How to buy Japan forest or farmland legally?

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.

What are the exact legal restrictions for foreigners buying forest or farmland in Japan?

Foreign nationals face different restrictions depending on the type of land they want to purchase in Japan.

For farmland, the Japanese government requires all buyers—regardless of nationality—to engage in farming activities for at least 150 days per year. Foreign buyers must also report their residency status and cannot acquire farmland if their visas are set to expire soon or will not be renewed. Local agricultural committees must approve all farmland transactions before they become legally valid.

Forest land purchases have fewer restrictions for foreigners, with no specific minimum or maximum size limits for foreign ownership. However, national defense areas and protected conservation zones have additional restrictions that may limit or prohibit foreign ownership entirely.

As of September 2025, Japan has tightened oversight on foreign land purchases near sensitive areas, requiring additional background checks and approvals for properties close to military installations or critical infrastructure. The government now maintains stricter monitoring of foreign ownership in border regions and areas deemed important for national security.

How much land can a foreign individual or company legally own in Japan?

Japan does not impose blanket ownership limits on the amount of land foreigners can own, but practical restrictions vary by land type and location.

Recent agricultural reforms removed former requirements for minimum plot size for farmland purchases, allowing foreigners to buy smaller agricultural plots. However, buyers must still demonstrate their ability to actively farm the land and maintain agricultural productivity.

Forest land typically has no explicit size restrictions for foreign owners, though most private forest holdings in Japan are small plots under 1 hectare. Large-scale forest acquisitions may trigger additional scrutiny from local authorities, especially if located near protected areas or national borders.

Companies can own larger parcels than individuals, but foreign-owned companies face the same agricultural committee oversight for farmland purchases. Setting up a Japanese subsidiary may help ease administrative hurdles for larger land acquisitions.

What types of land titles or rights are available when purchasing farmland or forest land in Japan?

Title Type	Description	Duration
Freehold (Shoyuken)	Full ownership rights over land and buildings	Indefinite
Leasehold Rights	Fixed-term land use rights	30 years (since 1992)
Surface Rights	Right to use land surface for specific purposes	Varies by agreement
Rental Rights	Temporary land use agreements	Short to medium term
Registered Rights	All ownership must be registered with Legal Affairs Bureau	Required for legal validity
Agricultural Rights	Special farmland use rights requiring committee approval	Tied to active farming
Conservation Rights	Forest land with environmental protection obligations	Long-term with restrictions

Do I need to set up a Japanese company or residency status to legally buy and hold this land?

Setting up a Japanese company is not legally required for foreigners to purchase land in Japan, but it can provide significant practical advantages.

For forest land purchases, no residency requirement exists, and foreigners can buy directly as individuals. However, for farmland acquisitions, buyers must demonstrate actual engagement in agriculture and maintain valid visa status throughout the ownership period.

Establishing a Japanese company may help ease administrative hurdles and improve approval chances, especially for larger projects or multiple property purchases. Local agricultural committees often view corporate buyers more favorably if they can demonstrate long-term commitment to farming operations.

Residency status becomes crucial for farmland purchases because non-residents face much harder approval processes. Agricultural committees need to verify that buyers can fulfill the 150-day annual farming requirement, which is difficult to demonstrate without established residency in Japan.

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

What are the current average prices per hectare for forest and farmland in different regions of Japan?

Land prices in Japan vary dramatically between rural and urban areas, with farmland and forest land generally commanding lower prices than residential or commercial properties.

Farmland in rural areas typically costs between ¥50,000 to ¥300,000 per hectare, while farmland near urban regions can exceed ¥1,000,000 per hectare. The 2024 average land price across all types is approximately ¥215,000 per square meter, but agricultural and forest land prices are significantly lower outside city boundaries.

Forest land often costs less than farmland, especially in less developed regions where private forest owners hold small plots. Many forest properties are available for under ¥100,000 per hectare in remote mountainous areas.

Regional variations are substantial, with land near Tokyo, Osaka, or other major cities commanding premium prices, while properties in depopulated rural prefectures like Akita or Shimane offer much lower costs. Properties requiring extensive clearing or infrastructure development typically sell at substantial discounts.

Which government offices or registries handle the purchase and registration process for farmland and forest land?

Three main government entities manage different aspects of agricultural and forest land transactions in Japan.

The Legal Affairs Bureau (Hōmukyoku) handles all land registry and title transfers through the Real Property Registry system. This office maintains official ownership records and processes the legal documentation required to complete any land purchase.

Municipal agricultural committees (農業委員会) issue farmland purchase permits and oversee ongoing compliance with farming requirements. These local committees have significant authority over agricultural land transactions and can deny purchases if buyers cannot demonstrate proper farming plans or capabilities.

Local city halls issue residence certificates and other supporting documents required for land purchases. They also handle various permits related to land use changes and development applications.

All three offices coordinate throughout the purchase process, and buyers typically need approvals from each before completing their transaction. Professional assistance is essential for navigating these multiple bureaucratic requirements efficiently.

What permits or approvals are required from local authorities before buying or using farmland in Japan?

Farmland purchases require mandatory approval from municipal agricultural committees under Japan's Farmland Law before any transaction can be legally completed.

Agricultural committee permits involve detailed review of buyer qualifications, including proof of farming experience, financial capability, and long-term agricultural plans. Committees also verify that buyers can fulfill the 150-day annual farming requirement and maintain agricultural productivity on the land.

Forest land purchases typically do not require agricultural permits, but properties in protected conservation areas may need environmental compliance approvals. Local environment offices review purchases in national parks, wildlife protection zones, or areas with special forestry designations.

Additional permits may be required for land use changes, building construction, or infrastructure development. Municipal planning offices handle these secondary approvals, which often require separate applications and fees beyond the initial land purchase permits.

Are there annual taxes, management fees, or mandatory land use obligations I need to budget for after purchase?

Japanese landowners face several recurring financial obligations that must be budgeted for long-term ownership success.

Fixed asset (property) tax applies at 1.4% of assessed value for most land types, while farmland receives preferential treatment with taxes calculated on 55% of market value, reassessed every three years. This can result in significantly lower tax burdens for agricultural properties compared to residential or commercial land.

As of 2024, Japan introduced a forest environment tax of ¥1,000 per year per person, added to inhabitant tax bills. This flat fee applies to all residents and property owners to fund forest conservation and management programs.

Beyond taxes, landowners must fulfill mandatory management duties. Farmland owners must maintain agricultural productivity and cannot allow land to become fallow without committee approval. Forest land owners must manage their plots according to environmental regulations and may face forced sale if they neglect maintenance obligations.

Professional management services, equipment costs, and regular maintenance create additional ongoing expenses that can range from ¥10,000 to ¥50,000 annually per hectare, depending on land type and local requirements.

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.

Can I legally change the use of farmland into residential or commercial land, and if so, what is the process?

Converting farmland to residential or commercial use is possible in Japan but involves a complex approval process with strict regulatory oversight.

Farmland conversion requires separate permits beyond the original purchase approval and involves demonstrating public benefit from the proposed development. Municipal agricultural committees and city planning authorities must both approve conversion applications, often requiring detailed environmental impact studies and community consultation.

The conversion process typically takes 6-12 months and involves substantial fees, often costing 10-20% of the land's converted value. Applicants must prove that the proposed use serves public interest and that no suitable non-agricultural land is available for the project.

Forest land development faces limitations in conservation parks and protected zones, where conversion may be prohibited entirely. Environmental protection laws require detailed impact assessments and may mandate preservation of certain forest areas even within developed properties.

Success rates for conversion applications vary significantly by location, with urban-adjacent farmland having higher approval chances than remote agricultural areas deemed essential for food security.

Are there restrictions on selling this land later, and can I freely transfer ownership to another foreigner or company?

Both farmland and forest plots can be sold or transferred to foreigners or companies, but buyers must meet the same eligibility and use requirements as original purchases.

Agricultural committee permits are required for all farmland transfers, regardless of buyer nationality. New owners must demonstrate farming capability and commit to the 150-day annual agricultural engagement requirement. The committee can reject transfers if prospective buyers cannot meet these standards.

Restrictions exist for properties in national defense areas or protected zones, where the government maintains right of first refusal or may prohibit transfers to foreign entities entirely. These security-sensitive areas require additional approvals and background checks for any ownership changes.

Forest land transfers face fewer restrictions, but conservation easements or environmental protection agreements may limit future ownership options. Properties with special forestry designations often require new owners to maintain existing management plans and conservation commitments.

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

What legal and financial risks do foreign buyers typically face when purchasing Japanese farmland or forest land?

Foreign buyers face several categories of risk that can result in denied purchases, financial losses, or forced property sales.

Approval denial represents the most common risk, particularly for farmland purchases where agricultural committees may reject applications if buyers cannot demonstrate sufficient farming commitment or expertise. Insufficient residency status or visa limitations can also lead to purchase denials.

Transaction invalidity occurs when buyers proceed without proper agricultural committee approval, rendering the entire purchase legally void and potentially resulting in total financial loss. This risk is especially high when working with inexperienced agents unfamiliar with agricultural land regulations.

Security and reputational risks affect land purchases near protected or border zones, where government scrutiny may increase and future sale options become limited. Properties in these areas may face additional restrictions or monitoring that reduces their investment value.

Ongoing compliance failures can lead to forced sale or loss of property rights if owners fail to meet farming obligations, neglect land management duties, or violate tax payment requirements. Japanese authorities have legal mechanisms to reclaim improperly managed agricultural or forest land.

Which professionals should I hire locally to ensure the purchase is fully compliant?

1. **Real estate agents specializing in rural and agricultural properties** - These agents understand agricultural committee requirements and can identify suitable properties that meet foreign buyer criteria.2. **Lawyers specializing in Japanese real estate and agricultural law** - Legal professionals handle complex regulatory compliance, permit applications, and ensure all documentation meets Japanese legal standards.3. **Land surveyors for official measurement and boundary definition** - Professional surveys are required for legal registration and help prevent boundary disputes that are common with rural properties.4. **Administrative scriveners for permit paperwork and registration** - These specialists handle bureaucratic processes with agricultural committees and government offices, ensuring applications are properly completed and submitted.5. **Tax advisors familiar with agricultural and forest land taxation** - Professional tax guidance helps optimize ongoing tax obligations and ensures compliance with Japan's complex property tax system.

Professional assistance is essential for all stages of the purchase process to ensure compliance and successful acquisition. The complex regulatory environment makes it virtually impossible for foreign buyers to navigate the system independently without risking costly mistakes or transaction failures.

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. Japan Workers - Foreign Land Ownership
2. Japan Legal Direct - Land Registry Guide
3. E-Housing Japan - Property Tax Guide
4. Black Ship Realty - Foreign Property Purchase
5. Japan Ministry of Agriculture - Forest Environment Tax
6. E-Housing Japan - Land Ownership Rights
7. Nikkei Asia - Farmland Purchase Restrictions
8. Kyodo News - Foreign Farmland Restrictions
9. Japan Law & Tax - Farmland Purchase Guide
10. Library of Congress - Japan Land Ownership Laws