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
Investing in property in Hiroshima offers foreigners a unique opportunity in the Japanese real estate market with fewer legal barriers than many Western countries.
The process demands attention to documentation, local conventions, and market characteristics that differ significantly from Western property markets, particularly regarding property depreciation and language requirements.
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 Hiroshima with the same rights as Japanese nationals, requiring no residency or nationality restrictions.
The entire process typically takes 6-12 weeks after property selection, with total costs ranging 5-10% of the purchase price in additional fees and taxes.
| Aspect | Key Information | Timeframe/Cost |
|---|---|---|
| Legal Requirements | No nationality restrictions for property ownership | Same rights as Japanese nationals |
| Documentation | Valid passport, proof of income, banking information | Power of Attorney for remote purchases |
| Process Duration | Property search to closing completion | 6-12 weeks after property selection |
| Agent Commission | 3% of purchase price + ¥60,000 + consumption tax | Paid at closing |
| Acquisition Tax | 3-4% of assessed property value | Paid within 6 months of purchase |
| Total Additional Costs | Registration, taxes, legal fees, inspections | 5-10% of purchase price |
| Financing Options | Cash preferred, mortgages available for residents | Interest rates typically below 2% |
How easy is it to invest in property in Hiroshima compared to Western countries?
Buying real estate in Hiroshima is often easier for foreigners than in most Western countries because Japan has no nationality or residency restrictions for property ownership.
Foreigners have exactly the same property rights as Japanese nationals, which means you can buy, own, and sell property without any legal limitations based on your citizenship status. This contrasts with countries like Australia, New Zealand, or Singapore where foreigners face significant restrictions or additional taxes.
However, the Hiroshima property market operates differently from Western markets in several key ways. Property values in Japan typically depreciate over time rather than appreciate, unlike in many Western countries where real estate is viewed as a long-term investment that gains value. All contracts and legal processes are conducted in Japanese, which requires either language skills or professional translation services.
The bureaucratic process is generally more streamlined than in many European countries, with fewer layers of approval and faster completion times once you begin the purchase process.
As of September 2025, the main advantage for foreign investors is the absence of discriminatory laws, making Hiroshima property investment more accessible than many Western alternatives.
What's the step-by-step process for buying property in Hiroshima?
The property buying process in Hiroshima follows a structured nine-step approach that typically takes 6-12 weeks to complete.
First, begin with research and property search either online through Japanese real estate portals or by working with local agents to clarify your budget and preferred locations. Second, partner with a trusted real estate broker, preferably one with bilingual capabilities and experience working with foreign clients.
Third, visit the property if possible, though remote purchases are feasible through proper legal representation. Fourth, submit a Letter of Intent (LOI) to express serious interest in purchasing. Fifth, engage in price negotiation with the seller through your agent.
Sixth, sign the formal purchase agreement once terms are agreed upon. Seventh, prepare and transfer the required funds, often through international wire transfer for foreign buyers. Eighth, complete the settlement and title transfer process with a judicial scrivener who handles the legal documentation.
Ninth and finally, complete the property handover and registration process where you officially become the owner and receive all keys and relevant documentation.
What documents do you need to complete the purchase?
| Document Type | Purpose | Notes |
|---|---|---|
| Valid Passport | Identity verification and legal capacity | Must be current and valid throughout process |
| Proof of Income | Financial capability verification | Tax returns, payslips, employment letter |
| Banking Information | Fund source verification and transfer details | Bank statements and account details |
| Power of Attorney | Legal representation for remote purchases | Must be notarized if buying remotely |
| Residence Card/Visa | Legal status in Japan (if applicable) | Required only if residing in Japan |
| Tax Identification Number | Tax reporting compliance | May be required depending on circumstances |
| Draft Purchase Agreement | Legal framework for transaction | Prepared by legal representatives |
Can you buy property in Hiroshima without being physically present in the country?
Yes, purchasing property in Hiroshima without visiting Japan is entirely possible through proper legal representation and documentation.
The key requirement is assigning Power of Attorney to a trusted legal proxy, typically a judicial scrivener or attorney who can represent your interests throughout the transaction. This legal representative can handle all paperwork, attend meetings, sign documents, and complete the settlement process on your behalf.
All necessary documentation can be prepared, reviewed, and executed remotely through digital communication and international courier services. Property inspections can be conducted through video calls, detailed photographic documentation, or by hiring local inspection services to provide comprehensive reports.
Fund transfers can be completed through international wire transfers directly to the seller's account or held in escrow until completion. The Power of Attorney document must be properly notarized in your home country and may require apostille certification depending on your nationality.
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What are the common mistakes and pitfalls that foreigners make when buying property in Japan?
Foreign property buyers in Japan frequently make five critical mistakes that can result in significant financial losses or legal complications.
1. **Not hiring bilingual professionals**: Many foreigners attempt to navigate the process without proper language support, leading to misunderstandings in contracts, legal obligations, and property conditions.2. **Misunderstanding property types and contract terms**: Confusion between freehold (ownership of land and building) versus leasehold arrangements, or misinterpreting maintenance responsibilities and building rules.3. **Overlooking location-specific risks**: In Hiroshima specifically, failing to research landslide risks, flood zones, or areas prone to natural disasters that could affect property value and insurance costs.4. **Skipping professional building inspections**: Assuming that older Japanese properties are automatically in good condition without thorough structural, electrical, and plumbing assessments.5. **Underestimating ongoing costs and currency risks**: Not accounting for annual property taxes, building maintenance fees, management costs, and the impact of currency fluctuations on international investors.These mistakes can be avoided through proper due diligence, professional guidance, and comprehensive market research before committing to any purchase.
Are real estate agents in Hiroshima reliable?
Real estate agents in Hiroshima are generally reliable, especially those with experience serving foreign clients and offering English-language support.
Japan has a well-regulated real estate industry with licensed professionals who must adhere to strict ethical standards and legal requirements. Most reputable agencies in Hiroshima have experience working with international buyers and understand the unique needs of foreign investors.
However, vetting is essential before selecting an agent. Look for agencies that offer bilingual services, have positive client reviews, and possess proper licensing from the Japanese Real Estate Transaction Association. Agents should be transparent about their commission structure, which typically follows the standard 3% of purchase price plus ¥60,000 plus consumption tax.
The most reliable agents will provide comprehensive market analysis, assist with legal documentation, coordinate with judicial scriveners, and offer post-purchase support for property management or rental services.
As of September 2025, several established agencies in Hiroshima specialize in serving foreign clients and have built strong reputations through successful transactions and ongoing client relationships.
Will the legal system in Japan protect you as an investor?
Japan's legal system provides robust protection for property investors through well-established civil law and strong enforcement mechanisms.
The Japanese Civil Code includes comprehensive buyer protection provisions, requiring sellers to disclose known defects and holding them liable for undisclosed problems that emerge after purchase. Property rights are clearly defined and strongly enforced by Japanese courts, with foreign owners enjoying the same legal protections as Japanese nationals.
The judicial scrivener system provides an additional layer of protection by ensuring all property transfers are properly documented and registered with government authorities. Title insurance concepts exist through the government registration system, which provides clear ownership records and prevents fraudulent transfers.
Contract disputes can be resolved through Japan's efficient civil court system, mediation services, or arbitration processes. The legal framework is particularly strong in protecting property ownership rights and enforcing contractual obligations between buyers and sellers.
Foreign investors can pursue legal remedies through the same channels available to Japanese citizens, with no discrimination based on nationality in property-related legal matters.
What precautions should you take before buying property?
Before purchasing property in Hiroshima, you must take several essential precautions to protect your investment and avoid costly mistakes.
First, obtain certified property appraisals from licensed Japanese appraisers to ensure you're paying fair market value and understand the property's true worth. Second, conduct comprehensive building inspections covering structural integrity, electrical systems, plumbing, and potential earthquake damage or vulnerability.
Third, confirm exact property boundaries through official surveys, as boundary disputes can be expensive and time-consuming to resolve. Fourth, assess natural disaster risks specific to Hiroshima, including landslide potential, flood zones, and earthquake vulnerability, which can affect insurance costs and resale value.
Fifth, ensure all contracts and important documents are professionally translated into your language by certified translators. Sixth, thoroughly vet your chosen agents, lawyers, and judicial scriveners for proper licensing, experience with foreign clients, and positive track records.
Finally, verify that the property has clear title, no outstanding liens or debts, and complies with all local building codes and zoning regulations.
How long does the entire property-buying process take?
| Phase | Duration | Key Activities |
|---|---|---|
| Property Search | Variable (weeks to months) | Research, viewing, market analysis |
| Offer to Contract | 1 week | LOI, negotiations, agreement terms |
| Due Diligence | 2-3 weeks | Inspections, legal review, documentation |
| Financing/Fund Preparation | 1-2 weeks | International transfers, mortgage approval |
| Legal Documentation | 1-2 weeks | Contract preparation, translations, approvals |
| Settlement/Closing | 1 week | Title transfer, fund exchange, registration |
| Total Timeline | 6-12 weeks | From property selection to completion |
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 costs associated with buying property in Hiroshima?
Property purchase costs in Hiroshima typically total 5-10% of the purchase price in additional fees beyond the property cost itself.
The real estate agent commission is standardized at 3% of the purchase price plus ¥60,000 plus consumption tax (currently 10%). Acquisition tax ranges from 3-4% of the assessed property value, which is usually lower than the actual purchase price, and must be paid within six months of purchase.
Registration and title transfer fees vary based on property value but typically cost several hundred thousand yen. Judicial scrivener fees for handling legal documentation range from ¥100,000 to ¥300,000 depending on transaction complexity.
Annual property taxes begin the year after purchase, calculated on assessed value and varying by location within Hiroshima. Additional costs include building inspections (¥50,000-¥150,000), property appraisals, translation services for contracts, and international wire transfer fees for foreign buyers.
It's something we develop in our Japan property pack.
Can you buy property with cash, or is financing necessary?
Cash purchases are not only permitted but often preferred in the Hiroshima property market, with no requirement for financing to complete transactions.
Foreign buyers frequently use cash purchases funded through international wire transfers, which simplifies the process and eliminates mortgage-related delays or complications. Cash transactions typically close faster and may provide negotiating advantages with sellers who prefer certainty of payment.
Japanese banks and financial institutions generally handle international wire transfers efficiently, though you should expect transfer fees and currency conversion costs. Large cash purchases may require additional documentation to comply with anti-money laundering regulations in both your home country and Japan.
For investors, cash purchases eliminate interest costs, monthly payment obligations, and the need to qualify for Japanese mortgage lending requirements, which can be restrictive for non-residents.
The property registration process proceeds identically whether you pay cash or use financing, with the same legal protections and ownership rights regardless of payment method.
Is it possible for foreigners to get a mortgage in Japan, and what are the rates and conditions?
Foreigners can obtain mortgages from Japanese banks, but qualification requirements are significantly more restrictive than for Japanese nationals.
Major Japanese banks including SMBC, Mizuho, and MUFG offer mortgage products to qualified foreign applicants. Interest rates are typically very competitive, often below 2% annually as of September 2025, which is lower than many Western countries.
However, qualification requirements are stringent: you must demonstrate stable employment in Japan, sufficient Japanese language ability to understand loan documents, and often require a Japanese guarantor. Non-residents face additional restrictions and higher interest rates, with some banks requiring permanent residency status.
Loan-to-value ratios for foreigners are often limited to 70-80% of property value, requiring substantial down payments. Loan terms typically range from 15-35 years, with variable or fixed rate options available depending on the lender.
The mortgage application process requires extensive documentation, including income verification, employment contracts, tax records, and detailed property information, with approval times often extending 4-6 weeks.
What are the restrictions on property ownership for foreigners in Hiroshima?
Foreign property ownership in Hiroshima faces virtually no legal restrictions, with the same ownership rights as Japanese nationals.
The only exceptions involve properties in designated national security areas, which are extremely rare and typically involve sensitive military or government installations that would be unlikely investment targets anyway. Most residential and commercial properties in Hiroshima are freely available to foreign buyers without nationality-based limitations.
Foreign purchasers must complete post-purchase reporting to the Bank of Japan if the property is acquired for profit-making purposes, but this is a simple administrative requirement rather than a restriction. The reporting involves basic information about the transaction and intended use of the property.
Property ownership includes both land and building rights, meaning foreign owners have full control over their properties including renovation, rental, and sale decisions. There are no requirements for local partnerships, nominee arrangements, or holding companies to facilitate foreign ownership.
It's something we develop in our Japan property pack.
Is there a path to residency or citizenship if you invest in property in Japan?
Property investment in Japan does not provide any direct path to residency or citizenship, as no property investment visa program exists.
Unlike some countries that offer residence permits in exchange for real estate investment, Japan maintains completely separate systems for property ownership and immigration status. Buying property worth millions of yen will not qualify you for any type of visa or residence permit.
Japanese residency requires separate visa applications through established categories such as work visas, spouse visas, investor/business manager visas (which require active business operations, not passive property investment), or other qualified statuses. These visas have their own specific requirements unrelated to property ownership.
Japanese citizenship has even stricter requirements including long-term residency, language proficiency, financial stability, and renunciation of other citizenships, with no special provisions for property investors.
Foreign property owners can visit Japan as tourists or temporary visitors but must comply with standard immigration rules regardless of their property investments.
Where do foreigners typically buy property in Japan?
Foreign property investors in Japan gravitate toward major cities and specific regions that offer the best combination of yield potential, property management ease, and cultural familiarity.
Outside Tokyo, the most popular destinations include Osaka for its strong rental market and business center status, Kyoto for tourism-related investment properties and cultural appeal, Fukuoka for emerging market potential and younger demographics, and Hokkaido, particularly Niseko, for ski resort and vacation rental opportunities.
Hiroshima attracts foreign investors specifically for its moderate property prices compared to Tokyo or Osaka, reliable rental yields from local demand, and established property management infrastructure that can handle foreign-owned properties efficiently.
The city offers good value propositions for both residential rental properties and small commercial investments, with lower entry costs than major metropolitan areas while maintaining steady local demand from Hiroshima's stable economy and population base.
Foreign buyers often prefer areas near transportation hubs, universities, or business districts within Hiroshima, as these locations provide more predictable rental income and easier property management.
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.
Foreign investors can successfully purchase property in Hiroshima with proper preparation and professional guidance.
The key to success lies in understanding Japanese market characteristics, working with experienced bilingual professionals, and taking comprehensive precautions throughout the process.
Sources
- Dovetail - How to Buy a Home in Japan as a Foreigner
- Old Houses Japan - How to Invest in Japanese Real Estate
- Japan Property - Guide to Buying Properties
- RE/MAX L-Style - Remote Contract Signing and Closing
- Akiya Hub - Do I Need to Be in Japan to Buy a House
- Cheap Houses Japan - Buying a House in Japan Advice
- Wagaya Japan - Property Purchase Guide
- Shiki Real Estate - Step-by-Step Guide
- JP Homes - Top Mistakes Foreigners Make
- DLA Piper - Japan Real Estate Ownership