How to buy a house in Tokyo?

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

Yes, the analysis of Tokyo's property market is included in our 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 Tokyo. 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.

How easy is it for a foreigner to buy a house in Tokyo compared to Western countries?

Buying property in Tokyo as a foreigner is significantly easier than in most Western countries and many Asian nations.

Japan has one of the world's most open property markets for foreign buyers. Unlike countries like Singapore, Thailand, or New Zealand that restrict foreign ownership, Japan allows foreigners to purchase any type of real estate on exactly the same terms as Japanese citizens. You don't need residency, a visa, or even to be physically present in the country to complete a purchase.

The process is more straightforward than buying property in countries like Australia (which has foreign buyer taxes and approval processes), Canada (with its foreign buyer taxes in major cities), or the UK (with its complex stamp duty system for overseas buyers). In Tokyo, there are no additional taxes, fees, or approval processes specifically targeting foreign buyers.

The legal system is transparent, well-regulated, and protects foreign buyers with the same rights as domestic purchasers. Most real estate agents are licensed professionals, and the transaction process follows standardized procedures that are generally more streamlined than many Western markets.

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

What types of properties can foreigners legally buy, and are there any restrictions?

Foreigners can purchase virtually any type of property in Tokyo without restrictions, including freehold land, houses, apartments, and commercial buildings.

The property types available to foreign buyers include residential houses (detached homes), condominiums and apartments (both new and resale), vacant land for development, commercial buildings and retail spaces, and mixed-use properties combining residential and commercial elements. Both freehold (permanent ownership) and leasehold arrangements are available, giving buyers full flexibility in their investment choices.

The only restrictions that exist apply equally to Japanese citizens and foreigners. These limited exceptions include certain agricultural land (which requires local government approval), forestry properties in protected areas, land near military installations, and properties designated as cultural heritage sites. These restrictions are rare and typically don't affect standard residential or commercial property purchases in Tokyo's urban areas.

As of September 2025, there are no ownership caps, no quotas limiting the number of properties a foreigner can buy, and no requirements for minimum investment amounts. Foreign buyers can also purchase properties through Japanese corporations they establish, providing additional structuring options for larger investments.

Can buying property in Tokyo lead to residency or citizenship, or is it completely separate?

Property ownership in Tokyo is completely separate from residency, visa status, or citizenship pathways in Japan.

Buying real estate does not grant you the right to live in Japan, obtain a visa, or apply for permanent residency or citizenship. This is fundamentally different from some countries that offer "golden visa" programs tied to property investment. Japan maintains strict separation between property ownership rights and immigration status.

Foreign property owners can visit their properties using tourist visas (typically allowing 90-day stays), but cannot legally reside in Japan long-term without obtaining an appropriate visa through other means. Common visa categories for long-term residence include work visas, spouse visas, investor/business manager visas (which require active business operations, not just property ownership), and student visas.

Property ownership can be maintained indefinitely regardless of visa status, meaning you can own Tokyo real estate while living abroad and only visiting periodically. Many foreign buyers purchase properties as investments or vacation homes while maintaining their primary residence in other countries.

What are the exact steps in the buying process from start to finish?

Step	Action Required	Typical Timeframe
1. Property Search	Use agents or online platforms to identify properties	1-4 weeks
2. Submit Offer	Letter of intent with basic terms and small deposit	1-3 days
3. Due Diligence	Title verification, property inspection, document review	1-2 weeks
4. Sales Agreement	Sign formal contract, pay 5-10% deposit	1 day
5. Financing Arrangement	Secure funding (cash or mortgage approval)	2-4 weeks
6. Final Settlement	Complete payment, transfer ownership, register at Legal Affairs Bureau	1 day
7. Registration	Official ownership registration and title transfer	1-2 weeks

What documents do you need to prepare, and which ones are mandatory versus optional?

The document requirements vary depending on your residency status and whether you're paying cash or seeking financing.

Mandatory documents for all foreign buyers include a valid passport for identity verification, proof of funds showing the source of payment (bank statements, investment account statements, or wire transfer confirmations), and a notarized affidavit for non-residents to verify identity and address. If you're a resident of Japan, you'll also need your residence card (zairyu card) and juminhyo (resident register certificate).

For mortgage applicants, additional mandatory documents include a registered personal seal (inkan/hanko) and official seal certificate, proof of income (tax returns, salary statements, employment verification), and a Japanese bank account with transaction history. International banks may require additional documentation specific to their lending requirements.

Optional but recommended documents include power of attorney if using a representative to act on your behalf, certified translations of all documents into Japanese or English (depending on your agent's capabilities), and property insurance applications. Having these documents prepared in advance significantly speeds up the transaction process.

Can you complete the whole process without physically being in Japan?

Yes, you can complete the entire property purchase process remotely, though being present for the final closing is recommended.

Remote purchases are facilitated through a power of attorney system that allows you to authorize a representative (typically your real estate agent, lawyer, or trusted contact in Japan) to act on your behalf. This representative can sign documents, transfer funds, and complete the registration process at the Legal Affairs Bureau.

The power of attorney document must be properly notarized in your home country and, in many cases, authenticated by the Japanese consulate. Your representative will handle property inspections, document verification, and attend all meetings with sellers, agents, and government offices on your behalf.

While entirely remote purchases are possible, attending the final settlement meeting in person provides additional security and allows you to inspect the property one final time before completing the purchase. Many buyers choose to handle the initial stages remotely and then travel to Japan for the final closing and property handover.

Are real estate agents generally reliable, and how do you choose a good one?

Japanese real estate agents are generally highly reliable due to strict licensing requirements and professional regulations, but their experience with foreign buyers varies significantly.

Japan's real estate industry is heavily regulated, with agents required to obtain official licenses and follow standardized procedures. Most agents are trustworthy and professional, but language barriers and unfamiliarity with foreign buyer needs can create challenges. The key is finding agents who specialize in working with international clients.

When choosing an agent, prioritize those with demonstrated experience serving foreign buyers, verified language capabilities in your preferred language, proper licensing from the Japan Real Estate Association, and positive references from other international clients. Look for agents who can provide translated documents, explain Japanese legal procedures clearly, and have established relationships with English-speaking lawyers and mortgage brokers.

Professional international real estate companies operating in Tokyo often provide the most comprehensive service for foreign buyers, including multilingual staff, legal support, and post-purchase property management services. Avoid agents who cannot provide references, don't speak your language adequately, or seem unfamiliar with the specific requirements for foreign transactions.

Does the Japanese legal system protect foreign buyers, and what legal precautions should you take?

The Japanese legal system provides the same protections to foreign buyers as it does to Japanese citizens, with strong property rights and transparent legal procedures.

Foreign buyers enjoy full legal protection under Japanese property law, including clear title guarantees, standardized contract procedures, and access to the court system for dispute resolution. The Legal Affairs Bureau maintains comprehensive property records that are publicly accessible, ensuring transparency in ownership and transaction history.

Essential legal precautions include conducting thorough title verification to ensure clear ownership and no liens or disputes, having all contracts professionally translated before signing, using a qualified judicial scrivener (shiho-shoshi) for legal document preparation and registration, and obtaining independent property inspections, especially for older buildings or vacant properties (akiya).

Consider engaging a lawyer experienced in international real estate transactions for complex purchases, particularly for commercial properties or when establishing corporate ownership structures. While not mandatory for straightforward residential purchases, legal counsel provides additional security and ensures compliance with all Japanese regulations.

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

What are the typical mistakes foreigners make when buying property in Tokyo, and how can you avoid them?

The most common mistakes foreign buyers make stem from misunderstanding Japanese property market dynamics and legal requirements.

The biggest mistake is assuming property ownership grants residency rights. Many buyers purchase properties thinking they can then live in Japan long-term, only to discover that property ownership is completely separate from visa requirements. Always secure appropriate visa status before relying on property for accommodation.

Another major error is underestimating property depreciation in Japan. Unlike Western markets where buildings often appreciate over time, Japanese buildings typically depreciate significantly, with wooden structures losing most of their value within 20-30 years. Land values are more stable, but building values decline predictably.

Buyers frequently overlook the importance of location research, purchasing properties in areas without understanding local amenities, transportation access, or neighborhood characteristics. Language barriers lead to incomplete due diligence, with buyers not fully understanding contract terms, building management rules, or ongoing maintenance obligations.

Cost miscalculation is also common, with buyers focusing only on purchase price while underestimating total transaction costs (6-10% additional), annual property taxes, and ongoing maintenance fees for condominiums.

How long does the process usually take from choosing a property to owning it?

The complete process typically takes 1-3 months from property selection to final ownership registration, depending on financing requirements and transaction complexity.

For cash purchases with straightforward due diligence, the process can be completed in as little as 3-4 weeks. This includes 1 week for offer acceptance and initial documentation, 1-2 weeks for due diligence and contract preparation, and 1 week for final settlement and registration.

Mortgage financing adds 2-4 weeks to the timeline, as lenders require additional documentation review, property appraisals, and loan approval processes. Foreign buyers seeking mortgages should expect longer processing times due to additional verification requirements.

Complex transactions involving older properties, multiple owners, or corporate structures may take 2-3 months or longer. Factors that can extend the timeline include incomplete property documentation requiring correction, complicated ownership histories needing resolution, seasonal delays during Japanese holidays (Golden Week, Obon, New Year), and international money transfer processing time.

Starting the process during Japanese business seasons (avoiding major holiday periods) and having all documentation prepared in advance significantly reduces transaction time.

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 all the taxes, fees, and hidden costs involved, with a full breakdown?

Cost Category	Amount/Rate	When Paid
Real Estate Agent Commission	3% + ¥60,000 + 10% consumption tax	At closing
Registration/License Tax	0.15-2% of property value	At registration
Judicial Scrivener Fees	¥50,000-¥100,000	At closing
Property Acquisition Tax	3-4% of assessed value	3-6 months after purchase
Stamp Duty	¥1,000-¥60,000 (based on price)	At contract signing
Annual Property Tax	1.4% of assessed value	Annually in 4 installments
Fire Insurance	¥10,000-¥50,000 annually	Before closing

Is it common to buy in cash, and if you need a mortgage as a foreigner, what are the real conditions, rates, and tips to get approved?

Most foreign buyers purchase Tokyo property with cash due to significant mortgage restrictions and requirements for non-residents.

Cash purchases represent approximately 70-80% of foreign property transactions in Tokyo. This preference stems from mortgage qualification difficulties, faster transaction times, and stronger negotiating positions with sellers. Cash buyers can complete purchases within 3-4 weeks and avoid complex loan documentation requirements.

For foreigners seeking mortgages, permanent residents and long-term visa holders have the best access to financing. Mortgage conditions typically require 20-35% down payment (compared to 10-20% for Japanese citizens), stable employment in Japan for at least 2-3 years, Japanese bank account with established credit history, and annual income of at least ¥4-5 million.

Interest rates for qualified foreign borrowers range from 1-2.5% for fixed-rate mortgages and 0.5-1.5% for variable rates as of September 2025. International banks like SMBC Prestia, Mizuho, and Citibank Japan offer more flexible programs for foreigners, though rates may be slightly higher than domestic lenders.

Tips for mortgage approval include building Japanese credit history through consistent use of Japanese credit cards and bank accounts, maintaining employment stability with the same company, using bilingual mortgage brokers familiar with foreign applications, and considering guarantor companies (hosho-gaisha) that can substitute for personal guarantors.

Where do foreigners usually buy in Tokyo, and why are those areas popular?

Foreign buyers typically concentrate in specific Tokyo districts that offer international amenities, transportation access, and established expatriate communities.

1. **Minato District**: Most popular for luxury purchases due to embassy locations, international schools, and high-end shopping. Areas like Roppongi, Azabu, and Akasaka offer extensive English-language services and established foreign communities.2. **Shibuya and Shinjuku**: Attract younger foreign investors seeking central locations with excellent transportation links, vibrant nightlife, and strong rental demand from both Japanese and international tenants.3. **Meguro and Setagaya**: Preferred by families for residential character, green spaces, international schools, and more affordable housing options while maintaining good access to central Tokyo.4. **Chiyoda and Chuo**: Business district locations offering prestigious addresses, proximity to major corporations, and strong investment potential due to limited residential supply.5. **Taito (Asakusa) and Sumida**: Growing popularity among budget-conscious investors seeking traditional Tokyo character, emerging neighborhoods, and higher rental yields at lower entry prices.

These areas attract foreign buyers because they offer established international infrastructure including English-speaking services, international schools and hospitals, Western-style amenities and restaurants, efficient transportation to major business districts, and strong rental demand from the expatriate community.

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. Wise - How to Buy a House in Japan
2. Juwai Asia - Property Investment Guide Japan
3. Real Estate Tokyo - Foreign Property Ownership
4. Land Housing - Foreign Property Purchase Guide
5. BlackShip Realty - Foreign Property Rights Japan
6. Housing Japan - Expat Property Guide
7. Mailmate - Property Ownership and Residency
8. Wise - Complete Property Buying Guide Japan