Japan Property Buying Guide: What Foreign Buyers Must Report and Pay

Foreigners enjoy the same legal footing as Japanese buyers: freehold ownership of land and buildings, no minimum spend, no government approval and no reciprocity requirement. You need not live in Japan. Commentary from mid-2026 stresses that nothing enacted this year bans foreign ownership, though the governing coalition has pledged to draft a bill on the topic.

Three changes affect you now or soon:

• Nationality disclosure. Registration applications are expected to require buyers, Japanese included, to state their nationality with a supporting document. Reports give different start dates, from October 2026 to the end of fiscal 2026, and say the information will not be public. Ask your judicial scrivener which applies.
• Foreign-exchange report. Non-residents buying real estate must report the acquisition within 20 days, including purchases for residential use, according to one guide that dates the change to April 2026.
• Consumption tax on brokerage. Reports say the exemption for overseas buyers' brokerage services was removed for transactions from 1 October 2026, which could add roughly 156,000 yen on a 50 million yen deal. Confirm with a tax adviser.

These details came from real-estate and news sites, not official notices, so verify them.

Japanese law treats land and buildings as separate property, each with its own registry entry. Houses depreciate in the eyes of banks and the market, often reaching little value after 20 to 30 years, while land usually keeps its worth. Condominiums are sold as unit ownership plus a share of the land.

Buildings constructed before the 1981 earthquake code (shin-taishin) are seen as higher risk, and many older timber houses need seismic upgrades. Look for an inspection, an earthquake-resistance certificate and a record of renovations.

Leasehold exists too (chakuchi-ken and teiki shakuchi-ken), and some properties come with leased land under the building. Check which you are buying.

1. Choose a licensed agent (takken-gyosha). Agents must hold a licence from the prefecture or the national ministry.
2. Submit a purchase application (kai-tsuke). Not binding in most cases.
3. Receive the important matters explanation (juyo jiko setsumei). A licensed agent must explain the property's legal status, zoning, defects and risks in writing, before the contract. For non-Japanese speakers, ask for translation, but the legal text is Japanese.
4. Sign the sale contract and pay a deposit, often 5 to 10%.
5. Hire a judicial scrivener (shiho shoshi) to register ownership transfer at the Legal Affairs Bureau.
6. Settle and hand over. Pay the balance, taxes and fees, and receive keys.
7. File required reports to the Bank of Japan or authorities within the deadline.

A personal seal (hanko) was historically required, but foreigners can often sign with a signature and an affidavit. Your agent and scrivener will explain.

Costs add up to roughly 6 to 10% of price on resale properties, with tax and fees varying.

Japanese banks lend to foreigners with permanent residency, or at least a long-term visa and local income, and non-residents find it hard to borrow. Rates are low by global standards. Our Japan financing guide outlines options, and the mortgage calculator can help.

Owning property does not give a visa. The business manager visa has been reported to have a much higher capital requirement since late 2025, so check current figures if you plan that route.

Cheap rural houses, known as akiya, attract foreign buyers but come with renovation costs, local rules, snow and typhoon exposure, and unclear boundaries. A vacant houses law adds tax penalties for leaving them unused. Types available include apartments, houses, land and commercial property. For market context see our Japan analysis, and for low-cost entry the cheap and under-100k pages.

• Buying an old house for the land value without budgeting demolition costs.
• Missing the 20-day foreign-exchange report.
• Assuming an English listing equals an English contract.
• Ignoring management fees in older condominiums.
• Overlooking hazard maps for flooding, landslides and tsunami.

See the consultation index for other markets.