Ever dreamt of owning a slice of Japan, a modern Tokyo apartment, or a traditional countryside home?
But the thought of navigating the rules as a foreigner feels like trying to solve a Rubik's Cube in the dark?
You hear conflicting advice about visas, loans, and hidden costs, making your dream Japanese home feel impossibly out of reach.
What if you had a clear, step-by-step roadmap from an expert who’s seen it all?
Let’s break it down, simply and clearly.
Yes, You Absolutely Can Buy: Foreigners can buy a house in Japan with almost no restrictions, regardless of their visa or residency status. This includes both buildings and land.
Ownership is NOT a Visa: Remember this golden rule: buying a house does not grant you the right to live in Japan. You'll still need a separate, valid visa for any long-term stays.
Financing is the Real Challenge: Getting a home loan in Japan without permanent residency is the biggest hurdle for most. However, certain "foreigner-friendly" banks can be your best bet.
Budget for 5-10% in Extra Costs: The price tag isn't the final price. To successfully buy house Japan, you should expect to pay an additional 5-10% of the property's value in taxes, agent fees, and other closing costs.
Let’s clear this up right away: Yes, you absolutely can.
The idea that it's legally complicated for foreigners is one of the biggest myths out there.
Japan's property market is remarkably open.
Whether you're American, Australian, or from anywhere else, you have the same legal rights as a Japanese citizen to purchase real estate.
This foundation of equality extends to the type of ownership you get.
In most cases, you’ll be buying Shoyuken (所有権), which is freehold ownership.
This is the gold standard.
| Ownership Type | What it Means for You | Who It's Good For |
| Freehold (Shoyuken) | You own 100% of the building AND the land it sits on forever. You can sell it, pass it down, or renovate it freely (within local zoning laws). | The vast majority of buyers, especially those looking for a long-term home or investment. |
| Leasehold (Shakuchiken) | You own the building, but you are leasing the land from the landowner for a set period (e.g., 30-50 years). You'll pay annual ground rent. | Buyers in dense urban areas where land is extremely expensive, allowing for a lower entry price. It's more common for commercial properties. |
Freehold ownership, or Shoyuken (所有権), is ideal for long-term investors as it includes land and property ownership. You gain complete control, allowing you to sell, gift, or lease the property without restrictions. This option, however, requires paying property and urban planning taxes regularly.
Leasehold, or Shakuchiken (借地権), gives you rights to the building but not the land it sits on. This arrangement can be typical in dense urban zones, offering a more affordable entry point but requiring ground rent to be paid to the landowner. Leasehold rights can also vary:
| Ownership Type | Freehold |
| Initial Cost | Higher |
| Control Over Land | Complete control (Permanent) |
| Long-Term Value | High |
| Taxes | Property, urban planning |
| Ideal For | Long-term investment, full autonomy |
| Benefits | Ownership of land outright
Profit from land appreciation Faster buying process |
| Drawbacks | More expensive
Higher property taxes Additional purchase costs |
| Ownership Type | Leasehold |
| Initial Cost | Lower |
| Control Over Land | Limited control (ranging from 30 to 99 years) |
| Long-Term Value | Moderate |
| Taxes | Ground rent, lease taxes |
| Ideal For | Short-term investment, lower entry costs |
| Benefits | 30-40% cheaper than freehold
No property tax Higher rental yields |
| Drawbacks | Monthly rents to the landowner
Harder to resell Sometimes, applying for property loans is more challenging, making it harder to purchase property. |
While overwhelmingly open, there are a few niche exceptions:
Agricultural & Forestry Land: You need special permission from a local committee to buy designated farmland, which is rarely granted unless you have a solid farming plan.
Areas of National Security: Purchasing land right next to a military base or other sensitive facility may have restrictions.
For over 99% of residential and commercial properties, these won't be issues.
Now, for the most crucial clarification:
This point cannot be stressed enough.
Think of it like this: buying a ticket to a concert doesn’t make you a member of the band.
Similarly, buying a house in Japan does not grant you a visa.
You can own a home and only visit for up to 90 days as a tourist (depending on your nationality).
If you want to live there year-round, you must qualify for a separate visa, such as a Work Visa, Spouse Visa, or obtain Permanent Residency.
Here’s where you need to put your "smart buyer" hat on.
The asking price is just the start.
A wise rule of thumb is to budget an additional 5-10% of the property's purchase price for various taxes and professional fees.
Let’s use a real-world example.
You’ve found a great used condo in Fukuoka for ¥40,000,000 (about $265,000 USD).
Here’s a detailed breakdown of the extra costs:
| Upfront Cost Category | Description | Estimated Cost (for a ¥40M Property) |
| Real Estate Agent Commission | Legally capped at 3% of the price + ¥60,000 (+10% consumption tax). Your agent's fee for their services. | ¥1,386,000 |
| Stamp Duty (Inshi-zei) | A tax paid by affixing revenue stamps to the official purchase contract. | ¥10,000 |
| Registration & License Tax (Touroku Menkyo Zei) | The tax for legally registering your ownership in the government records. Rates vary but average ~1.5-2%. | ≈ ¥800,000 |
| Judicial Scrivener Fee | Payment to the legal professional who handles the title transfer registration. This is non-negotiable. | ¥100,000 - ¥150,000 |
| Real Estate Acquisition Tax (Fudosan Shutoku Zei) | A one-time tax bill you'll receive from the local government 3-6 months after your purchase. Roughly 3% of the assessed value. | ≈ ¥1,200,000 |
| Misc. (Insurance, Bank Fees) | Fire/earthquake insurance setup, bank transfer fees for the large payment. | ≈ ¥50,000 |
| Total Estimated Upfront Cost | - | ¥43,556,000 |
As you can see, your ¥40 million property will actually cost closer to ¥43.5 million to acquire.
This is a critical part of a realistic Japanese real estate market budget.
For context, here's what you might expect to pay for a new apartment in Japan and a major city center:
| Country | JPY Average Price | USD Average Price |
| Japan | 897,561.75 ¥ | 6,050.35 $ |
Source: Numbeo
| City | JPY Average Price | USD Average Price |
| Tokyo | 1,402,960.83 ¥ | 9,457.18 $ |
| Kyoto | 800,000.00 ¥ | 5,392.70 $ |
| Yokohama | 966,666.67 ¥ | 6,516.18 $ |
| Osaka | 613,333.33 ¥ | 4,134.40 $ |
| Fukuoka | 842,500.00 ¥ | 5,679.19 $ |
| Hiroshima | 284,411.01 ¥ | 1,917.18 $ |
| Sapporo | 350,000.00 ¥ | 2,359.31 $ |
| Sendai | 336,666.67 ¥ | 2,269.43 $ |
Source: Numbeo
Buying property as a foreigner in Japan involves specific legal and regulatory steps.
Here’s a streamlined step-by-step guide:
Don’t underestimate this step.
A bilingual real estate agent experienced with foreign buyers is your single most valuable asset.
As experts at Housing Japan note, a good agent provides "trusted guidance, legal safety, and professional advice regarding prices and market trends."
This will require signing a commission agency/broker agreement.
The brokerage commission in Japan is 3%.
To find a real estate agent, you can:
As you search listings on sites like Suumo or through your agent, keep an open mind.
An expert from Cheap Houses Japan gives fantastic advice here: many dream of a 150-year-old kominka (traditional house), but these often require massive, expensive renovations.
A 30-year-old home in good condition might be a much wiser financial decision.
Also, be aware that Japanese homes are often more compact than Western ones, and multiple bathrooms are a rare luxury.
Submit an LOI to the seller to formalize your intent to buy. Although non-binding, it establishes terms.
Seek pre-approval from banks like SMBC Trust or UOB, which cater to foreign investors with various financing options.
If you are buying a new house or condo, you'll need to fill out an Application to Purchase (購入申込書, kounyuu moshikomisho) created by the developer or real estate company.
For new properties, a lottery is often carried out depending on the number of applications received, so please consider the chance that your offer to purchase may not be accepted.
There is an application fee of up to ¥100,000.
If you are buying a pre-owned residence, you may like to submit a Letter of Property Purchase Intent (買付証明書, kaitsuke shoumeisho) to the seller.
This document shows your seriousness about purchasing real estate in Japan.
Once you've defined your preferred location and property requirements, it's time to shop around.
Arrange a professional inspection. In Japan, inspections cover aspects like structural safety, earthquake resilience, and pest control.
Reviewing the Explanation of Important Matters document is crucial, as it outlines all property details, restrictions, and potential risks.
Source: Leon Works
Before finalizing your purchase agreement, review the Explanation of Important Matters, which details any existing mortgages and other legal concerns.
This vital document ensures you're fully informed before proceeding.
The Explanation of Important Matters (重要事項説明書, juuyoujikou setsumeisho) is one of the most important documents that you should review carefully before you finalize the purchase.
As a legal disclosure document prepared by the seller’s agent, it is supposed to contain all of the information any buyer would need to make an informed purchase decision, for instance:
Under Japanese law, this comprehensive document, often 20 – 100 pages, must be delivered to the buyer (and also explained verbally) before the buyer executes the purchase agreement.
The next step is to sign a purchase agreement and pay a deposit, known as earnest money (手付金, tetsukekin), to the seller.
Sign the Purchase and Sales Agreement (PSA) after both parties agree to the terms.
Freehold contracts in Japan are non-negotiable once signed.
This legally binding document should include all necessary information, such as the registration certificate, down payment terms, and inspection report findings.
Some of the documents and information to include are:
Seal the deal: The Japanese use a seal to stamp official documents to verify personal or business transactions.
Then, pay a down payment, typically 5-10% of the property price. Japan lacks escrow services, so funds may go directly to the seller or held by your agent.
Getting a home loan in Japan can be challenging for foreigners, especially if you're not a permanent resident.
However, some Japanese banks offer loans to foreigners with permanent residency status or those married to Japanese citizens.
When you’ve submitted your Letter of Intent, it’s time to negotiate your loan options with your bank.
The bank will make an individual assessment of your records and request documents, such as:
Remember that it is difficult for foreigners to get a property loan in Japan unless they are permanent residents. We will discuss the details later in this article.
The final settlement typically occurs at your bank and involves a judicial scrivener (司法書士, shihoushoushi).
Complete the payment balance, pay the final fees, and sign the transfer documents. At this stage, the property officially transfers to your ownership.
When purchasing property in Japan, you must account for various costs, including the acquisition, property, consumption taxes, etc.
Understanding Japan’s tax obligations is essential to avoid unexpected expenses.
Engaging a local real estate agent or company can help you navigate these expenses.
| Taxes and Fees | Description |
| Real Estate Acquisition Tax (不動産取得税, fudōsan shutoku zei) | A one-time tax of 3% on residential land/building purchases, applied within six months to a year post-purchase |
| Registration License Tax (登録免許税, touroku mankyozei) | Charged at 2% of the property’s assessed value, this fee covers the transfer of property ownership registration. Reductions apply for new acquisitions. |
| Annual Fixed Asset Tax (固定資産税, kotei shisan zei) | Property owners are taxed annually on January 1st at approximately 1.4% of the property's assessed value, determined by location, size, condition, and market trends. |
| City Planning Tax (都市計画税, toshi keikaku zei) | A tax of 0.2% to 0.4% of the property's value is imposed to support city planning incentives. |
| Stamp Duty (印紙税, injizei) | Stamp duty ranges from ¥10,000 to 480,000 depending on the property’s value:
Up to 10,000 JPY for a property valued between 10 million to 50 million JPY Up to 60,000 JPY for a property valued between 100 million to 500 million JPY |
| Consumption Tax (消費税, shōhizei) | applied to newly-built properties, is 10% of the building cost (land is exempt) |
| Judicial Scriveners Fees |
JPY 100,000 and JPY 150,000 |
Source: Mailmate & E-housing, taxes and fees are subject to change
This is the biggest pain point for almost every foreigner. Securing a foreign mortgage in Japan is challenging, but very possible if you know where to look and how to prepare. Your entire strategy depends on one key factor: your residency status.
Congratulations! The gates are open.
With PR, you can walk into most major Japanese banks (like MUFG, SMBC, Mizuho) and apply for a mortgage on similar terms as a Japanese citizen.
You have access to the best rates and products.
This is where it gets tough.
Most major banks will politely show you the door.
But don't despair! Some banks have specifically designed products for you.
"Many Japanese banks have age restrictions for mortgage borrowers... If you have trouble, consider a Lender that Caters to Foreigners." - Alex Shapiro, Tokyo Motion
These "foreigner-friendly" banks are your key to success:
| Bank | PR Needed? | English Support | Typical Minimum Income | Key Feature |
| SMBC Trust Bank (Prestia) | No | Excellent | ~¥5 Million/year | Widely seen as the #1 choice for expats. Professional service. |
| Suruga Bank | No | Limited | Case-by-case | Famous for their flexibility and willingness to consider complex cases. |
| SBI Shinsei Bank | No | Excellent | ~¥3-5 Million/year | User-friendly online banking and a long history of serving foreigners. |
| Tokyo Star Bank | No | Good | Case-by-case | Offers a "Star Mortgage" specifically for non-permanent residents. |
Have a Significant Down Payment: 20% is the minimum, but offering 30-50% drastically lowers the bank's risk and increases your chances.
Show a Stable Japanese Employment History: Banks want to see at least 1-3 years of continuous employment with the same company in Japan.
Have a Japanese Spouse or Guarantor: If your spouse is a Japanese national or a PR holder, having them co-sign is one of the strongest ways to get approved.
Build a Japanese Credit History: Having and responsibly using a Japanese credit card for a year or two before applying can demonstrate your financial reliability.
This is your checklist for a successful property purchase in Japan.
a. Must Have Document:
For Everyone: A valid Passport.
b. If You're a Resident in Japan:
c. If You're Buying from Abroad:
d. Your Professional "A-Team":
The Real Estate Agent: Your indispensable guide. They find properties, handle negotiations, and navigate the cultural and linguistic complexities.
The Judicial Scrivener (Shiho Shoshi): The state-licensed legal professional who is legally required to handle the official property title registration. Their role is to ensure the transfer of ownership is done correctly and legally.
Foreigners may be eligible for home loans from Japanese banks, especially if they hold resident status. Here are some options:
Japanese trust banks extend home loan offerings to residents of Japan.
| Bank | SMBC Trust Bank PRESTIA |
| Max LTV | Depends on residence status |
| Currency | JPY |
| Term | Up to 30 years (must be repaid by age 80) |
| Amount | ¥10,000,000 – ¥500,000,000 |
| Requirements | Resident status required |
A Korean commercial bank that has been operating in Japan since 1986.
| Bank | SBJ (Shinhan Bank Japan) |
| Max LTV | up to 60% |
| Currency | JPY |
| Term | 25 years |
| Amount | Min. ¥20,000,000 |
| Requirements | Investment purposes |
Japanese financial institution with English language services
| Bank | SBI Shinsei Bank |
| Max LTV | Inquire |
| Currency | JPY |
| Term | 35 years |
| Amount | ¥5,000,000 – 300,000,000 |
| Requirements | Japanese citizen or permanent resident (conditions apply for non-permanent residents – spouse must be a Japanese national or permanent resident and will be appointed mortgage guarantor). |
A multinational bank headquartered in Singapore, founded in 1935, operates in 19 countries, including the United States, Australia, Canada, and Hong Kong.
It is ideal for overseas investors as no Japanese residency is required.
Currently, it offers the most extensive international property loans for the Kanto, Kansai, and Kyushu regions (Tokyo, Yokohama, Kyoto, Osaka, and Fukuoka).
| Bank | UOB (United Overseas Bank) |
| Max LTV | up to 70% |
| Currency | JPY or SGD |
| Term | up to 35 years |
| Amount | min. $200,000 |
| Requirements | Investment purposes |
A leading global bank headquartered in Beijing and state-owned, it offers home loans through its Japan branch to both Chinese and foreign nationals.
Loan eligibility is evaluated case-by-case basis, with factors such as Japanese residency considered.
| Bank | Bank of China (BOC) |
| Max LTV | up to 50% |
| Currency | JPY |
| Term | up to 20 years |
| Amount | Consultation required |
| Requirements | N/A |
The bank is headquartered in Taipei and offers commercial banking services in North America, Europe, and Asia.
| Bank | Bank of Taiwan |
| Max LTV | up to 70% |
| Currency | JPY |
| Term | Inquire |
| Amount | ¥30,000,000 – 100,000,000 |
| Requirements | N/A |
Orix, a Japanese investment bank with a global presence in 24 countries, provides overseas real estate loans for residential and commercial properties in Greater Tokyo and Osaka.
These loans are suitable for both personal and investment purposes.
| Bank | Orix |
| Max LTV | Up to 70% of the purchase price or 100% of Orix’s valuation (whichever is lower) |
| Currency | JPY |
| Term | Up to 15 Years |
| Amount | min. ¥30,000,000 |
| Requirements | Hong Kong citizen (ID holder) or own a Hong Kong-incorporated company |
OCBC, a Singaporean multinational bank with a strong presence in the Asia-Pacific region, operates branches in Thailand, Hong Kong, and Malaysia, and it provides overseas property loans for newly constructed properties in Tokyo.
| Bank | OCBC (Oversea-Chinese Banking Corporation, Limited) |
| Max LTV | Up to 70% (JPY), up to 60% (SGD) |
| Currency | JPY or SGD |
| Term | Up to 30 years |
| Amount | ¥25,000,000 or S$200,000 |
| Requirements | Singaporean national, Singaporean PR, Singaporean resident |
Source: Housing Japan, value subject to change
Owning a home in Japan might seem like a complex puzzle at first, but as we've seen, it's a puzzle with a clear solution.
The legal doors are wide open for foreigners.
While the main challenges lie in navigating the financing landscape and understanding the true costs beyond the price tag, these are surmountable hurdles with careful preparation.
By partnering with the right professionals, budgeting wisely, and following the structured process, you can confidently turn your aspiration into an address.
Your dream home in the Land of the Rising Sun is not just a possibility; it's a plan waiting to happen.
No, this is the most common misconception. Owning property in Japan does not grant you any residency rights or visa advantages. To live in Japan long-term, you must qualify for a visa based on other criteria, such as employment, family ties, or business management, entirely separate from your property ownership.
The biggest mistake is assuming their home country's financial status will be enough. Japanese banks prioritize stability within Japan. The most common reasons for rejection are having an insufficient work history in Japan (less than 1-3 years), not having a large enough down payment (banks want to see 20-50% from non-PR), and underestimating the importance of having a Japanese spouse or permanent resident as a guarantor, which can be a game-changer.
It depends on what you buy. In Japan, the building itself is seen as a depreciating asset that loses value over time, much like a car. The real long-term investment is the land, which can hold its value or appreciate, especially in a prime location. Do not expect to "flip" a typical house for a quick profit. For potential appreciation, focus on well-located properties in major cities with strong growth prospects like Tokyo and Fukuoka.
This is a common surprise for buyers of apartments (manshon). On top of your mortgage, you will pay a monthly building management fee (管理費, kanri-hi) for communal area cleaning and upkeep, and a repair reserve fund fee (修繕積立金, shuzen tsumitatekin) which is a mandatory saving for future large-scale repairs like repainting the building or elevator replacement. Combined, these can easily add ¥15,000 to ¥30,000 or more to your monthly costs.
It's a valid concern, but Japan is a world leader in earthquake-resistant construction. Buildings constructed after the New Earthquake Resistance Standards of 1981 (Shin-Taishin) are designed to withstand major seismic activity without collapsing. Properties built after 2000 have even stricter regulations. During your due diligence, your agent should provide information on the building's age and adherence to these codes, and you can get an inspection for older homes.
Managing a property from abroad requires a local representative. As a non-resident owner, you must appoint a tax representative to handle your annual property tax filings. For practical matters like paying monthly utility bills, condo fees, or handling emergency maintenance, many foreign investors hire a property management company. These companies act as your local proxy, managing tenant relations (if rented out), paying bills from a Japanese bank account, and ensuring your property is looked after in your absence.
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Reference and citation
Global New Developments 
Juwai Commercial 
Juwai LUXE