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
Buying a condo in Japan as a foreigner is surprisingly straightforward compared to many other countries.
Japan allows foreigners to own real estate with no restrictions, and the process follows a clear legal framework that protects both buyers and sellers. The Japanese real estate market offers excellent opportunities for both investment and living purposes, with cities like Tokyo, Osaka, and Yokohama providing strong rental yields and long-term appreciation potential.
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 condos in Japan with no restrictions, requiring a 10% down payment plus 6-10% in closing costs.
The entire process from contract signing to ownership typically takes 30-45 days, with mortgage approval adding another 2-4 weeks.
| Step | Timeline | Key Requirements |
|---|---|---|
| Initial Search & Agent Selection | 1-2 weeks | Bilingual agent, budget confirmation, area research |
| Document Preparation | 1-2 weeks | Income proof, bank statements, ID documents |
| Property Viewing & Due Diligence | 1-3 weeks | Building inspection, management review, neighborhood check |
| Offer & Contract Signing | 3-7 days | 10% deposit, purchase agreement, earnest money |
| Mortgage Application (if needed) | 2-4 weeks | Bank approval, income verification, property appraisal |
| Final Payment & Registration | 1-2 weeks | Remaining 90%, Legal Affairs Bureau registration |
| Ownership Transfer Complete | 1-3 days | Keys handover, utility transfers, management company contact |
How much money do I need upfront for a down payment and typical closing costs when buying a condo in Japan?
You'll need approximately 16-20% of the condo's purchase price in upfront cash for both down payment and closing costs combined.
The down payment for a condo in Japan is typically 10% of the purchase price, paid at contract signing. For a ¥50,000,000 condo (roughly $335,000 USD as of September 2025), you'd need ¥5,000,000 for the down payment.
Closing costs in Japan are substantial and typically range from 6-10% of the purchase price. These include acquisition tax (3-4% of assessed value), registration fees (0.4-2% of price), stamp duty (¥10,000-¥600,000 depending on price), real estate agent commission (3% + ¥60,000 + consumption tax), and judicial scrivener fees (¥100,000-¥200,000). For our ¥50,000,000 example, closing costs would be ¥3,000,000-¥5,000,000.
It's something we develop in our Japan property pack.
Additional upfront costs include property inspection fees (¥50,000-¥100,000), translation services if needed (¥30,000-¥80,000), and initial insurance premiums (¥20,000-¥50,000 annually).
What are the exact rules for foreigners buying real estate in Japan, and do I need a visa or residency status to own property?
Foreigners face absolutely no restrictions when buying condos or any real estate in Japan, and you don't need a visa or residency status to own property.
Japan treats foreign property owners exactly the same as Japanese citizens for ownership rights and tax obligations. You can buy condos, houses, land, and commercial properties with full freehold ownership rights. The only requirement is having sufficient funds and following the standard purchase procedures.
However, owning property doesn't grant you residency rights or a visa to live in Japan. If you want to reside in your condo, you'll need an appropriate visa such as a work visa, spouse visa, investor visa, or retirement visa depending on your situation. Property ownership alone doesn't qualify you for any visa category.
Foreign owners pay the same taxes as Japanese residents, including property tax (1.4% of assessed value annually) and city planning tax (0.3% of assessed value in most areas). When you sell, you'll pay capital gains tax at rates of 20.315% for properties held over 5 years or 39.63% for properties held less than 5 years.
Banking and financing options are more limited for non-residents, with most Japanese banks requiring residency for mortgage approval, though some international banks and specialized lenders work with foreign buyers.
Which neighborhoods or cities in Japan have the best balance of condo prices, rental yields, and long-term appreciation?
| City/Area | Average Rental Yield | Price Appreciation Trend |
|---|---|---|
| Tokyo 23 Wards (Central) | 2.5-5.2% (avg 3.44%) | Strong, especially premium areas |
| Osaka | 4.47% | Stable with moderate growth |
| Yokohama | 4.43% | Steady appreciation, good commuter demand |
| Kawasaki | 4.34% | Rising due to Tokyo proximity |
| Fukuoka | 4.2-5.0% | Growing tech hub, increasing demand |
| Sapporo | 4.2-5.0% | Stable, tourism-driven growth |
How do I find and hire a trustworthy bilingual real estate agent in Japan who specializes in condos for foreigners?
Look for agents who are members of established real estate networks and have specific experience working with foreign buyers on condo transactions.
Start by contacting major international real estate companies operating in Japan such as Savills, CBRE, or JLL, which have dedicated foreign client divisions. These firms typically employ bilingual agents and understand the complexities foreign buyers face. You can also search the Real Estate Transaction Agents Association (RETAA) database for licensed agents who specify foreign client services.
Ask potential agents specific questions about their experience: How many foreign condo buyers have they represented in the past year? Can they provide references from recent foreign clients? Do they work with English-speaking lawyers and judicial scriveners? A good agent should be able to explain the entire process in your language and connect you with bilingual professionals for each step.
Verify that your agent holds proper licensing from the Ministry of Land, Infrastructure, Transport and Tourism. They should display their license number prominently and be able to explain commission structures clearly (typically 3% + ¥60,000 + consumption tax).
Red flags include agents who don't speak your language fluently, cannot provide recent foreign client references, or pressure you to make quick decisions without proper due diligence time.
What documents will I need to prepare before starting the condo purchase process in Japan?
You'll need identity documents, proof of funds, and income verification documents, with most requiring official translation into Japanese.
- Personal identification: Valid passport, resident card if you have Japanese residency, and certified copies translated into Japanese
- Proof of funds: Bank statements for the past 3-6 months showing sufficient funds for down payment and closing costs, investment account statements if applicable
- Income documentation: Employment letter stating salary and position, tax returns for the past 2-3 years, pay stubs for recent months if employed
- Address verification: Utility bills or official mail from your home country, Japanese address registration if you're a resident
- Credit history: Credit report from your home country, translated into Japanese if required by lenders
All foreign documents typically need official translation by a certified translator, which costs ¥3,000-¥8,000 per document. Some documents may need apostille certification from your home country's government before translation.
If you're applying for a mortgage, Japanese banks will require additional documentation including detailed financial statements, employment contracts, and sometimes guarantor information. Prepare these documents early as obtaining and translating them can take 2-4 weeks.
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How do property viewings and due diligence work in Japan, and what specific checks should I make on the condo and building management?
Property viewings in Japan are typically scheduled through your agent and can be done virtually or in-person, with thorough due diligence being critical for building quality and management assessment.
During viewings, inspect the condo unit for structural issues, water damage signs, and functionality of all appliances and systems. Check ceiling stains, floor levelness, door and window operation, and balcony condition. Japanese condos often come with built-in fixtures, so verify what's included in the sale.
Building due diligence is crucial in Japan's condo market. Request the building management report (管理規約) which details monthly management fees, reserve funds, recent major repairs, and upcoming maintenance projects. Review the building's financial health by examining the reserve fund balance and any special assessments planned. A well-managed building should have 3-6 months of operating expenses in reserves.
Examine the building's earthquake resistance certificate and construction year, as buildings built after 1981 follow stricter seismic codes. Check the management company's reputation and turnover rate, as frequent management changes often indicate building problems.
It's something we develop in our Japan property pack.
Research the neighborhood by visiting at different times and days, checking proximity to train stations, shopping, and hospitals. Verify flood risk and disaster evacuation plans, especially important in Japan's natural disaster-prone environment.
What is the typical process for making an offer on a condo in Japan, and how much earnest money is usually required?
The offer process in Japan involves submitting a purchase application (買付申込書) followed by earnest money of typically 5-10% of the purchase price upon contract signing.
Your agent will prepare a purchase application document outlining your offer price, desired closing date, and any conditions such as financing approval or inspection results. This isn't legally binding but shows serious intent. Sellers usually respond within 3-5 business days, and negotiations on price and terms can occur during this period.
Once the seller accepts your offer, you'll sign the purchase agreement (売買契約書) and pay earnest money, typically 5-10% of the purchase price. For a ¥50,000,000 condo, expect to pay ¥2,500,000-¥5,000,000 earnest money. This money is held in escrow and applied to your down payment at closing.
The purchase agreement includes detailed terms about the property condition, what's included in the sale, financing contingencies, and penalties for contract breach. Read this carefully with your agent or lawyer, as Japanese real estate contracts are comprehensive and legally binding.
If you back out after signing without valid reasons outlined in the contract, you'll forfeit your earnest money. Valid reasons typically include mortgage denial, major structural issues discovered during inspection, or other conditions specified in the agreement.
How does the mortgage process work for foreigners in Japan, which banks lend, and what are the average interest rates and terms right now?
Japanese banks offer mortgages to foreign residents with stable income, while non-residents have limited options mainly through international banks and specialized lenders.
As of September 2025, mortgage interest rates in Japan range from 0.5-2.5% for residents, with terms up to 35 years. Major banks lending to foreigners include SMBC, Mizuho, MUFG, and Sumitomo Mitsui Banking Corporation, but they typically require Japanese residency, stable employment, and income verification.
For non-residents, options include Prestia (formerly Citibank Japan), Shinsei Bank's international division, and specialized mortgage brokers. These lenders offer rates of 2-4% with terms of 15-25 years and typically require larger down payments of 20-40%.
The application process takes 3-6 weeks and requires extensive documentation: Japanese tax returns (for residents), employment verification, bank statements, property appraisal, and sometimes a Japanese guarantor. Loan amounts typically don't exceed 70-80% of the property value for foreigners.
Pre-approval is recommended before making offers, as sellers prefer buyers with confirmed financing. Some lenders offer bridge loans if you need to close quickly while waiting for mortgage approval.
What taxes will I pay during and after the purchase, such as acquisition tax, property tax, or stamp duty, and how much are they in yen?
| Tax Type | Rate | Example (¥50M Condo) |
|---|---|---|
| Acquisition Tax (不動産取得税) | 3-4% of assessed value | ¥1,500,000-¥2,000,000 |
| Registration Tax (登録免許税) | 0.4-2% of assessed value | ¥200,000-¥1,000,000 |
| Stamp Duty (印紙税) | ¥10,000-¥600,000 based on price | ¥200,000 |
| Annual Property Tax (固定資産税) | 1.4% of assessed value | ¥700,000 annually |
| City Planning Tax (都市計画税) | 0.3% of assessed value | ¥150,000 annually |
What is the timeline from signing the contract to officially owning the condo in Japan, and how many steps are involved?
The timeline from contract signing to ownership typically takes 30-45 days, involving 8 main steps with specific deadlines and requirements.
- Contract signing and earnest money payment (Day 1): Sign purchase agreement and pay 5-10% earnest money
- Mortgage application submission (Days 2-7): Submit all required documents to lender if financing needed
- Property inspection and final due diligence (Days 3-14): Complete professional inspections and verify all documents
- Mortgage approval (Days 14-35): Bank completes appraisal and approves loan terms
- Final payment preparation (Days 30-40): Arrange wire transfers for remaining 90% plus closing costs
- Pre-closing walkthrough (Days 35-42): Final property inspection to confirm condition
- Closing and fund transfer (Day 40-45): Complete payment and receive temporary ownership documents
- Legal registration (Days 43-47): Register ownership at Legal Affairs Bureau and receive official title
Delays can occur during mortgage approval (additional 1-2 weeks) or if document issues arise. Having all paperwork prepared and translated beforehand significantly speeds the process.
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.
How does condo management work in Japan, what monthly fees will I pay, and how are building repairs or renovations handled?
Japanese condo management involves monthly fees typically ranging from ¥10,000-¥30,000 per month depending on building amenities and age.
Management companies handle day-to-day operations, maintenance, cleaning, security, and administrative tasks. Monthly management fees (管理費) cover these services plus utilities for common areas, insurance, and routine maintenance. Additionally, you'll pay into a repair reserve fund (修繕積立金) of ¥8,000-¥25,000 monthly for future major repairs.
Major building repairs and renovations require approval from the condo owners' association (管理組合). Decisions affecting the building structure or common areas need agreement from 75% of owners, while routine maintenance decisions require simple majority approval. Special assessments for major unexpected repairs are possible but uncommon in well-managed buildings.
It's something we develop in our Japan property pack.
Japanese buildings typically undergo major renovations every 12-15 years, including exterior painting, waterproofing, and mechanical system updates. Well-managed buildings plan these expenses in advance through the reserve fund, avoiding surprise special assessments.
You'll receive monthly statements detailing all fees and reserve fund balances. Management companies typically provide annual reports on building finances, upcoming maintenance projects, and any issues affecting the property.
What are the exact legal and registration steps at the Legal Affairs Bureau to transfer ownership and get the condo officially in my name?
Property ownership transfer in Japan requires registration at the Legal Affairs Bureau (法務局) within your property's jurisdiction, typically handled by a judicial scrivener on your behalf.
The registration process involves preparing several documents: the purchase agreement, seller's registered seal certificate (印鑑証明書), property title documents, tax payment receipts, and your identification documents with official translations. Your judicial scrivener will verify all documents meet Legal Affairs Bureau requirements before submission.
Registration fees are based on property value, typically 0.4-2% depending on whether it's a new purchase or transfer. For a ¥50,000,000 condo, expect registration fees of ¥200,000-¥1,000,000 plus judicial scrivener fees of ¥100,000-¥200,000.
The Legal Affairs Bureau reviews submitted documents for accuracy and legal compliance, which takes 1-2 weeks. Once approved, they issue a new property title certificate (登記済証) with your name as the registered owner. This document serves as legal proof of ownership and is required for future sales or mortgage applications.
After registration completion, you'll need to update your address with the local municipal office if you're residing in the property, arrange utility transfers, and notify the building management company of the ownership change. Your judicial scrivener typically coordinates these final steps to ensure a smooth transition.
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.
Buying a condo in Japan as a foreigner is a straightforward process that offers excellent opportunities for both investment and residence.
With proper preparation, professional guidance, and understanding of the legal requirements, you can successfully navigate the Japanese real estate market and secure your ideal property.
Sources
- Real Estate Japan - Cost of Buying Real Estate
- Smart JDM - Transaction Costs in Japan
- Hokushin J Property - Purchase Costs
- Land Housing - Foreigner Property Guide
- Global Property Guide - Japan Price History
- Dovetail - How to Buy a Home in Japan
- Tokyo Portfolio - Hidden Costs
- EmLabo - Complete Cost Guide Tokyo