What's the purchase process to buy a property in Japan?

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.

How do foreigners check if they are legally allowed to buy property in Japan?

Foreigners can freely purchase property in Japan without any legal restrictions or requirements for residency status.

As of September 2025, Japan allows foreign nationals to buy houses, apartments, commercial properties, and most types of residential land with the same ownership rights as Japanese citizens. No visa or residency permit is required to complete a property purchase, and transactions can even be completed remotely with proper legal representation.

The only exceptions apply to certain types of farmland, forestry land, or properties in strategic security zones, which may require government approval. These restrictions are rare and typically don't affect standard residential or commercial property purchases in major cities like Tokyo, Osaka, or Kyoto.

Property ownership in Japan is typically "freehold," meaning you own both the land and building outright, though some leasehold properties exist where you own the building but lease the land from another party.

It's important to note that purchasing property does not grant residency status or visa rights in Japan.

What kinds of properties can you actually buy in Japan, and what restrictions apply?

Foreign buyers can purchase virtually any type of residential or commercial property in Japan's major markets.

Available property types include single-family houses (detached homes), condominiums and apartments (both new and resale), commercial buildings, office spaces, and most residential land plots. Popular investment properties include studio apartments in Tokyo's central districts, family homes in suburban areas, and commercial properties in business districts.

The main restrictions apply to agricultural land, which requires special permits and often involves complex approval processes. Properties near military installations or in designated security zones may also face additional scrutiny. Forestry land purchases may require environmental assessments and government approvals.

For standard residential properties in cities like Tokyo, Osaka, Kyoto, or Fukuoka, foreign buyers face no meaningful restrictions. You can buy properties for personal residence, investment rental purposes, or commercial use without special permits.

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

How do you find and choose a reliable real estate agent in Japan?

Finding a qualified real estate agent who speaks English and understands foreign buyer needs is crucial for a smooth purchase process.

Look for agents who hold the official 不動産業従業員証明書 (Real Estate Employee Identification Certificate) and have experience working with international clients. Top agencies serving foreigners include Hikari Homes, Plaza Homes, Tokyo Portfolio, Real Estate Japan, Ken Corporation, and Housing Japan, all of which maintain English-speaking staff.

Evaluate potential agents by checking their online presence, client reviews, and social media profiles to assess their professionalism and communication style. Ask for references from previous foreign clients and inquire about their experience with remote transactions if you're buying from overseas.

A good agent should be able to explain the Japanese property market clearly, help with document translation, coordinate with judicial scriveners for legal work, and assist with mortgage applications if needed. They should also be familiar with tax implications for foreign property owners.

Avoid agents who seem unfamiliar with foreign buyer requirements or cannot provide proper licensing documentation.

What's the process for viewing and selecting a property?

Property viewing in Japan follows a structured process that typically begins with online research and progresses to scheduled site visits.

Start by shortlisting properties through online portals or your agent's recommendations, then request "naiken" (viewing appointments) to inspect properties in person. Prepare a detailed checklist covering your must-have features, budget constraints, and location preferences before viewing sessions.

During property visits, assess the building's structural condition, neighborhood amenities, transportation access, and potential for future resale or rental income. Pay attention to factors like earthquake resistance standards, building age, and maintenance quality, as these affect long-term value.

For tenanted investment properties, internal viewing may be limited, requiring you to rely on agent inspections, property documents, and photographs. In these cases, request detailed floor plans, recent inspection reports, and rental history data.

Consider hiring a professional property inspector for expensive purchases, especially for older buildings or properties with complex structural elements.

How do you make an official offer and what documents are required?

Making an official offer requires submitting a formal purchase application through your real estate agent, followed by price negotiations.

Essential documents include your passport for identity verification, proof of financial capacity (bank statements or income documentation), and possibly a registered seal (inkan) if you plan to use mortgage financing. For remote purchases, you'll need a power of attorney document allowing your agent or lawyer to act on your behalf.

Non-resident buyers must provide identity and residency documents from their home country, as they cannot obtain a Japanese "Certificate of Residence." Your agent will help translate and notarize these documents as required by Japanese law.

The offer process typically involves submitting your proposed purchase price, desired closing timeline, and any special conditions. Common negotiation points include price adjustments based on property condition, inclusion of furniture or appliances, and timing of possession transfer.

Once the seller accepts your offer, you'll move to the contract preparation stage, which requires additional legal documentation and deposit payment.

What is the role of the deposit, and how much do you usually need to pay upfront?

The deposit (tebiki-kin) serves as a contract security mechanism and potential cancellation fee in Japanese real estate transactions.

Standard deposit amounts range from 5% to 10% of the total purchase price, with new apartment purchases typically requiring 10% deposits while older properties may accept 5-7% deposits. This amount is paid when signing the purchase contract and is held in escrow until closing.

If you cancel the contract after signing, you forfeit the entire deposit amount. Conversely, if the seller cancels, they must typically pay double the deposit amount back to you as compensation. This structure protects both parties and ensures serious commitment to the transaction.

The deposit is credited toward your final purchase payment at closing, so it's not an additional cost but rather an advance payment. Some developers or sellers may offer flexible deposit payment schedules for high-value properties.

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

What happens during the signing of the purchase agreement in Japan?

Contract signing is a formal process conducted in the presence of your real estate agent and often a judicial scrivener who handles legal documentation.

During the signing meeting, you'll review the complete purchase contract, property disclosure statement, and any additional terms or conditions. Most contracts are written in Japanese, so ensure you have professional translation support to understand all clauses and obligations.

You'll pay the agreed deposit amount at this time, typically by bank transfer or certified check. The seller provides the property disclosure statement outlining known issues, building specifications, and legal compliance status.

Remote signing is possible through digital signatures or power of attorney arrangements, though most transactions still involve in-person meetings for security and verification purposes. Your judicial scrivener will explain the legal implications and ensure proper documentation.

After signing, you'll receive copies of all documents, and the formal property transfer process begins with title searches and preparation for final closing.

How does the mortgage process work for foreigners, and which banks lend to non-residents?

Bank Type	Residency Requirement	Down Payment
Major Japanese Banks	Permanent residency required	10-20% minimum
Foreign-friendly Banks	Stable visa or PR preferred	15-25% typical
Suruga Bank	Non-PR accepted with conditions	20-30% required
Aeon Bank	Work visa holders considered	15-25% standard
Prestia Bank	High-income non-residents	25-35% premium
Tokyo Star Bank	Professional visa holders	20-28% required
Regional Banks	Local employment preferred	10-20% with guarantor

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 are the taxes, legal fees, and agent commissions you need to budget for?

Property purchase in Japan involves several mandatory fees and taxes that typically add 6-8% to your total investment cost.

Real estate agent commissions are standardized at 3% of the purchase price plus ¥60,000, plus 8% consumption tax on the total commission. Registration tax amounts to 2% of the property's assessed value, while real estate acquisition tax ranges from 3-4% of assessed value.

Legal fees for judicial scrivener services typically cost ¥100,000-200,000 depending on property complexity. Stamp duty varies from ¥1,000 to ¥30,000 based on contract value. Property inspection fees, if required, add ¥50,000-100,000 to your costs.

Ongoing annual costs include fixed asset tax at 1.4% of registered property value, fire insurance premiums, and building management fees for condominiums. If you're financing the purchase, add mortgage arrangement fees and title insurance costs.

Budget approximately 8-10% of purchase price for all transaction costs, plus ongoing annual expenses of 2-3% of property value for taxes and maintenance.

What happens at the property registration stage, and who handles it?

Property registration is handled by a licensed judicial scrivener who manages the legal transfer of ownership through Japan's Legal Affairs Bureau.

After you make full payment, the scrivener submits all required documents to register the property title in your name. This process includes title searches, lien checks, and verification of all legal requirements for ownership transfer.

Registration typically takes 2-4 weeks to complete, during which the scrivener ensures no legal obstacles exist and all taxes are properly paid. You'll receive the official property registration certificate, title documents, and keys once the process is complete.

The scrivener also handles any mortgage registration if you're using financing, coordinates with banks for loan disbursement, and ensures proper insurance coverage is in place. They serve as the legal intermediary ensuring all parties meet their obligations.

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

What are the most common misunderstandings foreigners face with contracts, taxes, or financing?

The biggest misconception is believing that property ownership grants residency status or visa rights, which is completely false in Japan.

1. **Contract Language Issues**: Most contracts are in Japanese, leading to misunderstandings about maintenance responsibilities, building rules, and penalty clauses2. **Mortgage Eligibility Assumptions**: Many foreigners assume they can easily get mortgages without permanent residency or stable Japanese income3. **Tax Obligation Misunderstanding**: Underestimating annual property taxes, inheritance tax implications, and filing requirements in both Japan and home countries4. **Financing Terms Confusion**: Not understanding that non-resident mortgages typically require higher down payments and shorter loan terms5. **Legal Document Requirements**: Assuming foreign documents are automatically accepted without proper translation and notarization

Common financing mistakes include not obtaining pre-approval before making offers, underestimating the difficulty of getting loans as a non-resident, and failing to factor mortgage insurance and guarantee fees into total costs.

Many foreigners also misunderstand the role of judicial scriveners, assuming real estate agents handle all legal work, when specialized legal professionals are required for property registration.

What are the mistakes buyers often make after the purchase, especially with property management or ongoing taxes?

Post-purchase mistakes often prove more costly than acquisition errors, particularly regarding tax compliance and property maintenance.

1. **Annual Tax Payment Failures**: Missing fixed asset tax payments or fire insurance renewals, risking penalties and coverage lapses2. **Property Management Neglect**: For rental properties, failing to hire professional management companies, leading to tenant problems and property deterioration 3. **Tax Filing Errors**: Not properly reporting rental income in Japan and home countries, creating double taxation issues4. **Building Maintenance Ignorance**: Ignoring required building inspections, earthquake safety updates, or condominium association obligations5. **Insurance Coverage Gaps**: Letting property insurance lapse or maintaining inadequate coverage for natural disasters

Many foreign owners underestimate the complexity of Japanese rental management, including tenant screening, lease renewals, and dispute resolution. Language barriers often compound these problems when dealing with tenants or building management companies.

Tax compliance becomes particularly complex for non-resident owners, who must navigate both Japanese tax obligations and reporting requirements in their home countries. Failing to maintain proper records or hire qualified tax professionals often results in penalties and audit issues.

The most expensive mistakes involve ignoring building maintenance schedules or failing to update properties to current earthquake resistance standards, which can dramatically affect resale values and rental attractiveness.

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. Taxes for Expats - Can Foreigners Buy Property in Japan
2. Real Estate Tokyo - Foreigner Property Purchase Guide
3. Land Housing - Foreign Property Ownership
4. BambooRoutes - Japan Real Estate for Foreigners
5. Black Ship Realty - Foreign Property Purchase
6. InvestAsian - Japan Real Estate Agents
7. Dovetail - Finding Real Estate Agents
8. Tokyo Living - Property Purchase Process
9. Real Estate Tokyo - Mortgage Information
10. Eaves Japan - Non-PR Mortgages