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
Foreigners can freely buy and own property in Hiroshima with virtually no legal restrictions, enjoying the same ownership rights as Japanese citizens.
As of September 2025, the Hiroshima real estate market shows strong growth with new condominium prices jumping 42.5% in recent months, making it an increasingly attractive destination for international investors seeking opportunities in Japan's recovering property sector.
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 purchase property in Hiroshima without residency requirements, though mortgage financing typically requires Japanese permanent residency or substantial down payments of 30-50%.
Property transactions involve acquisition taxes of 3-4%, annual fixed asset taxes of 1.4%, and capital gains taxes ranging from 20.315% for long-term holdings to 39.63% for short-term sales.
| Aspect | Requirements/Details | Costs/Rates |
|---|---|---|
| Foreign Ownership | No restrictions, same rights as Japanese citizens | No additional fees |
| Visa Requirements | None required for property purchase | N/A |
| Physical Presence | Optional - can buy remotely via power of attorney | Notarization fees vary |
| Mortgage Access | Difficult without permanent residency | 30-50% down payment required |
| Acquisition Tax | Paid at purchase | 3-4% of property price |
| Annual Property Tax | Fixed asset tax + city planning tax | ~1.4% + 0.3% of assessed value |
| Capital Gains Tax | On property sale profits | 20.315% (long-term) / 39.63% (short-term) |
Can foreigners buy the same kinds of property as locals in Hiroshima, or are there restrictions?
Foreigners enjoy complete equality with Japanese citizens when purchasing property in Hiroshima.
Japanese law places no restrictions whatsoever on foreign ownership of real estate, including houses, apartments, land, and commercial properties. You can purchase any type of property available to locals, whether it's a traditional wooden house in a residential neighborhood, a modern condominium in central Hiroshima, or vacant land for development.
The ownership rights you receive are identical to those of Japanese citizens, including full freehold ownership (shoyuken) and leasehold rights (shakuchiken). You can buy, sell, rent out, renovate, or transfer your property freely without government approval or notification requirements.
Foreign ownership does not expire, cannot be revoked by the government, and passes to your heirs through normal inheritance procedures. Your nationality, visa status, or length of stay in Japan does not affect your property ownership rights in any way.
This makes Japan one of the most foreigner-friendly property markets in Asia, with Hiroshima benefiting from this open investment environment.
Do I need to have a specific visa or residency status to purchase or own property in Japan?
No visa or residency status is required to purchase or own property in Japan.
Japanese property law treats ownership rights completely separately from immigration status. You can buy property as a tourist on a 90-day visitor visa, as a temporary resident, or even as a non-resident living overseas who has never visited Japan.
The property purchase process does not require proof of residency, work permits, or long-term visa status. Immigration authorities do not review or approve property transactions, and your ownership rights remain valid regardless of any changes to your visa situation.
However, it's crucial to understand that owning property does not grant you any residency rights or help with visa applications. Property ownership and immigration status operate under entirely separate legal frameworks in Japan.
It's something we develop in our Japan property pack.
Is it necessary to be physically present in Japan during the purchase process, or can it be done remotely?
Physical presence in Japan is not mandatory for property purchases in Hiroshima.
You can complete the entire transaction remotely using a power of attorney arrangement. This legal document authorizes a representative in Japan to sign contracts, attend closing meetings, transfer funds, and register the property ownership on your behalf.
Remote buyers typically must notarize their power of attorney documents at a Japanese consulate in their home country and provide apostilled documentation for international recognition. The process may require additional time for document authentication and international money transfers.
However, visiting Hiroshima in person is highly recommended for first-time buyers to inspect properties, meet with real estate agents, understand local market conditions, and ensure you're making informed decisions about neighborhoods and property conditions.
Many experienced investors successfully purchase multiple properties remotely after establishing relationships with trusted local professionals, but initial purchases benefit significantly from personal visits.
What is the exact step-by-step process to buy property in Hiroshima, and which documents are required?
The Hiroshima property purchase process follows Japan's standardized real estate transaction procedures.
Here's the complete step-by-step process:
- Property selection and viewing - Either in-person visits or virtual tours with detailed property reports
- Letter of intent submission - Express serious interest and negotiate purchase terms with the seller
- Purchase agreement signing - Formalize the deal with binding contracts and deposit payment
- Fund preparation and transfer - Arrange international money transfers and currency exchange
- Settlement meeting - Final payment, document signing, and ownership transfer at a bank or law office
- Property handover - Receive keys, utilities transfers, and property management information
- Government registration - Official title registration with local authorities
- FEFTA reporting - Foreign Exchange and Foreign Trade Act notification if required
Required documents typically include your passport, proof of funds showing the money's international origin, notarized power of attorney for remote purchases, and any property-specific documentation recommended by your real estate agent or judicial scrivener.
The entire process usually takes 4-8 weeks from offer acceptance to completed ownership transfer, with remote purchases potentially requiring additional time for international document authentication.
Don't lose money on your property in Hiroshima
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Do I need to hire a lawyer or a judicial scrivener, and what role do they play in the transaction?
A judicial scrivener is mandatory for property registration, while lawyers are optional but recommended for complex transactions.
Judicial scriveners (shiho shoshi) are legal professionals specializing in property registration and document preparation. They handle the official title transfer, submit registration paperwork to government offices, and ensure all legal requirements are met. Their fees typically range from ¥50,000 to ¥100,000 per transaction.
Lawyers can provide additional services including contract review, due diligence investigations, negotiation assistance, and complex legal advice. While not strictly required for straightforward purchases, lawyers become valuable for investment properties, distressed sales, or transactions involving multiple parties.
Most foreign buyers benefit from hiring both professionals - a judicial scrivener for required registration services and a lawyer for contract review and general legal guidance, especially when language barriers exist.
These professionals typically work closely with your real estate agent to coordinate all aspects of the transaction and ensure compliance with Japanese property law.
What taxes, fees, and additional costs should I expect when buying, holding, and eventually reselling a property?
Property investment in Hiroshima involves several taxes and fees throughout the ownership cycle.
Purchase costs include acquisition tax of 3-4% of the property price, registration fees and stamp duties, real estate agent commissions of approximately 3% plus ¥60,000, and judicial scrivener fees of ¥50,000-¥100,000.
Annual holding costs consist of fixed asset tax at roughly 1.4% of the assessed property value and city planning tax of about 0.3% of the assessed value. These taxes are based on government assessments that may differ from market values.
Additional ongoing expenses may include property management fees, insurance premiums, maintenance and repair costs, and various reporting fees for foreign ownership compliance.
| Cost Category | Timing | Typical Rate/Amount |
|---|---|---|
| Acquisition Tax | At purchase | 3-4% of property price |
| Agent Commission | At purchase | 3% + ¥60,000 + tax |
| Registration Fees | At purchase | ¥50,000-¥100,000 |
| Fixed Asset Tax | Annual | 1.4% of assessed value |
| City Planning Tax | Annual | 0.3% of assessed value |
| Capital Gains Tax | At sale | 20.315% (long-term) / 39.63% (short-term) |
Budget approximately 5-10% above the property price for total purchasing costs, with annual holding costs typically running 1.7-2% of the assessed property value.
Is mortgage financing available for foreigners, and if so, what are the rates, conditions, and best tips to get approved?
Mortgage financing for non-resident foreigners in Japan is extremely challenging, with most banks requiring permanent residency status.
Non-permanent resident applicants face significant hurdles including requirements for 30-50% down payments, higher interest rates, and limited lender options. As of September 2025, variable mortgage rates range from 0.7% to 1.2%, while fixed 35-year rates are approximately 1.9%.
Banks that may consider non-permanent resident applications include Shinsei Bank, PRESTIA (SMBC Trust Bank), and select regional institutions. These lenders typically require stable Japanese employment for 2+ years, annual income exceeding ¥3-5 million, and Japanese language proficiency for contract comprehension.
Best approval strategies include maximizing your down payment, establishing a Japanese credit history through local banking relationships, securing stable employment with reputable companies, and potentially using a Japanese permanent resident as a co-signer or guarantor.
Many foreign investors opt for cash purchases to avoid financing complications, especially given Japan's historically low property prices compared to other major markets.
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 does property taxation work for non-residents compared to locals, including rental income and capital gains?
Non-resident foreign property owners pay the same tax rates as Japanese citizens for most property-related taxes.
Fixed asset tax and city planning tax are identical regardless of residency status, calculated at 1.4% and 0.3% respectively of the assessed property value. Both residents and non-residents receive the same tax bills and payment schedules from local tax authorities.
Capital gains taxation differs slightly for non-residents. Long-term capital gains (properties held over 5 years) are taxed at 20.315%, while short-term gains face 39.63% rates. Non-residents may not be subject to local inhabitant tax if they're not registered residents as of January 1st following the sale.
Rental income from Hiroshima properties is subject to Japanese taxation regardless of your residency status. Non-residents must file annual tax returns and may face withholding tax on rental payments. International tax treaties may prevent double taxation in your home country.
Proper tax planning and reporting are essential, as Japan's tax authorities actively monitor foreign property ownership and income. Many foreign owners engage Japanese tax professionals to ensure compliance and optimize their tax obligations.
Which neighborhoods or districts in Hiroshima are most popular among foreigners for living, investing, or renting out?
Central Hiroshima, particularly the Naka-ku district, attracts the highest foreign interest for both living and investment purposes.
The Peace Memorial Park area and surrounding central districts offer excellent lifestyle amenities, convenient transportation connections, and strong rental demand from both Japanese and international residents. These areas maintain high property values and consistent occupancy rates.
Suburban districts in Hiroshima provide attractive investment opportunities with lower purchase prices and potentially higher rental yields. Areas near Hiroshima University attract student renters, while family-oriented neighborhoods offer stable long-term tenancy potential.
Foreign investors particularly favor areas with infrastructure development, proximity to educational institutions, and tourism potential. The upcoming JR Hiroshima New Station Building, opening in spring 2025, is expected to boost surrounding property values significantly.
Luxury developments near international hotels like the Hilton Hiroshima and The Ritz-Carlton have attracted considerable foreign investment, benefiting from increased international tourism and business travel.
Where are the areas with the best prospects for capital appreciation, rental yields, and strong livability scores?
Central Hiroshima districts near major transportation hubs offer the strongest prospects for capital appreciation.
Areas around the new JR Hiroshima Station development and Peace Memorial Park consistently show property value growth, with new condominium prices in central areas jumping 42.5% in late 2023. These locations benefit from limited land supply and increasing demand from both residents and investors.
Suburban areas provide higher rental yields due to lower purchase prices, though capital appreciation may be more modest. University districts offer stable rental income from student populations, while established residential neighborhoods attract families seeking longer-term rentals.
Livability scores are highest in areas combining good transportation access, shopping amenities, parks, and cultural attractions. The Peace Memorial area ranks particularly well for international residents due to its historical significance and well-developed infrastructure.
Future development plans including infrastructure improvements, new commercial developments, and tourism initiatives will likely drive value appreciation in currently developing areas throughout 2025 and beyond.
It's something we develop in our Japan property pack.
What are the typical property prices in Hiroshima compared with other Japanese cities and regions, broken down by type and location?
Hiroshima property prices are significantly lower than Japan's major metropolitan areas while showing strong growth momentum.
Central Hiroshima apartments average ¥2-5 million for standard units, substantially below Tokyo's ¥44.51 million average and Osaka's comparable pricing. Detached houses in desirable neighborhoods typically range from ¥15-40 million depending on size, age, and exact location.
Suburban Hiroshima properties offer even greater value, with apartments starting around ¥1 million and houses from ¥5-15 million. These lower prices can provide superior rental yields compared to expensive metropolitan markets.
Compared to other regional Japanese cities, Hiroshima prices are moderately positioned - generally higher than rural areas but well below Tokyo, Osaka, and Kyoto levels. This pricing gap has narrowed as Hiroshima experiences above-average growth, with land prices increasing 1.4% for residential and 2.6% for commercial properties in recent surveys.
| Property Type | Central Hiroshima | Suburban Hiroshima | Comparison to Tokyo |
|---|---|---|---|
| Condominiums/Apartments | ¥2-5 million | ¥1-3 million | Tokyo: ¥44.51 million average |
| Detached Houses | ¥15-40 million | ¥5-15 million | Tokyo: ¥70-150 million |
| Land (per sqm) | ¥150,000-300,000 | ¥50,000-150,000 | Tokyo: ¥500,000-2,000,000 |
| Luxury Properties | ¥40-80 million | ¥20-40 million | Tokyo: ¥150-500 million |
This price differential makes Hiroshima attractive for foreign investors seeking Japanese market exposure without Tokyo's premium costs.
What are the classic mistakes and pitfalls foreigners often face when buying or owning property in Japan, and how can I avoid them?
The most common mistake is purchasing property without proper due diligence and physical inspection.
Many foreign buyers rely solely on photos and descriptions, missing crucial issues like building condition, earthquake retrofit status, management fee obligations, and neighborhood characteristics. This can lead to unexpected repair costs, poor rental performance, or difficulty reselling.
Another frequent error is underestimating total ownership costs beyond the purchase price. Foreign buyers often overlook agent commissions, registration fees, annual property taxes, management fees, and eventual capital gains taxes, which can significantly impact investment returns.
Many foreigners mistakenly believe property ownership provides residency or visa benefits in Japan. This misconception can lead to immigration complications when ownership doesn't facilitate legal residence.
Language barriers create problems when buyers don't engage bilingual professionals for contract review and legal compliance. Important terms, restrictions, or obligations may be misunderstood without proper translation and explanation.
Prevention strategies include visiting properties in person, hiring experienced bilingual real estate agents and lawyers, requesting comprehensive property inspection reports, confirming all fees upfront, and understanding that property ownership and immigration status are completely separate legal matters in Japan.
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.
Buying property in Hiroshima as a foreigner offers excellent opportunities in Japan's recovering real estate market, with minimal legal restrictions and growing international interest.
Success requires careful planning around financing challenges, understanding the complete cost structure, and engaging qualified local professionals to navigate the legal and cultural aspects of Japanese property ownership.
Sources
- Tokyo Portfolio - Japan Real Estate Market Trends 2025
- Global Property Guide - Japan Residential Real Estate Market Analysis
- Bamboo Routes - Hiroshima Real Estate Trends 2025
- Tokyo Portfolio - Home Mortgage Loans for Foreigners in Japan
- Wise - How to Get a Mortgage in Japan as a Foreigner
- Expatica - Mortgages in Japan 2025
- MailMate - Japan Property Tax Guide for Foreigners
- Global Property Guide - Property Taxes in Japan
- Tokyo Portfolio - Tax Rates in Japan for Foreigners
- E-Housing - Guide to Buying Property in Japan