Yes, foreigners can buy property in Japan, and for ordinary residential real estate there is generally no nationality-based restriction on ownership. If you are looking to buy an apartment in Tokyo, a vacation home in Hokkaido, or investment property anywhere else in Japan, foreign buyers can generally own both land and buildings in their own name.
In fact, Japan does not require residency, citizenship, or permanent residency to purchase land or buildings. As long as foreign buyers comply with standard legal processes, including registration and taxes, property ownership rights for foreigners are generally the same as those for Japanese citizens.
There are, however, a few caveats. Buying property in Japan is often different from that in other countries, and it can be complex due to language barriers and differences in legal and financial systems.
In this article, we’ll walk you through everything you need to know about buying property in Japan as a foreigner.
Foreigner Property Ownership Laws in Japan
Japan has one of the most foreigner-friendly property ownership systems in Asia. You get full ownership rights on a freehold basis with very few restrictions.
- Equal Rights: Foreigners have the same property rights as Japanese nationals.
- Freehold Ownership: You can own both the building and the land it sits on.
- No Time Limitations: There are no expiration dates on property rights.
- Inheritance Rights: Property can be freely bought, sold, and inherited among foreigners.
Foreigners generally have the same property ownership rights as Japanese nationals. Where a property is sold as freehold, you can own both the building and the land it sits on.
Some properties are instead built on leasehold land, so the type of land rights included in the sale should always be confirmed. Property rights do not expire simply because the owner is foreign, and property can be bought, sold, and inherited by foreign owners.
Buying property in Japan does NOT automatically grant you residency rights or a visa. There is no “investment visa” or “golden visa” program in Japan that provides residency through property investment.
In other words, owning property and having the right to live in Japan are separate things. You can purchase a home while living overseas, but the purchase itself does not allow you to remain in Japan beyond whatever your immigration status permits.
Foreigners can also invest in and purchase property in Japan even if they do not live in the country. In fact, many foreign investors choose to buy property in Japan as a method for diversifying their real estate portfolio and to take advantage of the country’s stable economy and relatively low property prices.
There are also some restrictions you should know.
- Agricultural land is subject to Japan’s Agricultural Land Act. Buying, leasing, or changing the use of designated agricultural land can require approval through the relevant agricultural authorities. This is not a blanket restriction specifically imposed on foreign buyers.
- Forest land has a separate notification system. Individuals and companies that acquire qualifying forest land generally have to notify the municipality, regardless of the size of the parcel, unless another applicable land-transaction notification has already been made.
- Japan also has rules for certain strategically important areas around defense facilities, nuclear facilities, remote border islands, and similar locations. In designated “special monitored areas,” transactions involving land or buildings of 200 square meters or more can require advance notification. This is a reporting regime rather than a general prohibition on foreigners buying property near military facilities.
Non-residents must report certain property purchases to the Bank of Japan under the Foreign Exchange and Foreign Trade Act. The current rule generally requires the report to be submitted to the Minister of Finance through the Bank of Japan within 20 days of acquisition. A Japan-resident agent can submit it on the buyer’s behalf.
Overseas buyers also have some additional registration requirements. Since April 2024, property-registration procedures for foreign owners living outside Japan can require information such as a domestic contact and the owner’s name in Roman characters. Your judicial scrivener will normally confirm exactly what is required for your situation.
For condominium buyers, the more practical restrictions are often contained in the building’s own management rules. These can affect renovations, pets, commercial use, and short-term rentals such as Airbnb, so they should be reviewed before purchasing if any of these are part of your plans.
Requirements for Foreigners Purchasing a House in Japan
To be eligible to purchase a home in Japan as a foreigner, there are a few documents and practical requirements to prepare for in advance.
Valid Residence Card or Visa
All foreigners who live in Japan are required to have a valid residence card, which is called zairyu card (在留カード) in Japanese.
However, you do not need a Japanese residence card or visa simply to own property. Buyers who live outside Japan use a different set of identification and registration documents. Residence status becomes much more important when you want to finance the purchase through a Japanese bank.
While you don’t need residency to buy property, having permanent residency status or a long-term visa significantly improves your chances of securing financing and navigating the purchase process smoothly.
| Visa/Residency Status | Can Buy Property? | Financing Challenges | Special Considerations |
|---|---|---|---|
| Tourist/No Visa | Yes | Standard Japanese home financing is very difficult | Cash or specialist financing is more common; overseas documents and local representation may be required |
| Work Visa | Yes | Possible but challenging | Requirements vary by lender; there is no universal rule requiring two years to remain on your visa |
| Spouse Visa | Yes | Moderate difficulty | Japanese spouse can help secure financing |
| Permanent Resident | Yes | Easiest for foreigners | Similar to Japanese nationals |
| Non-Resident | Yes | Standard domestic mortgage options are limited | Remote purchasing is possible but requires more planning for documents, funds, registration, and taxes |
A buyer living overseas may need certified proof of identity, address, and signature, as well as a power of attorney if someone in Japan will complete parts of the transaction on their behalf.
The exact documents depend on the buyer’s country of residence and should be confirmed with the judicial scrivener early in the process.
Registered Seal
A registered seal or jitsuin (実印) is commonly used in important Japanese transactions, particularly for people who already live in Japan, but every foreign buyer does not need to register a Japanese seal simply to own property.
A jitsuin is an officially recognized seal that is registered with the municipal office of a city, ward, town or village. Registering a hanko at the municipal office is called inkan toroku (印鑑登録) or registration, and the registered seal is called jitsuin (実印).
When you register your seal, you can obtain a seal registration certificate or inkan shomeisho (印鑑証明書) in Japanese. The certificate provides official evidence that the seal has been registered to you.
Buyers who live outside Japan may instead use certified signatures and identification documents issued or notarized in their home country. Your judicial scrivener can tell you which route applies to your purchase.
Bank Account
A Japanese bank account is useful when buying and owning property, but it is not itself a legal requirement for property ownership. This is particularly relevant for overseas cash buyers, who may not be eligible to open the same bank accounts available to Japanese residents.
It can be helpful to bring a Japanese-speaking friend or interpreter to the bank when opening an account. Some Japanese banks are known to cater to foreigners living in Japan. Some make it possible to conduct almost all business in English and have limited transaction fees.
A few recommendations include the following banks:
- Japan Post Bank
- Mitsubishi UFJ Bank
- Mitsui Sumitomo Bank
- Mizuho Bank
- Seven Bank
- Shinsei Bank
- SMBC Prestia Bank, and
- Sony Bank
Another challenge is meeting the strict documentation requirements. To open a bank account in Japan, foreigners typically need to provide a valid passport and a residence card or visa, as well as proof of address, such as a utility bill or rental agreement.
In some cases, banks may also require proof of income or employment, as well as a registered seal or jitsuin (実印) in Japanese (see above). In addition, some Japanese banks may have specific requirements for opening an account, such as a minimum deposit amount or a certain type of visa.
It is always a good idea to research the specific bank’s requirements in advance and to contact them directly to confirm the necessary documentation and procedures.
If the purchase money will be transferred from overseas, discuss this with your agent and judicial scrivener well before closing. Large international transfers can involve additional bank checks and processing time, so the transfer method should be arranged before settlement day.
Secured Loan from a Japanese Bank
Although not always required (e.g., payment in cash), it is often easier said than done to obtain a bank loan as a foreigner in Japan.
Some Japanese banks may be hesitant to lend to non-Japanese buyers, and the loan application process may be more complicated for foreigners. See the next section for more details.
Guarantee from a Guarantor Company
Guarantor companies, also known as hoshonin (保証人) in Japanese, are third-party organizations that provide a guarantee to the seller or lender that the buyer will fulfill their financial obligations.
In many cases, Japanese banks and real estate companies require a guarantor for non-Japanese buyers because they are not familiar with the buyer’s financial history or creditworthiness.
The guarantor company typically charges a fee for their services, which can range from a few thousand yen to several percent of the purchase price.
Not all prospective buyers may be required to obtain a guarantee from a guarantor company. It can depend on various factors, such as the buyer’s financial situation, the type of property being purchased, and the specific lender or seller involved in the transaction.
Can Foreigners Get a Mortgage in Japan?
Securing a home loan or mortgage from a Japanese bank as a foreigner living in Japan can be challenging, as banks have strict requirements and regulations for lending to non-Japanese residents.
Permanent residency can make the process considerably easier, but it is not required by every lender. PRESTIA, for example, accepts qualifying foreign borrowers who reside in Japan without requiring permanent residency, while Tokyo Star Bank has a mortgage product specifically for foreign nationals without PR.
Here are some of the key requirements for securing a home loan or mortgage from a Japanese bank as a foreigner living in Japan:
Valid Residence Status
You must have a valid residence status in Japan, such as a visa or a permanent resident card. Without a valid residence status, it is not easy to obtain financing.
Foreign residents without permanent residency should not assume they are automatically ineligible. The available banks are simply more limited, and each lender sets its own income, employment, property, language, and residency requirements.
Good Credit History
Banks will typically require evidence that you are financially capable of repaying the loan. Depending on the lender, this can include your employment history, income and tax records, existing debts, repayment history, residence status, and the bank’s valuation of the property.
There is no universal rule that a foreign buyer needs six months or one year of Japanese credit-card history before becoming mortgage-eligible. Mortgage underwriting varies considerably between banks, which is another reason to speak with potential lenders before beginning a serious property search.
Many banks and financial institutions in Japan may require a certain level of Japanese proficiency and proof of stable income or employment to approve credit applications. This can make it challenging for foreigners who are new to the country or who have limited Japanese language ability.
Stable Income
Banks will want evidence of stable and sufficient income to cover the mortgage payments. Pay stubs, tax returns, or other financial documents can demonstrate this.
Many Japanese banks have age restrictions for mortgage borrowers, and some may not offer mortgages to retirees or those close to retirement age. If you have trouble, consider the following options:
- Choose a Lender that Caters to Foreigners: Some Japanese banks and financial institutions may have more experience working with foreign customers and may be more willing to lend to retirees with permanent residency status.
- Provide Proof of Income and Assets: Retirees with permanent residency status may be required to show proof of stable income or assets, such as pension income, investment income, or savings. Providing detailed financial documentation and a plan for repayment may help to overcome any income or employment restrictions.
- Consider a Guarantor or Co-signer: Retirees with permanent residency status may be able to obtain a mortgage with the help of a guarantor or co-signer, such as a family member or friend who has a stable income or employment.
- Choose a Shorter Mortgage Term: Retirees may want to consider choosing a shorter mortgage term, such as a 10 or 15-year term, which may be more manageable and easier to obtain.
- Explore Government-Backed Programs: The Japanese government offers various programs and subsidies to support home ownership, including special mortgage programs for permanent residents. Retirees with permanent residency status may be eligible for these programs, depending on their age, income, and other factors.
Adequate Down Payment
There is no standard rule that foreigners must provide a 20%, 30%, or any other fixed down payment in Japan. How much you can borrow depends on the bank, your financial profile, the property, and the lender’s valuation of it.
Some foreign residents will be asked to contribute substantial equity, while other mortgage products can finance a much larger percentage of the purchase. Tokyo Star Bank, for example, offers financing to qualifying non-PR residents subject to its own screening and collateral requirements.
Japanese Language Ability
Some banks may require that the borrower have sufficient Japanese language ability to understand the terms and conditions of the loan.
Do not expect a Japanese bank to be able to provide a term sheet prepared in English.
How To Buy Property in Japan as a Foreigner?
We usually breakdown the process of buying a property in Japan in six different phases. Each phase has its own set of procedures and considerations.
Preparation
First, you have to determine your budget, including not just the purchase price but all associated costs like taxes, fees, and potential renovation expenses.
Take time to define your requirements—location preferences, property size, amenities, and proximity to transportation or schools. If you are looking for real estate agents experienced with foreign buyers, you can reach out to us.
You should also start gathering essential documentation early: your identification, proof of income, residence status documentation, and more. This preparation can significantly streamline the later stages of the process.
If you plan to use a mortgage, this is also a good time to start pre-screening. Knowing which banks are willing to consider your residency status, income, and target property can prevent you from finding a home first and discovering later that it cannot be financed.
Property Search
If you are looking to buy a home or an apartment in Tokyo, you can check our real estate platform. We maintain an extensive database of properties that match various preferences and budgets. You can also reach out to us directly, and we can help you find property listings that might not even be publicly advertised.
When possible, you should always try to arrange in-person viewings to assess properties firsthand.
Our team conducts thorough neighborhood research for all properties we represent. We provide comprehensive information about public transportation access, nearby amenities, school quality, and the area’s development plans. Before any viewing, your Tokyo Portfolio agent will brief you on the property’s history, previous sales, and any known issues so you have all the information you need.
Offer and Negotiation
Once you find a suitable property, the next step is to submit a formal offer. Most Japanese property transactions often occur close to the asking price. While some negotiation is possible, especially for properties that have been on the market for a long time, price reductions are uncommon.
If your offer is accepted, you’ll typically pay a small earnest money deposit (tetsukekin) of around ¥100,000-¥500,000 to show your commitment to the purchase. This amount is usually applied to the purchase price if the sale proceeds but may be forfeited if you withdraw without a valid reason.
Contract
The most critical document you’ll receive is the Explanation of Important Matters (重要事項説明書/Jūyō Jikō Setsumeisho), which details the property’s condition, legal status, any restrictions or encumbrances, and other essential information. By law, a licensed real estate professional must explain this document to you before you sign the purchase agreement.
The purchase agreement (売買契約書/Baibai Keiyakusho) is the legally binding contract that outlines all terms of the sale, including the price, payment schedule, closing date, and any special conditions. At this point, you’ll pay the down payment, typically 10-20% of the purchase price.
Closing
Before finalizing the purchase, you will conduct a final property inspection to ensure everything is as agreed. The title transfer is handled by a judicial scrivener (司法書士/Shihō Shoshi), who ensures all documentation is properly filed with the relevant government offices. At closing, you’ll transfer the remaining balance to the seller, typically through a bank transfer.
Once payment is confirmed, you’ll receive the keys to your property with all relevant documentation, including the property registration certificate.
Post-Purchase
The ownership-transfer registration is normally coordinated with the closing rather than being something you begin only after receiving the keys.
After purchase, you’ll need to register your ownership with the Legal Affairs Bureau and set up utilities like electricity, gas, water, and internet service. You’ll also become responsible for property taxes and any building management fees if applicable.
If you won’t be living in the property full-time, consider arranging property management services to handle maintenance, tenant issues, and other matters in your absence.
For overseas owners, this deserves some planning before the purchase is completed. Someone may need to receive tax notices and building correspondence, arrange repairs, deal with utilities, and check on the property while you are outside Japan. Depending on your tax situation, you may also need local professional support for tax filings or representation.
Taxes and Additional Costs
Purchasing property in Japan involves several taxes and fees beyond the purchase price that significantly impact your total investment.
When buying property, you’ll have to pay one-time purchase costs including Real Estate Acquisition Tax (不動産取得税/Fudōsan Shotoku Zei), which typically is 3-4% of the property value, though residential properties may qualify for reduced rates.
Registration and License Tax (登録免許税/Tōroku Menkyō Zei) adds another 1.5-2% of the property value when registering your ownership.
You also have to pay Stamp Duty (印紙税/Inshi Zei) which varies based on the purchase price, ranging from ¥10,000 for lower-priced properties to ¥600,000 for high-value transactions.
Legal fees for judicial scrivener services typically add 0.5-1% of the property value. Real estate agent commissions in Japan are standardized at 3-3.6% of the property value plus tax, usually split between buyer and seller agents.
Once you own the property, ongoing ownership costs become your responsibility. The main property tax is Fixed Asset Tax (固定資産税/Kotei Shisan Zei), assessed at 1.4% of the property’s taxable value annually and typically paid quarterly. Properties in urban planning zones incur an additional City Planning Tax (都市計画税/Toshi Keikaku Zei) of about 0.3% annually.
For apartment or condominium owners, expect monthly Building Management Fees (管理費/Kanri-hi) of ¥10,000-¥30,000 and contributions to a Repair Reserve Fund (修繕積立金/Shūzen Tsumitatekin) of ¥5,000-¥20,000 monthly for future building repairs.
Property insurance for damage and disasters runs about ¥30,000-¥50,000 annually, and if you generate rental income, you’ll pay income tax at rates between 15.315% and 55.945% depending on your total income.
As a general rule of thumb, budget approximately 8-10% of the property value for initial purchase costs and taxes beyond the property price itself. You should understand these costs upfront to prevent unexpected financial strain and allow for more accurate investment planning.
Conclusion
Japan’s robust real estate market and strong legal protections for property owners make it an attractive destination for foreign buyers. While there are certain barriers, such as language and cultural differences, or the challenge of securing a loan without permanent residency, none of these are insurmountable.
For most foreign buyers, the question is therefore less about whether they are legally allowed to own the property and more about how they will finance the purchase, complete the documentation, evaluate the property itself, and manage the responsibilities that come with ownership.
Through careful research, thorough planning, and the assistance of real estate professionals familiar with the needs of foreign buyers, owning a piece of the Land of the Rising Sun is well within reach.
At Tokyo Portfolio, we are dedicated to helping you navigate this process. Our team of experts is experienced in addressing the needs of foreign buyers and can provide the guidance necessary to make your dream of owning a home in Japan a reality.
What sets Tokyo Portfolio apart is our expertise with foreign buyers. We provide fully bilingual service in English and Japanese, ensure a transparent process with clear explanation of all costs and procedures, and offer deep local knowledge of Tokyo neighborhoods and market conditions.
Ready to explore your options for buying property in Japan? Contact our team today for a personalized consultation.
