Can British citizens buy property in Japan? Yes. Here, unlike Spain, the passport is not a tax switch.
// Short answer
Yes. A British buyer can own Japanese land and buildings freehold, on the same terms as a Japanese buyer. Japan sorts property buyers by residence for reporting, never by nationality, so leaving the EU changed nothing about buying here. The duties that do apply are a 20-day report and an annual return.
Rules and rates as of September 2026. Japan's policy on foreign purchases is under review, so check the dated items again before you sign. Nothing here is tax advice for your own country. Every figure links to its source.
On this page
- Can British citizens buy property in Japan?
- Did leaving the EU change anything for a British buyer in Japan?
- Does HMRC tax rent from a Japanese property?
- What must a British buyer file in Japan, and by when?
- What does Japan take from the rent and from the sale?
- What does a British buyer usually get wrong about Japan?
Can British citizens buy property in Japan?
Yes. As of September 2026 no Japanese law restricts foreign individuals or companies from buying land or buildings, and a British buyer takes the same freehold ownership as a Japanese one. There is no permit, no quota and no nationality test. What applies instead is a set of reporting duties.
One caveat on dates. A government expert panel postponed its recommendations on restricting foreign real estate purchases to autumn 2026, 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: foreign property ownership in Japan, explained.
Sources
Did leaving the EU change anything for a British buyer in Japan?
No. Japan's rules turn on whether you are a resident of Japan, not on which bloc your passport belongs to. For FEFTA purposes a foreign national is presumed a non-resident unless they work at an office in Japan or have been in Japan six months or more. A British buyer and a German buyer are in the identical position.
That is worth saying plainly, because it is not true everywhere. In Spain and Portugal the EU line is a tax switch: non-EU residents pay a higher rate on rental income and lose reliefs that EU residents keep. In Japan there is no such line to be on the wrong side of.
What does vary is what your own tax system does about the income afterwards, and that is the next section.
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Does HMRC tax rent from a Japanese property?
HMRC's position is that if you are UK resident you will normally pay UK tax on your foreign income, and rental income from overseas property is listed as foreign income. If you are not UK resident, HMRC says you will not have to pay UK tax on foreign income. Residence is the whole question.
A double taxation convention between the UK and Japan exists and has been modified by the Multilateral Instrument; GOV.UK publishes the synthesised text. How it applies to Japanese tax you have already paid is a question for an adviser who handles both sides. This page states the obligation exists. It does not compute it for you.
Do not take this from the agent selling you the property. The tax position is not part of what they are selling.
What must a British buyer file in Japan, and by when?
FEFTA Form No. 22, with the Minister of Finance through the Bank of Japan, within 20 days of acquisition, in Japanese. There is no minimum amount or area. Since 1 April 2026 it covers buying a home to live in and buying from another non-resident, which used to be exempt.
- Who files: the buyer, or an agent living in Japan.
- Penalty: up to six months' imprisonment or a fine of up to JPY 500,000 for not filing or filing falsely. A late report should still be filed, with a short explanation.
- On the register: since 1 April 2024 an owner with no address in Japan must name a domestic contact person, with their consent and seal certificate.
- From 5 October 2026: every new registered owner declares a nationality, Japanese owners included. It is not printed on the public register.
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What does Japan take from the rent and from the sale?
From the rent: 20.42% withheld from the gross, unless an individual tenant rents the home to live in, then progressive national rates of 5% to 45% plus a 2.1% surtax on the net, settled in a return filed 16 February to 15 March. From the sale: 15% or 30% on the gain plus the surtax.
The 15% rate applies where the property was held more than five years as of 1 January of the year of sale. Otherwise it is 30%. A non-resident also has 10.21% of the gross sale price withheld by the buyer, unless the price is JPY 100M or less and the buyer is an individual buying the home to live in.
A non-resident must appoint a tax representative in Japan for the return. Annual taxes are fixed asset tax at a standard 1.4% plus city planning tax of up to 0.3%, on the assessed value. Line by line: Japan property tax for foreigners.
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What does a British buyer usually get wrong about Japan?
Three things, in the same order every time. Budgeting the taxes off the purchase price. Treating the 20-day report as optional because nobody chases it. And arranging the Japanese side through whoever is selling the property, which is the one part that should never be outsourced to the counterparty.
- Assessed value, not price. Acquisition tax and registration tax are charged on the government's assessed value. You cannot work them out from the price alone, so ask the broker or scrivener for the assessed values before you sign.
- The reserve fund is real money. A condominium carries a monthly management fee and a repair reserve on top of the taxes.
- Plan the exit on the way in. The five-year line is tested on 1 January, so a sale six months early can cost you the difference between 15% and 30%.
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// Buying in Japan?
Every listing in your budget, ranked on net yield, appreciation and resale. Any market with public listing data; book a free call first so I can confirm your city has the data.
See the $499 report, page by pageFrequently Asked Questions
Can British citizens still buy property in Japan after Brexit?
Do I need permission from a Japanese authority to buy?
Is Japanese rental income reportable to HMRC?
What is a tax representative in Japan and do I need one?
How much is stamp tax on a Japanese contract?
Is there a notary in a Japanese purchase?
Header photo: Panoramio user 1572443, CC BY-SA 3.0, via Wikimedia Commons. All credits: image credits.