Can you buy a house in Japan without citizenship?

Authored by the expert who managed and guided the team behind the Japan Property Pack

Everything you need to know before buying real estate is included in our Japan Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Japan. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Japanese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Tokyo, Osaka, and Kyoto. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can a foreigner without Japanese citizenship legally buy property in Japan?

Yes, foreigners can legally purchase property in Japan without any citizenship requirements.

Japan has no restrictions based on nationality, residency status, or visa type for real estate ownership. Non-citizens can buy land, houses, apartments, and commercial properties with exactly the same rights as Japanese citizens.

This open policy extends to all types of residential properties, from single-family homes to luxury condominiums. Foreign buyers can purchase multiple properties without limitations on quantity or total value. The Japanese government does not impose quotas or special restrictions on foreign ownership.

Property ownership rights in Japan include the right to sell, rent, renovate, or demolish the property. Foreign owners also have the same legal protections and recourse as domestic buyers.

It's something we develop in our Japan property pack.

Do you need permanent residency or a specific type of visa to purchase a house in Japan?

No permanent residency or specific visa is required to buy property in Japan.

Tourists on short-term visitor visas can legally purchase real estate, as can individuals with work visas, student visas, or any other legal status. Even those without any current visa status can buy property, though they would need proper legal entry to complete the transaction in person.

The property purchase process is identical regardless of your residency status. Whether you're a permanent resident, temporary worker, student, or complete non-resident, the legal requirements and procedures remain the same.

However, your residency status significantly affects financing options. Most Japanese banks require borrowers to be residents with local income sources, making mortgage approval much more challenging for non-residents.

Non-resident buyers often need to purchase properties with cash or seek specialized financing from international lenders or developer-backed financing programs.

Is it required to be physically present in Japan to complete the property purchase process without citizenship?

Physical presence in Japan is typically required for completing real estate transactions, though alternatives exist.

Most property purchases require the buyer to be present in Japan during the final signing and title transfer procedures. Japanese real estate law mandates that contracts be executed and registered within Japan's legal jurisdiction.

If you cannot be physically present, you can appoint a local representative with power of attorney to handle the transaction on your behalf. This representative can be a lawyer, judicial scrivener, real estate agent, or trusted individual with proper legal authorization.

The power of attorney document must be properly notarized and authenticated by your home country's Japanese consulate or embassy. This process can take several weeks and requires specific documentation.

Non-resident buyers must also designate a domestic tax agent and provide a local contact address for official correspondence, even if they don't live in Japan.

What documents are needed for a non-citizen to successfully buy real estate in Japan?

Foreign buyers need several key documents to complete a property purchase in Japan.

Document	Purpose	Notes
Valid Passport	Primary identification	Required for all transaction stages
Certificate of Seal Impression or Signature Certification	Legal authentication	From notary or embassy in home country
Address Verification Affidavit	Proof of residence	Embassy/consulate or notary certification required
Proof of Income/Assets	Financial verification	Bank statements, employment letters, tax returns
Resident Card	Local identification	Only required if living in Japan
Power of Attorney	Representative authorization	If not attending transaction personally
Japanese Contact Information	Local correspondence	Required for property registration

Do you need a lawyer or legal representative to handle the transaction if you're not a Japanese citizen?

While not legally mandatory, hiring a judicial scrivener or legal representative is strongly recommended for foreign buyers.

Japanese real estate contracts and legal documents are written entirely in Japanese, making professional assistance essential for non-Japanese speakers. A judicial scrivener (shihō shoshi) specializes in property transactions and can handle title registration, contract review, and legal compliance.

For non-resident buyers who cannot attend the closing in person, appointing a local representative with power of attorney becomes practically necessary rather than optional. This representative handles signing, document submission, and registration procedures.

Many real estate agencies offer bilingual services and can recommend trusted legal professionals who specialize in foreign buyer transactions. The cost typically ranges from ¥100,000 to ¥300,000 depending on transaction complexity.

Legal representation provides protection against contract issues, ensures proper due diligence, and helps navigate Japan's complex bureaucratic requirements for property registration.

What are the taxes, fees, and ongoing costs foreigners face when buying and later reselling property in Japan?

Property acquisition and ownership in Japan involves several taxes and fees that foreign buyers should budget for carefully.

Initial purchase costs typically total 5-8% of the property value. The real estate acquisition tax ranges from 3-4% of the assessed property value, while registration and license taxes add approximately 2% more. Judicial scrivener fees for legal registration average ¥50,000-150,000.

Real estate agent commissions follow a standard formula: 3% of the purchase price plus ¥60,000, plus consumption tax (currently 10%). For a ¥50 million property, this equals approximately ¥1.71 million in agent fees.

Annual property taxes include fixed asset tax (1.4% of assessed value) and city planning tax (0.3% of assessed value). These are based on municipal assessments that are typically lower than market value.

When selling property, non-residents face a 10.21% withholding tax on gross sale proceeds, regardless of profit or loss. This amount can be credited against final capital gains tax obligations, but creates significant cash flow implications.

Condominium owners pay monthly management and maintenance fees that vary widely by building age, location, and amenities, typically ranging from ¥10,000-50,000 per month.

Can non-citizens get a mortgage in Japan, and if yes, what banks, rates, and conditions are usually available?

Non-citizens can obtain mortgages in Japan, but most lenders require local residency and income sources.

Major banks that consider foreign applicants include Shinsei Bank, Prestia (SMBC Trust Bank), and select regional institutions. However, most require borrowers to have resident status, a Japanese bank account, and verifiable local income.

As of September 2025, mortgage interest rates range from 0.5% to 3% annually for qualified borrowers. Non-residents typically face higher rates and stricter lending criteria, including larger down payment requirements of 30-50% instead of the standard 10-20%.

Flat 35 loans offer long-term fixed rates but generally require a residence card and proof of stable Japanese income. Some developers offer financing programs specifically for international buyers, though terms are usually less favorable than bank mortgages.

Loan terms for foreigners are often shorter than the standard 35-year maximum, with many lenders limiting non-resident loans to 15-25 years. Documentation requirements are extensive, including overseas income verification, tax returns, and asset statements.

What practical tips help foreigners secure financing and avoid rejection from Japanese lenders?

Securing financing as a foreign buyer requires strategic preparation and realistic expectations about lending requirements.

1. **Build a relationship with a Japanese bank before applying** - Open a bank account and maintain it for several months to establish banking history2. **Prepare comprehensive documentation** - Gather translated income statements, tax returns, employment contracts, and asset proof from your home country3. **Work with specialized mortgage brokers** - Use brokers who focus on foreign buyer financing and have established lender relationships4. **Consider co-signers or guarantors** - Japanese citizens willing to co-sign can significantly improve approval odds5. **Target the right lenders** - Focus on banks with established foreign lending programs rather than traditional regional banks6. **Maintain realistic expectations** - Accept higher down payment requirements (30-50%) and potentially higher interest rates7. **Explore developer financing** - New construction projects sometimes offer buyer financing with more flexible terms

Many successful foreign buyers combine multiple strategies, such as using savings for a large down payment while securing a smaller loan for the remainder. Building relationships with local real estate professionals who understand foreign buyer challenges is crucial for navigating the financing landscape.

It's something we develop in our Japan property pack.

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.

How do property prices compare across major cities and regions, and what are the most up-to-date averages?

Japanese property prices vary dramatically between major metropolitan areas and regional locations, with Tokyo commanding premium pricing.

Location	Average Price (New Condos)	USD Equivalent
Tokyo (23 Wards)	¥85-90 million	$550,000-600,000
Osaka	¥45-55 million	$290,000-350,000
Kyoto	¥50-60 million	$320,000-380,000
Nagoya	¥40-50 million	$260,000-320,000
Fukuoka	¥35-45 million	$225,000-290,000
Sapporo	¥30-40 million	$195,000-260,000
Rural Areas/Akiya	¥5-15 million	$32,000-97,000

Tokyo's central wards (Minato, Shibuya, Chiyoda) command the highest prices, with luxury properties in premium locations exceeding ¥150 million. Secondary cities like Fukuoka and Sapporo offer properties at 40-60% of Tokyo prices while maintaining good infrastructure and amenities.

Rural "akiya" (vacant houses) represent exceptional value but often require significant renovation and may have limited resale potential due to Japan's population decline in rural areas.

Which areas are the most popular among foreigners to live, rent out, or invest in for long-term capital appreciation?

Foreign buyers gravitate toward specific areas that offer international community access, transportation convenience, and investment potential.

In Tokyo, the central wards of Minato, Shibuya, and Chiyoda attract the most foreign investment due to their international business districts and embassy locations. Neighborhoods like Azabu, Hiroo, and Roppongi are particularly popular for their established expat communities and international amenities.

Osaka's Umeda and Namba districts appeal to foreign investors for their commercial viability and tourism potential. The city's lower property prices compared to Tokyo provide better rental yields while maintaining strong infrastructure and growth prospects.

Kyoto attracts foreign buyers interested in cultural tourism and vacation rental investments. The historic Gion and Higashiyama areas command premium rents from international tourists, though regulations on short-term rentals have tightened in recent years.

Fukuoka is emerging as a favorite among foreign investors seeking growth potential at reasonable prices. The city's startup ecosystem and government initiatives to attract international business make it attractive for long-term appreciation.

Resort areas in Hokkaido (particularly Niseko) and Okinawa attract foreign buyers seeking vacation homes and rental properties catering to international tourists.

What do the latest livability indexes, rental yields, tourism numbers, and growth forecasts say about different Japanese cities?

Japanese cities consistently rank highly in global livability studies, with economic and tourism indicators supporting real estate investment potential.

Tokyo maintains its position as Asia's top-ranked city for livability in 2025, scoring exceptionally high in safety, infrastructure, and healthcare categories. The city's stable political environment and advanced transportation systems continue to attract international residents and investors.

Rental yields vary significantly across Japanese markets. Tokyo and Yokohama typically offer yields of 2-5% for residential properties, while Osaka provides similar returns with lower entry costs. Regional cities like Fukuoka and Sapporo can achieve yields of 6-8%, though with higher vacancy risks.

Tourism recovery has been strong across Japan, with international visitor numbers approaching pre-pandemic levels by mid-2025. Kyoto, Osaka, and Hokkaido particularly benefit from this tourism resurgence, supporting short-term rental markets where regulations permit.

Growth forecasts favor Tokyo and Fukuoka for stable long-term appreciation, driven by continued urbanization and international business expansion. Nagoya and Sapporo offer moderate growth potential with better value propositions, while regional towns present higher risk but potentially higher returns for well-selected properties.

Population trends show continued concentration in major metropolitan areas, supporting property values in cities while creating challenges for rural real estate investments.

What common mistakes and pitfalls do non-citizens run into when buying property in Japan, and how can they be avoided?

Foreign buyers frequently encounter preventable problems that can be avoided with proper preparation and local expertise.

1. **Confusing leasehold and freehold ownership** - Always verify whether you're buying the land or just the building rights, as this dramatically affects long-term value2. **Underestimating total costs** - Budget for the full 5-8% transaction costs plus ongoing taxes and maintenance fees, not just the purchase price3. **Language and legal barriers** - Never proceed without bilingual legal representation or at minimum a trusted translator for all contracts4. **Insufficient due diligence** - Research building age, earthquake compliance, and land use restrictions before committing to purchase5. **Remote purchase attempts** - Avoid buying properties sight unseen without proper local representation and thorough inspection6. **Ignoring depreciation patterns** - Understand that Japanese buildings typically depreciate faster than land, affecting resale values7. **Poor property management planning** - Arrange reliable management services before purchase, especially for remote investors8. **Overlooking tax implications** - Verify property tax assessments and understand non-resident withholding tax requirements for future sales

The most successful foreign buyers invest time in building relationships with trusted local professionals, thoroughly research their target markets, and maintain realistic expectations about both costs and returns.

It's something we develop in our Japan property pack.

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.

Sources

1. Expatis - Buying a House in Japan Insights
2. Taxes for Expats - Can Foreigners Buy Property in Japan
3. Housing Japan - Buying a House in Japan as an Expat
4. E-Housing - Guide to Buying Property in Japan
5. ICLG - Real Estate Laws and Regulations Japan
6. Dovetail - How to Buy a Home in Japan as a Foreigner
7. Wilson Real Estate - Documents Required for Foreigners
8. Sumikawa - Guide to Purchasing Real Estate in Japan for Foreigners