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Buyer's guide

Buying Property in Japan as a Foreigner

The complete process for overseas buyers, from first search to registration, including every closing cost, the annual taxes, what non-residents need to know about financing, and the reporting rules that changed in 2026.

Last reviewed: September 2026Reading time: ~18 minSources: MOJ, MOF, MLIT, NTA, Cabinet Office

Key points

  • No nationality restriction. Foreign individuals and companies can own land and buildings in Japan outright (freehold), on the same terms as Japanese buyers. No visa or residency is required to buy.
  • The process is broker-led. Offer () → statement of important matters () → contract with a deposit (, usually 5–10%) → settlement and title registration handled by a judicial scrivener ().
  • Budget roughly 6–10% on top of the price for brokerage (capped by law at 3% + ¥60,000 + consumption tax), registration and license tax, real estate acquisition tax, stamp duty and professional fees. (Rule-of-thumb estimate; the exact figure depends on the assessed value.)
  • Non-residents must report the purchase to the Minister of Finance via the Bank of Japan within 20 days under the Foreign Exchange and Foreign Trade Act (FEFTA). Holiday homes are always reportable.
  • NewFrom 5 October 2026, every individual who becomes a registered owner (Japanese or foreign) must provide their nationality when the ownership registration is filed. It is not shown on the public register.
  • Most non-residents buy with cash; Japanese mortgages for non-residents are scarce.
  • Non-residents generally need a tax representative () in Japan for annual property tax and any income-tax filings.

Can foreigners buy property in Japan?

Yes. Japan has no general law restricting land or building ownership by nationality or residency. A foreign individual, a foreign company, or a Japanese company owned by foreigners can acquire freehold title to land, a house or a condominium unit, and the title is recorded in the same public registry () as for any Japanese owner. You do not need a visa, and buying property does not give you a right to live in Japan.

What does apply are reporting obligations and, in a small number of designated areas, notification and use-monitoring rules:

  • the post-acquisition FEFTA report for non-residents (see below);
  • the nationality field at ownership registration from 5 October 2026 (see below);
  • prior notification for land in “special monitored zones” under the Land Use Regulation Act (see below);
  • general notifications that apply to everyone, such as the National Land Use Planning Act notice for large land deals and the Forest Act notice for new owners of forest land.

Policy watch. In March 2026 the Cabinet Secretariat set up an expert panel on “rules for land acquisition by foreign nationals”, including possible security-based restrictions. As of this review no new restriction on purchases by foreigners had been enacted. We will update this guide if that changes. (Cabinet Secretariat panel page, Japanese) Every change, dated and sorted into decided / proposed / reported: foreign ownership rules tracker.

The buying process, step by step

  1. Set your goals and structure

    Decide on use (holiday home, rental investment, business such as a ryokan), budget, and whether you will buy personally or through a company. Structure affects tax on rental income, inheritance and eventual sale, so talk to a tax adviser in your home country and in Japan before you sign.

  2. Search with a licensed broker

    Brokers must hold a real estate brokerage licence (); the licence number is shown on their website and documents. In resort areas many brokers work in English. Listings on portals are often duplicated or stale, so a local broker's access matters. We can introduce you to vetted licensed brokers.

  3. View the property (in person or remotely)

    Remote viewings by video are common. For houses and land, ask about boundary confirmation (), road access, zoning, building-code compliance, snow load, water supply and septic systems. For condos, ask for the management rules, repair-reserve balance and planned major repairs.

  4. Make an offer: letter of intent ()

    Your broker submits a written offer stating price, deposit, settlement date and any conditions (e.g. financing). In practice this is a statement of intent; it is generally not treated as a binding contract, but withdrawing casually damages your standing with the seller. Prices are negotiable, but sellers in hot resort markets may not move much.

  5. Identity checks and proof of funds

    Brokers and banks must verify your identity under Japan's anti-money-laundering law. Expect to provide your passport, proof of address and evidence of the source of funds. Open a route to transfer the funds to Japan early; large international transfers can take days.

  6. Statement of important matters ()

    Before the contract, a licensed real estate transaction specialist () must explain the legal and physical facts of the property in a formal written statement: title, mortgages, zoning, building restrictions, utilities, hazard maps, condo management terms and more. It can be delivered online. The official document is in Japanese; ask for an English translation or bring an interpreter, and do not sign until you understand it.

    It must show where the property sits on the municipal flood hazard map and, for a building permitted before 1 June 1981 (the old seismic standard), whether a seismic assessment has been done. To compare areas before you view, see Tokyo earthquake & flood risk by ward (with prices), which also covers Kyoto, Fukuoka, Niseko and Hakuba.

  7. Sign the sales contract and pay the deposit ()

    The deposit is typically 5–10% of the price. Where the seller is itself a licensed real estate company, the deposit is legally capped at 20%. In a standard Japanese contract the deposit is a “cancellation deposit”: until the other side begins performance, the buyer can walk away by forfeiting it, and the seller can by paying back double. Stamp duty is payable on the contract (see costs). Electronic contracts are permitted.

  8. Settlement and registration ()

    On settlement day you pay the balance and the costs, the seller hands over keys and documents, and a judicial scrivener () confirms everything and files the ownership transfer at the Legal Affairs Bureau the same day. Non-resident buyers typically provide their passport and a notarised affidavit of address (sworn before a notary or at a Japanese embassy/consulate) in place of a Japanese residence certificate. Since April 2024, foreign owners' names are recorded with a romanised name alongside the katakana, and owners living abroad must register a domestic contact person in Japan. From 5 October 2026 you must also provide your nationality.

    You can sign by power of attorney without being in Japan, but allow extra time for notarisation and courier.

  9. After closing

    • File the FEFTA report within 20 days if you are a non-resident.
    • Appoint a tax representative and notify the municipality and tax office.
    • Arrange fire and earthquake insurance, utilities and a property manager.
    • Expect the prefectural real estate acquisition tax bill a few months later.

A typical timeline from accepted offer to settlement is 4–8 weeks for a cash purchase. (Market practice; varies by property.)

Purchase costs

Work out your own numbers: our Japan property tax & cost calculator estimates every line below for your price, plus annual tax, tax when you sell, and tax and yield if you rent it out, in USD, AUD, HKD or SGD.

Several taxes are calculated not on the purchase price but on the assessed value () set by the municipality, which is usually well below market price. Ask the broker for the assessed value early.

CostWho / whenRate (as of Sept 2026)
Brokerage fee
Paid to your broker, usually half at contract and half at settlementLegal maximum for a price over ¥4m: 3% of price + ¥60,000, plus 10% consumption tax. E.g. ¥100m → max ¥3,366,000. For low-priced vacant homes (≤¥8m) the cap can be up to ¥300,000 + tax.
Registration & license tax
National tax paid at registration via the scrivenerLand purchase: 1.5% of assessed value (standard 2%; reduced rate extended to 31 March 2029). Building purchase: 2% (a reduced 0.3% applies only to qualifying homes used as the owner's residence). Mortgage registration: 0.4% of the loan (0.1% for qualifying residences).
Real estate acquisition tax
Prefectural tax, billed a few months after purchaseLand and residential buildings: 3% of assessed value (standard 4%) until 31 March 2027; for residential land the tax base is halved over the same period. Non-residential buildings: 4%. Further deductions exist for qualifying homes.
Stamp duty
On the signed sales contract (each party's copy)Reduced rates for contracts made by 31 March 2027: >¥10m–50m: ¥10,000; >¥50m–100m: ¥30,000; >¥100m–500m: ¥60,000; >¥500m–1bn: ¥160,000.
Judicial scrivener fee
At settlementNot regulated; commonly ¥100,000–¥300,000 for a straightforward purchase, more with translation, notarisation or cross-border work. (Market estimate.)
Pro-rated property taxAt settlement, reimbursed to the sellerYour share of the current year's fixed asset and city planning tax from the settlement date (by custom, not law).
Consumption taxIncluded in the price10% on the building portion when the seller is a business (land is exempt). Usually already included in the quoted price.
Other Translation, interpreter, notarisation, international transfer fees, fire/earthquake insurance, condo reserve-fund start-up payments.

Annual taxes and running costs

  • Fixed asset tax (): standard rate 1.4% of assessed value, levied on whoever is the registered owner on 1 January. Residential land gets a reduced base (1/6 for the first 200 ㎡, 1/3 above).
  • City planning tax (): up to 0.3%, only inside designated urbanisation areas.
  • Condo fees: monthly management fee plus repair reserve; in resort condo-hotels, also rental-pool and operator fees.
  • Utilities, insurance, maintenance, and in snow country, snow clearing and winterisation.
  • Property management if you rent it out (commonly a percentage of revenue for short-term rentals).

Vacation homes pay more. A holiday or second home () is not “housing” for local taxes, so its land gets no 1/6 reduction and its building pays 4% acquisition tax with no deduction. Estimate yours with the property tax calculator.

Tax bills are sent by the municipality in Japanese, usually in four instalments. A non-resident must appoint a tax representative to receive them (see below).

Financing for non-residents: the realities

Assume you will pay cash unless you have a confirmed loan offer.

Which banks lend to you? See our guide to Japanese mortgages for foreigners: lenders by residency status (permanent resident, living in Japan without PR, living abroad) and by nationality, with rates, down payment, income and regions, updated monthly. Then estimate your monthly repayment.

  • Most Japanese banks require permanent residency or a Japanese spouse, a Japanese income and a local address for a home loan. Non-resident foreigners are usually declined.
  • A few lenders (some private-banking desks, trust banks and non-bank lenders) lend to non-residents, typically with lower loan-to-value ratios, higher rates and high minimum asset or deposit requirements. Terms change often; your broker will know who is lending currently.
  • Many buyers borrow at home against other assets, or buy through a company with its own banking relationships.
  • If you do borrow in yen, you take on currency risk against your home-currency income.

The FEFTA post-acquisition report (non-residents, within 20 days)

Under the Foreign Exchange and Foreign Trade Act, a non-resident who acquires real estate in Japan, or rights relating to it, must submit a “Report on Acquisition of Real Estate or Rights Related to Real Estate in Japan” to the Minister of Finance via the Bank of Japan within 20 days of the acquisition. The form can be filed on paper or online, by you or by a resident agent such as your broker.

  • No minimum amount. It applies regardless of price or size, and includes acquisitions by inheritance or gift.
  • Residency, not nationality, decides. A foreign national living and working in Japan is usually a resident; a Japanese citizen living abroad can be a non-resident.
  • 2026Tighter from 1 April 2026. The exemptions that remain (for example, property for the non-resident's own residence, non-profit use or own office) now apply only to rights such as leaseholds, not to the property itself, per the MOF FAQ (June 2026). Holiday homes and second homes never counted as “residential use”, so a ski chalet or city pied-à-terre is reportable.
  • Failure to report can be penalised. If you missed the deadline, contact the MOF / BOJ and file late.

Sources: MOF (English), MOF FAQ, June 2026 (Japanese PDF).

New from 5 October 2026: nationality at registration

What changed: an amendment to the Real Property Registration Rules (Ministry of Justice Ordinance No. 23 of 2026, promulgated 31 March 2026) takes effect on 5 October 2026. From that date, an individual who becomes the registered owner of land or a building (by purchase, gift, inheritance, new-build registration, etc.) must provide their nationality () with the registration application, with supporting documents such as a passport copy.

  • Applies to everyone, Japanese and foreign alike; it is not a restriction on foreigners.
  • Not public. Nationality is kept in the registry's internal “search information” file and does not appear on the public certificate of registered matters. The MOJ circular says it is expected to be shared between government agencies through the planned real estate base registry.
  • Your judicial scrivener will collect the information and documents. Foreign-language documents need a Japanese translation.

Sources: MOJ Civil Affairs Bureau circular No. 872, 4 Sept 2026 (Japanese PDF); MOJ real property registration page.

Land Use Regulation Act zones ()

The Act on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote Territorial Islands has been fully in force since 20 September 2022. It lets the government designate:

  • Monitored zones (): land within about 1 km of important facilities such as defence bases, and remote border islands. The government can research ownership and use, and can issue recommendations or orders if land is used in a way that obstructs the facility.
  • Special monitored zones (): the most sensitive areas. Here, a contract to transfer land or buildings of 200 ㎡ or more requires prior notification to the government by both parties.

These rules apply to all buyers, domestic and foreign. Check whether a property is in a designated zone (your broker must disclose it in the statement of important matters) using the Cabinet Office zone list and maps.

Separately, the National Land Use Planning Act requires a post-contract notice for large land deals (roughly 2,000 ㎡+ in urbanisation areas, 5,000 ㎡+ in other city-planning areas, 10,000 ㎡+ elsewhere), and the Forest Act requires new owners of forest land to notify the municipality. Both matter for rural land around ski resorts. MLIT has tightened these forms to collect nationality information in 2025–26.

Tax representative and property manager

If you live outside Japan you will normally need a tax representative (), an individual or company in Japan who receives tax notices and pays or files on your behalf. You notify the municipality (for fixed asset tax) and, if you have Japanese income such as rent, the tax office. Tax accountants and many property managers offer this service.

A property manager handles keys, maintenance, tenants or guests, and emergencies. For short-term rental you also need the correct licence (a hotel/ryokan licence under the Hotel Business Act, or registration under the Private Lodging Business Act, which caps rentals at 180 nights a year), plus local rules.

Renting it out and selling later

  • Rent to a non-resident: a tenant that is a company or business must withhold 20.42% of rent paid to a non-resident landlord (an individual renting a home for their own family is exempt). You then file a Japanese tax return to settle the actual tax. (NTA No.2880)
  • Selling as a non-resident: the buyer must withhold 10.21% of the price and pay it to the tax office. Exception: an individual buying land for their own or family's residence for ¥100m or less. You file a return to settle the actual capital-gains tax. (NTA No.2879)
  • Japanese tax on gains from real estate is lower for property held more than five years (measured as of 1 January of the year of sale). Your home country may also tax the gain; check the tax treaty.
  • See what you would pay on a sale or on rent with the calculator (capital-gains tax, the 10.21% and 20.42% withholding, gross and net yield).
  • Short-term (Airbnb) letting needs a minpaku registration or a ryokan licence in the operator's name, and local limits range from 0 to 180 nights a year. Check the rules by city before buying for this purpose.
  • Japanese inheritance tax can apply to Japanese property regardless of where the heirs live. Plan with an adviser.

Ski-resort property (Niseko, Hakuba, Nozawa Onsen)

  • Product types: freehold chalets, condominiums, and condo-hotels where units go into a managed rental pool. Read the rental-pool agreement, fee split and owner-usage rules closely.
  • Seasonality: revenue is concentrated in winter; summer demand is growing but thinner. Ask for actual (not projected) rental statements.
  • Snow country building issues: snow load, roof design, heating and freezing pipes, winter access, and higher maintenance.
  • Land and permits: many areas have landscape ordinances, zoning limits, water and septic questions, and forest land rules. Some towns levy an accommodation tax on guests.
  • Price history: see our price-trend pages for Niseko, Hakuba, Tokyo and Kyoto, built from official MLIT transaction data.

Buying a ryokan or onsen hotel

  • You are buying a business, not just a building. Due diligence covers the operating licence, fire-safety and building-code compliance (older buildings often need upgrades), staff, bookings and equipment.
  • Licence succession: since the Hotel Business Act amendment in force from 13 December 2023, a buyer who takes over a ryokan by business transfer can succeed to the operating licence with the prefectural governor's (or city's) approval, instead of applying for a new licence.
  • Hot-spring rights () may be owned separately, shared, or supplied under contract. Confirm who owns the source, the fees and remaining term.
  • Asset deal vs share deal changes taxes and inherited liabilities; take legal and tax advice.

Full guide: Buying a ryokan in Japan (licence types and succession, onsen permits, fire and zoning rules, deal structure, the Business Manager visa, due diligence and price bands).

FAQ

Do I need a visa or to live in Japan to buy?

No. Ownership does not require a visa or residency, and owning property does not give you a visa.

Can I own the land, or only the building?

Foreigners can own land freehold. Some properties, however, sit on leased land (); the listing and the statement of important matters will say which.

Do I have to come to Japan to close?

No. Contracts and registration can be completed by power of attorney with notarised documents, although many buyers visit at least once to view the property.

Is my nationality going to be public on the register?

No. From 5 October 2026 nationality is collected at registration but held as internal, non-public information.

What if I am a Japanese citizen living abroad?

The FEFTA report depends on residency, not nationality, so you may still need to file it as a non-resident. The nationality field at registration applies to all individuals.

How much should I budget above the price?

Roughly 6–10% for a typical purchase, mostly brokerage fee plus taxes based on the assessed value. Your broker can give an itemised estimate.

Can I get a mortgage in Japan?

Rarely as a non-resident: a few lenders serve Taiwanese and Hong Kong residents, usually with 30–50% down. Foreign residents of Japan have more options, and permanent residents borrow like Japanese nationals. See mortgages for foreigners by residency status.

Can I rent it out on Airbnb?

Only with the right licence or registration and within local rules. Registration under the Private Lodging Business Act caps rentals at 180 nights a year; a hotel/ryokan licence removes that cap but has stricter building requirements. Many cities cut the limit further, and most condo bylaws ban it: see Airbnb (minpaku) rules by city.

Do you sell property or give property advice?

No. We are not a real estate broker. We publish independent information and, if you ask, introduce you to licensed Japanese brokers. All property explanations, negotiations and contracts are handled by the broker.

Talk to a vetted broker

Tell us what you are looking for and we will introduce you to one or more licensed Japanese real estate brokers who work with overseas buyers. We are not a real estate broker; we introduce you to licensed Japanese brokers. We do not charge buyers.

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Sources

  1. Ministry of Justice, Civil Affairs Bureau circular No. 872 (4 Sept 2026) on the amended Real Property Registration Rules effective 5 Oct 2026: moj.go.jp/content/001470076.pdf
  2. Ministry of Justice, real property registration: moj.go.jp/MINJI/fudousantouki.html; registration changes from 1 April 2024 (romanised names, domestic contact): moj.go.jp/MINJI/minji05_00589.html
  3. Ministry of Finance, reporting of real estate acquisitions by non-residents: English page; FAQ (June 2026, Japanese)
  4. MLIT, brokerage fee notice (Ministry of Construction Notice No. 1552 of 1970, as amended 2024): mlit.go.jp PDF; MLIT FY2026 tax reform summary: mlit.go.jp PDF
  5. National Tax Agency, extension of reduced registration and license tax rates: nta.go.jp PDF; stamp duty reduction (No.7108): nta.go.jp; withholding on purchases from non-residents (No.2879): nta.go.jp; withholding on rent to non-residents (No.2880): nta.go.jp
  6. Cabinet Office, Land Use Regulation Act: cao.go.jp/tochi-chosa
  7. Cabinet Secretariat, expert panel on land acquisition by foreign nationals: cas.go.jp
  8. Ministry of Health, Labour and Welfare / local governments, Hotel Business Act amendment effective 13 Dec 2023 (licence succession by business transfer): e.g. Chiba Prefecture summary

Last reviewed: September 2026. Rules, tax rates and reduced-rate deadlines change; check the linked official sources and confirm with a licensed professional before acting.

Disclaimer. This guide is general information, not legal, tax, or investment advice. Japan House Prices is not a real estate broker () and does not describe, recommend, or negotiate specific properties. If you request an introduction, a licensed Japanese broker will handle all property explanations and transactions. We may receive a referral fee from the broker; you pay nothing to us.