Last Updated: February 2026
Buying property in Japan as a foreigner is entirely legal and surprisingly straightforward. Unlike many Asian countries that restrict foreign ownership, Japan offers one of the most open real estate markets in the region. Whether you’re an investor seeking Tokyo rental yields, an expat looking for a permanent home, or someone dreaming of a traditional machiya in Kyoto, this guide covers everything you need to know about purchasing Japanese real estate in 2026.
Foreign investment in Tokyo real estate reached $7.7 billion in the first half of 2025 alone, according to Nikkei Asia. This surge reflects growing international confidence in Japan’s property market, driven by the weak yen, stable legal framework, and attractive rental yields.
Can Foreigners Buy Property in Japan?
Yes, foreigners can buy property in Japan with the same ownership rights as Japanese citizens. This is one of the most important facts for international buyers to understand: Japan places no restrictions based on nationality or residency status.
Here’s what makes Japan unique:
- No citizenship requirements — Any nationality can purchase
- No residency requirements — You can buy without living in Japan
- No visa requirements for ownership — Even tourists can purchase property
- Full freehold ownership available — You can own both land and buildings outright
- No limits on number of properties — Buy as many as you want
Overseas buyers accounted for 3.5% of new Tokyo condos in the first half of 2025, according to The Japan Times. While this percentage seems small, it represents billions of dollars in transactions and demonstrates sustained international interest.
Pro Tip: Property ownership and residency rights are completely separate in Japan. Buying property does not give you the right to live in Japan long-term. You’ll still need an appropriate visa (work, spouse, business manager, etc.) for extended stays beyond 90 days.
Legal Requirements and Restrictions for Buying Property in Japan
While Japan’s property market is remarkably open, there are specific legal requirements foreigners must follow:
Requirements for All Foreign Buyers
- Valid identification — Passport for non-residents; residence card for residents
- Registered seal (inkan) or signature certification — Required for contracts
- Physical presence — You must be in Japan to sign the purchase contract and complete registration
- Japanese bank account — Recommended for payment and ongoing expenses
Additional Requirements for Non-Residents
Non-residents face a few extra steps:
| Requirement | Details | Deadline |
|---|---|---|
| Bank of Japan notification | Report property purchases for investment purposes | Within 20 days of purchase |
| Foreign Exchange Act compliance | Required for transfers over ¥30 million | Before transfer |
| Nationality declaration | New requirement starting FY2026 | At registration |
Starting April 2026, foreign corporations must also report the nationality of representatives and majority shareholders when purchasing property.
Monitored Areas Near Sensitive Facilities
Japan’s 2022 Economic Security Promotion Act designates certain areas as “monitored zones” near:
- Self-Defense Force bases and military installations
- Nuclear power facilities
- International airports and major ports
- Remote border islands
In 2024, a Cabinet Office survey identified 113,827 property transactions near critical facilities, with 3,498 (3%) involving foreign buyers. While foreigners can still purchase in these areas, the government may review transactions and request additional information.
Warning: Agricultural land requires special permission from the local Agricultural Committee, regardless of your nationality. This process can take months and approval is not guaranteed.
Types of Property Ownership: Freehold vs Leasehold
Understanding ownership types is essential before buying property in Japan as a foreigner.
Freehold (Shoyuken) — Full Ownership
With freehold ownership, you own both the building and the land beneath it permanently. This is the most common type for houses and land purchases.
Benefits of freehold:
- Complete ownership with no expiration
- Full control over the property
- Can be inherited or sold freely
- Land typically appreciates (buildings depreciate)
Leasehold (Shakuchiken) — Land Lease
With leasehold, you own the building but lease the land from a separate owner. This is common for condominiums (mansions) in prime locations.
Two main types of leasehold:
| Type | Duration | Renewal | Typical Use |
|---|---|---|---|
| Ordinary leasehold (Chijoken) | 30+ years | Renewable | Older condos, some commercial |
| Fixed-term leasehold (Teiki Shakuchiken) | 50+ years typically | Not renewable | New developments, some houses |
Leasehold considerations:
- Lower purchase price (20-30% less than freehold)
- Monthly ground rent payments
- Fixed-term leases return land to owner at expiration
- Can be harder to finance or resell
Pro Tip: Always verify the ownership type before making an offer. Check the property registry (toki bo) for “所有権” (shoyuken/freehold) or “借地権” (shakuchiken/leasehold).
Step-by-Step Property Buying Process
The process of buying property in Japan as a foreigner typically takes 1-3 months from finding a property to receiving the keys. Here’s the complete process:
Step 1: Define Budget and Requirements
Before starting your search:
- Set a maximum budget including 8-12% for transaction costs
- Decide on location, property type, and purpose
- Research neighborhoods and price ranges
- Consider transportation access and amenities
Average property prices vary significantly by location:
- Tokyo: Approximately ¥1.4 million per square meter
- Osaka: Approximately ¥613,000 per square meter
Step 2: Find a Real Estate Agent
Choose an agent who:
- Has experience working with foreign buyers
- Offers English (or your language) support
- Is licensed (look for 宅地建物取引士 certification)
- Knows your target area well
For guidance on finding the right professional, see our guide for American buyers which includes tips applicable to all nationalities.
Step 3: Property Search and Viewings
During viewings, pay attention to:
- Building age (pre-1981 buildings use older earthquake standards)
- Condition of common areas (for condos)
- Noise levels and natural lighting
- Distance to nearest station
- Building management quality
Step 4: Submit Letter of Intent (Kaitsuke Shomeisho)
This non-binding document signals serious interest and includes:
- Your proposed purchase price
- Deposit amount and timing
- Preferred closing date
- Any conditions (financing, inspection)
Step 5: Mortgage Pre-Approval (If Applicable)
If you need financing, apply for pre-approval before proceeding. Be aware that mortgages are difficult for foreigners without permanent residency. Most non-resident buyers purchase with cash or use overseas financing.
Step 6: Receive Important Matters Explanation
The Juyo Jiko Setsumeisho is a legally required disclosure document (20-100 pages) covering:
- Property details and boundaries
- Zoning and building regulations
- Rights, restrictions, and liens
- Infrastructure and utilities
- Hazard zone designations
Pro Tip: Request an English translation or explanation. While not legally required, reputable agents working with foreigners will provide this. Never sign anything you don’t fully understand.
Step 7: Sign Purchase Agreement and Pay Deposit
On contract day:
- Review the sales agreement with your agent
- Pay the deposit (typically 5-10% of purchase price)
- Sign all documents (must be done in Japan)
- Receive keys to the property (if immediate possession)
Step 8: Complete Payment and Settlement
On closing day (typically 1-4 weeks after signing):
- Transfer remaining balance
- Pay all taxes and fees
- Receive property documents
Step 9: Ownership Registration
A judicial scrivener (shiho shoshi) will:
- Submit registration to the Legal Affairs Bureau
- Transfer ownership officially
- Provide you with the title deed
Step 10: Post-Purchase Notifications
Non-residents must notify the Bank of Japan within 20 days for investment property purchases.
Costs and Fees When Buying Property in Japan
Budget 8-12% beyond the property price for transaction costs. Here’s the complete breakdown:
One-Time Purchase Costs
| Cost Item | Rate/Amount | Example (¥40M property) |
|---|---|---|
| Agent commission | 3% + ¥60,000 + 10% tax | ¥1,386,000 |
| Registration license tax (land) | 1.5% of assessed value | ¥300,000 |
| Registration license tax (building) | 2.0% of assessed value | ¥400,000 |
| Real estate acquisition tax | 3% (residential) | ¥600,000 |
| Stamp duty | ¥5,000 - ¥480,000 | ¥30,000 |
| Judicial scrivener fees | Flat fee | ¥100,000 |
| Consumption tax (building only) | 10% | Varies |
Total example: A ¥40 million property costs approximately ¥43.5 million all-in.
Understanding Consumption Tax
Japan’s 10% consumption tax applies only to the building value, not land. For a property listed at ¥40 million where the building is valued at ¥20 million:
- Land: ¥20 million (no consumption tax)
- Building: ¥20 million + ¥2 million consumption tax
For more details on property taxes, see our comprehensive taxes and finance guide.
Financing Options for Foreign Buyers
Getting a mortgage in Japan without permanent residency is challenging but not impossible.
Options by Residency Status
| Status | Mortgage Availability | Typical Terms |
|---|---|---|
| Permanent resident | Most Japanese banks | Up to 35 years, competitive rates |
| Long-term resident (5+ years) | Select Japanese banks | Higher down payment required |
| Working visa holder | Limited options | 70-80% LTV maximum |
| Non-resident | Very difficult | Cash or overseas financing |
Alternative Financing Options
- Cash purchase — Most common for non-residents
- Home country financing — Use equity in existing property
- International banks — HSBC, Prestia (SMBC Trust) offer options
- Developer financing — Some new developments offer payment plans
Pro Tip: If you’re a non-resident planning to buy, consider the benefits of buying an akiya (abandoned house) — lower prices make cash purchases more accessible.
Annual Property Taxes and Ongoing Costs
Owning property in Japan comes with annual obligations:
Annual Taxes
| Tax | Rate | Payment Period |
|---|---|---|
| Fixed Asset Tax (Kotei Shisanzei) | 1.4% of assessed value | April-June |
| City Planning Tax (Toshi Keikakuzei) | 0.3% of assessed value | April-June |
Important: Assessed values are typically 50-70% of market value, so actual tax burden is lower than it appears.
Other Ongoing Costs (Condominiums)
- Management fees (kanrihi): ¥10,000-30,000/month
- Repair reserve fund (shuzenhi): ¥5,000-20,000/month
- Parking (if applicable): ¥10,000-50,000/month
The Role of Judicial Scriveners (Shiho Shoshi)
A judicial scrivener is a licensed legal professional who handles property registration in Japan. Their role is essential:
- Verify the seller’s ownership rights
- Prepare registration documents
- Submit registration to the Legal Affairs Bureau
- Ensure proper transfer of title
Cost: ¥50,000 to ¥200,000 depending on complexity
Pro Tip: Foreigners must be physically present for identity verification with the judicial scrivener. Plan your Japan trip to include both contract signing and registration day.
Understanding the Important Matters Explanation
The Juyo Jiko Setsumeisho (重要事項説明書) is perhaps the most critical document in your purchase. A licensed real estate agent must explain this document to you before you sign the contract.
Key sections include:
- Property boundaries and measurements
- Building specifications and materials
- Legal restrictions and zoning
- Existing liens or mortgages
- Infrastructure details (water, sewage, gas)
- Hazard designations (flood, landslide, tsunami)
- Management details (for condos)
Red flags to watch for:
- Outstanding liens or debts
- Boundary disputes
- Building code violations
- Planned nearby development
- Hazard zone location
Property Ownership vs Residency Rights
This distinction confuses many foreign buyers: owning property in Japan does NOT give you the right to live there.
What Property Ownership Gets You
- Legal ownership of real estate
- Right to rent out the property
- Right to sell at any time
- Right to pass to heirs
- Short-term stays (up to 90 days for many nationalities)
What Property Ownership Does NOT Get You
- Long-term residency rights
- Work permission
- National health insurance eligibility
- Voting rights
Visa Options for Property Investors
If you want to live in Japan based on property investment:
| Visa Type | Requirements | Duration |
|---|---|---|
| Business Manager | ¥5M+ capital, office space, business plan, employees | 1-5 years |
| Specified Skilled Worker | Not applicable for property ownership | N/A |
| Highly Skilled Professional | Points-based (property alone insufficient) | 1-5 years |
The Business Manager visa was updated in October 2025 with stricter requirements. Simply owning rental properties is generally insufficient — you need an active real estate business.
Tips for Finding English-Speaking Agents
Working with an agent who speaks your language makes the process significantly easier.
Where to find English-speaking agents:
- Real Estate Japan (portal with English interface)
- GaijinPot Apartments
- Japan Property Central
- Referrals from expat communities
- Embassy lists of English-speaking professionals
Questions to ask potential agents:
- How many foreign clients have you worked with?
- Can you provide English translations of all documents?
- What areas do you specialize in?
- Are you familiar with the notification requirements for non-residents?
- Can you recommend English-speaking judicial scriveners and tax advisors?
Explore Tokyo investment opportunities through agents who know the market.
Common Mistakes to Avoid
Learn from others’ experiences to make your purchase smoother:
1. Underestimating Total Costs
Many buyers budget only for the property price. Always add 8-12% for transaction costs.
2. Ignoring Building Age
Properties built before June 1981 don’t meet current earthquake safety codes and are harder to finance or resell. The building codes changed significantly after the 1981 revision.
3. Skipping the Physical Visit
While virtual viewings are possible, buying without visiting can lead to disappointment. Neighborhoods feel different in person.
4. Assuming Property Equals Residency
Don’t buy expecting to move to Japan. Secure your visa situation first or accept that you’ll be a non-resident owner.
5. Not Planning for Physical Presence
Contract signing requires you to be in Japan. Non-residents often need to make at least two trips — one for viewing and one for signing.
6. Rushing the Important Matters Explanation
This document protects you. Take time to understand every section, even if it means delaying the signing.
7. Choosing the Wrong Ownership Type
Leasehold properties have expiration dates and ongoing costs. Make sure you understand what you’re buying.
FAQ: Buying Property in Japan as a Foreigner
Can foreigners buy property in Japan and live there?
Foreigners can freely buy property in Japan, but ownership does not grant residency rights. To live in Japan long-term, you need an appropriate visa (work visa, spouse visa, business manager visa, etc.). You can use your property during short tourist stays (typically up to 90 days), but permanent residence requires separate immigration approval.
Do I need a visa to buy property in Japan?
No, you do not need a visa to purchase property. Even tourists can buy real estate in Japan. However, the buying process requires physical presence for contract signing and registration, so you’ll need at least a short-term entry. Non-residents must also file notifications with the Bank of Japan for investment purchases.
Can a foreigner get a mortgage in Japan?
Getting a mortgage is challenging for foreigners without permanent residency. Those with PR can access Japanese bank mortgages with competitive rates. Foreigners with long-term working visas may qualify at select banks with higher down payments (20-30%). Non-residents typically purchase with cash or arrange financing in their home country.
What taxes do foreigners pay when buying property in Japan?
Foreigners pay the same taxes as Japanese citizens: registration license tax (1.5-2% of assessed value), real estate acquisition tax (3-4%), stamp duty (¥5,000-480,000), and 10% consumption tax on the building portion. After purchase, annual fixed asset tax (1.4%) and city planning tax (0.3%) apply. Non-residents may have additional reporting requirements.
Is property ownership different for foreigners in Japan?
No. Foreigners have identical ownership rights to Japanese citizens for freehold property. You can buy, sell, rent, renovate, and inherit property without restriction. The main differences are procedural: non-residents must file Bank of Japan notifications, and starting April 2026, nationality declarations will be required at registration.
Official Sources and Resources
For authoritative information, consult these government resources:
| Resource | Description |
|---|---|
| Ministry of Justice — Judicial Scriveners | Official information on registration procedures |
| Ministry of Finance — Foreign Exchange Laws | Regulations on capital transactions |
| Cabinet Office — Monitored Areas | Designated areas near sensitive facilities |
| National Tax Agency — Non-Resident Taxation | Tax guidance for foreign property owners |
| MLIT — Real Estate Tax System | Property tax information |
Next Steps
Ready to start your Japan property journey? Here’s what to do:
- Research locations — Browse our Tokyo guide and other regional guides
- Understand your costs — Use our property cost calculator
- Learn the tax implications — Read our taxes and finance section
- Find an agent — Connect with English-speaking professionals in your target area
- Plan your visit — Schedule time for viewings and contract signing
Buying property in Japan as a foreigner is achievable with proper preparation. The legal framework is straightforward, the market is open, and thousands of international buyers successfully complete purchases each year. Your main challenges will be practical — finding the right property, arranging financing if needed, and navigating the process in a foreign language.
With the information in this guide and the right professional support, you’re well-equipped to make your Japan property ownership a reality.