Japan Real Estate FAQ for Foreign Buyers: 25 Questions Answered

Japan is one of the easiest countries in Asia for foreigners to buy property. There are no nationality restrictions, no residency requirement, and ownership is full freehold (shoyuken). The complications sit elsewhere: tax filings under the Foreign Exchange and Foreign Trade Act, the 2018 short-term rental law (Jutaku Shukuhaku Jigyo-ho), inheritance exposure, and the practical hurdles around opening a bank account or signing remotely.

This FAQ answers the 25 questions foreign buyers ask most often before purchasing in Japan in 2026.

Can foreigners buy property in Japan?

Yes. Foreigners can buy land and buildings in Japan with no restrictions on nationality or residency status. Ownership is freehold (shoyuken) and recorded in the real estate registry (fudosan toki-bo) maintained by the Legal Affairs Bureau (Homukyoku). There is no equivalent of Indonesia's Hak Pakai or Thailand's 49% condo quota.

Do I need a visa or residency to buy property in Japan?

No. Tourist status is sufficient to complete a property purchase. Buying property does not grant residency, a visa, or any path to citizenship in Japan, unlike the schemes in Portugal, Greece, or Turkey.

What is FEFTA and do I have to file?

The Foreign Exchange and Foreign Trade Act (FEFTA, Law No. 228 of 1949) requires non-residents acquiring real estate in Japan to file Form 22 with the Bank of Japan within 20 days of the transaction. The filing is informational, not an approval, but skipping it is a common compliance error among foreign buyers.

How much are closing costs in Japan?

Closing costs typically run 6 to 8 percent of the purchase price. The largest components are real estate acquisition tax (3 percent of assessed value for land and residential buildings), registration and license tax (2 percent on transfer, reduced rates apply to owner-occupied homes under Article 73 of the Local Tax Act), stamp duty (Inshi Zei) on the sale contract, and the agent commission capped by law at 3 percent plus 60,000 yen plus consumption tax.

What annual taxes will I pay as a foreign owner?

You will pay fixed asset tax (kotei shisan zei) at 1.4 percent of the assessed value, plus city planning tax (toshi keikaku zei) at up to 0.3 percent in urbanization promotion areas. The assessed value is usually 60 to 70 percent of market value, so the effective rate on market price is closer to 1 percent annually.

Are there any property purchase taxes for foreigners specifically?

No. Japanese tax law treats foreign and domestic buyers identically on property acquisition. The only foreigner-specific obligation is the FEFTA Form 22 filing.

Can I buy property in Japan remotely without flying there?

Yes, but most buyers fly in for the final signing. You can grant a power of attorney (ininjo) notarized at a Japanese consulate, and the judicial scrivener (shiho shoshi) handling your closing can sign at the Legal Affairs Bureau on your behalf. The bigger remote hurdle is opening a Japanese bank account, which usually requires in-person verification and an address in Japan.

Do I need a Japanese bank account to buy property?

Not strictly, but the closing payment is almost always made by certified Japanese bank check or domestic wire (furikomi). Many foreign buyers use an escrow arrangement through their judicial scrivener or buy through a Japan-based GK or KK company they own.

What is a judicial scrivener (shiho shoshi) and do I need one?

A shiho shoshi is a licensed real estate registration specialist who handles title transfer at the Legal Affairs Bureau. They are functionally required for any property closing in Japan and represent both parties at signing. Fees typically run 150,000 to 300,000 yen depending on transaction complexity.

What is the minpaku law and how does it affect short-term rentals?

The Private Lodging Business Act (Jutaku Shukuhaku Jigyo-ho), known as the minpaku law, took effect on June 15, 2018 and caps short-term residential rentals at 180 nights per calendar year. Operators must register with the prefectural government and post a notification number on listings. Many wards in Tokyo, Kyoto, and Osaka have layered local restrictions on top, limiting minpaku to weekends or banning it entirely in residential zones.

Can I run an Airbnb from a Japanese apartment I own?

Only if the property is zoned correctly, you register under the minpaku law or a hotel business license (Ryokan-gyo), and the building's management association (kanri kumiai) does not prohibit short-term rentals. Most condominium bylaws in Tokyo now ban minpaku outright, so always check the kanri kiyaku (management rules) before buying for short-term rental purposes.

What is the difference between a manshon and an apato?

A manshon is a steel-reinforced concrete (RC or SRC) apartment building, typically newer and built to higher seismic standards. An apato is a lighter wood or steel-frame low-rise. The distinction matters because earthquake insurance premiums, financing eligibility, and resale liquidity are all significantly better for manshon.

What is the 1981 seismic code and why does it matter?

Japan revised its building code (Shin-Taishin Kijun) on June 1, 1981, requiring buildings to withstand a magnitude 6-plus earthquake without collapse. Buildings completed before that date carry significantly higher seismic risk and are excluded from many mortgage products, several insurance categories, and the home loan tax deduction (jutaku loan kojo).

Can foreigners get a mortgage in Japan?

Permanent residents and spouses of Japanese citizens can access standard mortgage products from megabanks at rates near 0.5 to 1.5 percent. Non-resident foreigners generally cannot get a yen-denominated mortgage from a Japanese bank for a Japanese property. The exceptions are SBI Shinsei Bank's non-resident program and Tokyo Star Bank, both of which require substantial deposits and minimum loan sizes around 100 million yen.

How long does a property purchase take in Japan?

A typical purchase from offer acceptance to title transfer takes four to eight weeks. The contract is usually signed within two weeks of offer acceptance with a 10 percent deposit (tetsukekin), and closing follows when financing and FEFTA filings are complete.

What is an akiya and should I buy one?

An akiya is a vacant or abandoned house, often listed in municipal akiya banks (akiya banku) at very low prices. They are usually pre-1981 wooden structures in depopulating rural prefectures, frequently requiring full renovation that exceeds the purchase price. The transparency platform Bektu tracks akiya bank listings against renovation cost benchmarks because the headline prices in viral social media posts almost always omit the rebuild number.

What is capital gains tax on Japanese property?

Short-term capital gains (held five years or less) are taxed at 30 percent national plus 9 percent local, for an effective rate of 39 percent. Long-term gains (held over five years) are taxed at 15 percent national plus 5 percent local, for an effective rate of 20 percent. The holding period is calculated from January 1 of the year of acquisition.

What withholding tax applies when a non-resident sells?

When a non-resident sells Japanese real estate, the buyer must withhold 10.21 percent of the gross sale price and remit it to the National Tax Agency unless the property sells for under 100 million yen and the buyer plans to use it as a primary residence. This is a prepayment against the seller's capital gains tax, reconciled in the seller's Japanese tax return.

Will I have to file a Japanese tax return as a foreign owner?

Yes if you earn rental income, sell the property, or trigger the FEFTA filing requirement. Non-resident owners with rental income must appoint a Japanese tax representative (nozei kanrinin) under Article 117 of the Income Tax Act before filing.

What is the inheritance tax exposure for foreign property owners?

Japanese inheritance tax (sozokuzei) applies to all property located in Japan regardless of the owner's or heir's nationality, at progressive rates from 10 to 55 percent. The basic exemption is 30 million yen plus 6 million yen per statutory heir. Foreign owners with significant Japanese real estate often structure ownership through a Japanese kabushiki kaisha (KK) or godo kaisha (GK) to manage this exposure.

Are there foreign ownership tracking rules I should know about?

The Land Use Restriction Act (Juyo Tochi Riyo Kisei Ho), effective September 2022, requires notification to the Cabinet Office for acquisitions of land within designated security-sensitive zones near military bases, nuclear facilities, and remote islands. The list of designated areas is published by the Cabinet Office and continues to expand.

What is jiage and why does it matter for resale?

Jiage refers to the practice of consolidating multiple small lots into a single development parcel. It matters for resale because an isolated narrow lot in central Tokyo can attract a premium if a developer is jiage-ing the surrounding parcels, and almost no value if no consolidation is underway.

Can foreigners buy agricultural land or forest land in Japan?

Agricultural land (nochi) acquisition requires approval from the local Agricultural Committee (Nogyo Iinkai) under the Agricultural Land Act, which in practice requires the buyer to be a registered farmer. Forest land of one hectare or more requires prior notification under the 2017 Forest Act amendment. Foreigners can technically acquire both with the right approvals, but the regulatory friction is significant.

What is the property registration fee and who pays it?

The registration and license tax (toroku menkyo zei) is 2 percent of the assessed value of land and 2 percent on buildings, reduced to 0.3 percent on residential buildings meeting owner-occupier criteria under Article 73 of the Local Tax Act. The buyer pays this at registration.

Do I need an interpreter at closing?

Most closings in Japan are conducted in Japanese with contract documents in Japanese only. Many shiho shoshi will not proceed without confirming the foreign buyer understands the contract, either through a bilingual real estate agent, an independent interpreter, or a written translation prepared in advance.

Real estate transparency for foreign buyers is what Bektu does. The platform tracks verified developers, ownership structures, and country-specific rules across markets including Japan, so the numbers and citations above reflect current 2026 filings rather than recycled blog posts.