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
Foreigners can legally buy property in Nagoya with virtually no restrictions compared to Japanese citizens. You don't need permanent residency, a work visa, or even physical presence in Japan to purchase property, though securing mortgages without residency status remains challenging.
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.
Nagoya offers significantly cheaper property prices than Tokyo or Osaka, with central condos ranging from ¥550,000-¥950,000 per sqm as of 2025.
The city provides stable rental yields of 4-6% for central properties and strong rental demand due to its manufacturing sector and student population.
| Aspect | Key Information | Requirements/Costs |
|---|---|---|
| Legal Requirements | No restrictions for foreigners vs Japanese citizens | No visa or residency required |
| Purchase Process | Can be done entirely remotely | Judicial scrivener mandatory (¥50,000-¥100,000) |
| Mortgage Access | Very difficult without permanent residency | Rates: 1.475%-3.65% for foreigners |
| Property Taxes | Fixed asset tax + city planning tax | 1.4% + 0.3% of assessed value annually |
| Transaction Costs | Total 5-10% of purchase price | Includes acquisition tax (3%), agent fee (~3%) |
| Rental Yields | Central Nagoya condos | 4-6% gross rental yield |
| Price Comparison | vs Tokyo/Osaka | 40-60% cheaper than Tokyo central areas |
Can foreigners legally buy property in Nagoya or are there restrictions compared to Japanese citizens?
Foreigners can legally buy property in Nagoya with virtually no restrictions compared to Japanese citizens.
As of September 2025, Japan maintains one of the most open property markets for international buyers among developed nations. You have the same ownership rights as local citizens, including the ability to purchase condominiums, detached houses, and commercial properties in Nagoya.
The only minor restrictions apply to agricultural land and properties near sensitive military installations, which rarely affect residential buyers in urban areas like Nagoya. These limitations exist for Japanese citizens as well and are not specifically targeted at foreigners.
Property ownership in Japan is governed by freehold tenure, meaning you own both the building and the land beneath it permanently. This differs from leasehold arrangements common in some other Asian countries where foreigners face significant restrictions.
It's something we develop in our Japan property pack.
Do foreigners need permanent residency, a work visa, or any specific visa status to purchase property?
No visa status, permanent residency, or work permit is required for foreigners to purchase property in Nagoya.
You can buy property in Japan as a tourist, student, or even without ever setting foot in the country. This policy applies to both residential and commercial real estate purchases throughout Japan, including Nagoya.
However, purchasing property does not grant you any immigration benefits or residency rights in Japan. Your property ownership and visa status remain completely separate legal matters under Japanese law.
The main practical difference arises when seeking financing - most Japanese banks require permanent residency or long-term visa status to approve mortgages, making cash purchases more common among non-resident foreign buyers.
Is it necessary to be physically present in Japan during the buying process or can it be handled remotely?
The entire property purchase process in Nagoya can be completed remotely without physical presence in Japan.
You can handle all key steps through video calls and by appointing a local proxy with Power of Attorney. This includes property viewings via video tours, receiving the mandatory "Explanation of Important Matters" briefing from a licensed realtor, and signing purchase contracts.
Remote buyers typically work with a judicial scrivener (shihoshoshi) or real estate agent who acts as their legal representative throughout the transaction. All document signings can be executed through notarized Power of Attorney arrangements.
The only requirement is that certain documents must be properly notarized and apostilled in your home country before being submitted to Japanese authorities for the final ownership transfer.
What is the full step-by-step process of buying property in Nagoya, including all required documents?
The Nagoya property buying process follows a structured 8-step procedure that typically takes 30-60 days from initial application to completion.
| Step | Action Required | Timeline |
|---|---|---|
| 1. Property Search | Engage local agent, view properties, select target | 1-4 weeks |
| 2. Application | Submit purchase application with 5-10% deposit | 1-3 days |
| 3. Negotiation | Price and terms negotiation through agent | 3-7 days |
| 4. Legal Disclosure | Receive mandatory property disclosure briefing | 1-2 days |
| 5. Contract Signing | Execute purchase agreement, pay remaining deposit | 1 day |
| 6. Due Diligence | Property inspection, title verification, financing | 1-2 weeks |
| 7. Closing | Final payment, title transfer at Legal Affairs Bureau | 1 day |
| 8. Post-Purchase | Bank of Japan reporting, tax setup, management | 1-2 weeks |
Required Documents:
Passport and notarized affidavit of overseas address; Japanese residence card or visa copy (if applicable); proof of income, employment verification, recent payslips, and tax returns for financing applications; draft purchase agreement for legal review; Power of Attorney documentation if using a proxy; and certificate of personal seal registration or notarized signature confirmation.
Is hiring a local lawyer or judicial scrivener mandatory for foreigners or just recommended?
Hiring a judicial scrivener (shihoshoshi) is legally mandatory for completing the property title transfer and registration process in Nagoya.
Japanese law requires a licensed judicial scrivener to handle the official ownership transfer at the Legal Affairs Bureau. This professional ensures all documents are properly filed and the title is correctly registered in your name. Their fees typically range from ¥50,000 to ¥100,000.
While hiring a separate lawyer is not mandatory, it is strongly recommended for foreigners to ensure proper document review and risk mitigation. Many foreign buyers work with bilingual legal professionals who can explain complex contract terms and identify potential issues.
Additionally, Japanese law mandates that a licensed real estate broker provide the "Explanation of Important Matters" briefing before contract signing, which covers property defects, legal restrictions, and key terms.
Don't lose money on your property in Nagoya
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Can foreigners access mortgages in Japan, and if so what are the typical rates, conditions, and best practices to get approved?
Foreigners without permanent residency face significant challenges in obtaining mortgages from Japanese banks, though some specialized lenders offer financing options.
Most major Japanese banks require permanent residency, long-term work history in Japan, or Japanese nationality for standard mortgage products. However, several banks maintain special foreign lending programs including Suruga Bank (adjustable rates: 1.475%–2.875%), SMBC Trust Bank (fixed rates: 1.78%–2.13%), and Tokyo Star Bank (fixed rates: 2%–3.65%).
These foreign-friendly mortgages often require Japanese language ability, local co-signers, proof of long-term residence intent, and down payments of 30-50% compared to 10-20% for Japanese citizens. Interest rates for foreigners typically run 1-2 percentage points higher than the 0.18%-1.05% rates available to local borrowers.
Best practices for mortgage approval include preparing comprehensive financial documentation, working with bilingual mortgage brokers, maintaining Japanese bank accounts with transaction history, and demonstrating stable income sources. Many foreign buyers opt for cash purchases to avoid financing complications.
What are the total taxes, fees, and additional costs involved in buying, owning, and reselling property in Nagoya?
Total transaction costs for buying property in Nagoya typically range from 5-10% of the purchase price, with ongoing annual costs around 1.7% of assessed property value.
| Cost Category | Rate/Amount | When Paid |
|---|---|---|
| Acquisition Tax | 3% of assessed value | 3-6 months after purchase |
| Registration & License Tax | 2% of assessed value | At closing |
| Real Estate Agent Commission | ~3% + ¥60,000 + 10% consumption tax | At closing |
| Stamp Duty | ¥10,000-¥30,000 (price dependent) | At contract signing |
| Judicial Scrivener Fee | ¥50,000-¥100,000 | At closing |
| Fixed Asset Tax (Annual) | 1.4% of assessed value | Quarterly payments |
| City Planning Tax (Annual) | 0.3% of assessed value | With property tax |
Resale Costs: Capital gains tax applies at 30% for properties held under 5 years and 15% for properties held over 5 years. Rental income tax for non-residents starts at 5% and can reach 40% depending on net income levels.
How do property prices in Nagoya compare with other major Japanese cities and regional areas, broken down by type and location?
Nagoya property prices remain 40-60% cheaper than Tokyo and 20-30% below Osaka levels, while commanding a 20-40% premium over regional secondary cities as of September 2025.
Central Nagoya condominiums in premium districts like Sakae, Nakamura, and Meieki range from ¥550,000 to ¥950,000 per square meter. Suburban and outer ward properties typically sell for ¥350,000 to ¥600,000 per square meter.
Detached houses in Nagoya range from ¥25 million to ¥55 million for family-sized properties, depending on proximity to the central business district and major transit lines. Properties within walking distance of subway stations command 15-25% price premiums.
For comparison, Tokyo central ward apartments average ¥1.3-2.2 million per square meter, while Osaka properties range from ¥850,000-1.5 million per square meter. Regional cities like Sendai or Hiroshima typically see prices of ¥300,000-500,000 per square meter.
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.
Which neighborhoods or districts in Nagoya are most popular with foreigners for living, renting out, or long-term investment?
Naka Ward, particularly the Sakae and Fushimi areas, attracts the highest concentration of foreign residents and investors due to its central location and urban amenities.
The following districts represent the top choices for foreign property buyers:
- Naka Ward (Sakae/Fushimi): Central business district with nightlife, shopping, dining, and highest rental demand from expats and young professionals
- Meieki (Nagoya Station area): Major transport hub with direct shinkansen access, growing number of new developments, strong business district presence
- Atsuta and Showa Wards: Traditional residential areas popular with families, close to universities, quieter environment with good school access
- Higashi Ward: Upscale residential area with cultural attractions, leafy neighborhoods, higher property values
- Chikusa and Tempaku: Family-friendly areas with access to international schools, popular among expat families with children
Properties within walking distance of Higashiyama Line and Meijo Line subway stations command premium rents and experience stronger appreciation rates. Foreign buyers particularly favor newer condominiums built after 2000 for their modern amenities and earthquake resistance standards.
What are the latest figures on liveability rankings, gross rental yields, rental demand, tourism inflows, and growth forecasts for Nagoya?
Nagoya consistently ranks among Japan's top 5 cities for liveability, infrastructure quality, and transportation connectivity as of 2025 assessments.
The city benefits from its position as a major manufacturing hub anchored by Toyota's headquarters and related automotive industry clusters. This industrial base provides stable employment and housing demand from domestic corporate relocations.
Gross rental yields in central Nagoya typically range from 4-6% for modern condominiums, with older properties and suburban units potentially achieving higher yields of 6-8%. These figures compare favorably to Tokyo's 3-4% average yields and reflect Nagoya's more affordable purchase prices relative to rental income potential.
Tourism infrastructure continues expanding with approximately 15 million annual visitors, supported by new hotel developments near Nagoya Station and the Sakae entertainment district. The city's strategic location between Tokyo and Osaka makes it an attractive stopover destination.
Property price growth forecasts project steady 1-2% annual appreciation for 2025-2027, with Sakae and Meieki districts expected to outperform due to ongoing urban redevelopment projects and improved transit connectivity.
What are the most common mistakes and pitfalls foreigners face when buying property in Japan, and how can they be avoided?
The most frequent and costly mistake foreign buyers make is overpaying due to insufficient local market knowledge and failure to engage buyer-focused representation.
Common pitfalls include:
- Inadequate market research: Paying above market rates because of limited comparable property analysis and relying solely on seller's agents
- Underestimating total costs: Failing to budget 5-10% additional transaction costs beyond the purchase price
- Skipping property inspections: Not conducting thorough due diligence on structural condition, especially for older buildings
- Misunderstanding maintenance obligations: Overlooking ongoing condominium management fees, repair reserves, and building maintenance responsibilities
- Tax compliance oversights: Not appointing local tax representatives for rental income reporting and missing Bank of Japan acquisition notifications
- Language barrier complications: Proceeding without bilingual professional support for contracts and legal documents
- Residency misconceptions: Assuming property ownership provides visa or residency benefits
- Remote management challenges: Inadequate planning for ongoing property management from overseas
Prevention strategies include working with independent buyer's agents, obtaining multiple property valuations, conducting professional inspections, understanding all documentation through bilingual professionals, and establishing proper tax and management structures before purchase completion.
It's something we develop in our Japan property pack.
How does ownership as a foreigner differ from locals in terms of rights, inheritance, and resale flexibility?
Foreign property owners enjoy identical rights, inheritance protections, and resale flexibility as Japanese citizens, with no meaningful legal distinctions in ownership status.
Property rights for foreigners include full freehold ownership of both land and buildings, unrestricted ability to rent, sell, or modify properties (subject to local zoning), and complete inheritance rights that can be passed to non-Japanese heirs worldwide.
The only practical differences affect tax administration rather than ownership rights. Foreign owners earning rental income must appoint local tax representatives if they're non-residents, and certain tax reporting procedures may require additional documentation.
For inheritance purposes, Japanese law governs properties located in Japan regardless of the owner's nationality. However, international estate planning considerations may apply for cross-border inheritances, making professional legal advice valuable for foreign owners with overseas heirs.
Resale transactions proceed identically for foreign and Japanese owners, with no restrictions on buyer nationality or additional approval processes. The same capital gains tax rates and holding period benefits apply universally.
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.
Nagoya represents an attractive entry point for foreign property investors seeking exposure to Japan's stable real estate market without Tokyo's premium pricing.
The city's manufacturing-based economy, improving infrastructure, and favorable rental yields make it particularly suitable for both investment and residential purposes among international buyers.
Sources
- Wise - Buying a House in Japan Guide
- Real Estate Japan - Foreign Buying Restrictions
- BambooRoutes - Japan Real Estate for Foreigners
- Juwai Asia - Japan Property Investment
- BambooRoutes - Property Purchase and Visa
- Real Estate Japan - Foreign Mortgage Access
- Eaves Japan - Mortgages for Non-PR Foreigners
- E-Housing Japan - Foreign Mortgage Guide
- Property Pilot Japan - Key Differences
- Nagoya City - Personal Tax Guide