Buying property in Japan as an American

The short answer

Japan house prices in US dollars

Median sale prices from MLIT data, converted at ¥157.18 per US$1 (Federal Reserve H.10, 25 September 2026). A median is the middle sale, not a typical listing.

For prices per square metre by ward, see Tokyo price per square metre; for the long-run trend, the Tokyo price history.

Can US citizens buy property in Japan?

Yes. Japan has no nationality, residence or visa requirement for owning land or buildings, and a foreign buyer gets the same title as a Japanese buyer. There is no foreign-buyer surcharge on Japanese purchase taxes. What changed in 2026 is paperwork, not permission; see is Japan banning foreign buyers? and the rules tracker.

Owning property does not give you a visa or the right to live in Japan. Visas are a separate process; for the investor-type route see business manager visa statistics.

If you live outside Japan: the filings

• Ministry of Finance report within 20 days. A non-resident who acquires Japanese real estate reports it through the Bank of Japan, whatever the amount (the Ministry's FAQ says even a ¥0 acquisition). Since 1 April 2026 this includes a home for your own use. Not reporting can be punished by up to 6 months' imprisonment or a fine of up to ¥500,000. Your broker or scrivener can file it for you.
• Nationality at registration (from 5 October 2026). Have a valid passport ready; details on the tracker.
• A tax agent in Japan. If you will need to file a Japanese tax return (for example because you rent the property out or sell it), the National Tax Agency asks you to appoint a tax agent (納税管理人) and notify the tax office.

Costs and taxes on the Japanese side

Japanese taxes depend on where the property is, not on your passport:

• Buying: broker's fee (capped by law), acquisition tax, registration tax and stamp duty. Our worked example comes to roughly 6% of the price; see the cost of buying property in Japan.
• Owning: fixed asset tax and city planning tax every year, plus building fees for condos; see property tax for foreigners and management fees.
• Renting it out as a non-resident: a company tenant (or anyone paying rent other than an individual renting it as their own home) must withhold 20.42% of the rent. Rental income from Japan may also need a Japanese tax return.
• Selling as a non-resident: the buyer generally withholds 10.21% of the price for the tax office, unless the buyer is an individual buying it as their own or their family's home for ¥100m or less. You then file a Japanese return to settle the actual tax on the gain; see the sale net proceeds calculator.
• Financing: Japanese banks rarely lend to non-residents; see mortgages for foreigners.

The US side (general only)

• Worldwide income. The IRS says US citizens and resident aliens are taxed on worldwide income from all sources, wherever they live, and that many qualify for benefits such as the foreign tax credit. Japanese rent or a gain on sale is therefore likely to matter on your US return too.
• FBAR and Form 8938. The IRS comparison table says foreign real estate held directly is not reported on either form. A Japanese bank account is a different matter: FBAR applies when your foreign financial accounts together exceed US$10,000 at any time in the year.
• Owning through a Japanese company, trust or fund changes this picture; ask a US tax adviser before choosing a structure.

We do not give US tax advice. Start with the IRS pages in the sources, then talk to an adviser who handles Japan.

FAQ

Sources

1. MLIT (Ministry of Land), Real Estate Information Library, transaction prices: reinfolib.mlit.go.jp. Area medians are from our price pages linked above, which cite the exact datasets.
2. Federal Reserve Board, H.10 foreign exchange rates, 25 September 2026 (JPY 157.18 per USD; USD 0.7033 per AUD): federalreserve.gov (checked 5 October 2026)
3. National Tax Agency, No.2879 withholding when buying land from a non-resident (10.21%; exception for an individual's own home at ¥100m or less): nta.go.jp (checked 5 October 2026)
4. National Tax Agency, No.2884 withholding rates for non-residents (rent 20.42%; none when an individual rents for their own home): nta.go.jp (checked 5 October 2026)
5. National Tax Agency, leaflet for non-residents who rent out or sell property in Japan: PDF; appointing a tax agent (納税管理人): nta.go.jp (checked 5 October 2026)
6. Ministry of Finance, report on acquisition of real estate by non-residents, FAQ (June 2026: report within 20 days, any amount; penalty up to 6 months or ¥500,000): PDF (checked 5 October 2026)
7. Ministry of Finance, list of Japan's tax treaties: mof.go.jp (checked 5 October 2026)
8. IRS, US citizens and resident aliens abroad (worldwide income): irs.gov (checked 5 October 2026)
9. IRS, comparison of Form 8938 and FBAR requirements (foreign real estate held directly: not reported; FBAR over US$10,000): irs.gov (checked 5 October 2026)