Authored by the expert who managed and guided the team behind the Japan Property Pack
Yes, the analysis of Tokyo's property market is included in our pack
Buying property in Tokyo as a foreigner is more accessible than most people think, but there are specific rules, costs, and practical hurdles you need to understand before signing anything.
This guide covers everything from ownership rights and visa requirements to mortgages, taxes, and the exact steps of the Tokyo buying process in January 2026.
We constantly update this blog post to reflect the latest regulations, current housing prices in Tokyo, and real market conditions.
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 Tokyo.
Insights
- Tokyo condominiums (called "manshon") account for the vast majority of foreign purchases in central wards like Minato, Shibuya, and Chiyoda, largely because they offer straightforward ownership structures.
- Japan imposes no general nationality restriction on property ownership, meaning foreigners can legally own land and buildings in their own name through the official real property registry system.
- Non-resident buyers in Tokyo face a practical 20.42% withholding tax on rental income, which catches many first-time foreign investors off guard when calculating returns.
- Mortgage access in Tokyo depends heavily on residency status: foreign residents with stable Japan income can often borrow at rates under 2%, while non-residents face limited options or outright rejection.
- Total closing costs in Tokyo typically range from 6% to 11% of the purchase price, with the real estate agent's commission often being the single largest expense.
- Tokyo's earthquake insurance, backed by the government, costs roughly 27,500 to 41,000 yen per year per 10 million yen insured, depending on building construction type.
- The "Important Matters Explanation" document (Article 35) is a legally required disclosure that agents must provide before you sign a contract in Tokyo, and skipping it is a major red flag.
- Many Tokyo condo buildings have strict bylaws that ban short-term rentals entirely, so assuming you can Airbnb your unit is one of the most common and costly mistakes foreigners make.
What can I legally buy and truly own as a foreigner in Tokyo?
What property types can foreigners legally buy in Tokyo right now?
In January 2026, foreigners (whether living in Japan or abroad) can legally purchase condominium units, detached houses, land, and small residential buildings in Tokyo without any nationality-based restrictions.
The most important practical limitation is not the law itself but rather building-level rules: Tokyo condo associations often have bylaws that restrict short-term rentals, pets, or certain renovations, regardless of who owns the unit.
This means you can buy a property legally, but you cannot always use it however you want, so checking the building's management rules before purchasing is essential.
Additionally, some Tokyo properties sit on leasehold land rather than freehold, meaning you would own the building or unit but not the ground beneath it, and you would pay ongoing ground rent to the landowner.
Finally, please note that our pack about the property market in Tokyo is specifically tailored to foreigners.
Can I own land in my own name in Tokyo right now?
Yes, foreigners can own land in Tokyo in their own name, and that ownership becomes legally effective once your name is recorded in Japan's real property registry.
This applies to virtually all types of residential land in Tokyo, though some specific properties near military bases or critical infrastructure may fall under special monitoring rules that affect use rather than ownership itself.
The key nuance to understand is that "leasehold versus freehold" matters: some Tokyo developments (particularly certain high-rise condos) are built on leased land, so you would own the unit but hold only a long-term lease on the ground, with associated ground rent obligations.
As of 2026, what other key foreign-ownership rules or limits should I know in Tokyo?
As of early 2026, the main additional rule affecting foreign buyers in Tokyo is the national-security land regime: if a property falls within a "monitored area" or "special monitored area" near defense facilities or critical infrastructure, the government can review your intended use and may require notification of contracts.
There is no foreign-ownership quota for apartments or condos in Tokyo, unlike some other Asian countries, so you do not need to worry about building-level caps on foreign buyers.
Non-resident buyers typically must file a post-acquisition report to the Ministry of Finance via the Bank of Japan within 20 days, and most buyers have their judicial scrivener or tax agent handle this paperwork.
Looking ahead, Japan announced in December 2025 that it may expand reporting requirements for foreign property purchases, so buyers should verify current rules during their transaction as changes could take effect after January 2026.
What's the biggest ownership mistake foreigners make in Tokyo right now?
The single biggest mistake foreigners make in Tokyo is assuming that buying a property means they can use it however they want, especially for short-term rentals like Airbnb.
If you buy a condo planning to rent it out on Airbnb and the building bylaws prohibit short-term stays (which is extremely common in Tokyo), you could face fines, forced removal of listings, or conflicts with the management association that make your investment far less valuable.
Other classic pitfalls include assuming property purchase grants residency (it does not), underestimating ongoing costs like management fees and reserve funds in older Tokyo buildings, and not budgeting for the tax agent or representative you will need if you live abroad.
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Tokyo?
Do I need a specific visa to buy property in Tokyo right now?
You do not need a Japanese visa to buy property in Tokyo, so yes, you can legally purchase real estate while visiting on a tourist visa or even without entering Japan at all.
The most common administrative hurdle for buyers without local residency is handling identity verification and paperwork logistics, since you will need to provide proof of identity, a foreign address, and often appoint a local representative to receive documents.
You do not need a Japanese tax ID to complete the purchase itself, but you will likely need to appoint a tax agent afterward so that property tax bills and any income tax filings can be properly handled while you live abroad.
Foreign buyers typically need to present a valid passport, proof of address in their home country, and (if using a power of attorney) properly notarized authorization documents to complete the purchase in Tokyo.
Does buying property help me get residency and citizenship in Tokyo in 2026?
As of early 2026, buying property in Japan does not automatically grant you residency or create a pathway to citizenship, since Japan does not operate a "golden visa" or investment-for-residency program tied to real estate purchases.
If you want to live in Tokyo long-term, you will need a separate visa basis such as a work visa, business manager visa, spouse visa, or other qualifying status, and property ownership alone does not qualify.
Pathways to permanent residency in Japan typically require living in the country for 10 years (or 5 years for certain visa categories) with good conduct and stable finances, while naturalization for citizenship requires 5 years of continuous residence plus meeting language and integration requirements.
We give you all the details you need about the different pathways to get residency and citizenship in Tokyo here.
Can I legally rent out property on my visa in Tokyo right now?
Your visa status does not prevent you from owning rental property in Tokyo, and even non-residents can legally earn rental income from Japanese real estate, though the tax treatment differs significantly.
You do not need to live in Japan to rent out your Tokyo property, but you will need to handle Japan tax compliance: non-residents typically face a 20.42% withholding tax on rental income, and most overseas owners appoint a property management company plus a tax agent to manage everything.
The big practical consideration is short-term versus long-term rentals: while standard leases are straightforward, Airbnb-style rentals require registration under the "minpaku" private lodging framework, and many Tokyo condo buildings ban short-term stays entirely through their bylaws.
We cover everything there is to know about buying and renting out in Tokyo here.
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How does the buying process actually work step-by-step in Tokyo?
What are the exact steps to buy property in Tokyo right now?
The standard sequence to buy property in Tokyo goes like this: choose a property and do basic due diligence, make an offer and negotiate, receive the legally required "Important Matters Explanation" document from the agent, sign the sale contract and pay a deposit, finalize financing if applicable, complete settlement day with full payment and key handover, and finally register ownership at the Legal Affairs Bureau.
You do not have to be physically present in Tokyo for most steps, as many foreign buyers use powers of attorney and professional representatives, though being there in person can reduce friction for banking and identity verification.
The step that makes the deal legally binding in Tokyo is typically signing the sale contract and paying the deposit (usually 5% to 10% of the price), after which walking away means forfeiting that deposit.
From accepted offer to final registration, the typical timeline in Tokyo ranges from about 4 to 8 weeks for a standard transaction, though mortgage approvals or complex situations can extend this to 2 to 3 months.
We have a document entirely dedicated to the whole buying process our pack about properties in Tokyo.
Is it mandatory to get a lawyer or a notary to buy a property in Tokyo right now?
In Tokyo, neither a lawyer nor a notary is strictly mandatory for a standard residential property purchase, but a "judicial scrivener" (shiho shoshi) is extremely common and handles the critical registration process that makes your ownership legally effective.
The key difference is that a notary in Japan does not play the central role they do in some European countries, while a judicial scrivener specializes in registration and closing documentation, and a lawyer would handle contract review, dispute protection, or unusual deal structures.
If you are a foreign buyer (especially a non-resident), you should ensure your judicial scrivener or lawyer scope includes a full registry check, contract review in a language you understand, and handling of any post-acquisition reporting requirements.
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 checks should I run so I don't buy a problem property in Tokyo?
How do I verify title and ownership history in Tokyo right now?
The official source for verifying title and ownership history in Tokyo is the real property registry (toukibo) held at the Legal Affairs Bureau, where you can obtain a registry certificate or extract showing the current owner and recorded rights.
The key document to request is the "registry extract" (toukibo tohon), which confirms the registered owner matches the seller, shows the correct property description, and lists any mortgages, easements, or other encumbrances.
For ownership history checks, buyers in Tokyo commonly review records going back at least 10 to 20 years to identify any unusual patterns, frequent transfers, or unresolved claims.
A clear red flag that should stop or pause your purchase is finding unresolved provisional registrations (kari touki), seizures, or disputes in the ownership history, as these could mean legal claims against the property that transfer with ownership.
You will find here the list of classic mistakes people make when buying a property in Tokyo.
How do I confirm there are no liens in Tokyo right now?
The standard way to confirm there are no liens or encumbrances on a Tokyo property is to obtain and carefully review the registry extract from the Legal Affairs Bureau, which lists all recorded mortgages, provisional registrations, and seizures.
The most common type of lien to ask about specifically in Tokyo is a mortgage (teitouken), but you should also check for any provisional registrations or attachment orders that could indicate pending legal claims.
The best written proof of lien status is a current registry extract dated close to your settlement day, combined with a written seller warranty in the contract that the property will be delivered free of encumbrances and that any existing liens will be discharged at closing.
How do I check zoning and permitted use in Tokyo right now?
The authority for checking zoning and permitted use in Tokyo is the relevant ward or city planning office, and you can also reference official Tokyo Metropolitan Government zoning maps and guidance documents.
The key document or reference that confirms zoning classification in Tokyo is the official zoning map (youto chiiki zu) combined with the use district designation, which shows whether the area is residential, commercial, or mixed-use and what building restrictions apply.
A common zoning pitfall that foreign buyers miss in Tokyo is assuming a residential property can be converted to commercial use or used for home-based business activities, when in fact the use district may strictly prohibit anything beyond residential occupancy.
Buying real estate in Tokyo can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Tokyo, and on what terms?
Do banks lend to foreigners for homes in Tokyo in 2026?
As of early 2026, yes, some Japanese banks do lend to foreigners for home purchases in Tokyo, but the real dividing line is whether you are a resident of Japan or a non-resident.
Foreign residents with stable Japan-based income can often access loan-to-value ratios of 70% to 90%, while non-residents typically face much lower LTV offers (often 50% or less) or outright rejection from most lenders.
The single most important eligibility requirement in Tokyo is having verifiable Japan-source income and residency status, as banks want to see you are employed locally or have substantial assets they can verify through Japanese financial channels.
You can also read our latest update about mortgage and interest rates in Japan.
Which banks are most foreigner-friendly in Tokyo in 2026?
As of early 2026, the most foreigner-friendly banks for mortgages in Tokyo include SMBC Trust Bank PRESTIA (which explicitly markets English-language housing loan support), Shinsei Bank, and some branches of major banks like MUFG that have international client desks.
The key feature that makes these banks more foreigner-friendly is their willingness to process applications in English, accept foreign documentation, and have staff experienced with non-Japanese borrowers and their specific circumstances.
However, even the most foreigner-friendly banks in Tokyo generally require local residency and Japan income for standard mortgage products, so non-residents (those living outside Japan) will find options extremely limited or need to pursue specialized arrangements with higher down payments.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Tokyo.
What mortgage rates are foreigners offered in Tokyo in 2026?
As of early 2026, foreigners in Tokyo who qualify for mortgages can expect interest rates roughly in the 1.5% to 2.5% range for well-qualified resident borrowers, while non-residents or those with weaker profiles may see rates of 2.5% to 4% or higher if they can get approved at all.
Fixed-rate mortgages (like Flat 35 products) currently run around 1.7% to 2.2% for standard terms, while variable rates from Japanese banks can be under 1% for the best-qualified borrowers, though foreigners typically pay a slight premium over what Japanese nationals with identical profiles would receive.
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Tokyo?
What are the total closing costs as a percent in Tokyo in 2026?
In Tokyo in 2026, typical total closing costs for a residential property purchase run about 6% to 9% of the purchase price if you are paying cash, and 7% to 11% if you are using a mortgage (due to additional loan-related fees).
The realistic low-to-high range that covers most standard Tokyo transactions is roughly 6% to 11%, with variation depending on property price, whether you finance, and the complexity of registration work.
The specific fee categories that make up these costs include real estate agent commission (often 3% plus 60,000 yen plus tax), stamp duty on the contract, registration and license taxes, judicial scrivener fees, and sometimes real estate acquisition tax billed after closing.
The single biggest contributor to closing costs in Tokyo is usually the real estate agent's commission, which can easily represent half of your total transaction costs on a standard purchase.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Tokyo.
What annual property tax should I budget in Tokyo in 2026?
As of early 2026, a reasonable annual property tax budget for a standard Tokyo home is roughly 0.3% to 0.6% of the market value, which for a 50 million yen property (about 330,000 USD or 310,000 EUR) means roughly 150,000 to 300,000 yen per year (1,000 to 2,000 USD or 950 to 1,900 EUR).
Tokyo property tax is assessed as a percentage of the official assessed value (not market value), with the standard Fixed Asset Tax at 1.4% and City Planning Tax up to 0.3%, but since assessed values are typically well below market prices, the effective rate on what you paid is much lower.
How is rental income taxed for foreigners in Tokyo in 2026?
As of early 2026, non-resident foreigners earning rental income from Tokyo property typically face an effective withholding rate of 20.42% on gross rent, though actual tax liability depends on deductible expenses and any applicable tax treaty benefits with your home country.
The basic requirement for non-resident owners is that tenants (or a property management company) must withhold this 20.42% from rent payments and remit it to Japanese tax authorities, and you may need to file an annual tax return to claim deductions or request refunds for overpayment.
What insurance is common and how much in Tokyo in 2026?
As of early 2026, typical annual insurance premiums for a Tokyo home range from about 30,000 to 90,000 yen for a condo (200 to 600 USD or 190 to 570 EUR) and 50,000 to 150,000 yen for a detached house (330 to 1,000 USD or 315 to 950 EUR), depending on coverage and building type.
The most common type of property insurance in Tokyo is fire insurance, which covers fire, lightning, wind, and water damage, and most owners add earthquake insurance as a rider since standard fire policies exclude earthquake losses entirely.
The biggest factor affecting insurance premiums for the same property type in Tokyo is whether the building is "fireproof" construction (like reinforced concrete condos) or "non-fireproof" (like older wooden houses), with fireproof buildings paying significantly lower earthquake insurance rates according to the government schedule.
Get the full checklist for your due diligence in Tokyo
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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 Tokyo, 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 |
|---|---|---|
| Ministry of Justice (Japan) | Official ministry responsible for Japan's property registration system. | We used it to explain how ownership becomes legally effective through registration. We also used it to structure title verification and lien check guidance. |
| Cabinet Office (Japan) | Government hub for the national-security land use law and designated areas. | We used it to explain monitored area and special monitored area concepts. We clarified that this regime is about use monitoring, not a blanket foreign ownership ban. |
| Japanese Law Translation (MOJ) | Official English translation database for Japanese statutes. | We used it to cite what the Important Facilities Act actually empowers the government to do. We framed the security-area notification requirements accurately. |
| Tokyo Metropolitan Government | Tokyo's official explanation of zoning categories and land-use rules. | We used it to explain how zoning works in Tokyo in plain language. We guided the specific checks buyers should run on permitted use. |
| MLIT (Japan) | National ministry for land and urban policy with official overview materials. | We used it to map Tokyo's zoning to the national system. We explained what zoning can restrict and what it often does not. |
| Tokyo Metropolitan Taxation Bureau | Tokyo's official tax authority explaining local tax administration. | We used it to structure Tokyo-specific tax and payment calendar expectations. We kept ongoing cost guidance aligned with Tokyo's actual tax system. |
| National Tax Agency (Japan) | Japan's national tax authority with direct guidance for non-residents. | We used it to state how rental income is treated for non-residents. We explained the 20.42% withholding mechanism clearly. |
| Ministry of Finance (Japan) | National ministry overseeing the earthquake insurance system with official premium tables. | We used it to give a Tokyo-specific earthquake insurance cost anchor. We produced confident insurance budget estimates for Tokyo properties. |
| Japan Housing Finance Agency | Government housing finance agency and reference institution for Flat 35 mortgages. | We used it to anchor the role of Flat 35 in Japan's mortgage market. We ensured rate discussion is tied to the actual JHF framework. |
| SMBC Trust Bank PRESTIA | Major bank publicly documenting housing loan offerings for international clients. | We used it to identify which banks are practically foreigner-friendly in Tokyo. We confirmed that English-capable underwriting exists with conditions. |
| Sumitomo Mitsui Trust Bank | Major Japanese bank publishing dated product rate sheets. | We used it to give an anchored January 2026 fixed-rate reference for Flat 35. We generated a confident mortgage rate range for budgeting. |
| DLA Piper REALWORLD | Global law firm's maintained legal guide useful for cross-checking edge cases. | We used it to triangulate that there is no general nationality restriction on ownership. We used it as a second-source check against oversimplified broker claims. |
| Reuters | Major wire service reporting on government statements about policy changes. | We used it only as context for possible upcoming reporting changes after January 2026. We flagged what to watch for rather than stating it as already in force. |
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.
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