Buying property in Japan as a foreigner: yes, freehold. The 2026 paperwork is what changed.

Can foreigners buy property in Japan?

Yes. As of September 2026 no law restricts foreign individuals or companies from buying land or buildings in Japan, and foreigners buy on the same terms as Japanese nationals, freehold land included. The rules that do exist are reporting duties and advance notice near sensitive sites. None of them is based on nationality.

The honest caveat is timing. In June 2026 the government postponed an expert panel's proposals on restricting foreign real estate purchases from mid-summer to autumn 2026. Ideas discussed included a licensing or veto system for sensitive properties, and a bill to tighten the law on land near important facilities was being prepared for the autumn Diet session. No nationality-based restriction was in force when this page was written.

What a foreign owner holds, and every rule that touches it: foreign property ownership in Japan, explained.

What does a non-resident have to report after buying in Japan?

A non-resident who buys property in Japan must file a report (Form No. 22) with the Minister of Finance through the Bank of Japan within 20 days of acquisition, in Japanese. Since 1 April 2026 this covers almost every purchase, including your own home, a holiday home, and a purchase from another non-resident.

• There is no minimum amount or area. A 0-yen acquisition and an inheritance are both reportable.
• The buyer can file, or an agent who lives in Japan.
• A foreign national counts as a non-resident unless they work at an office in Japan or have been in Japan for six months or more.
• Not filing, or filing a false report, can mean up to six months' imprisonment or a fine of up to JPY 500,000. A late report should still be filed, with a short explanation.

How does buying property in Japan work, step by step?

Offer, then a statutory briefing called the Explanation of Important Matters from a licensed broker, then the sale contract with a deposit, then settlement: the balance is paid and ownership registration is filed the same day. A judicial scrivener handles registration. There is no notary step. Non-residents then have 20 days to file the FEFTA report.

1. Offer. An application to purchase.
2. Explanation of Important Matters. A licensed real estate transaction specialist must give it before the contract. It is a statutory duty under Article 35 of the Building Lots and Buildings Transaction Business Act.
3. Contract and deposit.
4. Settlement and registration. The balance is paid and the transfer is filed at the Legal Affairs Bureau the same day, usually by a judicial scrivener (shihō shoshi). Overseas buyers commonly use a power of attorney.
5. FEFTA report within 20 days, for non-residents.

An owner with no address in Japan must also name a contact person in Japan on the registration. How the register works: Japan's property registration (tōki), explained.

What does it cost to buy property in Japan?

The main one-off costs are the prefectural real estate acquisition tax, the registration and license tax, stamp tax on the contract, the broker's commission and the judicial scrivener's fee. The two big taxes are charged on the government's assessed value, not on the price you pay, and several reduced rates expire in March 2027.

• Acquisition tax: 3% on land and residential buildings acquired by 31 March 2027 (standard 4%). Residential land is taxed on half its assessed value until the same date.
• Registration and license tax: 1.5% on land until 31 March 2029, and 2% on the building (0.3% only for a qualifying residence).
• Stamp tax: JPY 10,000 on a contract of JPY 10M to 50M, JPY 30,000 on JPY 50M to 100M.
• Broker commission: capped by law; above JPY 8M the cap works out to 3% of the price plus JPY 60,000 plus consumption tax.

The full table: Japan property buying costs.

What taxes does a foreign owner pay in Japan each year?

Fixed asset tax at a standard 1.4%, plus city planning tax of up to 0.3% in city planning zones, both on the assessed value and both billed to whoever owns the property on 1 January. Residential land gets relief. If you let the property, rent is taxed in Japan, usually with 20.42% withheld at source.

Rent paid to a non-resident is Japan-source income. The payer withholds 20.42% of the gross rent, except where an individual tenant rents the home to live in. Net rental income is taxed at progressive national rates of 5% to 45%, plus a 2.1% reconstruction surtax. You file a return between 16 February and 15 March of the following year, the withholding is credited, and you must appoint a tax representative in Japan.

The full breakdown: Japan property tax for foreigners.

Can a foreigner get a mortgage in Japan?

Plan on cash. Japanese bank mortgages are, in practice, for people who live in Japan. The foreigner-friendly lenders reviewed in a published guide all required the applicant to live in Japan. That guide dates from 2018, and no current non-resident lending terms could be confirmed for this page in September 2026.

If a lender does offer you terms, get them in writing before you sign a contract. A deposit paid on a contract you cannot complete is the expensive way to find out.

What happens when a foreigner sells property in Japan?

The gain is taxed separately from other income: 15% national income tax if you held the property more than five years as of 1 January of the year of sale, 30% if not, each plus the 2.1% surtax. When the seller is a non-resident, the buyer normally withholds 10.21% of the gross price and pays it to the tax office.

The withholding does not apply when the price is JPY 100M or less and the buyer is an individual buying the home to live in. The seller files a return to settle the real tax. There is no approval needed to take the proceeds out of Japan. Step by step: selling property in Japan as a foreigner.

Header photo: David Kernan, CC BY 4.0, via Wikimedia Commons. All credits: image credits.