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 remains one of the most accessible real estate markets in Asia for foreign buyers, with no restrictions on property ownership for US citizens.
We constantly update this blog post to reflect the latest regulations, tax rates, and market conditions in Japan.
Whether you want a Tokyo apartment, a traditional home in Kyoto, or a vacation property in Okinawa, the process is straightforward once you understand the basics.
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.
Can a US citizen legally buy residential property in Japan right now?
Can I buy a home in Japan as a US citizen in 2026?
As of early 2026, Japan has no blanket ban on foreigners purchasing residential real estate, which means US citizens can legally buy condos, detached houses, and land throughout the country.
The standard buying process in Japan involves working with a licensed real estate agent, signing a purchase agreement, paying a deposit (usually 10% of the price), and completing the registration at the Legal Affairs Bureau with help from a judicial scrivener.
What makes the Japan property market unique for Americans is the absence of special permits or citizenship requirements, so you can buy with the same legal rights as Japanese nationals.
However, practical friction points like financing eligibility, language barriers, and some extra reporting steps for non-residents can affect your experience more than legal restrictions would.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Japan.
Are there many Americans buying property and living in Japan in 2026?
As of early 2026, approximately 72,000 Americans are estimated to live in Japan, based on the Immigration Services Agency's total foreign resident count of 3.77 million and the US share of 1.9% from official survey data.
The highest concentrations of American expats and property owners in Japan are found in central Tokyo neighborhoods like Minato-ku (especially Azabu, Roppongi, and Hiroo), Shibuya-ku, Setagaya-ku, and Meguro-ku, as well as areas near US military bases in Okinawa and Yokosuka.
The top three reasons Americans choose to buy property and relocate to Japan include career opportunities at multinational companies and tech firms, the exceptional quality of life with world-class public transportation and healthcare, and the relatively affordable property prices compared to major US cities.
The American expat community in Japan is growing steadily, driven by remote work flexibility, Japan's safe and clean urban environment, and increased interest from retirees and digital nomads seeking a high quality of life at lower costs than US coastal cities.
Do foreigners have the same buying rights as locals in Japan?
Foreign buyers in Japan, including US citizens, have essentially the same property ownership rights as Japanese nationals, meaning you can buy, hold, inherit, and sell real estate under the same registration system and tax framework.
There are no property types or locations in Japan that are completely off-limits to foreign buyers, though purchases near military bases, nuclear facilities, and certain border islands require advance notification under the 2022 Important Land Survey and Regulation Act.
We cover all these things in length in our pack about the property market in Japan.
Can I buy property in Japan without a residence permit?
Yes, you can buy property in Japan without a residence permit or visa, as Japan does not require foreign buyers to live in the country to own real estate.
The process for non-resident buyers in Japan involves appointing a local representative (often a judicial scrivener or property manager) to handle paperwork, receive official notices, and manage utility and tax payments on your behalf.
Buying property in Japan does not grant any visa or residency rights, so if you want to live in Japan long-term, you need to qualify through work, family, or other visa categories separately from your property purchase.
The main practical challenge non-resident buyers face in Japan is setting up reliable payment methods for ongoing costs like property taxes and condo management fees, plus potential FEFTA post-purchase reporting if you are classified as a non-resident under that act.
Can US citizens own land in Japan?
Yes, US citizens can own land outright in Japan, as the country does not run a "foreigners can only buy condos, not land" rule at the national level.
Japan operates primarily on a freehold ownership system where you can own both the land and the building outright, though leasehold arrangements (where you own the building but lease the land) also exist in some residential situations and are part of the standard legal landscape.
There are no specific geographic zones in Japan where foreign land ownership is prohibited, though purchases of land near sensitive facilities like military bases or border islands may require advance notification to authorities under security regulations.
Please note that we have a dedicated blog article about the land buying process in Japan here.
What documents will I need to buy in Japan?
The essential documents a US citizen needs to purchase property in Japan include a valid passport, proof of funds (bank statements or equivalent), and personal information required for the property registration such as your legal name and overseas address.
A local tax identification number is not strictly required just to be on the deed in Japan, though you may need tax handling arrangements if you later rent out or sell the property, and your judicial scrivener can guide you through this process.
A local Japanese bank account is not mandatory to complete a property purchase in Japan, but it is highly practical for paying ongoing property taxes, condo management fees, and receiving rental income if applicable.
Proof of funds documentation is commonly required by agents and sellers in Japan to confirm you can close the transaction, and non-residents typically need to arrange a local point of contact (agent or judicial scrivener) to receive official notices since a Japan mailing address is needed for registration documents.
We have a whole section dedicated to all the documents you need in our Japan property pack.
Can a foreign-owned company buy property in Japan?
Yes, foreign-owned companies can legally purchase residential property in Japan, following the same registration and tax procedures as individual buyers or Japanese companies.
Americans sometimes use corporate structures (including Japan-specific entities like a Godo Kaisha or Kabushiki Kaisha) to hold investment or rental properties in Japan, though this is much more common for portfolios than for a single primary residence.
Owning property through a company in Japan can shift how taxes are calculated, potentially allowing certain deductions, but it also creates new taxes and compliance burdens, so it does not automatically lower your overall tax bill.
The main drawback of using company ownership for residential property in Japan is the added complexity of corporate accounting, governance, annual filings, and potentially higher setup and maintenance costs that may not be worthwhile for a personal home.
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What taxes and fees will I pay in Japan in 2026?
What are buyer taxes in Japan in 2026?
As of early 2026, the total buyer tax burden on a property purchase in Japan typically ranges from 2% to 5% of the purchase price on an effective basis, because several taxes are calculated on assessed values (often below market price) and residential reductions frequently apply.
The individual tax components in Japan include stamp duty on contracts (ranging from around 10,000 yen to 480,000 yen depending on price), registration and license tax (1.5% to 2% for land transfer, 0.3% to 2% for building transfer), and real estate acquisition tax (typically 3% on land and dwellings, 4% on non-dwelling buildings, often reduced for residential purchases).
Buyer tax rates in Japan are the same for foreigners and locals, and there is no additional stamp duty or surcharge for non-resident or investment purchases, though primary residence buyers may qualify for certain reductions that pure investment buyers cannot access.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Japan.
What are other closing costs in Japan in 2026?
As of early 2026, total closing costs (excluding taxes) for a property purchase in Japan typically range from 4% to 6% of the purchase price, meaning a 50 million yen property (around $330,000 or 305,000 euros) would have roughly 2 to 3 million yen ($13,000 to $20,000 or 12,000 to 18,000 euros) in non-tax closing costs.
The main closing cost categories in Japan include real estate agent commission (up to 3% plus 60,000 yen plus 10% consumption tax, so roughly 3.3% to 3.6% of the price), judicial scrivener fees for registration filing (typically 100,000 to 300,000 yen or $650 to $2,000), and if you borrow, bank fees including administrative charges, guarantee fees, and appraisal costs.
The negotiable or optional closing costs in Japan include the real estate agent fee (sometimes negotiable below the cap for higher-priced properties), building inspection costs (optional but recommended for older homes), and certain insurance add-ons beyond the basic requirements.
The single closing cost item that tends to surprise foreign buyers in Japan the most is the condominium repair reserve fund contribution (shuuzenkenritsu-kin), which is a lump sum paid at purchase in addition to the ongoing monthly management and repair fees.
Are there hidden fees foreigners miss in Japan right now?
The estimated total amount of commonly overlooked fees foreign buyers encounter in Japan can add 500,000 to 1,500,000 yen ($3,300 to $10,000 or 3,000 to 9,000 euros) to your expected costs, depending on property type and location.
The top three hidden or unexpected fees that foreign buyers most often fail to budget for in Japan are the condominium repair reserve fund lump sum (often 200,000 to 500,000 yen), fire and earthquake insurance premiums required at closing (100,000 to 300,000 yen for several years), and consumption tax on the building portion when buying from a developer or company seller (10% of the building value, which can be substantial).
The ongoing annual costs foreign property owners in Japan often underestimate include fixed asset tax and city planning tax (typically 1% to 1.5% of assessed value annually, or roughly 100,000 to 500,000 yen for a mid-range Tokyo apartment), plus monthly condominium management fees and repair reserves that can total 20,000 to 50,000 yen per month.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Japan.
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 get a mortgage as a US citizen in Japan in 2026?
Do banks lend to US citizens in Japan in 2026?
As of early 2026, mortgage financing is available for US citizens in Japan, though your eligibility depends heavily on whether you are a resident with a valid status of residence or a non-resident living abroad.
US citizens do not receive automatic preferential treatment from Japanese banks compared to other foreign nationals, as lenders primarily care about factors like residency status, income stability in yen, and verifiable credit history in Japan.
The main reason some banks in Japan are hesitant to lend to American borrowers specifically is FATCA (Foreign Account Tax Compliance Act) reporting requirements, which create additional compliance burdens for Japanese financial institutions serving US persons.
The typical approval likelihood for US citizens applying for property loans in Japan is high if you have permanent residency and stable yen income, moderate if you have a long-term work visa with several years of local employment, and quite low if you are a non-resident without Japanese income.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Japan.
What down payment do American people need in Japan in 2026?
As of early 2026, the minimum down payment for US citizens to obtain a mortgage in Japan is typically 10% to 20% for those with permanent residency and stable income, meaning a 50 million yen property (around $330,000 or 305,000 euros) would require at least 5 to 10 million yen ($33,000 to $66,000 or 30,500 to 61,000 euros) upfront.
The typical down payment range for foreign buyers in Japan spans from 20% at the minimum for most non-permanent residents to 30% to 40% as a recommended target for better loan terms and higher approval chances.
A larger down payment in Japan does improve mortgage terms for US citizens, as banks view higher equity as lower risk, which can result in better interest rates, longer available loan terms, and more lender options willing to work with you.
You can also read our latest update about mortgage and interest rates in Japan.
What interest rates do US citizens get in Japan in 2026?
As of early 2026, mortgage interest rates for US citizens in Japan typically range from 0.3% to 1.5% for variable-rate loans and 1.0% to 2.5% for fixed-rate loans, depending on your residency status, income level, and relationship with the bank.
Interest rates for foreign buyers in Japan are generally similar to rates offered to local residents if you have permanent residency and strong financials, but non-permanent residents typically pay a premium of 0.2% to 0.5% above the base rates offered to Japanese nationals.
Variable-rate mortgages are more common in Japan (chosen by roughly 75% to 80% of borrowers), with typical terms of 25 to 35 years, though fixed-rate options are available for buyers who want payment predictability in an environment where the Bank of Japan has begun raising rates.
The single factor with the biggest impact on the interest rate a US citizen will be offered in Japan is permanent residency status, as this dramatically expands your lender options and unlocks the most competitive rates that would otherwise be unavailable.
Can I use US income to qualify in Japan right now?
The acceptance level of US-sourced income for mortgage qualification in Japan is limited, as most Japanese banks prefer yen-denominated income from a Japan-based employer and may discount or decline foreign income entirely.
The documentation of US income that banks in Japan typically require from American applicants includes two to three years of US tax returns, recent pay stubs or employer verification letters, and bank statements showing consistent deposits, all of which may need to be translated into Japanese.
Alternative income verification methods accepted in Japan when standard US documentation is insufficient include providing a Japanese co-signer or guarantor (often a spouse with permanent residency), showing substantial assets held in Japan, or working with specialized banks like SMBC Trust Bank PRESTIA that have more experience with foreign income documentation.
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How do US taxes interact with owning property in Japan?
Do I have to declare the property to the IRS from Japan?
The IRS reporting requirement for US citizens who own property in Japan is that simply holding the deed to foreign real estate does not trigger a standalone reporting obligation, but related financial activities like rental income or foreign bank accounts do create filing requirements.
The specific IRS forms US citizens may need to file when owning property in Japan include Schedule E for rental income, Form 8938 (FATCA) for specified foreign financial assets above certain thresholds, and FinCEN Form 114 (FBAR) if you have Japanese bank accounts exceeding $10,000 in aggregate at any point during the year.
Simply owning property in Japan does not trigger IRS reporting by itself, but if you earn rental income, sell the property for a gain, or maintain Japanese bank accounts to manage the property, those activities create their own reporting and potential tax obligations to the United States.
Will I pay tax twice in the US and Japan in 2026?
As of early 2026, the risk of double taxation for US citizens owning property in Japan is manageable because mechanisms exist to avoid paying full tax in both countries, though proper planning and professional guidance are essential.
There is a tax treaty between the US and Japan that provides protections for property owners, helping to allocate taxing rights and prevent the same income from being fully taxed by both countries.
The Foreign Tax Credit works by allowing US citizens to offset taxes paid to Japan on income like rental earnings against their US tax liability, effectively giving you credit for Japanese taxes so you are not paying twice on the same income.
Whether property taxes paid in Japan are deductible on US federal tax returns is situation-dependent and has changed over time with US tax law revisions, so this is a question you should ask a qualified US CPA rather than assume the answer.
Do I need FATCA reporting when buying in Japan?
The FATCA reporting requirement for US citizens purchasing property in Japan is triggered not by the property deed itself, but by the financial accounts and structures you use around the purchase, such as Japanese bank accounts holding significant balances.
The specific FATCA thresholds that trigger Form 8938 reporting for US citizens with assets in Japan depend on your filing status and residency: for US-based filers, the threshold is $50,000 at year-end or $75,000 at any point during the year (higher for married filing jointly), while foreign residents have higher thresholds starting at $200,000.
FATCA reporting (Form 8938) differs from FBAR requirements in that FATCA covers a broader range of specified foreign financial assets and is filed with your tax return to the IRS, while FBAR (FinCEN Form 114) specifically covers foreign bank and financial accounts and is filed separately with FinCEN when aggregate balances exceed $10,000.
Consulting a US CPA before buying property in Japan is strongly recommended, and the specific questions to ask include how to structure your Japanese bank accounts, what depreciation method applies to your foreign rental property, how to properly use foreign tax credits, and whether your particular situation triggers additional reporting like Form 5471 if using a company structure.
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.
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 |
|---|---|---|
| National Tax Agency (NTA): Stamp Duty Table | Japan's official tax authority publishing the legal stamp-tax table. | We used it to anchor stamp duty amounts for property sale and loan contracts. We then translated those figures into practical buyer-facing cost ranges. |
| National Tax Agency (NTA): Registration Tax Table | The official NTA tax-rate table for property registration taxes in Japan. | We used it to pin down baseline and reduced registration tax rates for transfers and mortgages. We cross-checked how those rates apply to owner-occupied residential purchases. |
| Japanese Law Translation: FEFTA | An official government translation portal for Japanese statutes. | We used it to ground the legal basis for foreign-exchange reporting that can apply to non-resident buyers. We paired it with practitioner explanations to describe practical filing steps. |
| Bank of Japan (BOJ): Interest Rate Statistics | Japan's central bank and primary source for national interest-rate data. | We used it to anchor the direction and level of Japan's borrowing environment in early 2026. We cross-checked with bank rate sheets to give realistic mortgage-rate ranges. |
| SMBC Trust Bank PRESTIA: Housing Loan Rate Sheet | A major bank publishing current retail mortgage pricing transparently. | We used it to sanity-check real consumer rates foreigners may be offered in early 2026. We turned central-bank context into on-the-ground rate ranges for buyers. |
| Tokyo Metropolitan Tax Bureau: Fixed Asset Tax Page | An official Tokyo government page describing local tax billing mechanics. | We used it to confirm how annual property tax bills are issued for land and buildings. We kept the ongoing costs section concrete and practical for foreign owners. |
| MLIT: Real Estate Laws Overview | The national ministry responsible for land, housing, and real estate policy. | We used it to ground the framework of how buying works in Japan and what property rights are recognized. We avoided oversimplifying Japan's property-rights categories. |
| IRS: Japan Tax Treaty Documents | The IRS gateway to the official US-Japan income tax treaty and protocols. | We used it to confirm treaty existence and where to find official texts. We framed double taxation in a correct, US-facing way for American buyers. |
| IRS: Form 8938 (FATCA) | The IRS's official guidance page for FATCA reporting of foreign financial assets. | We used it to explain what US citizens must report when they hold certain foreign accounts or assets. We highlighted that the trigger is usually accounts around the property, not the deed itself. |
| FinCEN: FBAR Filing Guidance | The US financial regulator responsible for FBAR requirements. | We used it to explain when foreign bank accounts create annual US filing obligations. We gave a clean checklist for buyers to take to a US CPA. |
| Nippon.com: Foreign Population Data | A major Japan-focused publication citing Immigration Services Agency figures. | We used it to get a citable total for foreign residents in Japan at end-2024. We combined this with official survey shares to estimate Americans living in Japan. |
| Bloomberg: Nationality Disclosure Announcement | A top-tier financial news outlet reporting official policy announcements. | We used it to flag a 2026 policy change affecting registration paperwork for foreign buyers. We kept the legal ownership conclusion grounded in statutes, not news reports. |
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