Can American buy and own house in Japan?

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, Japan, 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 Americans legally buy a house or apartment in Japan without needing Japanese citizenship or residency?

Americans can legally purchase and own houses or apartments in Japan without requiring Japanese citizenship or permanent residency status.

Japan maintains one of the world's most open property markets for foreign buyers, with no nationality-based restrictions on real estate ownership. Americans receive identical property rights to Japanese citizens, including the ability to own land outright and hold property indefinitely.

The Japanese government does not impose ownership quotas, time limits, or special permits for American buyers. This liberal approach extends to all types of residential property, from Tokyo apartments to rural houses, making Japan particularly attractive for international real estate investment.

However, property ownership does not grant residency rights or visa privileges. Americans must obtain appropriate visas through separate immigration procedures if they wish to live in Japan long-term.

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

Are there any restrictions or differences for Americans compared to Japanese citizens or other foreign nationals when buying property?

Americans face virtually no restrictions compared to Japanese citizens, with only minor exceptions in specific circumstances.

The primary differences include potential limitations on properties near military installations or sensitive government facilities, though these rarely affect residential purchases. Some agricultural or forest land may require special permissions, but standard residential properties in urban and suburban areas have no such restrictions.

As of April 2024, foreign buyers must provide a domestic contact person (kokunai renrakusaki) in Japan, but most real estate agencies offer this service to international clients. Some condominium complexes or developments may have internal bylaws restricting foreign ownership, but these are uncommon and typically disclosed upfront.

Americans enjoy the same treatment as other foreign nationals - there are no preferential or discriminatory policies based on nationality. The process, requirements, and costs remain identical regardless of whether the buyer is American, European, or from any other country.

Do Americans need a specific visa or residency status to purchase or own property in Japan?

No visa or residency status is required for Americans to purchase or own property in Japan.

Property ownership and immigration status are completely separate matters under Japanese law. Americans can buy real estate while living outside Japan, visiting on tourist visas, or holding any type of visa status. The transaction process remains identical regardless of immigration status.

Many American buyers complete purchases while living in the United States, using the property for vacation purposes, rental income, or future relocation plans. Tourist visa holders can also purchase property during short visits to Japan.

Importantly, buying property does not provide any immigration benefits or pathway to residency. Americans seeking to live in Japan must apply for appropriate visas through standard immigration channels, independent of their property ownership status.

Is it necessary for Americans to be physically present in Japan to complete the property purchase, or can everything be done remotely?

Physical presence in Japan is not mandatory for Americans to complete property purchases, though it requires careful planning and professional assistance.

Remote purchases are possible through power of attorney arrangements, where a representative (typically a judicial scrivener or attorney) acts on the buyer's behalf. This representative can sign documents, attend closings, and complete registration procedures at the local government office.

Essential steps for remote purchases include notarizing power of attorney documents at Japanese consulates in the U.S., providing apostilled documentation, and working with bilingual real estate professionals who can coordinate the entire process. Virtual property tours and detailed inspection reports help buyers make informed decisions without traveling.

However, visiting Japan for property inspection is highly recommended, especially for first-time buyers. In-person visits allow for neighborhood assessment, property condition evaluation, and direct communication with local professionals. Many successful American buyers combine property hunting with vacation trips to Japan.

What is the full step-by-step process for an American to buy a house in Japan, including all documents required?

The Japanese property purchase process involves eight distinct steps, each with specific documentation requirements.

Step	Process	Required Documents
1. Budget Planning	Determine investment purpose and financial capacity	Financial statements, bank records
2. Agent Selection	Engage foreigner-experienced real estate agent	Power of attorney (if remote)
3. Property Search	Online searches, viewings, due diligence	Passport copy, contact information
4. Offer Submission	Negotiate price and terms through agent	Proof of funds, purchase intention letter
5. Contract Signing	Execute legally binding purchase agreement	Passport, deposit payment (5-10% of price)
6. Financing	Secure mortgage or arrange cash payment	Income certificates, employment verification
7. Due Diligence	Legal verification and property inspection	Property title documents, survey reports
8. Closing	Final payment and property registration	All funds, transfer documents, registration papers

Is hiring a Japanese real estate lawyer or judicial scrivener mandatory for Americans, and what do they typically cost?

Hiring a judicial scrivener is mandatory for property registration, while legal counsel is optional but recommended for complex transactions.

Judicial scriveners (shiho-shoshi) are licensed professionals who handle property registration with local government offices. They verify title clarity, prepare registration documents, and ensure legal compliance. Their services typically cost ¥50,000 to ¥100,000 ($350-$700) depending on transaction complexity and property value.

Real estate lawyers are not mandatory for standard residential purchases, as agents handle most legal aspects. However, Americans often benefit from legal counsel for complex transactions, investment properties, or when purchasing remotely. Legal fees vary widely, typically ranging from ¥30,000 to ¥150,000 ($200-$1,000) depending on services provided.

Many Americans choose to work with bilingual legal professionals who can explain Japanese real estate law in English and ensure proper documentation. This additional cost often proves worthwhile for the peace of mind and legal protection it provides.

Can Americans get a mortgage from a Japanese bank, what are the interest rates, down payment requirements, and eligibility conditions in 2025?

Japanese bank mortgages for Americans are available but challenging, with strict eligibility requirements and higher down payment demands.

Most major Japanese banks require permanent residency and stable taxed income within Japan, effectively excluding non-resident Americans. However, specialized lenders like Prestia, Suruga Bank, and Aeon Bank offer limited mortgage products to non-residents and non-permanent residents.

As of mid-2025, interest rates range from 0.18% to 1.38% for Japanese residents with variable rate loans, while non-residents face higher rates often exceeding 2%. Fixed-rate "Flat 35" loans reach up to 3.69% as of June 2025, with rates rising due to Bank of Japan policy changes.

Down payment requirements are significantly higher for Americans: typically 30-50% for non-residents compared to 20% for Japanese residents. Additional requirements include age restrictions (20-65 years), stable employment documentation, group life insurance, and sometimes Japanese language proficiency tests.

Many American buyers opt for cash purchases to avoid mortgage complications, especially for investment properties or vacation homes.

What are the annual taxes, purchase taxes, and any fiscal implications Americans should expect after buying real estate in Japan?

Americans face substantial upfront taxes and ongoing fiscal obligations when purchasing Japanese real estate.

Purchase-related taxes include acquisition tax (3-4% of property value), registration tax (0.4-2% of property value), and stamp duty (¥5,000-¥60,000 depending on contract value). Real estate agent fees add another 3% of purchase price plus ¥60,000 plus consumption tax.

Annual obligations include fixed asset tax and city planning tax, totaling approximately 1.4% of assessed property value. These taxes are payable in quarterly installments and continue indefinitely regardless of property use.

For Americans earning rental income, Japan imposes a 20.42% withholding tax on gross rental income for non-residents. Capital gains tax reaches 39.63% for properties sold within five years of purchase, dropping to 20.315% for longer-term holdings.

Americans must also consider U.S. tax implications, including foreign asset reporting requirements and potential double taxation issues, though tax treaties may provide some relief.

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.

What are the most popular cities or regions where Americans tend to buy homes in Japan and why?

Tokyo dominates American property purchases, particularly in central wards like Minato, Shibuya, and Chiyoda, due to international business connections and established expat communities.

Osaka ranks second for American buyers, offering vibrant urban lifestyle with significantly lower entry prices than Tokyo. The city's strong rental demand from students and young professionals makes it attractive for investment purposes.

Kyoto appeals to Americans seeking cultural immersion and tourism rental opportunities, with historic districts and traditional architecture commanding premium prices. The city's UNESCO heritage status and constant tourist flow support strong short-term rental markets.

Emerging destinations include Fukuoka, Sapporo, and Okinawa, where Americans find more affordable prices combined with growing expat communities. These cities offer lifestyle benefits, with Okinawa particularly popular for beach lifestyle and Sapporo for winter sports enthusiasts.

Rural areas with "akiya" (vacant houses) attract budget-conscious Americans, though these properties often require significant renovation and offer limited rental demand.

Which areas currently offer the best balance of lifestyle, rental yields, tourism activity, and capital growth potential for American investors?

Central Tokyo wards provide the strongest capital growth potential but lower rental yields, making them ideal for long-term appreciation strategies.

Osaka and Fukuoka offer superior rental yields (4-6%) combined with moderate capital growth, appealing to Americans seeking current income from their investments. These cities maintain strong job markets and growing populations supporting consistent rental demand.

Kyoto balances cultural appeal with tourism-driven rental opportunities, particularly for short-term rental investors. The city's international recognition and constant visitor flow support premium pricing for well-located properties.

Okinawa presents unique opportunities for Americans seeking resort lifestyle combined with tourism rentals, though seasonal demand fluctuations require careful consideration. The prefecture's subtropical climate and beach culture attract both Japanese and international visitors year-round.

Regional cities like Sapporo offer affordability with decent rental yields (5-7%) but limited capital growth potential, making them suitable for cash-flow focused investors rather than appreciation plays.

What is the average property price breakdown in Japan by city or region, and how do those compare to rental income and appreciation trends?

City/Region	Average Condo Price (2025)	Typical Rental Yield	Price Appreciation Trend
Tokyo (Central 23 Wards)	¥80M-¥120M ($500k-$800k)	3-4%	High (+13% in 2024)
Osaka	¥40M-¥60M ($250k-$400k)	4-5%	Moderate (+5-7% annually)
Kyoto	¥40M-¥70M ($250k-$450k)	3-5%	Stable (+3-5% annually)
Fukuoka	¥30M-¥50M ($200k-$330k)	5-6%	Growing (+4-6% annually)
Sapporo/Okinawa	¥25M-¥45M ($165k-$300k)	5-7%	Moderate (+2-4% annually)
Rural/Akiya Properties	¥1M-¥10M ($7k-$70k)	Variable (often low)	Minimal or declining

What are the common mistakes and pitfalls Americans face when buying property in Japan, and how can they avoid them?

Language barriers create the most significant challenges for American buyers, as all legal documents, contracts, and government procedures are conducted in Japanese.

1. **Underestimating total costs**: Americans often focus on purchase price while overlooking substantial taxes, fees, and agent commissions that can add 8-12% to the transaction cost.2. **Financing assumptions**: Many Americans assume mortgage availability similar to the U.S. market, but Japanese banks heavily restrict lending to non-residents.3. **Buying sight unseen**: Remote purchases without proper inspection or local representation can lead to costly surprises regarding property condition or neighborhood issues.4. **Ignoring ongoing management**: Absentee owners often underestimate the complexity of property management, tax obligations, and maintenance requirements in Japan.5. **Cultural misunderstandings**: American buyers sometimes misinterpret Japanese business customs, causing friction with agents, sellers, or neighbors.

Prevention strategies include working with experienced bilingual professionals, budgeting for all costs upfront, arranging proper property management services, and investing time to understand Japanese real estate culture and procedures.

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. Exiap - Can Foreigners Buy Property in Japan
2. E-Housing Japan - Guide to Buying Property
3. Immigration Lawyer Japan - Property Purchase Without Visa
4. BambooRoutes - Japan Property Purchase Guide
5. Exiap Property Buying Guide
6. Japan Property Central - Foreigner Property Purchase FAQ
7. Sumikawa Law - Real Estate Transactions for Foreign Nationals
8. Dovetail - How to Buy a Home in Japan as a Foreigner
9. Wise - Mortgage in Japan Guide
10. Global Property Guide - Japan Taxes and Costs