How to invest in property in Kyoto?

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

Yes, the analysis of Kyoto'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 Kyoto. 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 Kyoto, Tokyo, and Osaka. 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 Kyoto compared to Western countries?

Buying property in Kyoto as a foreigner is remarkably straightforward compared to most Western and Asian markets.

Japan imposes absolutely no restrictions on foreign ownership of residential property or land, creating complete equality between Japanese citizens and international buyers. You don't need citizenship, residency, or even a specific visa to purchase real estate in Kyoto.

This openness contrasts sharply with countries like Singapore (where foreigners face significant restrictions), Australia (with foreign buyer taxes), or Thailand (where land ownership is prohibited for non-citizens). In Kyoto, you can buy freehold property with the same rights as any Japanese citizen.

The process is also highly digitized and can be completed entirely remotely, making it more accessible than many Western markets that require physical presence for closing procedures.

As of September 2025, Kyoto remains one of the most foreigner-friendly property markets globally.

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

Foreigners can purchase virtually any type of residential property in Kyoto without restrictions.

Property Type	Foreign Ownership	Special Considerations
Freehold Houses	Fully allowed	Complete ownership of land and building
Apartments/Condos	Fully allowed	Modern units popular with foreign investors
Traditional Machiya	Fully allowed	Historic townhouses requiring renovation consideration
Land Plots	Fully allowed	Can build custom properties
Entire Buildings	Fully allowed	Investment properties with multiple units
Agricultural Land	Restricted	Requires special regulatory approval
Commercial Properties	Fully allowed	May require business registration for operation

Do you need to be physically in Japan to complete the purchase, or can it be done remotely?

Physical presence in Japan is not required for property purchases in Kyoto.

The entire process, from property selection to contract signing and ownership transfer, can be completed remotely using digital tools and powers of attorney. Virtual property tours are standard practice among Kyoto real estate agents serving international clients.

You can sign contracts digitally, transfer funds internationally, and have a licensed judicial scrivener handle the title registration on your behalf. This remote capability makes Kyoto property investment accessible to international buyers who cannot travel to Japan.

Many successful property purchases in Kyoto are completed entirely online, with buyers receiving keys and ownership documents by mail or through local property management companies.

What's the exact step-by-step process from finding a property to owning it?

The Kyoto property purchase process follows eight clear steps from search to ownership.

1. **Property Search Phase**: Research properties using online platforms like Japan Property Central, Hachise, and Real Estate Japan, or work with local Kyoto agents who specialize in international transactions.2. **Agent Engagement**: Select a reputable Kyoto-based real estate agency experienced with foreign buyers, ensuring they provide English support and understand international transfer procedures.3. **Letter of Intent Submission**: Submit a formal LOI expressing purchase intent and initial terms, which demonstrates serious interest to sellers and begins price negotiations.4. **Negotiation and Due Diligence**: Negotiate final price and terms while conducting property inspections (virtual or in-person) and legal checks for liens, restrictions, or structural issues.5. **Contract Signing**: Execute the binding Sale and Purchase Agreement, typically prepared by your agent or legal advisor, and pay earnest money deposit of 5-10% of purchase price.6. **Payment Processing**: Complete remaining payment through international wire transfer or agent escrow account if you lack a Japanese bank account, ensuring all funds are properly documented.7. **Title Registration**: Have a licensed judicial scrivener file ownership transfer documents with local authorities, officially registering your name as the property owner.8. **Property Handover**: Receive property keys, ownership certificates, and any relevant building documentation, completing your acquisition of the Kyoto property.

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

Which documents are mandatory, and which ones are optional or situational?

Document requirements for Kyoto property purchases are straightforward but vary based on your residency status.

**Mandatory Documents for All Foreign Buyers:**- Valid passport for identity verification- Proof of funds or financial capability (bank statements, asset documentation)- Signature authentication or personal seal (inkan) for contract execution- Purchase contract and related legal documents prepared by your agent**Additional Requirements for Japan Residents:**- Certificate of Residence (Juminhyo) from your local municipal office- Resident registration card or equivalent documentation**Optional/Situational Documents:**- Power of Attorney if completing purchase remotely through a representative- Tax registration certificate for non-resident buyers (typically handled at settlement)- Additional anti-money laundering compliance documents if required by specific agents or financial institutions- Company registration documents if purchasing through a corporate entity

Most reputable Kyoto agents will provide a complete checklist tailored to your specific situation and residency status.

Can you buy entirely in cash, and is that common practice?

Cash purchases are not only possible but represent the most common method for foreign property buyers in Kyoto.

International wire transfers are the standard payment method, with most transactions completed through bank transfers rather than physical cash. Reputable real estate agents can facilitate secure escrow arrangements if you lack a Japanese bank account, ensuring safe fund transfers.

Cash purchases offer several advantages in the Kyoto market, including faster closing times, stronger negotiating positions with sellers, and elimination of mortgage approval complications. Many sellers prefer cash buyers due to transaction certainty and reduced complexity.

The process typically involves transferring funds to an escrow account controlled by your real estate agent or legal representative, who releases payment upon successful ownership transfer and title registration.

Is mortgage financing available to foreigners, under what conditions, and what are the typical rates and tips to qualify?

Mortgage financing for foreign buyers in Kyoto is extremely limited and primarily available to residents with stable Japanese income.

Buyer Category	Mortgage Availability	Typical Rates
Non-Resident Foreigners	Very limited access	N/A - mostly cash required
Japanese Residents	Standard residential mortgages	1-2% variable rates
Corporate Entities	Investment loan options	2.95-4.20% for portfolios
Permanent Residents	Full mortgage access	1-2% with good credit
International Lenders	Limited specialized products	Varies by institution

**Tips to Improve Mortgage Eligibility:**- Establish Japanese residency status before applying- Secure stable employment with a Japanese company- Build local credit history through banking relationships- Consider purchasing through a Japanese corporate structure- Work with international banks that have Japanese operations

Most successful foreign buyers in Kyoto plan for all-cash purchases rather than relying on mortgage financing.

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

Property acquisition costs in Kyoto typically total 7-10% of the purchase price, with ongoing annual costs around 1.7% of assessed value.

Cost Category	Amount	When Paid
Real Estate Agent Fee	3% + 60,000 JPY + tax	At closing
Registration/License Tax	0.15-0.2% of property value	During title transfer
Judicial Scrivener Fee	50,000-100,000 JPY	At title registration
Stamp Duty	10,000-100,000 JPY	On contract signing
Acquisition Tax	3-4% of assessed value	Within months of purchase
Annual Fixed Asset Tax	1.4% of assessed value	Yearly (ongoing)
City Planning Tax	0.3% of assessed value	Yearly (ongoing)

**Additional Costs to Consider:**- Condo maintenance fees: Several thousand to tens of thousands of JPY monthly- Fire and earthquake insurance: Highly recommended, especially for older properties- Legal advisory fees for complex transactions- Renovation costs for traditional machiya properties- Property management fees if using rental management services

How long does the whole buying process usually take in Kyoto?

The complete property purchase process in Kyoto typically takes 1-1.5 months from Letter of Intent to property handover.

The timeline breaks down into two main phases: contract preparation (approximately 2 weeks from LOI to signed purchase agreement) and closing procedures (2-4 weeks from contract to title registration and key handover).

Factors that can accelerate the process include having pre-approved financing (for eligible buyers), working with experienced international agents, and completing due diligence research early in the search phase.

Delays may occur due to complex title issues, required property inspections for older buildings, or international fund transfer complications. Remote buyers should allow extra time for document authentication and power of attorney procedures.

As of September 2025, digital processing improvements have streamlined many procedures, making Kyoto one of the faster international property markets for completion times.

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.

Are real estate agents in Kyoto generally reliable, and how should you choose one?

Kyoto real estate agents serving international clients are generally reliable, but selecting the right agent is crucial for a smooth transaction.

Look for agents with proven track records serving foreign buyers, English language capabilities, and membership in reputable industry associations like the Kyoto Real Estate Association. The best agents provide comprehensive services including market analysis, legal guidance, and post-purchase support.

Key selection criteria include experience with international transactions, transparent fee structures, local market expertise, and ability to handle remote transactions efficiently. Agents should provide references from previous foreign clients and demonstrate familiarity with currency transfer and documentation requirements.

It's advisable to interview multiple agents before making a selection, comparing their service offerings, communication styles, and market knowledge. Reputable agents will provide detailed market reports and property analysis rather than pressuring for quick decisions.

Top-tier Kyoto agents often specialize in specific property types (traditional machiya, modern condos, investment properties) and can provide valuable insights into neighborhood dynamics and future development plans.

What are the most common mistakes and pitfalls foreigners make, and how can you avoid them?

Foreign buyers in Kyoto frequently encounter predictable pitfalls that can be easily avoided with proper preparation.

**The five most common mistakes include:**1. **Underestimating Renovation Costs**: Traditional machiya and older properties often require significant structural updates, electrical work, and earthquake resistance improvements. Always conduct thorough inspections and budget 20-50% additional costs for renovations.2. **Ignoring Earthquake Safety Standards**: Older buildings may not meet current seismic standards. Verify earthquake resistance ratings and factor upgrade costs into your purchase decision, especially for properties built before 1981.3. **Overlooking Local Zoning Restrictions**: Central Kyoto has strict heritage preservation rules and business operation limitations. Research zoning regulations, especially if planning short-term rentals or commercial use.4. **Inadequate Title Due Diligence**: Failing to verify clear property titles can lead to ownership disputes. Always use licensed judicial scriveners to confirm lien-free ownership and proper documentation.5. **Choosing Inexperienced Agents**: Working with agents unfamiliar with international transactions creates communication problems and procedural delays. Select agencies with proven foreign buyer expertise and comprehensive support services.

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

Does buying property in Kyoto provide any path to residency or citizenship, and where do most foreigners prefer to buy?

Property ownership in Kyoto provides no path to Japanese residency or citizenship, as real estate investment is completely separate from immigration status.

Buying property does not grant visa rights, residence permits, or any immigration benefits. Foreign property owners must obtain appropriate visas through standard immigration channels based on employment, investment business activities, or family relationships.

Most foreign buyers concentrate their investments in central Kyoto neighborhoods including Gion, Higashiyama, Nakagyo, and Kamigyo districts. These areas offer proximity to major attractions, transportation hubs, and cultural sites that appeal to both investors and potential tenants.

Investment-focused buyers often target properties near universities (Kyoto University area), major train stations (Kyoto Station vicinity), and tourist destinations (Arashiyama, Fushimi) for rental income potential. Traditional machiya in historic districts remain popular despite higher renovation costs due to their unique character and tourism appeal.

Location preferences vary by buyer motivation: lifestyle buyers choose walkable neighborhoods with cultural amenities, while investment buyers focus on areas with strong rental demand and transportation access.

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. Real Estate Kyoto
2. Hachise Real Estate
3. Sights Kyoto
4. Shiki Real Estate
5. Heritage Homes Japan
6. Wise Property Guide
7. Juwai Asia
8. Matcha Japan