How to invest in property in Nagoya?

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 Nagoya. 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 Nagoya. 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 possible for foreigners to buy property in Nagoya, and are there any restrictions on what they can or can't buy?

Foreigners can freely purchase any type of property in Nagoya, including residential homes, apartments, commercial buildings, and land itself.

There are no legal restrictions based on nationality, visa status, or residency requirements. This makes Japan one of the most accessible Asian property markets for international buyers.

Unlike many countries in the region, Japan imposes no additional taxes, registration barriers, or ownership limitations specifically targeting foreign buyers. You enjoy identical property rights as Japanese citizens, including full freehold ownership where applicable.

The only consideration is distinguishing between freehold and leasehold properties, particularly for commercial real estate where leasehold arrangements are more common.

As of September 2025, this open policy remains unchanged and continues to attract international property investors to Nagoya.

How does the overall process of buying property in Japan compare in ease and complexity to western countries?

Japan's property buying process is more efficient and transparent than many Western countries for the actual purchase transaction, but presents unique challenges in other areas.

The legal framework is straightforward with minimal bureaucracy, and property transactions typically complete faster than in countries like the UK or Australia. However, securing financing as a non-resident is significantly more difficult than in Western markets.

Japanese properties generally depreciate over time rather than appreciate, which fundamentally differs from Western real estate investment expectations. Land holds value while building structures lose worth, making location selection more critical than in appreciation-based markets.

Language barriers, unique documentation requirements involving personal seals (inkan), and cultural practices around property transactions add complexity compared to familiar Western processes. The requirement for detailed oral explanations of legal documents in the buyer's language is more comprehensive than typical Western disclosure requirements.

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

What are the exact steps in the buying process from start to finish, and which ones are mandatory versus optional?

The mandatory steps create a structured seven-phase process that all buyers must complete for legal property ownership.

Step	Description	Status
1. Market Research	Property selection and initial due diligence	Mandatory
2. Legal Disclosure	Review "Explanation of Important Matters" document	Mandatory
3. Offer Negotiation	Price and terms discussion with seller	Mandatory
4. Purchase Agreement	Signing baibai keiyakusho with agent and scrivener	Mandatory
5. Initial Deposit	Payment of 10-20% deposit to secure property	Mandatory
6. Final Payment & Registration	Balance payment and title transfer at registry office	Mandatory
7. Key Handover	Receive keys and official ownership certificate	Mandatory
Property Inspection	Professional building and structural assessment	Optional
Mortgage Application	Loan processing for eligible buyers	Optional
Property Appraisal	Independent valuation for investment purposes	Optional

What documents and paperwork are required at each stage, and are any translations or notarizations needed?

The documentation requirements vary depending on your residency status and whether you complete the purchase remotely or in person.

Your passport is always required as the primary identification document. If you're a Japan resident, you'll need your residence card, while non-residents must provide proof of address from their home country.

A certificate of seal impression (inkan shomeisho) is required for residents, while non-residents can use signature certificates. For remote purchases, these documents typically need notarization in your home country.

All legal documents must be explained orally in a language you understand, and any foreign documents require certified translations for official registration. The judicial scrivener handling your transaction will specify exact translation and notarization requirements based on your circumstances.

Final paperwork includes the signed purchase agreement, stamp duty payments, and registration certificates that officially transfer ownership to your name.

Can the entire process be done from abroad, or do you need to be physically present in Japan at certain points?

While remote purchase is technically possible, physical presence in Japan is highly advisable for a smooth transaction.

The legal disclosure session where agents explain the "Explanation of Important Matters" document traditionally requires in-person attendance. Contract signing also benefits from physical presence to ensure all parties understand terms and conditions.

Remote buyers face increased complexity requiring notarized affidavits, power of attorney documents, and extensive coordination between agents and judicial scriveners. These additional steps create potential delays and higher legal costs.

Many experienced agents recommend being present for at least the contract signing and final completion phases to avoid miscommunications and ensure proper document execution.

The risks and administrative burden of remote purchase make physical presence worth the travel investment for most international buyers.

Are real estate agents in Nagoya generally reliable, and how do you choose a trustworthy one as a foreign buyer?

Real estate agents in Nagoya are regulated and generally reliable, but choosing one with international experience significantly improves your buying experience.

Look for agents who are licensed and members of reputable Japanese real estate associations or international organizations like NAR. Agents experienced with foreign clients offer multilingual support and understand the unique challenges international buyers face.

Request references from previous foreign clients and confirm the agent has experience handling the mandatory "Explanation of Important Matters" sessions for international buyers. This legal requirement involves detailed explanations in your language, so linguistic competence is crucial.

Verify the agent's track record with documentation requirements for non-resident buyers, as this area often creates complications for inexperienced agents.

Choose agencies that maintain partnerships with qualified judicial scriveners and can coordinate the entire transaction process from property search to final registration.

Will the Japanese legal system effectively protect a foreigner's property rights, and what safeguards are in place?

Foreign property owners enjoy almost identical legal protections and property rights as Japanese citizens under Japanese law.

The property registration system provides comprehensive legal protection once ownership is officially recorded at the registry office. Property laws are strictly enforced, and the judicial system treats foreign and domestic owners equally.

Registration creates a permanent legal record of ownership that cannot be easily disputed or overturned. The system's transparency allows anyone to verify ownership status and property details through official channels.

Japan's stable political and legal environment provides additional security for long-term property investments compared to many other Asian markets.

The main protection comes from proper completion of the registration process with qualified judicial scriveners who ensure all legal requirements are met.

What are the typical mistakes or pitfalls foreigners make when buying in Japan, and how can they be avoided?

The most common mistake is underestimating property depreciation and its impact on resale value and long-term investment returns.

1. **Ignoring depreciation patterns**: Japanese properties lose value over time while land appreciates, making location more critical than building condition2. **Overlooking leasehold versus freehold distinctions**: Particularly important for commercial properties and some residential developments3. **Choosing inexperienced agents**: Results in missed legal requirements, translation issues, and documentation delays4. **Incomplete paperwork preparation**: Non-notarized or improperly translated documents can delay registry and completion5. **Underestimating ongoing costs**: Management fees, repair reserves, and annual taxes add significant ongoing expenses6. **Mortgage assumptions**: Many foreigners assume mortgage access similar to their home countries without understanding Japan's strict lending criteria

Avoid these pitfalls by working with experienced international agents, preparing all documents in advance, and thoroughly understanding Japan's unique property market characteristics before committing to purchase.

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.

What taxes, fees, and hidden costs should you expect, and can you get a full breakdown of each?

Property purchase costs typically range from 6-10% of the property value, with several mandatory fees and ongoing tax obligations.

Cost Type	Amount	When Due
Real Estate Agent Fee	3% of price + ¥60,000 + consumption tax	At completion
Registration Tax	2% of assessed value for land, 0.4% for buildings	At registration
Judicial Scrivener Fee	¥100,000-300,000 depending on complexity	At completion
Stamp Duty	¥10,000-60,000 based on property value	At contract signing
Property Acquisition Tax	4% of assessed value (paid once)	Within 60 days
Annual Fixed Asset Tax	1.4% of assessed value	Annual payment
City Planning Tax	0.3% of assessed value	Annual payment
Management Fees (condos)	¥10,000-30,000 per month	Monthly ongoing
Repair Reserve Fund	¥10,000-20,000 per month	Monthly ongoing

Is it common to buy in cash, and if not, how do mortgages work for foreigners—what rates, conditions, and tips are relevant?

Cash transactions are extremely common for foreign buyers due to strict mortgage qualification requirements for non-residents.

Japanese banks typically require long-term residency, stable local income, established banking relationships, and sometimes personal guarantors for mortgage approval. Non-residents face additional scrutiny and often cannot qualify for standard residential mortgages.

When available, mortgage interest rates range from 1-2% for residents with good credit, but non-resident rates can be higher if loans are available at all. Fixed-rate mortgages are common, providing payment stability over loan terms.

Some international banks with Japanese subsidiaries may offer specialized foreigner mortgage products, but these remain limited and expensive compared to domestic options.

Most foreign buyers find cash purchase more straightforward and cost-effective than navigating complex mortgage qualification processes.

How long does the process usually take from making an offer to officially owning the property?

The typical timeline ranges from 2-3 months for cash transactions, with mortgage applications extending the process significantly.

Initial offer and negotiation phases usually complete within 1-2 weeks, followed by contract preparation and signing within another week. The legal disclosure and due diligence period typically requires 2-4 weeks depending on property complexity.

Final payment and registration procedures take 2-4 weeks once all documentation is prepared and verified. Judicial scriveners need sufficient time to ensure proper title transfer and registry filing.

Complex cases involving foreign document translation, remote buyer coordination, or title issues can extend timelines by several weeks or months.

Preparation of properly notarized and translated documents before beginning the process significantly reduces overall transaction time.

Do property ownership rights offer any pathway to residency or citizenship, and where do foreigners tend to buy most in Nagoya?

Property ownership provides no pathway to Japanese residency or citizenship, as Japan does not operate property investment visa programs.

Foreign buyers must obtain appropriate visas independently through employment, family connections, or other qualifying categories. Real estate investment alone cannot support visa applications or permanent residency status.

Popular neighborhoods for foreign property buyers in Nagoya include Chikusa Ward, known for its international schools and expatriate community. Nakamura Ward attracts buyers due to its proximity to Nagoya Station and transportation connections.

Atsuta Ward appeals to international buyers seeking traditional Japanese residential environments with modern amenities and good access to the city center.

These areas offer established international communities, multilingual services, and convenient access to transportation networks connecting Nagoya to Tokyo and Osaka.

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. Land Housing - Foreigner Property Guide
2. Real Estate Japan - Foreign Buyer Restrictions
3. Old Houses Japan - Buying Process Differences
4. Blackship Realty - Foreign Property Purchase
5. Allakiyas - Foreigner's Buying Guide
6. Hokushin J Property - Purchase Guide
7. Tokyo Dev - House Buying Guide
8. Taxes for Expats - Foreign Property Purchase