How Foreign Buyers Report a Japan Property Purchase Under FEFTA: Step by Step

Japan places almost no restrictions on who can own real estate, and foreigners can buy land and buildings outright with full freehold title. What changed in 2026 is the paperwork. Since April 1, 2026, every non-resident who buys Japanese property must file a report under the Foreign Exchange and Foreign Trade Act. Here is the process, step by step.

Do foreigners need permission to buy property in Japan?

No, foreigners do not need permission or a visa to buy property in Japan, and ownership is full freehold. There is no nationality restriction, no residency requirement, and no separate approval body for a normal purchase. The 2026 rules add a reporting obligation, not a permission requirement, so the sale still completes the same way it always did.

What is FEFTA and why does it matter for property buyers?

FEFTA is the Foreign Exchange and Foreign Trade Act, the law that governs how non-residents report certain transactions in Japan, including acquiring real estate. Under FEFTA, a non-resident who acquires real property in Japan, or any right over it, must file a post-transaction report with the Minister of Finance through the Bank of Japan. The purpose is monitoring and statistics, not blocking the purchase.

What changed under the 2026 FEFTA rules?

Since April 1, 2026, the exemption that used to cover residential property bought for personal use has been removed. Before this date, a non-resident buying a home to live in was generally not required to file. Now all real estate acquisitions by non-residents trigger a FEFTA report regardless of whether the property is for personal use, rental, or investment. A separate change also requires all buyers, including Japanese nationals, to disclose nationality when registering ownership transfers.

Who has to file the FEFTA report?

Any non-resident who acquires real property in Japan must file, and the report can be submitted by the buyer or by an agent residing in Japan. Non-resident means you do not have an address or a place of business in Japan, so most overseas buyers fall squarely within the rule. If you live in Japan as a resident, the FEFTA real estate report generally does not apply to you, though the nationality disclosure at registration still does.

Here is the step-by-step FEFTA reporting process for foreign buyers

Step 1: Confirm your status as a non-resident

Determine whether you are a resident or non-resident of Japan under FEFTA before anything else. Residency here is about your address and economic base in Japan, not your nationality or visa label. If you live abroad and are buying a Japanese property, you are almost certainly a non-resident and the reporting rule applies to you.

Step 2: Complete the purchase and note the acquisition date

Close the transaction as normal and record the exact acquisition date, because the filing clock starts then. A Japanese property sale runs through a licensed real estate agent, a sales contract, and a judicial scrivener (shiho shoshi) who handles the ownership transfer registration. The date the acquisition takes effect is what you measure the 20-day deadline from.

Step 3: Prepare Form 22

Use Form 22, the report tied to Article 55-3 of FEFTA, which is the official Bank of Japan form for a non-resident acquiring real estate in Japan. The form asks for details of the buyer, the seller, the property, the price, and the purpose of the acquisition. Having your purchase contract and registration details on hand makes completing it straightforward.

Step 4: File through the Bank of Japan within 20 days

Submit Form 22 to the Minister of Finance via the Bank of Japan within 20 days of the acquisition. This is the binding deadline and it is short, so do not leave it until after you have left the country. An agent residing in Japan, often the same scrivener or a lawyer, can file on your behalf if you have already gone home.

Step 5: Disclose nationality at the Legal Affairs Bureau

Provide your nationality when the ownership transfer is registered at the Legal Affairs Bureau (Homukyoku). Since April 1, 2026, this applies to every buyer, Japanese or foreign. The nationality data is treated as internal government information and does not appear in the public property registry (toki-bo) that anyone can request, so it is not published alongside your name.

What happens if you miss the 20-day FEFTA deadline?

Missing the FEFTA filing deadline is a compliance breach that can carry penalties, so late or missing reports should be corrected as soon as possible. The report is a legal obligation under FEFTA, and while a normal residential purchase is low-risk, ignoring the requirement is not advisable. The practical fix is to file as soon as you realize, ideally with help from a Japanese agent or lawyer.

Do you need a lawyer or agent to file?

You do not strictly need a lawyer, but using an agent residing in Japan is the most reliable way to meet the 20-day deadline. The judicial scrivener who handles your registration, or a bilingual real estate lawyer, can prepare and submit Form 22 for you. For overseas buyers who close and then fly home, delegating the filing is the simplest way to stay compliant.

Does the FEFTA report affect your ability to resell?

No, the FEFTA report does not restrict your right to resell, rent, or use the property. It is a one-time post-acquisition filing for monitoring purposes and does not create any holding period or sale restriction. When you eventually sell, the new buyer handles their own obligations, and a non-resident selling has separate tax reporting to consider rather than another FEFTA acquisition report.

Japan stays one of the most open property markets in the world for foreigners, and the 2026 FEFTA change is a paperwork step rather than a barrier. Buyers who track the 20-day clock and lean on a local agent rarely have any trouble. For those checking a developer or building before committing, transparency platforms like Bektu can help confirm a project is what it claims to be before you sign.

Sources:

- Reporting Requirement Under FEFTA for Non-Residents Acquiring Real Property - Japan Ministry of Finance

- Japan FEFTA 2026: Foreign Property Buyer Reporting Rules - Japan Real Estate Analytics

- Japan's 2026 Property Disclosure Rule - Nippon Tradings International

- Can Foreigners Own Property in Japan? 2026 Rules - Japan Real Estate Analytics