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

Authored by the expert who managed and guided the team behind the Japan Property Pack

Yes, the analysis of Osaka's property market is included in our 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 Osaka. 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 Osaka, Tokyo, 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 I find out if foreigners are allowed to buy property in Osaka?

Foreigners are legally permitted to buy property in Osaka with full ownership rights, following the same legal framework as Japanese citizens.

As of September 2025, Japan maintains one of Asia's most open real estate markets for non-residents, with no citizenship, residency, or visa requirements for property ownership. You can verify this information through the Ministry of Justice's Legal Affairs Bureau or by consulting with licensed real estate agents in Osaka.

The only restrictions apply to farmland, some plots near military installations, or designated strategic zones that may require special government approval. These restrictions affect less than 1% of available properties in Osaka's residential and commercial real estate market.

To confirm your eligibility for a specific property, contact a licensed real estate agent who can verify the property's classification and any potential restrictions. Most residential condominiums, houses, and commercial buildings in Osaka are available for foreign purchase without additional approvals.

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

What types of properties can I legally purchase in Osaka as a foreign buyer?

Foreign buyers can purchase virtually any type of property in Osaka, including residential houses, condominiums, land parcels, and commercial buildings.

Freehold properties are the most common and preferred option, giving you full rights to both the land and building with no time restrictions. These represent about 85% of available properties in Osaka's residential market and offer the strongest ownership rights for long-term investment.

Leasehold properties are also available, particularly in dense urban areas of central Osaka, where you own the structure but lease the land for 30-50 years. These properties typically come with annual ground rent ranging from ¥100,000 to ¥500,000 depending on location and plot size.

Commercial real estate follows the same legal framework, with no additional barriers for foreign investors. You can purchase office buildings, retail spaces, warehouses, and mixed-use developments throughout Osaka without special permits.

The main exceptions are agricultural land (farmland) and properties within designated strategic zones near military facilities, which require government approval and affect less than 1% of Osaka's property market.

What's the step-by-step process to choose and reserve a property in Osaka?

The property selection and reservation process in Osaka follows a structured 8-step procedure that typically takes 2-3 weeks to complete.

1. **Research and identify properties** through licensed real estate agents, as many listings aren't available on public websites and agents have access to exclusive inventory2. **Engage a licensed real estate agent** who will represent your interests and guide you through local market conditions and property valuations3. **Schedule property viewings** and conduct on-site inspections, checking building condition, neighborhood amenities, and transportation access4. **Submit a purchase certificate** indicating your intent and offer amount, which the agent forwards to the seller for consideration5. **Negotiate terms and conditions** including purchase price, payment schedule, and any property repairs or modifications6. **Receive legal disclosures** and property documentation during the "keiyaku" contract explanation period (typically 7-14 days)7. **Conduct professional property inspection** and review all legal documents, zoning restrictions, and potential liabilities8. **Finalize reservation** by signing preliminary agreements and preparing required documentation for the formal purchase contract

Most properties in Osaka's residential market are reserved within 1-2 weeks of initial viewing, so prompt decision-making is important in competitive areas like Namba, Umeda, and Tennoji.

Your real estate agent will coordinate all communications with the seller and ensure you understand each step before proceeding to the formal contract signing phase.

How do I make a formal offer and sign a purchase agreement in Osaka?

The formal offer process begins with submitting a written "purchase certificate" through your licensed real estate agent, followed by contract negotiation and signing once terms are accepted.

Your purchase certificate must specify the offer price, desired payment schedule, and any conditions such as financing approval or property inspection results. The seller typically responds within 3-7 business days with acceptance, rejection, or counteroffer.

Once terms are agreed upon, you'll participate in the "keiyaku" contract explanation meeting where the agent reviews all terms, legal obligations, and property disclosures. This meeting is mandatory under Japanese law and ensures you understand all aspects before signing.

The sales contract details the purchase price, payment schedule, property condition, and legal obligations for both parties. Most contracts in Osaka require the 10% down payment within 7 days of signing, with the remaining 90% due at closing (typically 30-45 days later).

All contracts must be signed in person or through a power of attorney if you're buying remotely. Your agent will coordinate the signing ceremony and ensure all legal requirements are met before proceeding to payment and registration.

What are the average down payment requirements and how do I pay them in Japan?

The standard down payment for property purchases in Osaka is 10% of the total purchase price, payable at contract signing through bank transfer from either Japanese or international accounts.

For a typical ¥50 million (approximately $330,000 USD) condominium in central Osaka, you would need to prepare ¥5 million ($33,000 USD) as a down payment. This payment is made directly to the seller's designated account within 7 days of contract signing.

Payment methods include wire transfer from your overseas bank account, transfer from a Japanese bank account if you have one, or cashier's check from a major international bank. Most sellers prefer wire transfers as they provide immediate confirmation and faster processing.

The remaining 90% of the purchase price is due at closing, typically 30-45 days after contract signing. You'll need to coordinate with your bank to ensure funds are available and transfer fees are minimized for the final payment.

Currency exchange rates can affect your total costs, so many foreign buyers secure favorable exchange rates through specialized foreign exchange services rather than traditional bank transfers, potentially saving 1-3% on large transactions.

What taxes and fees should I expect during the purchase process in Osaka?

Total transaction costs for property purchases in Osaka typically range from 6-8% of the purchase price, including taxes, fees, and professional services.

Tax/Fee Type	Rate/Amount	When Paid
Acquisition Tax	3-4% of property price	Within 60 days of purchase
Registration/License Tax	0.4-2% of property price	At title transfer
Real Estate Broker Fee	3% + ¥60,000 + consumption tax	At contract signing
Judicial Scrivener Fee	¥50,000-200,000	At registration
Property Inspection Fee	¥30,000-80,000	Before contract signing
Document Translation	¥20,000-50,000	During due diligence
Bank Transfer Fees	¥5,000-15,000 per transfer	At each payment

For a ¥50 million property purchase, expect total transaction costs of approximately ¥3-4 million (¥1.5-2 million in acquisition tax, ¥200,000-1 million in registration tax, ¥1.6 million in broker fees, and ¥200,000-500,000 in other professional fees).

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

How do I secure financing or a mortgage in Japan as a foreigner?

Mortgage access for foreign buyers in Japan is limited, with most banks requiring permanent residency or long-term visa status, making cash purchases the preferred option for non-resident investors.

Japanese banks typically require a minimum 3-year work visa or permanent resident status to qualify for property loans. Major banks like MUFG, Mizuho, and Sumitomo Mitsui Bank may consider applications from foreigners with strong ties to Japan, such as employment with Japanese companies or significant local income sources.

Loan terms for qualified foreign applicants usually require 20-30% down payments, with interest rates ranging from 1.5-3.5% annually for 20-35 year terms. The maximum loan amount is typically 6-8 times your annual income, and you must demonstrate stable employment and debt-to-income ratios below 35%.

Alternative financing options include international banks with Japanese operations, specialized foreign investor lending programs, or securing mortgages in your home country using the Japanese property as collateral. Some international banks offer portfolio loans for high-net-worth clients investing in Japanese real estate.

Most foreign buyers in Osaka choose cash purchases to avoid financing complications and strengthen their offers in competitive markets. This approach also eliminates loan approval delays and reduces total transaction costs by 1-2%.

What's the role of the real estate agent and what paperwork do they handle in Osaka?

Licensed real estate agents in Osaka serve as your primary intermediary, handling property presentation, contract negotiation, legal documentation, and coordination with all parties throughout the purchase process.

Your agent's responsibilities include presenting suitable properties based on your criteria, arranging viewings, conducting market analysis for pricing guidance, and negotiating purchase terms with sellers. They also coordinate with judicial scriveners, tax professionals, and inspection services required for your transaction.

Key paperwork handled by agents includes preparing and submitting purchase certificates, drafting sales contracts, collecting and verifying all required documentation, and ensuring compliance with Japanese real estate regulations. They also manage the "keiyaku" contract explanation meeting and coordinate payment transfers.

Agents serve as your local contact throughout the registration process, working directly with Legal Affairs Bureau staff and ensuring all documents are properly filed. They also provide ongoing support for tax filings, maintenance coordination, and any post-purchase administrative requirements.

Licensed agents in Osaka charge a standard 3% commission plus ¥60,000 plus consumption tax (currently 10%), calculated on the purchase price. This fee covers all services from initial property search through final ownership registration and is typically paid at contract signing.

How do I complete the property registration at the Legal Affairs Bureau in Osaka?

Property registration in Osaka is completed through a judicial scrivener who submits all required documents to the Legal Affairs Bureau and ensures proper title transfer within 7-14 business days.

The judicial scrivener prepares the title transfer application, property deed, and supporting documentation required by the Legal Affairs Bureau. This includes your identification documents, purchase contract, tax payment receipts, and property survey records.

Required documents for foreign buyers include your passport, purchase contract, affidavit of identity, proof of address (from your home country), and power of attorney if buying remotely. All foreign documents must be translated into Japanese by certified translators and may require apostille certification depending on your country of origin.

The Legal Affairs Bureau reviews all documentation and conducts a final property title search to ensure no liens or legal complications exist. Once approved, they issue your property title deed ("fudosan touki") which serves as official proof of ownership.

Registration fees range from ¥50,000 to ¥200,000 depending on property value and complexity. The judicial scrivener handles all bureau interactions and notifies you when registration is complete, typically within 2 weeks of document submission.

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 ongoing taxes and maintenance fees should I prepare for after purchase?

Property owners in Osaka face annual fixed asset and city planning taxes totaling 1-1.4% of assessed property value, plus additional maintenance fees for condominium properties.

Fixed asset tax rates in Osaka range from 1.0-1.4% annually, calculated on the property's assessed value (typically 60-70% of market value). City planning tax adds another 0.3% annually for properties in designated urban planning areas, which includes most of central Osaka.

For condominium owners, monthly management and maintenance fees range from ¥10,000 to ¥30,000 depending on building size, amenities, and age. These fees cover common area maintenance, building repairs, security services, and reserve funds for major renovations.

Additional annual costs include building insurance (¥20,000-80,000 annually), property management fees if you rent the property (8-12% of rental income), and professional cleaning or maintenance services (¥50,000-150,000 annually for rental properties).

Total annual ownership costs for a ¥50 million property typically range from ¥800,000 to ¥1.2 million, including all taxes, fees, and basic maintenance. These costs should be factored into your investment calculations and cash flow projections.

What are the most common mistakes foreigners make when buying property in Osaka?

The most frequent mistakes include failing to verify land ownership status, underestimating translation requirements, and not appointing proper local representation for remote purchases.

1. **Confusing leasehold and freehold properties**: Many buyers don't fully understand the difference, leading to unexpected ground rent obligations and limited resale options for leasehold properties2. **Inadequate due diligence**: Rushing through the inspection period without proper building assessments, zoning verification, or neighborhood research3. **Underestimating total costs**: Focusing only on purchase price while overlooking the 6-8% in transaction costs and ongoing tax obligations4. **Language barrier issues**: Signing contracts without proper translation or legal review, leading to misunderstandings about payment schedules or property conditions5. **Improper remote purchase setup**: Buying without appointing qualified local representatives or power of attorney, causing registration delays and legal complications

Tax liability miscalculations are also common, with many foreign buyers unaware of acquisition tax obligations or annual fixed asset tax rates. These taxes can add ¥1-2 million to your total investment costs and should be budgeted from the beginning.

To avoid these mistakes, work with experienced bilingual professionals, conduct thorough inspections, and ensure you understand all legal and financial obligations before signing any agreements.

How can I avoid confusion with legal documents and contracts that are only in Japanese?

Require certified English translations for all contracts and legal documents, work with bilingual professionals, and appoint a local representative with power of attorney to handle Japanese-language administrative processes.

Insist that your real estate agent provides certified English translations of the purchase contract, property disclosures, and all legal documentation before signing. Licensed translation services in Osaka charge ¥3,000-5,000 per page for legal document translation and ensure accuracy of technical terms.

Work with bilingual real estate agents, judicial scriveners, and legal interpreters who can explain complex terms and conditions in your native language. Many international real estate agencies in Osaka specialize in foreign buyer transactions and maintain English-speaking staff.

For remote purchases, appoint a trusted local representative with power of attorney to handle document processing, registration procedures, and government communications that require a Japanese address. This representative should be fluent in both languages and experienced with foreign property transactions.

Schedule additional review time for all legal documents and don't hesitate to ask for clarification on any unclear terms or conditions. The "keiyaku" contract explanation meeting is your opportunity to ensure complete understanding before final commitment.

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

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. InvestAsian - Real Estate Osaka Investment Guide
2. BambooRoutes - Japan Real Estate for Foreigners
3. Expatis - Buying Property in Japan Insights
4. Juwai IQI - Japan Property Investment Guide
5. Taxes for Expats - Foreign Property Ownership Japan
6. E-Housing Japan - Property Purchase Guide
7. Immigration Lawyer Japan - Foreign Property Ownership
8. Shiki Real Estate - Property Purchase Guide