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Foreigners can purchase virtually any type of property in Tokyo with the same legal rights as Japanese citizens, including residential apartments, houses, and land. The process is straightforward and can even be completed remotely without requiring residency or a specific visa status, though non-residents face some additional administrative requirements and financing challenges.
If you want to go deeper, you can check our pack of documents related to the real estate market in Tokyo, based on reliable facts and data, not opinions or rumors.
Foreigners enjoy full property ownership rights in Tokyo without residency requirements, though mortgage approval can be challenging for non-residents.
The complete property purchase process involves multiple taxes and fees totaling approximately 6-8% of the property value, plus ongoing annual costs.
Property Rights | Requirements | Key Considerations |
---|---|---|
Full freehold ownership rights | No visa or residency required | Remote purchase possible with representative |
Same rights as Japanese citizens | Tax agent required for non-residents | Professional assistance highly recommended |
Can buy residential, commercial, land | Notarized documents needed | Financing more difficult for foreigners |
No ownership restrictions | Japanese contracts standard | Multiple taxes and fees apply |
Transfer through Legal Affairs Bureau | Judicial scrivener typically required | Annual property taxes ongoing |
Registration includes both Japanese and Roman names | Seal registration or notarized signature | Capital gains tax applies when selling |
Can rent out for investment purposes | Income verification for mortgages | Management fees for condominiums |

Can foreigners buy the same types of property in Tokyo as Japanese citizens?
Foreigners can purchase exactly the same types of property as Japanese citizens with identical ownership rights.
This includes residential apartments, single-family houses, commercial buildings, and land parcels throughout Tokyo and all of Japan. You can buy properties on a freehold basis, meaning you own both the building and the land underneath it permanently.
There are no restrictions based on nationality, and you don't need to partner with a Japanese citizen or company to make a purchase. Foreign buyers can own entire apartment buildings, office complexes, or any other type of real estate that Japanese nationals can legally purchase.
The only distinction is that from April 2024, foreign property owners must register using both their Japanese name (in Katakana or Kanji) and their Romanized name for identification purposes. This administrative requirement doesn't affect your ownership rights.
It's something we develop in our Tokyo property pack.
Do you need residency or a visa to purchase property in Tokyo?
No residency status or specific visa is required to purchase or own property in Tokyo or anywhere in Japan.
You can buy property as a tourist, on a short-term visa, or even while living permanently outside Japan. Property ownership is completely separate from immigration status, and owning real estate doesn't grant you any special visa privileges or path to residency.
Non-resident foreigners can complete the entire purchase process from abroad without ever setting foot in Japan, though they must appoint a local representative and designate a tax agent for administrative purposes.
This policy makes Japan one of the most open property markets globally for foreign investment, contrasting with many other countries that restrict non-resident purchases or require minimum investment thresholds.
Can you buy Tokyo property remotely without being in Japan?
Yes, you can complete a property purchase entirely remotely by appointing a local representative with power of attorney.
The remote purchase process requires you to designate someone in Japan (typically a lawyer, real estate agent, or specialized service provider) to act on your behalf for viewings, contract signing, and closing procedures. All documents must be properly notarized and translated into Japanese.
You'll need to appoint a domestic tax agent who will handle correspondence with Japanese tax authorities and ensure compliance with annual tax obligations. This person can be the same as your property purchase representative or a separate tax professional.
While remote purchases are legally possible, many buyers prefer to visit Japan at least once to view properties in person and meet with their representatives, especially for higher-value purchases. Virtual tours and video calls have made remote due diligence more feasible since 2020.
What is the step-by-step process for buying property as a foreigner?
Step | Process | Timeline |
---|---|---|
1. Property Search | Engage licensed real estate agent, identify target properties | 2-8 weeks |
2. Purchase Application | Submit formal offer, receive property disclosures (Jūyō Jikō Setsumeisho) | 1-2 weeks |
3. Contract & Deposit | Sign purchase agreement, pay 5-10% deposit, prepare registered seal or notarized signature | 1 week |
4. Financing Application | Complete loan formalities and income verification if seeking mortgage | 2-4 weeks |
5. Due Diligence | Property inspections, title searches, legal verifications | 2-3 weeks |
6. Closing & Transfer | Pay balance, settle taxes/fees, transfer title at Legal Affairs Bureau via judicial scrivener | 1 week |
7. Registration | Register ownership with both Japanese and Romanized names, appoint tax agent | 1-2 weeks |
Required documents include your passport, proof of address, notarized affidavit (for non-residents), income proof for mortgage applications, and seal registration certificate or notarized signature for contracts.
Do you need to hire professionals when buying property?
While a lawyer isn't legally mandatory, professional assistance is highly recommended, especially for foreign buyers unfamiliar with Japanese real estate law.
A judicial scrivener (shiho shoshi) is typically required for title transfer and registration procedures at the Legal Affairs Bureau. Their fees usually range from ¥50,000 to ¥150,000 depending on property complexity and location.
Licensed real estate agents are standard for property searches and negotiations, earning a commission of 3% of the property price plus ¥60,000 plus 10% consumption tax. For mortgage applications, you may need a guarantor or guarantor company.
Legal representation becomes more valuable for complex transactions, commercial properties, or when language barriers could lead to misunderstandings in contract terms. Many foreign buyers use bilingual lawyers or agents to ensure they fully understand all obligations and rights.
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What taxes and fees should you expect when buying Tokyo property?
Total upfront costs typically range from 6-8% of the property purchase price, not including the down payment.
Real estate agent commissions are standardized at 3% of the property price plus ¥60,000 plus 10% consumption tax. Stamp duty ranges from ¥10,000 to ¥60,000 depending on the contract value.
Registration and license taxes cost 0.4-2% of the building and land assessed value. Property acquisition tax is generally 3% of the assessed value for residential properties, billed several months after purchase.
Ongoing annual costs include fixed asset tax at 1.4% of assessed value, paid every January 1st. Condominium owners pay monthly management and repair fees for common areas, typically ¥10,000-¥30,000 per month depending on building amenities.
Fire insurance and reserve fund contributions are usually mandatory. When selling, capital gains tax applies at 15-30% depending on how long you owned the property.
Is mortgage financing available to foreigners in Tokyo?
Mortgage financing is available but significantly more challenging for non-residents and those without long-term visas.
Japanese banks heavily favor permanent residents or long-term visa holders with stable Japanese income. Non-residents face stricter requirements including larger down payments (often 30-50%), higher interest rates, and may need Japanese guarantors.
Interest rates for foreigners typically range from 2-4%, depending on your profile, the bank, and collateral offered. Major banks like SMBC, Mizuho, and MUFG offer foreigner mortgages, but each has different criteria.
To improve approval chances, consider increasing your deposit size, providing evidence of stable income (preferably Japanese income), using a guarantor company, or working with mortgage brokers who specialize in foreign applications. Some buyers find it easier to secure financing in their home country and purchase with cash in Japan.
How do Tokyo property prices compare across neighborhoods?
Central Tokyo wards command premium prices, with costs declining significantly toward suburban areas and outer districts.
The most expensive areas are Minato (average ¥1.2-2 million per square meter), Chiyoda (¥1-1.8 million per square meter), and Shibuya (¥800,000-1.5 million per square meter). These central locations offer proximity to business districts, embassies, and major transportation hubs.
Mid-tier areas like Meguro, Setagaya, and Taito range from ¥400,000-800,000 per square meter, offering good liveability with reasonable access to central Tokyo. Outer wards and suburban areas like Adachi, Katsushika, and Edogawa start from ¥200,000-400,000 per square meter.
Compared to other major Japanese cities, Tokyo prices are substantially higher. Osaka averages 30-40% less than Tokyo, while regional cities like Fukuoka, Sapporo, or Nagoya are 50-70% cheaper for comparable properties.
It's something we develop in our Tokyo 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 Tokyo areas are most popular among foreigners?
Minato ward leads foreign preferences due to its high concentration of embassies, international schools, and expatriate-friendly amenities.
Shibuya attracts younger professionals and tech workers with its vibrant nightlife, shopping, and startup ecosystem. Shinjuku offers excellent transportation connections as a major rail hub, making it popular for both living and investment.
Chiyoda appeals to business professionals working in Tokyo's financial district, while Meguro provides a quieter residential atmosphere with good access to central areas. Taito, including areas like Asakusa, attracts tourists and investors interested in traditional Tokyo culture.
For rental yields, outer wards often provide better returns (4-5% gross yields) compared to central locations (2-3% gross yields), though central properties offer better capital appreciation potential and tenant stability.
Tourism appeal varies significantly, with areas like Shibuya, Shinjuku, and Taito benefiting from short-term rental demand, while residential areas like Setagaya and Nerima focus on long-term tenant markets.
What are the tax implications of owning Tokyo property as a foreigner?
Non-resident property owners must pay Japanese income tax on rental earnings, typically withheld at 20.42% with additional local taxes potentially applying.
Capital gains tax varies based on ownership duration: properties held over 5 years face 15% tax rates, while those held under 5 years are taxed at 30%. Special regimes may apply for foreign tax residents depending on bilateral tax treaties.
All non-resident owners must appoint a tax agent in Japan to handle correspondence with tax authorities and ensure compliance with annual filing requirements. This agent fee typically costs ¥30,000-¥100,000 annually.
Rental income must be reported annually, with deductions possible for property management fees, repairs, depreciation, and loan interest. Professional tax advice is recommended to optimize your tax position and ensure compliance with both Japanese and home country obligations.
What are common mistakes foreigners make when buying Tokyo property?
The biggest mistake is not understanding the difference between leasehold and freehold properties, especially with older or cheaper buildings that may have ground lease arrangements.
Many buyers underestimate total acquisition costs and ongoing expenses, failing to budget adequately for the 6-8% in fees and taxes plus annual carrying costs. Condominium buildings can have surprisingly high management and repair reserve fees that significantly impact cash flow.
Assuming mortgage approval will be straightforward leads to delays and complications. Foreign buyers should secure financing pre-approval early or be prepared to purchase with cash.
Poor translation and legal oversight cause problems when buyers sign contracts they don't fully understand. Always use professional bilingual assistance for contract review and legal procedures.
Overlooking the importance of location for resale value is common among first-time buyers who focus solely on price rather than long-term market fundamentals and transportation access.
Where can you find the latest Tokyo property market data?
The Japan Real Estate Institute publishes comprehensive market reports and pricing indices updated quarterly for professional investors and analysts.
Tokyo Kantei and the Real Estate Economic Institute provide detailed statistics on transaction volumes, average prices, and market trends across different property types and neighborhoods.
For rental yield data and investment analysis, specialized bilingual brokerages and property management companies offer market insights tailored to foreign investors. Major property listing websites provide current pricing and availability data.
Tourism statistics from the Japan National Tourism Organization help predict demand for short-term rental investments, while city government websites publish demographic and development data affecting long-term property values.
It's something we develop in our Tokyo 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.
Tokyo's property market offers unique opportunities for foreign investors, with full ownership rights and transparent legal processes making it accessible to non-residents.
Success requires careful planning, adequate budgeting for all costs, and professional guidance to navigate the administrative requirements and financing challenges specific to foreign buyers.
Sources
- Tokyo Portfolio - Can Foreigners Buy a Home in Japan
- Real Estate Tokyo - Can a Foreigner Buy Property in Japan
- Black Ship Realty - Can Foreigners Buy Property in Japan
- BambooRoutes - Japan Real Estate for Foreigners
- E-Housing - Guide to Buying Property in Japan
- Land Housing - For Foreigners Column
- Taxes for Expats - Can Foreigners Buy Property in Japan
- Karma Legal Japan - New Registration Rule for Foreign Property Owners
- E-Housing - Understanding Property Taxes in Japan
- Mailmate - Japan Property Tax