Buying real estate in Japan?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

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

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

property investment Tokyo

Yes, the analysis of Tokyo's property market is included in our pack

Tokyo offers foreign buyers full property ownership rights with no restrictions, making it one of the most accessible international real estate markets.

The property purchase process in Tokyo involves several key steps from legal verification to final registration, typically taking 1-3 months to complete. Understanding the specific requirements, costs, and legal distinctions between freehold and leasehold properties is crucial for a successful purchase.

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.

How this content was created šŸ”ŽšŸ“

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 Tokyo, Osaka, 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 a foreigner is even allowed to buy property in Tokyo?

Foreigners are fully allowed to buy and own property in Tokyo with the same legal rights as Japanese citizens.

Japan has no restrictions on foreign property ownership, meaning you can purchase land, apartments, houses, or commercial properties without any residency requirements or ownership limitations. This makes Tokyo one of the most accessible international real estate markets for foreign investors.

As of September 2025, there are no pending legislative changes that would restrict foreign property ownership in Japan. The legal framework has remained stable for decades, providing security for international buyers.

You can verify this information through the Japanese Ministry of Justice website or by consulting with any licensed real estate agent in Tokyo who specializes in foreign buyers.

What types of properties are available for purchase in Tokyo, and which ones can foreigners legally own?

Foreign buyers can purchase any type of property available in Tokyo without restrictions.

The available property types include:1. New and resale apartments/condominiums in high-rise buildings2. Detached houses and townhouses with private gardens3. Entire apartment buildings for investment purposes4. Commercial properties including office buildings and retail spaces5. Vacant land for custom construction projects6. Mixed-use properties combining residential and commercial spaces7. Luxury penthouses and premium residential developments

Both freehold and leasehold properties are available to foreigners. Freehold ownership means you own both the building and the land permanently, while leasehold typically involves owning the building or unit but not the underlying land.

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

How do I figure out the total budget, including taxes, agent fees, and registration costs?

The total budget for buying property in Tokyo typically ranges from 6-10% above the purchase price when including all additional costs.

Cost Category Percentage/Amount When Paid
Real Estate Agent Fee 3.3% + „66,000 At contract signing
Registration Tax 0.4% of assessed value At property registration
Real Estate Acquisition Tax 3-4% of assessed value Within 60 days of purchase
Stamp Duty „10,000-„200,000 At contract signing
Judicial Scrivener Fee „50,000-„100,000 At registration
Mortgage Registration Tax (if applicable) 2% of loan amount At loan setup
Annual Fixed Asset Tax 1.4% of assessed value Annually thereafter

Bank fees, insurance premiums, and guarantee company fees may add another „200,000-„500,000 to your total costs. Always budget for these expenses upfront to avoid financial surprises during the purchase process.

What's the right way to get a real estate agent in Tokyo who speaks English and understands foreign buyers?

Finding a qualified English-speaking real estate agent in Tokyo requires targeting agencies that specialize in international clients.

Look for established Tokyo agencies that advertise services specifically for foreign buyers—these agents understand visa requirements, tax implications, and cultural differences that can complicate transactions. Many of these agencies maintain websites in English and have staff who are fluent in multiple languages.

Verify that your chosen agent holds a valid real estate license in Japan and has experience with the specific type of property you're seeking. Ask for references from previous foreign clients and confirm they can assist with legal documentation and registration procedures.

Popular areas to find these specialized agents include Shibuya, Shinjuku, and Roppongi, where many international businesses and expat communities are located.

How do I arrange financing in Japan—can foreigners actually get a mortgage, and what are the requirements?

Foreigners can obtain mortgages in Japan, but requirements are significantly stricter than for Japanese citizens.

Most Japanese banks require foreign applicants to have permanent residency status or a long-term visa, proof of stable income in Japan, and Japanese tax residency. You'll need a registered personal seal (jitsuin) and corresponding certificate from your local municipal office.

Non-resident foreigners face more challenges, with most lenders requiring down payments of 30-50% and higher interest rates. Some international banks operating in Japan may offer more flexible terms for wealthy foreign clients.

Guarantor companies are often required, adding fees of 0.5-1% of the loan amount annually. The mortgage approval process typically takes 4-6 weeks and requires extensive documentation including tax returns, bank statements, and employment verification.

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

What's the process of making an offer on a property in Tokyo, and what documents do I need to prepare?

Making an offer on Tokyo property involves submitting a formal Letter of Intent through your real estate agent, often accompanied by a good faith deposit.

Essential documents for the offer process include:1. Valid passport with current visa status2. Proof of address (utility bill or rental agreement)3. Residence card (if applicable)4. Bank statements showing proof of funds5. Income verification or tax documents6. Personal seal (inkan) - can be temporary initially7. Pre-approval letter (if using financing)

Once your offer is accepted, you'll sign a reservation agreement and pay a deposit, typically 10% of the purchase price. This deposit is held in escrow until the final contract signing.

The negotiation period usually lasts 1-2 weeks, during which time the property is taken off the market while both parties finalize terms and prepare for due diligence.

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How does the due diligence work—checking the land registry, zoning, building condition, and legal restrictions?

Due diligence in Tokyo involves comprehensive verification of the property's legal status, physical condition, and regulatory compliance.

Your agent or legal representative will check the property's land registry (called the "register of real estate") to verify ownership history, liens, and encumbrances. This official document shows all previous owners and any outstanding debts attached to the property.

Zoning verification ensures the property complies with Tokyo's urban planning laws, including building coverage ratios, height restrictions, and permitted uses. This is crucial for understanding future development limitations and potential legal issues.

Physical inspections should cover structural integrity, earthquake compliance (especially important in Tokyo), plumbing, electrical systems, and any required maintenance or repairs. For older properties, asbestos and other hazardous material checks may be necessary.

Building permits and construction compliance verification ensure the property was built legally and meets current safety standards. This process typically takes 2-4 weeks and costs „100,000-„300,000 depending on property complexity.

What happens during the sales contract signing in Tokyo, and what payments are required at that stage?

The sales contract signing in Tokyo is a formal ceremony typically held at the real estate agent's office or a notary office, with a judicial scrivener present.

At contract signing, you'll pay the remaining deposit (bringing your total deposit to typically 10-20% of the purchase price), the real estate agent fee (3.3% plus „66,000), and stamp duty based on the property value.

All documents must be original or officially certified copies, signed and sealed according to Japanese legal standards. The contract will specify the final closing date, usually 4-6 weeks after signing, when the remaining balance is due.

The judicial scrivener will explain all contract terms and ensure both parties understand their obligations. This meeting typically lasts 2-3 hours and requires your physical presence—remote signing is generally not permitted.

infographics rental yields citiesTokyo

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.

How do I handle the property registration at the Legal Affairs Bureau, and what documents are essential?

Property registration at the Legal Affairs Bureau (Homukyoku) is the final step that officially transfers ownership to your name.

Essential documents for registration include the signed purchase contract, your passport and residence card, registered personal seal and certificate, tax payment receipts, and all notarized paperwork from the contract signing.

The judicial scrivener typically handles the registration filing on your behalf, as the process requires specific formatting and Japanese language proficiency. Registration fees are based on the property's assessed value and must be paid in advance.

The registration process takes 1-2 weeks from filing to completion. Once registered, you'll receive an official ownership certificate (kenri-sho) that serves as legal proof of your property ownership.

After registration, you'll need to update your address with local municipal offices and arrange for utility transfers and property insurance if these weren't handled during the contract process.

What's the timeline from finding a property to officially owning it, and how long does each step usually take?

The complete property purchase process in Tokyo typically takes 1-3 months from initial property search to final ownership registration.

Purchase Phase Duration Key Activities
Property Search & Selection 1-2 months Market research, viewings, agent selection
Offer & Negotiation 1-2 weeks Letter of intent, price negotiation, reservation agreement
Due Diligence Period 2-4 weeks Legal checks, inspections, document preparation
Contract Signing 1 day Final contract execution, deposit payment
Closing Preparation 4-6 weeks Final payments, loan processing, document finalization
Property Registration 1-2 weeks Legal Affairs Bureau filing, ownership transfer
Post-Purchase Setup 1-2 weeks Utilities, insurance, municipal registration

Complex properties or financing arrangements may extend the timeline to 4-5 months, while cash purchases of simpler properties can sometimes be completed in 6-8 weeks.

What common mistakes do foreigners make when buying in Tokyo, especially around hidden costs and legal misunderstandings?

Foreign buyers in Tokyo frequently underestimate the total cost of property ownership, focusing only on the purchase price while overlooking substantial additional expenses.

Common costly mistakes include:1. Not budgeting for the 6-10% in additional fees and taxes beyond the purchase price2. Failing to understand the difference between freehold and leasehold properties, affecting long-term value3. Not preparing required documents (registered seal, certificates) in advance, causing delays4. Skipping comprehensive due diligence on zoning restrictions and building compliance5. Choosing agents without foreign buyer experience, leading to communication problems6. Misunderstanding annual property taxes and maintenance fees for condominiums7. Not securing proper property insurance before taking ownership8. Overlooking earthquake insurance requirements in Tokyo's seismic zone

Many foreigners also underestimate the complexity of Japanese bureaucracy and the importance of having all documentation properly translated and certified. Working with experienced professionals familiar with foreign buyer requirements is essential to avoid these pitfalls.

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

How do I avoid confusion about leasehold vs freehold ownership, and what's the impact on future resale value?

Understanding the distinction between freehold and leasehold ownership is crucial for making informed property investments in Tokyo.

Freehold ownership means you own both the building and the land permanently, providing maximum security and flexibility for future sales, renovations, or inheritance. This is generally the preferred ownership type for foreign buyers seeking long-term investment security.

Leasehold properties grant ownership of the building or unit but not the underlying land, which remains owned by a landlord or corporation. Lease terms typically range from 30-99 years, and renewal terms can significantly impact property value.

Resale value implications are substantial—freehold properties generally maintain value better and are easier to sell, while leasehold properties may depreciate more quickly as lease terms shorten. Financing options are also more limited for leasehold properties, with some banks refusing mortgages on properties with less than 30 years remaining on the lease.

Always confirm the ownership type before making an offer, and factor the remaining lease term into your investment calculations if considering leasehold property. Your real estate agent should clearly explain the ownership structure and its long-term implications for your specific situation.

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. Real Estate Tokyo - Can a Foreigner Buy Property in Japan
  3. Dovetail - How to Buy a Home in Japan as a Foreigner
  4. Black Ship Realty - Can Foreigners Buy Property in Japan
  5. Housing Japan - Buying a House in Japan as an Expat
  6. Land Housing - Foreign Property Purchase Guide
  7. Real Estate Tokyo - Property Purchase Guide
  8. Japan Property - Tokyo Properties for Sale