Buying a House in Japan as a Foreigner
Introduction
Japan has become a trending destination not only for tourism but also for real estate investment. With the yen remaining weak and property prices in rural areas surprisingly affordable, more and more foreigners are looking into buying a house in Japan. Some aim to use it as a second home or a countryside retreat, others are seeking Airbnb rental income, and many simply want to establish long-term roots.
Whether you’re a digital nomad, a retiree, or an expat with a long-term vision, buying property in Japan is possible—and more accessible than you might think.
Why Buy a House in Japan?
- Affordable countryside homes (especially akiya or vacant houses) can be bought for as little as ¥1 million (~$7,000 USD).
- Urban property in smaller cities like Fukuoka, Osaka, or Nagoya is significantly cheaper than in Tokyo or Kyoto.
- Cultural and lifestyle appeal: Safety, cleanliness, public infrastructure, and healthcare attract long-term settlers.
- Investment and rental opportunities: In tourist-friendly areas, properties can be used for monthly rentals or Airbnb (where permitted).
- Rural revitalization support: Some towns and prefectures offer subsidies, grants, or tax cuts for foreigners willing to restore and live in older properties.
Can Foreigners Buy Property in Japan?
Good News
Yes—foreigners can legally purchase property in Japan. There are no visa, nationality, or residency requirements. You can buy land, houses, and apartments under the same rules as Japanese citizens.
That said, non-residents must have a local representative or service to handle tasks such as paying annual property taxes and utility bills. Several companies offer this service for a fee, making it straightforward even if you live abroad.
Step-by-Step Guide to Buying a House in Japan
Find the Right Real Estate Agent
Buying property in Japan involves specific processes and legal documents that are often in Japanese. It’s critical to find an agent who:- Understands both the local market and legal requirements
- Speaks fluent Japanese (or English, if you're not comfortable with Japanese)
- Can offer objective advice about property value, renovation needs, and resale potential
Avoid hiring a Tokyo-based agent if you're buying in Fukuoka—Japan's real estate markets are highly localized.
Note: Agent fees are legally standardized at 3% of the purchase price + ¥60,000 + 10% tax.Akiya: Buying Abandoned Houses
If your plan is to buy an 空き家 (akiya), start with an Akiya Bank (空き家バンク)—a government-supported listing platform for abandoned homes. Many rural homes are incredibly cheap, and some municipalities even offer:- Renovation grants
- Tax breaks
- Zero-interest loans
- Subsidies for young couples or families
However, many akiya are not move-in ready and often require major renovations. Some lack basic utilities or have structural issues. Working with a local agent or architect is essential before committing.
Property Viewings
When visiting properties, keep in mind that Japan’s housing standards differ from Western countries:- Smaller layouts, lower ceilings, and compact bathrooms
- Older homes may lack insulation or central heating
- Proximity to the station is highly valued; 15 minutes on foot can be considered far
Always bring your agent to help assess:
- Legal compliance (earthquake resistance, zoning)
- Maintenance or renovation needs
- Neighborhood reputation and long-term value
- Mortgage or Cash Purchase
If you’re buying with cash, you can skip this step. For financing, note that most banks require PR status to qualify for a mortgage. Some banks may accept long-term visa holders on a case-by-case basis. Requirements typically include tax returns, income verification, and Japanese bank statements.
Pro Tip: Start with a preliminary loan approval (事前審査) to strengthen your position when negotiating. Expressing Your Purchase Intent (買付証明書)
Once you’ve found your ideal property, submit a Letter of Intent to Purchase. This document is not legally binding but shows serious intent and often secures first rights to buy. Attach a copy of your passport or residence card.In Japan’s first-come, first-served market, acting quickly can make all the difference.
Negotiation and Signing the Contract
Once both parties agree, your agent will:- Negotiate final price and terms
- Coordinate with a certified judicial scrivener (司法書士) to prepare legal documents
- Review the 重要事項説明書 outlining zoning, restrictions, and property rights
You’ll pay a deposit (手付金) of 5–10% of the price. Unlike many countries, Japan does not use escrow services; the real estate agency holds the deposit in trust.
Final Contract Signing & Title Transfer
On the handover day, all parties gather (buyer, seller, agent, bank, scrivener) to:- Sign the purchase agreement
- Confirm final payments—if using a loan, the bank transfers funds
- File the title transfer with the scrivener
- Receive keys and all property documents
Congratulations—you are now a property owner in Japan!
Costs & Taxes Involved
| Item | Description | Estimated Cost |
|---|---|---|
| Agent Fee | 3% of price + ¥60,000 + 10% tax | Varies |
| Judicial Scrivener | Title registration & paperwork | ¥100,000–¥150,000 |
| Stamp Duty | Contract validation | ¥10,000–¥480,000 |
| Registration Tax | Ownership registration | ~2% of assessed value |
| Acquisition Tax | 1.5% (land) & 3% (building) | Varies |
| City/Prefecture Taxes | Fixed asset taxes | ~1.7% combined |
| Insurance & Maintenance | Home insurance, inspections | Varies |
| Mortgage Fees (if applicable) | Bank handling fees | 1–2% of loan amount |
Required Documents
Checklist
For residents in Japan: residence card, passport, personal seal (inkan), certificate of residence; for non-residents: passport, notarized affidavit of address, designated proxy for taxes/utilities; for mortgage applicants: tax returns (2–3 years), proof of income/employment, Japanese bank account.
After the Purchase: Renovation, Airbnb & More
If you purchased an older home or akiya, renovations may include:
- Earthquake-resistance upgrades
- Structural updates for homes built before 1981 standards
- Interior modifications requiring local permits
Considering Airbnb? You must:
- Register under the 民泊 law
- Meet fire safety regulations and display required signage
- Comply with local zoning restrictions
Conclusion: Is Buying in Japan Worth It?
Buying property in Japan as a foreigner is not only possible but can be highly rewarding. With affordable options, clear legal frameworks, and strong property rights, Japan offers diverse opportunities—from rural retreats to urban investments.
Work with qualified professionals, conduct thorough due diligence, and understand local regulations to make your purchase a success. Your dream of owning a home in Japan is within reach!
