optional.
7. Buying in unfamiliar areas Stick to locations you know from your Japan visits, or invest in established areas (central Tokyo, central Osaka) with proven rental demand.
Popular Investment Areas for Singaporeans
Tokyo
| Area | Character | Typical Yield | Notes |
|---|---|---|---|
| Shinjuku | Major hub, entertainment | 3.5-4% | High tenant demand |
| Shibuya | Youth, tech companies | 3.5-4% | Strong capital growth |
| Minato | Expat area, premium | 3-3.5% | Higher entry price, quality tenants |
| Chiyoda | Business district | 3-3.5% | Stable corporate demand |
Osaka
| Area | Character | Typical Yield | Notes |
|---|---|---|---|
| Namba | Entertainment, tourism | 4-5% | Higher yields than Tokyo |
| Umeda | Business hub | 4-4.5% | Strong office worker demand |
| Shinsaibashi | Shopping, tourism | 4-5% | Popular with younger renters |
Many Singaporeans start with Tokyo for familiarity, then expand to Osaka for higher yields.
FAQ: Singaporeans Buying Property in Japan
Do I have to pay ABSD when buying property in Japan?
No. Japan has no equivalent to Singapore’s ABSD. There is zero additional foreign buyer stamp duty. This is the single biggest reason Singaporeans are investing in Japan—you keep 60% more of your investment capital compared to buying in Singapore as a foreigner.
Is Japanese property income taxable in Singapore?
Generally, no—if you keep the income in Japan. Singapore’s territorial tax system means foreign-sourced income not remitted to Singapore is typically not taxable. However, if you bring the money into Singapore, it may become taxable under certain conditions. Consult IRAS or a tax professional for your specific situation.
Can Singaporeans get a mortgage in Japan?
It’s difficult for non-residents. Most Japanese banks require residency. Singaporean buyers typically purchase with cash or tap equity from Singapore property. SMBC Prestia offers loans to some high-net-worth foreign clients but requires substantial assets and 30-50% down payment.
Why are so many Singaporeans buying in Japan?
Three main reasons: (1) Escape Singapore’s 60% ABSD for foreign/additional property purchases; (2) The weak yen gives 10-15% more purchasing power than recent years; (3) Japan offers competitive rental yields with full freehold ownership and no foreign buyer restrictions.
What are the risks of buying property in Japan?
Key risks include: currency fluctuation (yen could strengthen, reducing SGD returns), building depreciation (especially older buildings), earthquake damage (mitigated by insurance and post-1981 construction), and management challenges as an overseas owner. None of these risks are unique to Singaporeans, and most can be managed with proper due diligence.
Ready to calculate your Japan investment? Use our ROI Calculator to compare returns, or read the Complete Guide to Buying Property in Japan for detailed process information.
This guide provides general information and should not be construed as tax or legal advice. Consult qualified Singapore and Japanese tax professionals for advice specific to your situation.