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
Japan is one of the few major economies where foreigners can buy residential property with almost no restrictions, making it a surprisingly open market for international buyers.
This guide explains exactly what you can buy, own, and do as a foreign property buyer in Japan in 2026, from condos in Tokyo to vacation homes in Niseko.
We constantly update this blog post to reflect the latest rules, prices, and practical realities for foreigners buying property in Japan.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Japan.
Insights
- Japan has no foreign ownership quota for condos, unlike Thailand or the Philippines, so you can buy in any building regardless of how many foreigners already own units there.
- The 20.42% withholding tax on rental income surprises many foreign landlords in Japan, but it only applies when a Japanese company pays the rent, not when individuals do.
- Signing a purchase contract in Japan does not make you the legal owner; your name must appear in the official property register before ownership is truly secure.
- Short-term rentals like Airbnb in Japan are capped at 180 days per year nationally, and many Tokyo condo buildings ban them entirely in their management rules.
- Foreign buyers without Japan residency can still purchase property, but most Japanese banks will refuse to provide a mortgage without local income or residency status.
- SMBC Trust Bank PRESTIA and Tokyo Star Bank are among the few lenders in Japan that explicitly market mortgages to foreign residents, including non-permanent residents.
- Annual property taxes in Japan typically run between 0.8% and 1.7% of market value, combining the fixed asset tax and city planning tax.
- Japan's national security land law can restrict how you use property near military bases or remote islands, though it rarely blocks purchases outright.
- Earthquake insurance in Japan is priced by prefecture and building type, with Tokyo premiums running around 3,800 yen per 1 million yen of coverage annually for non-fireproof structures.
- Closing costs in Japan typically range from 6% to 10% when buying through a broker, or 4% to 8% when buying directly from a developer.
What can I legally buy and truly own as a foreigner in Japan?
What property types can foreigners legally buy in Japan right now?
In January 2026, foreigners in Japan can legally buy and own condominiums, detached houses, townhouses, apartment buildings, and resort properties with the same ownership rights as Japanese citizens.
The most important thing to understand is that Japan has no general nationality-based restriction on buying residential real estate, which makes it one of the most open property markets in the world for foreign buyers.
This openness applies whether you are buying a condo in central Tokyo, a traditional house in Kyoto, or a ski chalet in Niseko, and there is no approval process based on your passport.
However, while buying is straightforward, using certain properties near sensitive government or military facilities may be subject to monitoring under Japan's national security land law, though this affects very few residential purchases in practice.
Finally, please note that our pack about the property market in Japan is specifically tailored to foreigners.
Can I own land in my own name in Japan right now?
Yes, foreigners can own land in their own name in Japan, including the land underneath a detached house or an empty plot purchased for future development.
This applies to virtually all types of land in Japan, with no requirement to use a local company or nominee structure, which is different from many Asian countries where direct foreign land ownership is restricted.
The key point to remember is that your ownership only becomes legally secure once your name is recorded in Japan's real property register at the Legal Affairs Bureau, not just when you sign the purchase contract.
By the way, we cover everything there is to know about the land buying process in Japan here.
As of 2026, what other key foreign-ownership rules or limits should I know in Japan?
As of January 2026, the main rule that can affect foreign buyers in Japan is the national security land-use framework, which allows the government to monitor or restrict how land is used in designated areas near military bases, government facilities, or remote border islands.
Unlike Thailand or the Philippines, Japan has no foreign ownership quota for condominiums, so you can buy any unit in any building without worrying about whether the foreign ownership cap has been reached.
Foreign buyers should be aware that Japan's foreign exchange rules technically require some post-transaction reporting for non-resident acquisitions, though a competent broker or legal professional will handle this paperwork as part of the standard process.
There have been no major regulatory changes in 2025 or early 2026 that restrict foreign ownership, and the market remains as open as it has been for decades.
If you're interested, we go much more into details about the foreign ownership rights in Japan here.
What's the biggest ownership mistake foreigners make in Japan right now?
The single biggest mistake foreigners make when buying property in Japan is assuming they own the property once they sign the purchase contract and pay, when in reality ownership is not legally secure until it is registered in Japan's official property register.
If you skip or delay registration, you could find yourself in a situation where the seller has financial problems or disputes, and your claim to the property is weaker than a creditor who registered their interest first.
Another very common pitfall is buying a condo and assuming you can do Airbnb-style short-term rentals, when in fact the building's management rules often prohibit this entirely, and Japan's national minpaku law caps short-term rentals at 180 days per year anyway.
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Japan?
Do I need a specific visa to buy property in Japan right now?
No, you do not need a specific visa or residency status to buy property in Japan, and many foreigners successfully purchase while on a short-term tourist visa.
The most common practical barrier is banking, since opening a Japanese bank account and arranging fund transfers is much harder without a residence card, so many tourist-visa buyers pay in cash via international wire transfers.
You do not need a Japanese tax ID before purchasing, but if you plan to earn rental income or have ongoing tax obligations, you will likely need to appoint a tax agent to handle filings on your behalf.
Foreign buyers typically need to present a passport, proof of funds, and sometimes a notarized power of attorney if they cannot attend closing in person, though exact requirements vary by seller and transaction type.
Does buying property help me get residency and citizenship in Japan in 2026?
As of January 2026, buying property in Japan does not give you any automatic right to residency, permanent residency, or citizenship, because Japan's immigration system is based on categories like work, family, or study rather than investment in real estate.
Japan does not have a golden visa or investor visa program tied to property purchases, so anyone marketing a "buy a home and get a visa" pathway for Japan should be treated with skepticism.
The main pathways to permanent residency in Japan involve living and working in the country for several years, typically five to ten years depending on your visa category, with a clean tax and legal record.
We give you all the details you need about the different pathways to get residency and citizenship in Japan here.
Can I legally rent out property on my visa in Japan right now?
Your visa status in Japan does not directly prevent you from owning and renting out property, and many foreign owners who live outside Japan successfully earn rental income through local property managers.
You do not need to live in Japan to rent out your property, but if you are a non-resident, your tenants or property manager may be required to withhold 20.42% of the rent for tax purposes when the payer is a Japanese company.
For short-term rentals under Japan's Private Lodging Business Act, the national cap is 180 days per year, and many condo buildings and local governments impose even stricter rules or outright bans, so you must check your specific situation before assuming Airbnb is allowed.
We cover everything there is to know about buying and renting out in Japan here.
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How does the buying process actually work step-by-step in Japan?
What are the exact steps to buy property in Japan right now?
The standard sequence to buy property in Japan involves finding a property through a licensed broker, making an offer, signing a purchase contract with a deposit, completing due diligence on the title and building, arranging financing or cash transfer, closing with final payment, and then registering ownership at the Legal Affairs Bureau.
You do not need to be physically present for every step, and many foreign buyers complete purchases remotely using a power of attorney for the closing and registration, though being present for at least the contract signing is common when practical.
The deal becomes legally binding when both parties sign the formal sale contract and the buyer pays the deposit, which is typically 5% to 10% of the purchase price.
From accepted offer to final registration, the process in Japan usually takes four to eight weeks for a straightforward transaction, though complex deals or financing can extend this timeline.
We have a document entirely dedicated to the whole buying process our pack about properties in Japan.
Is it mandatory to get a lawyer or a notary to buy a property in Japan right now?
In Japan, using a notary is not mandatory or even standard for residential property purchases, and most transactions are handled by a licensed real estate broker and a judicial scrivener who manages the registration paperwork.
The main difference is that a judicial scrivener specializes in filing the ownership registration with the Legal Affairs Bureau, while a lawyer would be needed for more complex issues like contract disputes, cross-border tax structuring, or unusual title problems.
If you do hire a lawyer, make sure your engagement includes a review of the purchase contract, verification of the seller's authority to sell, and confirmation that the property will be registered free of existing mortgages or liens at closing.
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 checks should I run so I don't buy a problem property in Japan?
How do I verify title and ownership history in Japan right now?
The official registry you should use to verify title and ownership history in Japan is the real property register maintained by the Legal Affairs Bureau, which records the legal owner and any registered rights like mortgages.
The key document to request is the registry certificate, known as a touki jiko shomeisho, which shows the current registered owner, the property description, and any encumbrances.
Most buyers in Japan check at least the last 10 to 20 years of ownership history, though for older properties or complex situations, going back further can reveal inheritance disputes or unresolved claims.
A clear red flag that should stop or pause a purchase is any registered mortgage that the seller claims will be discharged at closing but for which there is no concrete payoff arrangement in place.
You will find here the list of classic mistakes people make when buying a property in Japan.
How do I confirm there are no liens in Japan right now?
The standard way to confirm there are no liens or encumbrances on a property in Japan is to obtain a registry certificate from the Legal Affairs Bureau, which lists all registered mortgages and security interests.
The most common type of lien to ask about is a mortgage, called teitoken in Japanese, which is registered when the property was used as collateral for a loan.
The best written proof is the registry certificate itself, which clearly shows whether any mortgages or other rights are currently registered against the property, and your closing should be conditional on these being discharged.
How do I check zoning and permitted use in Japan right now?
To check zoning and permitted use in Japan, you should contact the local municipal government's urban planning department, which maintains the official zoning maps and can confirm what activities are allowed on a specific parcel.
The key document is the urban planning map, known as a toshi keikaku zu, which shows the zoning classification, building coverage ratio, and floor area ratio for each area.
A common pitfall for foreign buyers in Japan is purchasing a property assuming they can use it for short-term rentals or a home business, only to discover that the zoning or building management rules prohibit such uses.
Buying real estate in Japan can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Japan, and on what terms?
Do banks lend to foreigners for homes in Japan in 2026?
As of January 2026, some Japanese banks do lend to foreigners for home purchases, but the key requirement is usually that you live in Japan and have stable local income, which means non-residents typically cannot get a mortgage.
Foreign borrowers who qualify in Japan typically see loan-to-value ratios between 70% and 90%, depending on the lender, your income stability, and how long you have lived in the country.
The single most common eligibility requirement is having Japan residency, ideally with a permanent resident visa or a stable long-term work visa, plus income that is verifiable through Japanese payslips or tax returns.
You can also read our latest update about mortgage and interest rates in Japan.
Which banks are most foreigner-friendly in Japan in 2026?
As of January 2026, the most foreigner-friendly banks for mortgages in Japan include SMBC Trust Bank PRESTIA, Tokyo Star Bank, and Shinsei Bank, all of which have English-language services and experience with international clients.
What makes these banks more foreigner-friendly is that they explicitly offer mortgage products to non-permanent residents and provide documentation and customer service in English, which most major Japanese banks do not.
However, even these foreigner-friendly banks typically require you to live in Japan with a valid residence status, so true non-residents living abroad will usually need to pay cash or seek specialty offshore financing.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Japan.
What mortgage rates are foreigners offered in Japan in 2026?
As of January 2026, well-qualified foreign residents in Japan typically see variable mortgage rates around 0.6% to 1.5% and fixed-period or long-term fixed rates around 1.5% to 3.0%, depending on the lender and your profile.
Variable rates in Japan are generally lower than fixed rates, but fixed-rate products offer predictability, and the spread between them has widened slightly as Japan has moved away from ultra-low interest rates in recent years.
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Japan?
What are the total closing costs as a percent in Japan in 2026?
When buying residential property in Japan in 2026, total closing costs typically range from 6% to 10% of the purchase price when you buy through a broker, or 4% to 8% when buying directly from a developer.
The realistic low end of around 4% applies to new developer purchases with no brokerage fee, while the high end of 10% covers resale transactions with full brokerage and higher registration costs.
The main fee categories in Japan include brokerage commission, stamp duty on the purchase contract, registration license tax, judicial scrivener fees, real estate acquisition tax, and bank fees if you have a mortgage.
The brokerage fee is usually the largest single component, legally capped at around 3% of the purchase price plus 60,000 yen plus consumption tax, which adds up to roughly 3.3% to 3.5% on most transactions.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Japan.
What annual property tax should I budget in Japan in 2026?
As of January 2026, annual property taxes on a typical owner-occupied home in Japan run between 0.8% and 1.7% of market value, which for a 50 million yen property (roughly 330,000 USD or 305,000 EUR) means around 400,000 to 850,000 yen per year (about 2,600 to 5,600 USD or 2,400 to 5,200 EUR).
Property tax in Japan is assessed on the official assessed value of the land and building, which is typically lower than market value, with the fixed asset tax at 1.4% and the city planning tax at up to 0.3% in designated urban areas.
How is rental income taxed for foreigners in Japan in 2026?
As of January 2026, rental income from Japan property is taxed as domestic-source income for non-residents, with a withholding rate of 20.42% applying when rent is paid by a Japanese company, though individual tenants may not withhold.
If you are a non-resident earning rental income in Japan, you will typically need to appoint a tax agent to handle annual filings and communications with the tax office, and you may be able to deduct expenses to reduce your taxable income.
What insurance is common and how much in Japan in 2026?
As of January 2026, annual home insurance premiums in Japan typically range from 10,000 to 40,000 yen (roughly 65 to 265 USD or 60 to 245 EUR) for condos and 20,000 to 80,000 yen (roughly 130 to 530 USD or 120 to 490 EUR) for detached houses, depending on coverage and location.
The most common type of coverage is fire insurance, which is required by lenders and covers damage from fire, wind, and water, while earthquake insurance is purchased as an optional add-on but is highly recommended given Japan's seismic risk.
The biggest factor affecting insurance premiums in Japan is location, with earthquake insurance premiums varying significantly by prefecture, and building construction type, with non-fireproof wooden structures costing more to insure than fireproof concrete buildings.
Get the full checklist for your due diligence in Japan
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Japan, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Ministry of Justice (Japan) | This is the government body that runs Japan's land and building registration system. | We used it to explain what ownership means in Japan and why registration matters. We also anchored our title verification guidance on this official framework. |
| Japanese Law Translation (Registration Act) | This is an official government portal providing English translations of Japanese statutes. | We used it to confirm who administers registration and the legal basis behind registry checks. We relied on it to keep the process explanation legally grounded. |
| Japanese Law Translation (Brokerage Act) | This is the core law governing licensed real estate brokers in Japan. | We used it to explain what brokers must do and why using a licensed agent matters. We also used it to set expectations around standard documents and disclosures. |
| Cabinet Office (Japan) | This is the Cabinet Office page for Japan's national security land-use framework. | We used it to flag the point that ownership is open but use of land in sensitive areas can be monitored. We explained what this means for buyers doing location research. |
| National Tax Agency (Non-resident rental) | The NTA is Japan's tax authority with direct non-resident income guidance. | We used it to state the key 20.42% withholding rate and when it applies. We also explained the practical tax flow for foreigners renting out property. |
| National Tax Agency (Tax agent guidance) | This is official NTA guidance on appointing a tax agent and filing obligations. | We used it to explain when a tax agent becomes essential for non-residents. We clarified that owning property does not equal residency for tax purposes. |
| Housing Finance Agency (JHF) | JHF is Japan's government-linked housing finance agency publishing official rate information. | We used it as the anchor for mortgage rate context as of late 2025 for January 2026 decisions. We triangulated market-level rates against individual bank offers. |
| SMBC Trust Bank PRESTIA | This is a primary source from a major bank that actively serves international clients. | We used it to ground the discussion of what rates are actually quoted to foreigners in January 2026. We avoided relying on blogs for rate numbers. |
| Tokyo Star Bank | This is a bank's own product page describing eligibility for foreign borrowers. | We used it to identify banks that explicitly market to non-permanent residents. We explained typical conditions like salary accounts and documentation requirements. |
| MLIT / Japan Tourism Agency (Minpaku law) | This is the Japanese government's official explainer for the short-term rental regime. | We used it to explain the legal pathway for Airbnb-style rentals and why condo and local rules matter. We distinguished normal renting from regulated lodging operations. |
| MLIT / Japan Tourism Agency (180-day cap) | This states the core operating definition and the national 180-day limit. | We used it to give a clear rule for short-term rentals. We framed a common foreigner mistake of assuming Airbnb is automatically allowed. |
| Ministry of Finance (Earthquake insurance) | This is an official premium table by prefecture and building type used across the market. | We used it to estimate earthquake insurance costs transparently. We showed that Japan's insurance pricing is location-sensitive in a concrete way. |
| JETRO (Temporary visitor status) | JETRO is Japan's official trade and investment organization explaining visa rules clearly. | We used it to explain what tourist status does and does not allow. We separated buying property from working or operating a business in Japan. |
| National Tax Agency (Stamp tax) | This is the official page for stamp duty on contracts including reduced rates. | We used it to size one of the closing cost components. We showed why costs depend on contract price bands and dates. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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