How to invest in property 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, 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.

Is it actually easy for a foreigner to buy property in Japan compared to western countries?

Japan is significantly easier for foreigners to buy property compared to most Western countries.

Unlike countries such as Australia, New Zealand, or Singapore that impose strict restrictions on foreign property ownership, Japan has virtually no barriers for international buyers. You don't need residency, a visa, or special permits to purchase real estate.

Foreign buyers enjoy the same legal rights as Japanese citizens when it comes to property ownership. You can buy houses, apartments, land, and commercial buildings without nationality-based restrictions. The legal framework treats all buyers equally, regardless of their country of origin.

As of September 2025, Japan remains one of the most open property markets in Asia for foreign investment. The process is straightforward, with established systems in place to support international buyers through licensed real estate agents and judicial scriveners.

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

What types of properties are foreigners allowed to buy and are there any restrictions?

Foreigners can purchase any type of property in Japan without restrictions.

You can buy residential properties including detached houses, apartments (mansions), condominiums, and townhouses. Commercial properties such as office buildings, retail spaces, and mixed-use developments are also available to foreign buyers.

Land purchases are unrestricted, whether for residential or commercial development. You can also acquire entire buildings, parking lots, warehouses, and other real estate assets. Both freehold properties (where you own the land and building) and leasehold properties (where you own the building but lease the land) are accessible to international buyers.

The only practical consideration is that some ultra-premium properties or exclusive developments might have internal screening processes, but these are based on financial qualifications rather than nationality restrictions.

What is the step-by-step process of purchasing property in Japan from start to finish?

Step	Action Required	Timeline
1. Agent Selection	Find licensed real estate broker with foreign client experience	1-2 weeks
2. Property Search	View properties online or in-person, virtual tours available	2-4 weeks
3. Application	Submit letter of intent with preliminary offer	1-3 days
4. Negotiation	Price and terms negotiation through agent	3-7 days
5. Contract & Deposit	Sign purchase contract, pay 5-10% deposit	1-2 days
6. Due Diligence	Property inspection, legal verification, risk assessment	1-2 weeks
7. Documentation	Complete legal paperwork with judicial scrivener	3-5 days
8. Final Payment	Transfer remaining funds, receive property keys	1 day

What documents are mandatory and which ones are optional during the transaction?

Several documents are mandatory for foreign property buyers in Japan.

You must provide a passport copy with your signature for identity verification. If purchasing remotely, a notarized affidavit or Power of Attorney is required to authorize your representative in Japan. Documentation showing the source of funds may be requested, particularly for large transactions.

Residents of Japan need to present their residence card or valid visa. If you're obtaining a mortgage, a stamp certificate (inkan shomeisho) becomes mandatory for loan processing.

Optional documents include a registered seal (jitsuin) for formal transactions, additional proof of income or tax status for financing applications, and supplemental identification if requested by specific agents or banks. Having these optional documents readily available can expedite the process.

Can you buy property in Japan without physically being in the country?

Yes, you can complete the entire property purchase process from abroad without visiting Japan.

Remote purchasing requires establishing Power of Attorney with a trusted representative in Japan, typically your real estate agent or legal advisor. All necessary documents can be notarized in your home country and submitted electronically or by mail.

Many Japanese real estate agencies now specialize in serving international clients and offer comprehensive remote support services. They handle property viewings through virtual tours, coordinate inspections, manage paperwork, and facilitate the closing process on your behalf.

The key is working with experienced agents who understand the remote buying process and can serve as your local contact throughout the transaction. Digital communication tools make it possible to stay closely involved in every decision while remaining overseas.

Are Japanese 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 standards.

The Japanese real estate industry operates under rigorous regulations, with agents required to maintain licenses and adhere to ethical guidelines. Most agents pride themselves on transparency and thorough service, making them trustworthy partners for foreign buyers.

To choose the right agent, look for brokers who specialize in serving foreign clients and have proven experience with international transactions. Verify their license status and check reviews from previous foreign buyers. Agents who offer multilingual support and understand cross-border banking procedures are particularly valuable.

Established agencies with English-speaking staff and transparent fee structures should be your priority. Ask about their track record with remote buyers if you're purchasing from overseas, and ensure they can provide references from satisfied international clients.

Will the legal system in Japan fully protect a foreign buyer and how does it work?

Japan's legal system provides full protection for foreign property buyers with the same rights as Japanese citizens.

Foreign buyers are protected under Japanese property law, which recognizes freehold ownership and provides clear title registration systems. Judicial scriveners (legal specialists) handle property transfers and ensure all legal requirements are met during transactions.

The property registration system is comprehensive and transparent, with all ownership details recorded in official registries. Licensed real estate brokers are legally bound to disclose property information accurately and protect buyer interests throughout the process.

Legal recourse is available through Japanese courts if disputes arise, with foreign buyers having the same standing as domestic purchasers. However, using licensed professionals and conducting proper due diligence remains essential to avoid potential issues with unlicensed intermediaries or incomplete documentation.

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

What are the common mistakes and pitfalls foreigners usually make when buying property in Japan?

1. **Ignoring earthquake and flood risk assessments** - Japan's seismic activity requires careful evaluation of natural disaster risks for any property location2. **Underestimating building depreciation** - Japanese buildings typically lose value over time, unlike many Western markets where properties appreciate3. **Securing financing before eligibility verification** - Many buyers assume they can get mortgages without confirming their qualification status with Japanese banks4. **Using unlicensed or inexperienced agents** - Working with brokers who lack proper credentials or foreign client experience leads to complications5. **Failing to understand zoning regulations** - Not researching property use restrictions or future development plans in the area6. **Overlooking total transaction costs** - Underestimating closing costs, taxes, and ongoing expenses beyond the purchase price7. **Skipping comprehensive property inspections** - Not thoroughly checking building condition, age, and maintenance requirements before purchase

What precautions should you take before signing any contract or transferring money?

Conduct thorough due diligence before making any financial commitments in Japan.

Hire a qualified building inspector to assess the property's structural condition, earthquake resistance, and potential repair needs. Verify all property details including boundaries, permits, zoning status, and any outstanding liens or legal issues through proper legal channels.

Use only licensed professionals including certified real estate brokers and judicial scriveners for all transaction handling. Verify their credentials and ensure they have experience with foreign buyers. Never transfer funds directly to sellers or unlicensed intermediaries.

Review all contracts thoroughly, preferably with professional translation if needed. Understand the terms, conditions, and any penalty clauses. Confirm financing arrangements are finalized before signing, and ensure all funds are held in proper escrow accounts until closing 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.

How long does the whole buying process usually take?

The complete property buying process in Japan typically takes 4-8 weeks from initial offer to closing.

Property search and selection can vary significantly based on your requirements, taking anywhere from a few days to several months. Once you've identified a property and made an offer, the formal process moves relatively quickly with Japanese efficiency.

Contract signing and deposit payment usually occur within 3-7 days of offer acceptance. Due diligence, including property inspections and legal verification, requires 1-2 weeks. Final documentation and registration with the judicial scrivener takes another 3-5 days.

Cash purchases generally proceed faster than financed purchases, as mortgage approvals can add 2-3 weeks to the timeline. Remote purchases might take slightly longer due to international document processing and notarization requirements.

What taxes, fees, and hidden costs should you expect in detail, from purchase to ongoing ownership?

Cost Type	Amount	When Paid
Real Estate Agent Fee	3% + ¥60,000 + consumption tax	At closing
Stamp Duty	0.4% - 4% of purchase price	At contract signing
Registration Fee	~0.4% of purchase price	At closing
Judicial Scrivener Fee	¥100,000 - ¥150,000+	At closing
Real Estate Acquisition Tax	3% - 4% of assessed value	3-6 months after purchase
Annual Property Tax	1.4% of assessed value	Quarterly payments
City Planning Tax	0.3% of assessed value	Annual payment

Is it possible to pay cash, and if you want a mortgage, do Japanese banks actually lend to foreigners, under what rates and conditions, and what tips improve your chances?

Cash payments are widely accepted and often preferred by sellers in Japan.

Japanese banks do lend to foreigners, but requirements vary significantly between residents and non-residents. Permanent residents and long-term visa holders typically qualify for rates between 1-2.5%, while non-residents face higher rates and stricter requirements.

Banks prefer borrowers with Japanese income sources, local bank accounts, and established credit history. Non-residents usually need larger down payments (30-40%) and may face loan-to-value restrictions. Documentation requirements are extensive, including income verification, tax returns, and employment confirmation.

To improve approval chances, establish relationships with multiple banks, consider using mortgage brokers specializing in foreign clients, maintain substantial cash reserves, and provide comprehensive financial documentation. Some foreign-friendly banks include SMBC Prestia, Shinsei Bank, and certain regional institutions with international experience.

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

Does buying property in Japan provide any path to residency or citizenship?

Property ownership in Japan does not provide any direct path to residency or citizenship.

Japanese immigration policy completely separates real estate ownership from visa or residency status. Owning property, regardless of value or quantity, does not qualify you for any type of residence permit or fast-track citizenship process.

Residency in Japan requires meeting specific visa categories such as work visas, spouse visas, investor visas, or other immigration pathways. The investor visa program requires active business operations and job creation, not passive real estate investment.

While property ownership doesn't grant residency rights, it can support certain visa applications by demonstrating financial stability and ties to Japan. However, the property itself is not the qualifying factor for immigration status.

Where do foreigners most often buy property in Japan and why?

Foreign buyers concentrate heavily in central Tokyo districts, particularly Minato, Shibuya, and Chiyoda wards.

These premium Tokyo locations attract international buyers due to strong rental yields, proximity to international businesses, excellent transportation links, and established expat communities. Properties in these areas maintain stable values and offer easier resale opportunities.

Osaka ranks as the second most popular destination for foreign investment, offering lower entry prices than Tokyo while maintaining strong rental demand and economic growth prospects. Kyoto attracts buyers interested in cultural significance and tourism-related rental income.

Hokkaido, particularly Niseko, draws foreign buyers focused on vacation properties and winter sports tourism. Okinawa appeals to buyers seeking resort-style properties and retirement destinations. These locations offer lifestyle benefits alongside investment potential, making them attractive for both personal use and rental income generation.

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. E-Housing Japan Guide to Buying Property
2. Black Ship Realty - Foreign Property Ownership Guide
3. Real Estate Japan - Foreign Ownership Restrictions
4. Old Houses Japan - Buying Process Differences
5. Dovetail Japan - Foreign Buyer Step-by-Step Guide
6. Land Housing - Foreign Investment Information
7. Real Estate Tokyo - Foreign Property Purchase
8. Shiki Real Estate - Foreign Buyer Guide