Buying and owning property in Osaka as a foreigner

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.

What types of properties can foreigners buy in Osaka compared to Japanese citizens?

Foreigners enjoy identical property ownership rights to Japanese citizens in Osaka, with no restrictions based on nationality whatsoever.

You can purchase any property type including land, detached houses, condominiums, and commercial real estate with full freehold ownership rights. Japanese law provides equal treatment for property ownership, inheritance, and sale rights regardless of your nationality or country of origin.

The available property inventory consists primarily of freehold properties, though some leasehold options exist in the market. There are no quotas, caps, or special requirements that apply specifically to foreign buyers - the same purchase process and legal framework applies to everyone.

Most importantly, you don't need to establish residency in Japan before or after your property purchase. This means you can own property in Osaka as a pure investment without any obligation to live there or maintain a Japanese address.

Do I need to be a resident or have a specific visa status to purchase property in Osaka?

No residency or visa requirements exist for property ownership in Osaka - you can purchase as a complete non-resident.

Property ownership and residency status are entirely separate legal matters in Japan. Buying property does not grant you any visa benefits, residency rights, or permission to stay longer in the country. Conversely, you don't need any form of Japanese visa or residence permit to own real estate.

Non-residents can freely purchase and own property while living permanently outside Japan. However, you will need to designate a local tax agent to handle municipal notifications and tax-related communications on your behalf.

If you do decide to apply for Japanese residency later, your property ownership won't hurt or help your application - it's treated as a completely separate process.

Can I complete the property purchase remotely or must I be physically present?

Property transactions in Osaka can be completed entirely remotely without requiring your physical presence in Japan.

The remote purchase process involves appointing a local representative through a notarized Power of Attorney document. This representative can sign contracts, attend meetings, and complete the title registration process at the Legal Affairs Bureau on your behalf.

You'll need to prepare specific documentation including a notarized Power of Attorney, passport copies, and proof of address from your home country. Non-resident buyers must also designate a local tax agent to handle ongoing tax obligations and municipal communications.

While remote transactions are legally possible, many buyers choose to visit Japan at least once during the process to view properties in person and meet key parties face-to-face. This can help build trust and ensure you fully understand what you're purchasing.

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

What are the exact steps and required documents for buying property in Osaka as a foreigner?

The property purchase process follows a standardized sequence with specific documentation requirements for foreign buyers.

Step	Action Required	Documents Needed
1. Property Selection	Find and evaluate properties	None required yet
2. Purchase Application	Submit formal offer	Passport, proof of address
3. Important Matters Explanation	Receive property disclosure	Review and acknowledge receipt
4. Sales Contract	Sign purchase agreement	Power of Attorney (if remote)
5. Deposit Payment	Pay 5-10% deposit	Bank transfer confirmation
6. Due Diligence	Property inspection/verification	Survey reports, building documents
7. Final Payment	Complete purchase price	Proof of funds, mortgage approval
8. Title Registration	Transfer legal ownership	All previous docs plus registration forms

Foreign buyers specifically need passport identification, residence card (if applicable), proof of foreign address, and an affidavit for non-residents. Income verification documents are required if seeking mortgage financing.

Non-residents must file a notification with the Ministry of Finance within 20 days of acquisition, regardless of the property value or intended use.

Do I legally need a lawyer or judicial scrivener to complete the transaction?

Legal representation is not mandatory by law, but hiring a judicial scrivener or lawyer is strongly recommended for foreign buyers.

Judicial scriveners (shihō shoshi) are specialized legal professionals who commonly handle property title registrations in Japan. They ensure all paperwork is filed correctly with the Legal Affairs Bureau and can navigate the bureaucratic requirements more efficiently than individual buyers.

The typical cost for a judicial scrivener ranges from ¥100,000 to ¥150,000 for standard residential transactions. While this adds to your closing costs, it significantly reduces the risk of documentation errors or procedural delays that could complicate or invalidate your purchase.

For complex transactions, high-value properties, or buyers who don't speak Japanese fluently, independent legal counsel provides additional protection and guidance throughout the process.

What are the typical taxes, fees, and closing costs when buying property in Osaka?

Total purchase costs typically range from 6% to 13% of the property price, depending on the specific transaction and property value.

Cost Type	Rate/Amount	Notes
Real Estate Agent Fee	3% + ¥60,000 + 10% VAT (≈3.3%)	Based on property price
Registration Tax	2% of assessed value	For title transfer
Judicial Scrivener Fee	¥100,000 - ¥150,000	Fixed professional fee
Stamp Duty	¥10,000 - ¥480,000	Varies by contract value
Real Estate Acquisition Tax	Land: 1.5%, Building: 3%, Commercial: 4%	One-time purchase tax
Other Costs	≈1-2%	Inspections, insurance, utilities

Upon resale, capital gains taxes apply based on your holding period. Properties held more than 5 years face a 20.315% combined tax rate, while shorter-term holdings are taxed at 39.63%. Non-residents may face a 10.21% withholding tax on sales above ¥100 million.

These costs are in addition to your down payment and should be factored into your total investment budget from the beginning.

Can foreigners get mortgages in Japan, and what are the conditions?

Mortgage availability for foreigners depends heavily on your residency status, visa type, and income source in Japan.

Permanent residents and those with long-term work visas can access mortgages relatively easily, while non-residents or short-term visa holders face significant challenges. Most lenders require 2+ years of stable Japanese income history and often demand larger down payments of 30-50% from foreign borrowers.

As of September 2025, interest rates for the government-backed Flat 35 program reach up to 3.69% for 21-35 year terms. Variable rates start around 0.5-1.5%, but eligibility requirements are stricter for foreign applicants.

To improve your approval chances, maintain a Japanese bank account, demonstrate stable local income, consider using a guarantor company, and work with lenders experienced in foreign borrower transactions. Japanese language proficiency also helps significantly in the application process.

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

How do current property prices in Osaka compare to other Japanese cities?

Osaka offers significantly better value than Tokyo while maintaining strong market fundamentals and growth potential.

Average condominium prices in Osaka currently range from ¥55-57 million with an average price per square meter of ¥477,000. This represents a 60-65% discount compared to Tokyo's 23 central wards, where average condos cost ¥91.4 million and exceed ¥750,000 per square meter.

Compared to other major Japanese cities, Osaka prices are competitive with Kyoto (¥60 million average) and Fukuoka (¥56 million average), but offer superior rental yields and infrastructure development prospects.

Central Osaka districts including Kita, Namba, Tennoji, and Naniwa are experiencing the fastest price appreciation at 7-10% year-over-year, driven by redevelopment projects and the upcoming Expo 2025.

This pricing advantage makes Osaka particularly attractive for investors seeking both capital appreciation potential and immediate rental income opportunities.

Which neighborhoods in Osaka are most attractive for foreigners and investment?

The best neighborhoods for foreign buyers vary depending on whether you're prioritizing lifestyle, rental income, or capital growth potential.

For foreign residents, Ikuno ward stands out with 22.5% foreign population, followed by Nishinari, Naniwa-Chuo, and Daikokucho areas. These neighborhoods offer affordable living, cultural diversity, and strong international community support networks.

For rental and tourism income, focus on Namba, Shinsaibashi, Tennoji, Osaka Business Park, and Bay Area locations near the Expo 2025 site. These districts benefit from high tourist foot traffic, strong transportation links, and consistent demand from both foreign and domestic renters.

Long-term capital growth prospects are strongest in areas undergoing major redevelopment or infrastructure improvements. The Bay Area particularly benefits from Expo-related investments, while central districts like Kita continue attracting corporate headquarters and high-income residents.

Consider proximity to train stations, international schools, and shopping areas when selecting investment properties, as these factors significantly influence both rental demand and resale values.

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 do the latest data show for investment metrics and growth forecasts in Osaka?

Current investment metrics strongly favor Osaka over other major Japanese cities, with promising growth fundamentals supporting the market outlook.

Gross rental yields in Osaka average approximately 4.5% as of Q1 2025, substantially higher than Tokyo's central wards which average 3.4%. This yield advantage provides better immediate cash flow for investment properties.

Foreign population growth reached over 17,000 new residents in 2023, representing 53.5% of all newcomers to the city. This demographic trend drives consistent rental demand in international-friendly neighborhoods and supports long-term market stability.

Short-term price growth forecasts predict 5-8% annual appreciation through 2026, primarily driven by Expo 2025 preparations and associated infrastructure investments. Long-term projections suggest stabilization at 3-5% annual growth after the Expo concludes.

Osaka's reputation for affordability, multicultural amenities, and friendly business environment continues attracting both residents and investors, supporting positive liveability metrics that underpin property values.

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

Understanding and avoiding these frequent pitfalls can save significant money and complications in your property purchase.

1. **Skipping professional representation** - Attempting to navigate the complex documentation and registration process without qualified local assistance often leads to costly delays or legal issues.2. **Underestimating ongoing tax obligations** - Many buyers focus only on purchase costs while ignoring annual property taxes, income tax on rental earnings, and reporting requirements for non-residents.3. **Expecting automatic property appreciation** - Unlike many Western markets, Japanese residential properties (especially buildings) typically depreciate over time, making location selection crucial for capital preservation.4. **Ignoring condominium association rules and fees** - Monthly maintenance fees and special assessments can significantly impact investment returns and property management requirements.5. **Language and cultural barriers** - Failing to use professional translation services or bilingual agents can lead to misunderstandings about contracts, property conditions, or neighborhood characteristics.

Working with experienced professionals, budgeting for all costs including taxes, focusing on prime locations, and ensuring clear communication throughout the process helps avoid these common problems.

What ongoing fiscal obligations come with owning property in Osaka?

Property ownership in Osaka involves several annual and ongoing financial obligations that impact your total investment returns.

Annual property taxes include a fixed asset tax of 1.4% of assessed value plus city planning tax of 0.3%, totaling 1.7% of your property's assessed value each year. These taxes are billed directly to property owners and must be paid regardless of whether you generate rental income.

Condominium owners face monthly maintenance and sinking fund fees that typically range from ¥10,000 to ¥30,000 depending on building amenities and age. These fees cover building upkeep, repairs, and capital improvements managed by the condominium association.

Rental income earned by foreign property owners is subject to a flat 20.42% non-resident tax rate on Japanese-source income. This applies to gross rental income after allowable deductions for maintenance, management, and depreciation.

Capital gains taxes apply when selling property, with rates depending on your holding period and residency status. Many countries have double taxation treaties with Japan that may reduce your overall tax burden.

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. Tokyo Portfolio - Can Foreigners Buy a Home in Japan
2. Taxes for Expats - Can Foreigners Buy Property in Japan
3. Land Housing - Foreigner Property Guide
4. Japan Property - Guide to Buying Properties
5. Black Ship Realty - Can Foreigners Buy Property in Japan
6. E-Housing - Guide to Buying Property in Japan
7. Dovetail - How to Buy a Home in Japan as a Foreigner
8. BambooRoutes - Japan Real Estate for Foreigners
9. Investasian - Real Estate Osaka
10. BambooRoutes - Osaka Price Forecasts