Everything You Need to Know to Buy a House in Japan as a Foreigner 2025

Are you considering whether to buy a house in Japan as a foreigner? The good news is that foreigners can buy property in Japan without significant restrictions. Whether you're looking to live in Japan permanently, seeking a vacation home, or exploring investment opportunities in the Japanese real estate market, this comprehensive guide will walk you through everything you need to know about buying a home in Japan.

Can Foreigners Buy Property in Japan?

The straightforward answer is yes – foreigners can purchase property in Japan with virtually the same rights as Japanese citizens. Unlike many Asian countries, Japan has no restrictions on property ownership for non-citizens. As a foreigner living in or outside Japan, you can buy real estate, including both land and buildings, and hold them indefinitely. This makes Japan an attractive destination for international investors and expatriates looking to buy property.

Whether you're interested in a modern apartment in bustling urban centers like Tokyo and Osaka, a traditional home in Kyoto, or a vacation property in a scenic rural area, the opportunities for foreigners to buy property are extensive. Keep in mind, however, that owning property in Japan does not automatically grant you residency rights. Buying a home and obtaining a visa are separate processes.

Why Buy a House in Japan?

Before diving into the buying process, let's explore why many foreigners are choosing to purchase property in Japan:

• Stable Investment: Japan's real estate market offers steady appreciation, particularly in major cities.
• No Restrictions for Foreigners: Foreign buyers enjoy the same property ownership rights as Japanese nationals.
• Relatively Affordable Options: Outside premium locations, property can be surprisingly affordable.
• Strong Rental Market: A stable economy and housing shortage in urban areas yield steady rental income.
• Quality Construction: Japanese properties are known for their innovative design and earthquake-resistant features.

The Step-by-Step Guide to Buying Property in Japan as a Foreigner

Step 1: Preparation and Research

Before you begin actively searching for property, take time to:

• Determine your budget: Consider the total purchase price, including additional costs like registration fees, agent commissions, and property tax.
• Explore financing options: Research home loan options; note that loans for foreigners can be challenging to secure.
• Decide on location: Choose between bustling urban centers or quieter rural areas, based on your lifestyle and budget.
• Research the market: Familiarize yourself with current prices and trends in your desired area.

Step 2: Finding the Right Property

Once your initial research is complete, start looking for specific properties:

• Engage a local real estate agent: Look for agents who specialize in helping foreigners buy property.
• Browse online listings: Utilize platforms that cater to foreign buyers with English interfaces.
• Property viewings: Schedule viewings to thoroughly inspect each property.
• Consider property condition: Weigh the pros and cons of older properties that may require renovation versus newer, modern options.

Step 3: Making an Offer

After finding a property you wish to purchase:

• Submit an offer: Your real estate agent will help prepare and submit your offer.
• Negotiate terms: While price negotiations are less common in Japan, there may be room for discussing price and conditions.
• Pay a reservation fee: Typically ranging from ¥100,000 to ¥500,000, this fee secures the property while the contract is prepared.

Step 4: Contract Signing (Keiyaku)

This critical step formalizes the transaction:

• Review the contract: Ensure you get a translation if you don't speak Japanese.
• Explanatory meeting: An explanatory meeting (setsumei) will clarify all contract terms.
• Pay the deposit: An earnest money deposit, typically around 10% of the purchase price, is required.
• Contract signing: Both parties sign the agreement, formally committing to the transaction.
  

Step 5: Financing and Payment

If you’re not paying cash:

• Secure financing: Loans for foreigners can be challenging; prepare substantial documentation.
• Japanese mortgage options: Explore various banks that offer home loans in Japan.
• Down payment: Expect to provide at least 20% of the purchase price, potentially more for non-residents.

Step 6: Settlement and Registration

Finalize the property purchase:

• Settlement meeting: Conducted at a bank or legal office, where the remaining payment is made and ownership is transferred.
• Property registration: A judicial scrivener typically registers the property with the local government.
• Pay registration taxes: Registration tax is roughly 2% of the property value.
• Receive the property: After all paperwork is completed, the keys to your new property are handed over.

For non-residents, additional steps such as signing contracts online or appointing a legal representative may be involved. The process is meticulous to ensure a smooth transfer of ownership.

Additional Considerations and Costs

When planning your purchase, also consider:

• Additional Costs: Registration tax, stamp duty, agent commissions, legal fees, property acquisition tax, and annual property taxes.
• Property Types: Apartments (Mansions), detached houses, land, vacant houses (Akiya), and investment properties.
• Regional Differences: Tokyo offers high prices and strong rental markets, whereas other cities and rural areas may be more affordable.
• Special Considerations for Foreigners: Language barriers, visa status, financing challenges, tax implications, and cultural differences.

Additional Cost Component	Estimated Cost / Percentage	Notes
Registration Tax	~2% of property value	Varies by property value and local regulations
Stamp Duty	0.1% to 0.4% of purchase price	Depends on the property's purchase price and specific rules
Real Estate Agent Commission	~3% of purchase price + ¥60,000 (+ tax)	Typically subject to consumption tax (around 10%)
Legal Fees	¥50,000 to ¥200,000	Covers services by lawyers or judicial scriveners
Property Acquisition Tax	~3% to 4% of property value	Assessed after purchase; may vary by property type
Annual Property Tax	~1.4% (Fixed Asset Tax) + ~0.3% (City Planning Tax)	Based on the assessed value of the property

Conclusion: Is Buying Property in Japan Right for You?

Buying a home in Japan as a foreigner is not only possible but can also be a rewarding experience—whether for personal use, as a vacation home, or as an investment. With proper preparation, research, and the help of experienced professionals, your journey to becoming a property owner in Japan can be both successful and fulfilling.

If you're ready to start your home buying journey in Japan, contact our team of experienced real estate agents today. We specialize in helping foreigners navigate the Japanese property market—from Tokyo homes to countryside retreats.