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Everything you need to know before buying real estate is included in our Japan Property Pack
Yes, foreigners can legally purchase property in Japan without citizenship or residency requirements.
Japan's property market is remarkably open to international buyers, offering the same legal rights as Japanese citizens for most property types. As of June 2025, foreign investment in Japanese real estate continues to grow, with no nationality restrictions on residential, commercial, or land purchases in most areas.
If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.
Foreigners can buy property in Japan without citizenship, residency, or visa requirements, enjoying the same legal rights as Japanese citizens.
The process involves extra documentation for non-residents, including tax agent designation and potential power of attorney arrangements for remote purchases.
| Aspect | Requirement for Foreigners | Additional Notes |
|---|---|---|
| Citizenship Requirement | None required | Same rights as Japanese citizens |
| Residency/Visa | Not mandatory | Tourists can purchase property |
| Physical Presence | Optional | Power of attorney allows remote purchase |
| Mortgage Access | Difficult without PR | Some banks offer loans to visa holders |
| Property Restrictions | Minimal | Agricultural land requires special permission |
| Tax Agent | Required for non-residents | Must designate local representative |
| Ongoing Costs | 1.4% annual property tax | Plus city planning tax and maintenance |
Can foreigners without Japanese citizenship legally purchase property in Japan?
Yes, foreigners can legally purchase property in Japan without any citizenship requirements.
Japan maintains one of the world's most open property markets for international buyers. Non-citizens enjoy identical legal rights to Japanese citizens when purchasing residential, commercial, or land properties. This policy has remained consistent since Japan's post-war economic reforms and continues to attract significant foreign investment as of June 2025.
The Japanese government places no restrictions on foreign ownership based on nationality, passport origin, or country of residence. Whether you're an American tourist, a European business executive, or an investor from any other country, you can purchase property with full ownership rights. The Real Property Registration Law treats all buyers equally, regardless of their citizenship status.
Property ownership in Japan grants you the same legal protections and rights as any Japanese citizen, including the right to use, modify, lease, or sell the property. Your ownership is protected under Japanese law and registered with the Legal Affairs Bureau, providing complete legal security for your investment.
It's something we develop in our Japan property pack.
Do you need to have residency or a visa to buy a house in Japan if you're not a citizen?
No residency or visa is required to purchase property in Japan.
You can buy real estate in Japan as a complete non-resident, including tourists visiting on short-term visas or individuals who have never set foot in the country. This policy makes Japan particularly attractive for international investors seeking to diversify their property portfolios without immigration complications.
However, property ownership does not grant you any immigration benefits, residency rights, or visa eligibility. Buying a Ā„100 million mansion in Tokyo doesn't provide a pathway to Japanese residency or citizenship. Immigration and property ownership are completely separate legal matters under Japanese law.
Non-resident property owners must comply with specific tax obligations and reporting requirements to the Japanese government. You'll need to designate a tax agent in Japan and may face withholding taxes when selling the property. These administrative requirements don't prevent purchase but add complexity to the process.
Many successful foreign property investors in Japan maintain their primary residence in other countries while owning multiple Japanese properties for investment or occasional use.
Is it necessary to be physically present in Japan to complete a property purchase without citizenship?
Physical presence in Japan is not mandatory for completing a property purchase.
You can execute the entire transaction from abroad by appointing a local representative through a power of attorney. This representative can sign contracts, attend closing meetings, and handle administrative procedures on your behalf at the Legal Affairs Bureau. Many international buyers successfully complete purchases without ever visiting Japan during the transaction process.
Remote purchases require additional documentation steps, including notarization of your power of attorney document by your local embassy or consulate. The document must then undergo apostille or consular authentication procedures to be legally valid in Japan. These steps add 2-4 weeks to the timeline but are straightforward administrative processes.
Your appointed representative typically includes a judicial scrivener (shiho shoshi) who specializes in property transfers and a real estate agent familiar with foreign buyer requirements. They coordinate all aspects of the purchase, from initial contract signing to final title registration.
While physical presence isn't required, visiting Japan to inspect the property and meet your representatives in person is highly recommended, especially for first-time buyers or high-value transactions.
What documents are required to buy real estate in Japan as a non-citizen, and is a local lawyer or agent mandatory?
Non-citizen buyers need specific documentation and professional assistance to complete property purchases in Japan.
| Document Type | Description | Notes |
|---|---|---|
| Passport Copy | Notarized identification | Must be current and authenticated |
| Affidavit | Notarized from your embassy | Confirms identity and capacity to purchase |
| Proof of Address | Current residence verification | Utility bill or bank statement |
| Income Certificate | Employment/income proof | Required if applying for mortgage |
| Power of Attorney | Legal representative authorization | Needed if not present in Japan |
| Tax Agent Designation | Local tax representative | Mandatory for non-residents |
| Family Register | Personal status documentation | Or equivalent from home country |
A real estate agent is strongly recommended and often practically necessary, especially for non-Japanese speakers, as all contracts and legal explanations are conducted in Japanese. Real estate agents familiar with foreign buyers understand the additional documentation requirements and can navigate the complex administrative process efficiently.
A judicial scrivener (shiho shoshi) is legally required for title transfer registration at the Legal Affairs Bureau. This licensed professional ensures proper legal transfer of ownership and handles all registration paperwork. Most buyers also benefit from having a lawyer review contracts, particularly for complex or high-value transactions.
Professional fees typically total 3-6% of the purchase price, including agent commissions (3% + Ā„60,000), judicial scrivener fees (Ā„100,000-Ā„300,000), and legal costs if applicable.
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Can non-citizens get a mortgage in Japan, and what are the conditions, interest rates, and tips to improve approval chances?
Non-citizens can obtain mortgages in Japan, but the process is significantly more challenging than for permanent residents.
Most Japanese banks require permanent residency or long-term visa status for mortgage approval. However, several institutions including Prestia SMBC, Suruga Bank, and Aeon Bank offer financing to qualified foreign applicants. International banks with Japanese branches may also provide more flexible lending criteria for their existing customers.
Mortgage requirements for non-citizens include stable income taxed in Japan, good credit history, substantial down payment (typically 20-50% compared to 10-20% for residents), and often a Japanese guarantor. Some banks require Japanese language proficiency for loan applications and ongoing communication.
Interest rates for qualified borrowers range from 0.18% to 0.7% for variable rate loans, among the world's lowest. Fixed-rate options typically start around 1.2-1.8%. However, non-permanent residents may face slightly higher rates and stricter terms than Japanese citizens or permanent residents.
To improve approval chances, secure long-term visa status or permanent residency if possible, build a stable employment record in Japan, maintain excellent credit history, consider having a Japanese spouse or permanent resident as co-applicant or guarantor, and work with mortgage brokers specializing in foreign applicants.
It's something we develop in our Japan property pack.
What are the taxes, fees, and ongoing costs foreigners should expect when buying and later selling property in Japan?
Foreign property buyers in Japan face multiple taxes and fees during purchase, ownership, and sale.
Purchase costs include Real Estate Acquisition Tax (3-4% of assessed value), Registration and License Tax (0.4-2% of assessed value), Stamp Duty (Ā„10,000-Ā„60,000 based on contract value), and Consumption Tax (10% on building portion for new properties, not applied to land). Agent fees typically total 3% of purchase price plus Ā„60,000.
Annual ownership costs consist of Fixed Asset Tax (1.4% of assessed value) and City Planning Tax (0.1-0.3% of assessed value, varies by municipality). Condominium owners also pay monthly management and maintenance fees ranging from Ā„10,000-Ā„30,000 depending on building size and amenities.
When selling, non-residents face capital gains tax of 15-30% depending on ownership period (properties held over 5 years qualify for lower rates). Buyers must withhold 10.21% of the sale price and remit it to tax authorities when purchasing from overseas sellers. Additional selling costs include agent fees and legal expenses.
Non-resident property owners must designate a tax agent in Japan to handle tax obligations and annual filings. Failure to comply with tax requirements can result in penalties and complications for future property transactions or visa applications.
Total transaction costs typically range from 7-10% of property value for purchases and 5-8% for sales, significantly higher than many other countries.
Are there any restrictions or types of property that foreigners without citizenship cannot purchase in Japan?
Foreign property buyers face minimal restrictions in Japan, with most property types available for purchase.
Residential properties, commercial buildings, and most land parcels are freely available to foreign buyers without special permissions or approvals. This includes condominiums, single-family homes, apartment buildings, office buildings, retail spaces, and vacant land for development.
Agricultural and forestry land requires special permission from local agricultural committees, which can be challenging for foreigners to obtain. These restrictions aim to preserve Japan's limited farmland and support domestic food production. However, residential properties with small attached gardens or properties that have been reclassified from agricultural use are typically available.
Properties near military bases or in areas deemed strategically sensitive may face national security restrictions affecting all buyers, not specifically foreigners. Cultural heritage sites and historically designated buildings may have special preservation requirements and approval processes for any buyer.
Some local municipalities may have informal preferences for local buyers, particularly in rural areas or traditional neighborhoods, but these are not legal restrictions. Foreign buyers generally face no discrimination in urban markets where most investment activity occurs.
The vast majority of attractive investment properties in major cities like Tokyo, Osaka, and Fukuoka are freely available to foreign purchasers without restrictions.
How does the buying process differ for foreigners versus Japanese citizens, step by step?
The property buying process for foreigners follows the same basic steps as Japanese citizens with additional administrative requirements.
1. **Property search and selection** through real estate agents or online listings2. **Submit Letter of Intent** (Kaitsuke Shomeisho) expressing purchase interest3. **Review Important Matters Explanation** (Juyo Jiko Setsumeisho) detailing property specifics4. **Sign Purchase Agreement** (Baibai Keiyaku) and pay deposit (typically 5-10% of purchase price)5. **Conduct due diligence** including property inspections and legal title verification6. **Secure financing** if needed (more complex for non-residents)7. **Appoint tax agent and local representative** (required for non-residents only)8. **Complete final payment and title transfer** at Legal Affairs Bureau through judicial scrivener9. **Register property ownership** and pay applicable taxes10. **Report acquisition to Ministry of Finance** (non-residents only)Key differences for foreigners include mandatory tax agent designation, potential need for power of attorney if not physically present, additional documentation requirements including embassy notarizations, more complex mortgage approval process requiring extensive income and visa documentation, and mandatory reporting to Japanese financial authorities.
The timeline for foreign buyers typically extends 2-4 weeks longer than domestic purchases due to additional documentation and approval requirements. However, the fundamental legal process remains identical, ensuring equal treatment under Japanese property law.
Working with experienced professionals familiar with foreign buyer requirements significantly streamlines the process and prevents common delays or complications.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the common mistakes and legal or financial pitfalls foreigners make when buying property in Japan without citizenship?
Foreign property buyers in Japan frequently encounter avoidable mistakes that can cost significant money and time.
The most critical error is assuming property ownership provides visa or residency benefits. Japanese immigration law is completely separate from property ownership, and buying expensive real estate grants no immigration advantages. Many buyers discover this after purchase when planning extended stays in Japan.
Language barriers create substantial risks, as all legal documents, contracts, and explanations are in Japanese. Buyers who rely on informal translations or attempt to navigate the process without qualified local assistance often miss important terms, conditions, or legal obligations that can prove costly later.
Underestimating ongoing costs is another frequent mistake. Beyond the purchase price, annual property taxes, maintenance fees, insurance, and management costs can total 3-5% of property value annually. Rural properties may require significant renovation investments that weren't apparent during initial viewing.
Mortgage-related errors include applying for financing without understanding requirements, leading to purchase agreement defaults when loans are denied. Non-residents often overestimate their borrowing capacity or fail to secure pre-approval before making offers.
Location mistakes include buying in depopulating rural areas with declining property values, purchasing properties far from transportation links that limit rental potential, or choosing areas with poor resale prospects for foreign-owned properties.
Failure to properly designate tax agents or comply with reporting requirements can result in penalties and complicate future transactions or visa applications.
Which Japanese cities or regions are best for foreigners to buy in, based on liveability, appreciation potential, and rental yields?
Tokyo offers the strongest combination of appreciation potential and international appeal for foreign buyers.
Central Tokyo wards (Shibuya, Shinjuku, Minato) command premium prices averaging Ā„120 million+ for quality properties but provide the highest appreciation potential with 10.7% year-over-year growth as of June 2025. These areas offer excellent transportation, international amenities, and strong rental demand from expatriate professionals.
Osaka presents an attractive alternative with lower entry costs (Ā„55-57 million average) and solid rental yields of 4.2-5.0%. As Japan's economic hub outside Tokyo, Osaka benefits from corporate relocations, tourism growth, and more affordable property prices compared to the capital.
Fukuoka stands out for investment potential with 9.0% annual price growth and rental yields of 4.2-5.5%. The city's growing tech sector, university presence, and lifestyle appeal make it increasingly popular with both domestic and international residents.
Sapporo offers lifestyle appeal and steady growth (5.8% annually) with average prices around Ā„51.5 million. The city's quality of life, winter sports appeal, and growing international profile make it attractive for lifestyle buyers rather than pure investors.
Kyoto provides cultural appeal and tourism-driven rental demand, though growth is more moderate. The city's international recognition and tourism industry support short-term rental markets, particularly attractive for foreign owners seeking occasional personal use.
Rural Japan offers the lowest prices (Ā„20-25 million) but requires careful selection due to depopulation trends and limited resale liquidity in many areas.
What is the current breakdown of property prices across major cities and regions, and how do they compare for investment or living?
Japanese property prices vary dramatically between major cities and regions, creating diverse investment opportunities as of June 2025.
| City/Region | Average Price (JPY) | USD Equivalent | YoY Change |
|---|---|---|---|
| Tokyo Central Wards | Ā„120,000,000+ | $860,000+ | +10.7% |
| Tokyo (23 Wards Average) | Ā„91,400,000 | $653,000 | +10.7% |
| Osaka | Ā„55-57,000,000 | $393-407,000 | +2.3% |
| Fukuoka | Ā„56,000,000 | $400,000 | +9.0% |
| Sapporo | Ā„51,500,000 | $368,000 | +5.8% |
| Rural Japan | Ā„20-25,000,000 | $143-179,000 | Stable |
Tokyo's premium pricing reflects its status as Asia's financial center and Japan's primary international gateway. Central areas like Roppongi, Akasaka, and Shibuya command the highest prices but offer the strongest appreciation potential and rental demand from multinational corporations.
Osaka provides the best value proposition for investors seeking exposure to Japan's urban markets without Tokyo's premium pricing. The city's role as western Japan's commercial hub supports steady demand and more accessible entry points for international buyers.
Fukuoka's rapid growth reflects its emergence as a regional startup hub and gateway to Asia. Lower prices combined with strong growth make it attractive for both investment and lifestyle purchases.
Rural properties offer dramatic value but require careful analysis of local demographics, infrastructure, and long-term viability. Many rural areas face population decline that can negatively impact property values and rental potential.
It's something we develop in our Japan property pack.
How do Japan's rental returns, tourism stats, and growth forecasts influence property investment potential for non-citizens?
Japan's property investment landscape in 2025 shows strong fundamentals supporting foreign investment activity.
Rental yields average 4.2% nationally, with higher returns available in secondary cities like Osaka (4.2-5.0%) and Fukuoka (4.2-5.5%) compared to Tokyo's 3.5-4.5%. These yields compare favorably to major global cities and reflect Japan's low interest rate environment and stable rental markets.
Tourism recovery drives significant investment potential, with international arrivals reaching 3.9 million in April 2025 (+28.5% year-over-year). This tourism boom supports both traditional rental markets and short-term rental opportunities, particularly in major cities and tourist destinations like Kyoto and Osaka.
Economic stability and currency factors create attractive conditions for foreign investors. Japan's mature economy, political stability, and transparent legal system provide security for international capital. The yen's relative weakness against major currencies can provide purchasing power advantages for foreign buyers.
Growth forecasts favor urban markets, with Tokyo and Fukuoka showing the strongest appreciation potential. Japan's aging population creates opportunities in well-located properties while potentially impacting rural areas. The government's tourism promotion and urban redevelopment initiatives support property values in key markets.
Foreign investment flows continue growing, with institutional and individual investors attracted by Japan's stable returns, transparent legal framework, and strategic location in Asia's growth region. Property ownership provides portfolio diversification and exposure to Asia's largest developed economy.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Japan's property market remains exceptionally open to foreign buyers, with no citizenship or residency requirements for most property types.
As of June 2025, strong tourism recovery, stable economic conditions, and attractive rental yields make Japanese real estate an increasingly compelling option for international investors seeking diversification and exposure to Asia's largest developed economy.
Sources
- Real Estate Tokyo - Can a Foreigner Buy Property in Japan
- Wise - Buy House in Japan
- BambooRoutes - Japan Real Estate for Foreigners
- E-Housing - Guide to Buying Property in Japan
- DT Swift - Required Documents for Foreigners
- Expatica - Japan Mortgage Guide
- E-Housing - Housing Loans for Foreigners
- BambooRoutes - Average House Price Japan
- Global Property Guide - Japan Rental Yields
- Japan Tourism Statistics