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 offers one of the world's most accessible property markets for foreigners, with virtually no legal restrictions on ownership.
Foreigners can purchase land, houses, and condos without needing residency or even being physically present in the country, though property ownership doesn't grant you the right to live in Japan long-term.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.
Foreigners can buy any type of property in Japan without visa requirements, completing purchases remotely through legal representatives if needed.
As of June 2025, Tokyo properties average ¥91.4 million ($653,000), while cities like Osaka and Fukuoka offer better rental yields of 4.2-4.7% compared to Tokyo's 3.4%.
| Aspect | Key Information | Details |
|---|---|---|
| Property Rights | Full ownership allowed | Same rights as Japanese citizens, except farmland |
| Visa Requirements | None needed | Non-residents and tourists can purchase |
| Remote Purchase | Possible | Via power of attorney and local representatives |
| Major Taxes | Multiple layers | Acquisition tax (3-4%), annual fixed asset tax (1.4%) |
| Best Yields | Osaka/Sapporo | 4.5-5.0% gross rental yields |
| Tokyo Prices | ¥91.4M average | Central wards reach ¥120M+ for new condos |
| Mortgage Access | Limited for non-residents | Permanent residents have best chances |
What types of property can foreigners buy in Japan, and are there any restrictions?
Foreigners can purchase virtually any type of residential property in Japan including land, houses, apartments, and commercial properties with the same rights as Japanese citizens.
You can buy both freehold properties (where you own the land and building) and leasehold properties (where you own the building but lease the land). There are no special taxes, surcharges, or ownership limitations specifically targeting foreign buyers in the Japanese residential market.
The only significant restrictions apply to agricultural and forestry land, which requires special permission from local authorities that isn't always granted. Properties near military bases or designated strategic areas may also face restrictions for national security reasons.
Cultural heritage sites have special rules that apply to all buyers regardless of nationality. Beyond these specific cases, the Japanese property market remains remarkably open to foreign investment as of June 2025.
Do you need a visa or residency to buy property in Japan?
You don't need any visa, residency status, or even physical presence in Japan to purchase property there.
Non-residents, including tourists on 90-day visa waivers or people living abroad who have never visited Japan, can legally buy real estate. The Japanese government places no restrictions on foreign property ownership based on immigration status.
However, owning property in Japan doesn't grant you any residency rights or make it easier to obtain a visa. If you want to live in your Japanese property long-term, you'll need to qualify for a separate visa through employment, study, family connections, or business investment.
This separation between property ownership and residency rights is crucial to understand before making any purchase decisions in the Japanese market.
Can you buy Japanese property remotely from abroad?
Yes, you can complete the entire property purchase process from overseas without ever setting foot in Japan.
The remote purchase process requires appointing a local representative through a power of attorney, typically a real estate agent or lawyer who can act on your behalf. You'll need to work with a bilingual real estate agent experienced in assisting foreign buyers, secure legal support for document preparation, and appoint a domestic tax agent for future tax filings.
Key steps that require careful planning include notarizing documents at your local Japanese embassy or consulate, verifying your identity through official channels, and arranging international wire transfers for payments. Many foreign buyers successfully purchase Japanese properties this way, especially investors buying rental properties or people planning future relocations.
It's something we develop in our Japan property pack.
What taxes do foreign property owners pay in Japan?
Foreign property owners in Japan face the same tax obligations as Japanese citizens, with no additional charges based on nationality.
The main taxes include a one-time acquisition tax of 3-4% of the assessed property value, registration tax of 0.4-2% paid at title transfer, and stamp duty that varies by contract value. For ongoing costs, you'll pay an annual fixed asset tax of 1.4% of the assessed value and potentially a city planning tax of up to 0.3%.
| Tax Type | Rate/Amount | When Paid |
|---|---|---|
| Acquisition Tax | 3-4% of assessed value | One-time after purchase |
| Registration Tax | 0.4-2% of property value | At title transfer |
| Fixed Asset Tax | 1.4% annually | Every year as of January 1 |
| City Planning Tax | Up to 0.3% annually | With fixed asset tax |
| Rental Income Tax | 20.42% for non-residents | Withheld at source |
| Capital Gains Tax | 30.63% (short-term) | Upon sale if held <5 years |
| Stamp Duty | ¥5,000-¥100,000+ | At contract signing |
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How does the property purchase process work for foreigners?
The Japanese property purchase process follows a structured sequence that typically takes 1-3 months from initial offer to final ownership transfer.
First, you'll work with a real estate agent to view properties and submit a purchase application when you find suitable options. Next comes the Important Matters Explanation (Jūyō Jikō Setsumeisho), a legally required document that details all property specifications, which must be explained by a licensed agent. After reviewing this, you'll sign the Purchase and Sales Agreement and pay a deposit of 5-10% of the purchase price.
The due diligence period follows, where you conduct property inspections and verify legal documents. If you're getting a mortgage, this is when you'll finalize your loan application. The closing process involves final payment and official title transfer at the Legal Affairs Bureau, handled by a judicial scrivener (shiho shoshi).
Required documents include your passport, a notarized affidavit from your embassy, proof of address, seal registration certificate or notarized signature, and income verification if applying for financing. Non-residents must also report their acquisition to the Ministry of Finance within 20 days of purchase.
The entire process is highly regulated and transparent, with each step clearly defined in Japanese real estate law.
Is hiring a lawyer or judicial scrivener mandatory?
A judicial scrivener (shiho shoshi) is legally required for property registration in Japan, while a lawyer is optional but often beneficial for foreign buyers.
The judicial scrivener handles all aspects of title transfer including preparing and submitting registration documents to the Legal Affairs Bureau, verifying identities and confirming funds have been properly transferred, ensuring legal compliance with Japanese property law, and registering the change of ownership. Their fees typically range from ¥10,000 to ¥50,000 depending on property complexity.
While not mandatory, many foreign buyers also hire a real estate lawyer, especially for remote purchases or complex transactions. Lawyers can act as your proxy if you're buying from abroad, review contracts in detail and explain implications, protect your interests in negotiations, and handle any legal disputes that may arise.
Real estate agents are almost always involved in Japanese property transactions and are particularly crucial for foreign buyers who need help navigating listings, negotiations, and cultural differences in the purchasing process.
Where do foreigners typically buy property in Japan in 2025?
Foreign buyers in Japan concentrate in major metropolitan areas with strong international communities and investment potential.
Tokyo remains the top choice, particularly central wards like Minato, Shibuya, and Shinjuku, which offer luxury properties, proximity to international schools, and vibrant expat communities. As we reach mid-2025, Tokyo's property market continues to show strong capital appreciation despite lower rental yields averaging 3.4%.
- Tokyo: Central business districts for luxury and investment, with average prices of ¥91.4 million for new condos
- Osaka: Japan's second city offers better rental yields (4.5-4.7%) and lower entry prices around ¥55-57 million
- Fukuoka: Growing tech hub with 21% price growth in 2024, attracting younger investors
- Yokohama: Family-friendly alternative to Tokyo with international schools and lower prices
- Nagoya: Industrial center with stable rental demand from corporate tenants
- Sapporo: Highest yields among major cities at 5.0%, popular for winter sports tourism
- Kyoto: Cultural appeal attracts lifestyle buyers despite restrictions on short-term rentals
- Rural areas: Akiya (abandoned homes) offer ultra-low entry prices for renovation projects
Which areas offer the best rental yields and appreciation in 2025?
As of June 2025, Japanese cities show significant variation in rental yields, with secondary cities outperforming Tokyo for income-focused investors.
Sapporo leads major cities with 5.0% gross rental yields due to lower property prices and steady demand from both locals and tourists. Osaka follows closely at 4.5-4.7%, benefiting from its status as Japan's commercial hub with more affordable entry points than Tokyo. Fukuoka and Yokohama both offer around 4.2-4.4% yields, combining reasonable prices with growing rental demand.
Tokyo's central wards average only 3.4% rental yields but compensate with superior capital appreciation potential. Premium properties in Minato and Shibuya have seen consistent price growth, making them attractive for long-term wealth building rather than immediate rental income.
Emerging neighborhoods within Tokyo like Nakano, Koenji, and Sumida offer better yields (4-5%) than central areas while maintaining strong growth prospects. These areas benefit from ongoing gentrification and improved transport links.
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 are current property prices in major Japanese cities?
Japanese property prices in June 2025 vary dramatically between Tokyo's premium districts and other major cities.
Tokyo's 23 wards average ¥91.4 million ($653,000) for new condominiums, but prices in central luxury districts like Minato and Azabu can exceed ¥120 million ($860,000) for new units. Used condos in Tokyo offer more affordable entry points, averaging ¥44.5 million ($320,000) across the metropolitan area.
| City/Area | New Condo Average (¥/USD) | Used Condo Average (¥/USD) |
|---|---|---|
| Tokyo Central Wards | ¥120M / $860,000 | ¥44.5M / $320,000 |
| Tokyo 23 Wards Average | ¥91.4M / $653,000 | - |
| Tokyo Outer Wards | ¥55M / $393,000 | - |
| Osaka City | ¥55-57M / $390-410K | ¥18-45M / $130-320K |
| Fukuoka City | ¥56M / $400,000 | - |
| Sapporo City | ¥51.5M / $368,000 | - |
| Rural Japan | ¥20M / $143,000 | Lower for akiya |
What pitfalls should foreigners avoid when buying Japanese property?
The most common mistakes foreign buyers make in Japan stem from language barriers, unfamiliarity with local practices, and inadequate due diligence.
Language issues top the list since most contracts and legal documents are only available in Japanese. Many buyers underestimate this challenge and skip hiring bilingual professionals, leading to misunderstandings about property details, payment terms, or ongoing obligations. Always work with bilingual agents and consider hiring a lawyer for complex transactions.
Due diligence failures include not verifying whether you're buying both land and building (some properties sell only the structure), missing leasehold versus freehold distinctions, and failing to check for liens or encumbrances on the property. Older properties and akiya (abandoned homes) require especially thorough inspections for structural issues, asbestos, or earthquake damage.
Other critical mistakes include ignoring local zoning laws that might restrict renovations or business use, not understanding short-term rental (minpaku) regulations which vary by municipality, underestimating ongoing costs like annual taxes and condo management fees, attempting to secure financing without proper preparation, and not appointing a tax representative if buying as a non-resident.
The best strategy is working with experienced professionals who specialize in foreign transactions and conducting thorough inspections before committing to any purchase.
Can foreigners get mortgages in Japan?
Securing a mortgage in Japan as a foreigner is possible but challenging, with eligibility heavily dependent on your residency status and income source.
Permanent residents and spouses of Japanese citizens have the best chances of approval, with access to the same loan products and interest rates as Japanese nationals (typically 0.5-2% as of June 2025). Work visa holders with stable employment at Japanese companies can also qualify, though they may face stricter requirements like larger down payments or shorter loan terms.
Non-residents face the most difficulties, with most major Japanese banks refusing applications entirely. Some international banks with Japanese branches may consider non-resident applications, but expect higher interest rates, larger down payments (often 40-50%), and stricter income requirements.
To strengthen your mortgage application, establish a Japanese bank account with transaction history, provide extensive documentation of stable income, ideally from Japanese sources, secure a Japanese guarantor if possible, and work with a mortgage broker familiar with foreign applications. Some smaller regional banks and credit unions show more flexibility with foreign applicants than major national banks.
It's something we develop in our Japan property pack.
What are all the costs involved in buying Japanese property?
The total cost of buying property in Japan extends well beyond the purchase price, with various fees and taxes adding approximately 7-10% to your initial investment.
Upfront costs include the real estate agent fee of 3% of the purchase price plus ¥60,000 plus 10% consumption tax, making the total roughly 3.3% for most transactions. The judicial scrivener fee ranges from ¥10,000 to ¥50,000 for handling registration. You'll pay acquisition tax of 3-4% of the assessed value within months of purchase, plus registration tax of 0.4-2% at closing.
The purchase agreement requires stamp duty based on the contract value, typically ¥5,000 to ¥100,000 or more for expensive properties. Most sellers require a deposit of 5-10% when signing the initial purchase agreement.
Annual ongoing costs include fixed asset tax at 1.4% of assessed value and city planning tax up to 0.3% in urban areas. Condominium owners pay monthly management fees and contributions to the repair reserve fund. If you're a non-resident, you'll need to pay a tax representative to handle your annual filings.
Budgeting for these additional costs is crucial to avoid surprises and ensure you have sufficient funds to complete your Japanese property purchase.
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.
Japan's property market remains uniquely accessible to foreign buyers in 2025, offering full ownership rights without residency requirements and a transparent, well-regulated purchase process.
Whether you're seeking Tokyo's capital appreciation potential or the higher rental yields of Osaka and Sapporo, success requires careful planning, professional guidance, and realistic expectations about costs and market dynamics.
Sources
- Real Estate Tokyo - Can a Foreigner Buy Property in Japan?
- Dovetail - How to Buy a Home in Japan as a Foreigner
- Global Property Guide - Japan Rental Yields
- E-Housing - Guide to Buying Property in Japan
- Old Houses Japan - Can Foreigners Own Land in Japan
- Black Ship Realty - Can Foreigners Buy Property in Japan
- Japan Property - Market News and Updates
- Wise - Buying Property in Japan Guide
- Tokyo Portfolio - Q1 2025 Market Trends
- Expatica - Best Cities for Expats in Japan