Buying real estate in Japan?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

Do I need a visa to own property in Japan?

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

buying property foreigner Japan

Everything you need to know before buying real estate is included in our Japan Property Pack

Japan allows foreigners to purchase property without any visa requirements or residency restrictions. Buying property in Japan does not grant you the right to live there permanently, as property ownership and immigration status remain completely separate matters.

If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.

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.

Do foreign buyers need a visa to purchase property in Japan?

Foreign buyers do not need any visa or residency status to purchase property in Japan.

Japan imposes no nationality restrictions on property ownership, meaning you can buy real estate as a tourist, non-resident, or someone with no connection to Japan whatsoever. The Japanese government treats property ownership and immigration status as completely separate legal matters.

This policy makes Japan one of the most accessible real estate markets in Asia for international investors. You can complete the entire purchase process from abroad without ever setting foot in Japan, though most buyers prefer to visit and inspect properties in person.

The absence of visa requirements applies to all types of real estate transactions, whether you're buying a small apartment in Tokyo or a large commercial building in Osaka.

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

Can I buy land in Japan without being a resident or citizen?

Yes, foreigners can buy land in Japan without residency or citizenship requirements.

Japan allows foreign nationals to purchase freehold land with the same rights as Japanese citizens. This includes vacant land for development, land with existing buildings, agricultural land (with some restrictions), and commercial land in urban areas.

When you buy land in Japan, you receive full ownership rights including the ability to develop, sell, lease, or pass the property to heirs. The land ownership is registered in your name at the Legal Affairs Bureau, providing complete legal protection under Japanese law.

Some remote areas near military installations or sensitive border regions may have additional screening requirements, but these restrictions rarely affect typical residential or commercial property buyers in major cities.

What is the difference between owning land and owning a condominium in Japan?

Land ownership gives you complete control over the property and underlying earth, while condominium ownership involves shared land rights with other unit owners.

Ownership Type Land Rights Decision Making
Freehold Land 100% ownership of land and buildings Complete autonomy over property decisions
Condominium Unit Shared ownership percentage of building land Must follow building association rules and vote on changes
Land Development Rights Can develop, demolish, or rebuild as desired Requires building permits and compliance with zoning laws
Condo Modifications Limited to unit interior only Building exterior changes require association approval
Maintenance Costs Owner responsible for all property maintenance Monthly management fees plus special assessments
Resale Process Direct sale without association involvement May require association approval or first refusal rights
Long-term Control Property remains under single owner control indefinitely Subject to collective decisions of building association

Are there any restrictions on the type of property foreigners can buy in Japan?

Japan imposes virtually no restrictions on the types of property foreigners can purchase.

Foreign buyers can purchase residential properties including single-family homes, condominiums, townhouses, and apartment buildings. Commercial real estate such as office buildings, retail spaces, warehouses, and mixed-use developments are also available to international investors.

Agricultural land purchases may require approval from local agricultural committees, but this process is generally straightforward for legitimate buyers. Industrial properties, including factories and manufacturing facilities, are accessible to foreign buyers without special permissions.

The only limitations exist in designated security zones near military bases or sensitive government facilities, but these areas represent less than 1% of available real estate and rarely affect typical property buyers.

Special economic zones and designated investment areas may offer additional incentives for foreign property buyers, making certain regions even more attractive for international investment.

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investing in real estate in  Japan

Does buying property in Japan give me the right to live there long term?

No, buying property in Japan does not provide any immigration benefits or the right to reside in the country.

Japanese immigration law treats property ownership and visa eligibility as completely separate matters. Owning a ¥100 million property in Tokyo provides no advantage when applying for tourist visas, work permits, or permanent residency.

Foreign property owners must still comply with standard visa requirements when visiting Japan, typically limiting stays to 90 days for tourists from visa-waiver countries. Extended stays require appropriate work visas, student visas, or other immigration permits based on your circumstances and nationality.

Some countries offer investor visas for property purchases above certain thresholds, but Japan does not operate such programs. The Japanese government maintains strict separation between real estate investment and immigration policy.

If I buy property, can I apply for a residence visa more easily?

Property ownership does not make obtaining a Japanese residence visa easier or provide any advantage in immigration applications.

Japanese immigration authorities evaluate visa applications based on employment qualifications, business plans, family relationships, or other specific criteria outlined in immigration law. Property ownership is not considered a relevant factor in these assessments.

Business manager visas require demonstrating an active business operation with employees and revenue, not simply owning commercial real estate. Investor visas focus on job creation and economic contribution rather than property assets.

Some applicants mistakenly believe that expensive property purchases demonstrate financial stability for visa applications, but immigration officers evaluate income sources, employment history, and specific visa requirements instead.

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

How much are the property taxes and registration fees when buying in Japan?

Expect to pay between 5-10% of the property purchase price in additional taxes and fees.

Fee Type Rate Applied To
Registration Tax 0.15-0.2% of property value Land and building registration
Real Estate Agent Commission Up to 3% + ¥60,000 Total transaction value
Stamp Duty ¥200-¥600,000 (sliding scale) Sales contract value
Real Estate Acquisition Tax 3-4% of assessed value Property purchase price
Legal/Administrative Fees ¥300,000-¥800,000 Professional services
Property Inspection ¥50,000-¥150,000 Building condition assessment
Total Additional Costs 5-10% of purchase price All fees combined

Are there ongoing annual taxes or costs I need to pay as a foreign owner?

Foreign property owners pay the same annual taxes as Japanese residents, totaling approximately 1.7% of assessed property value.

Fixed asset tax (kotei shisan zei) applies at 1.4% of the government-assessed property value, collected by local municipalities. City planning tax (toshi keikaku zei) adds another 0.3% for properties in urban planning areas, which includes most residential and commercial zones.

Condominium owners pay additional monthly management fees ranging from ¥10,000-¥30,000 depending on building amenities and size. Repair fund contributions typically add ¥5,000-¥15,000 monthly to cover major building maintenance and renovations.

Property insurance costs vary by location and coverage but generally range from ¥30,000-¥100,000 annually for earthquake and fire protection. Rental property owners may face additional income tax obligations on rental revenue.

infographics rental yields citiesJapan

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 rent out my property in Japan if I don't live there?

Yes, foreign property owners can legally rent out their properties whether they live in Japan or not.

Japanese law places no restrictions on foreign property owners operating rental businesses. You can rent properties for long-term residential leases, short-term vacation rentals, or commercial purposes depending on zoning regulations and property type.

Non-resident owners typically hire local property management companies to handle tenant screening, rent collection, maintenance issues, and legal compliance. Management fees range from 5-10% of monthly rental income plus additional charges for repairs and tenant turnover.

Rental income from Japanese properties is subject to Japanese income tax regardless of your residency status. Non-residents pay a flat 20.42% tax rate on rental profits, while residents face progressive tax rates that may be higher or lower depending on total income.

Airbnb and short-term rental operations require special licenses in most Japanese cities, with strict regulations on operating days and registration requirements that vary by municipality.

What financing options are available to foreigners, and do I need residency for a mortgage?

Most Japanese banks require residency status and local income documentation for mortgage approvals, severely limiting financing options for non-resident foreign buyers.

Traditional Japanese banks typically require borrowers to hold permanent residency or long-term work visas with minimum 3-year employment history in Japan. Some banks accept temporary residents with stable employment but offer less favorable terms and lower loan-to-value ratios.

Several "foreigner-friendly" financial institutions including SMBC Prestia, Mizuho Bank International, and Citibank Japan provide specialized programs for international buyers, but these often require substantial down payments of 30-50% and higher interest rates.

Offshore lenders based in Singapore, Hong Kong, or other financial centers may offer property financing for Japanese real estate, though these arrangements typically involve higher costs and more complex legal structures.

Most foreign buyers purchase Japanese properties with cash due to financing difficulties, making adequate liquid capital essential for successful transactions.

Are there inheritance or capital gains taxes specific to foreign property owners in Japan?

Foreign property owners face the same inheritance and capital gains tax obligations as Japanese residents, with rates and rules applying equally regardless of nationality.

Capital gains tax applies when selling Japanese property, with rates depending on ownership duration. Properties held less than 5 years face short-term capital gains tax of approximately 39%, while properties owned over 5 years qualify for long-term rates around 20%.

Inheritance tax affects property transfers to heirs, with tax rates ranging from 10-55% based on the total estate value and relationship to the deceased. Non-resident heirs may qualify for certain exemptions or reduced obligations depending on their circumstances.

Double taxation treaties between Japan and many countries provide relief from paying both Japanese and home country taxes on the same property transactions. Professional tax advice is essential for understanding specific obligations based on your nationality and residency status.

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

What legal steps should I follow to make sure the purchase is secure and recognized under Japanese law?

Follow these essential steps to ensure a legally secure property purchase in Japan.

1. **Select a licensed real estate agent** registered with the Japanese Real Estate Transaction Association (JRETA) and verify their credentials through official databases.2. **Conduct thorough property inspections** including structural assessments, title searches, and verification of building permits and zoning compliance.3. **Review the "Important Matters Explanation" document** (juuyou jikoo setsumei sho) which legally discloses all property defects, restrictions, and relevant information before signing contracts.4. **Sign the sales agreement** and pay the required deposit (typically 5-10% of purchase price) to secure the property and establish legal commitment from both parties.5. **Complete the ownership transfer registration** at the Legal Affairs Bureau (houmu kyoku) where the property is located to officially record your ownership in government records.6. **Settle all closing costs** including registration fees, agent commissions, taxes, and legal fees at the final settlement meeting with all parties present.7. **Obtain official certificates** of ownership registration and ensure all title documents are properly executed and filed with appropriate government offices.Working with bilingual legal counsel and experienced real estate professionals familiar with foreign buyer requirements helps avoid common pitfalls and ensures full legal compliance throughout the process.

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 Japan - Property Purchase Guide
  2. Immigration Lawyer Japan - Visa Requirements
  3. E-Housing Japan - Buying Guide
  4. Karma Legal Japan - Property Purchase Legal Guide
  5. Juwai Asia - Japan Property Investment
  6. Hokushin Japan Property - FAQ
  7. Dovetail Japan - Foreign Buyer Guide
  8. Cheap Houses Japan - Foreign Ownership