Can foreigners buy property in Japan?

Foreigners are allowed to obtain Japanese real estate

Nowadays, there are no legal limitations or tax-related differences when foreigners obtain Japanese real estate. You may purchase real estate regardless of what your nationality is, where you live, and whether you have residence status or not. However, there are differences in the documents needed by residents and non-residents (mainly documents for confirming the person's identity) and in the requirements for an account at a Japanese bank with regards to receiving purchase funds and paying taxes on real estate after purchase.

A foreigner can acquire proprietary rights to Japanese real estate just like a Japanese national. Proprietary rights to land in Japan by a foreigner is also permitted. There is no time limit to proprietary rights, and it can be bought, sold and inherited freely among foreigners. The tax paid by a foreigner at the time of purchase is also the same as that paid by a Japanese.

How are residents and non-residents defined ?

A resident is an individual whose residence is in Japan or who has been in Japan for at least one year continuously up to the present. If a person resides in two or more countries, that person's "assumed residence" is based on such details as his/her work situation and contract.

A non-resident is an individual who resides outside of Japan.

What are the benefits of buying real estate in Japan?

• The political environment in Japan is very stable; chances of drastic changes in property rights are low.          
• Japan is one of the safest and most hygienic places to live.           
• Compared to many developed countries, the real estate market is fairly stable in Japan.         
• Please take Affordable rate of Japanese Yen.
  Currently Japanese currency is still depreciating. It is easier to purchase Japan's property in a cheap price for overseas investors.
  Therefore, this is a good opportunity to invest in Japan's real estate.
  Besides, Japan is the largest creditor country, and has the 2nd large amount of foreign currency reserves in the world. This will help Japan avoid a currency fall during a financial crisis.
  Investors can invest in real estate in Japan of which politics and economy are stable.         
• Property ownership, for both buildings and lands, in Japan is freehold.     

The Process of a Real Estate Purchase in Japan

We here provide a detailed explanation of the procedure and flow of buying Japanese real estate and acquiring proprietary rights to it. It might be possible to gather property information from outside Japan via the Internet, but it will be necessary to visit Japan at least two times in order to inspect prospective property, sign contracts, and conduct the property handover.

STEP 1

We are prepared to know the buyer's specific desired purchase conditions and provide information of the property which we believe is the best and to meet the needs of each of the buyers. When purchasing a property, the buyer must pay the fee charges such as agent commission for agency transaction and registration fee as well as the purchase price. Additionally, you must prepare for the expenses of moving and others. The sum of such expenses is estimated to be 5-10% of the purchase price. We recommend making a financial plan of the payment amount summarizing the purchase price and all the charges.

STEP 2

When the buyer has fixed aim of the location, type and budget of real property, we will get started on finding a property. Once the customer finds properties that fulfill their requirements, we show the property and have them check it out for themselves.

STEP 3

Once you have decided on the property you would like to purchase, you can fill out the form, and our sales staff will coordinate the conditions of the sale between you and the property seller.

STEP 4

• Explanation of Important Matters                
• Conclusion of Agreement               
• Payment of contract-related fees              

Once the parties have agreed to the transaction conditions, dedicated personnel from the real estate agent will explain all important details related to the contract, including property rights, legal limitations, and all transaction-related agreements. The buyer and seller then sign a sales contract containing the agreed-upon details. When that happens, the seller must be paid a deposit (5–10%), the agent must be paid a brokerage fee (half the amount), and a revenue stamp fee must be paid.

Fees required when signing contracts

For more details about fees, see "When signing a contract".

Documents required when signing contracts

• Seal/ signature (Please ensure to bring both parties‘ seal in case of joint ownership)              
• Passport               
• Affidavit       

STEP 5

• Application for registration of property rights transfer              
• Payment of remaining money and other costs            
• Key delivery         

You must get a judicial scrivener to carry out the process of registering the property rights transfer for the real estate being purchased. This requires the payment of the balance as well as other fees (see below for details). Once that has been done, you are given the keys and the property is yours.

Fees required during settlement

For more details about fees, see "When settling the remaining payment".

Documents required during settlement

• Seal / signature (Please ensure to bring both parties‘ seal in case of joint ownership)              
• Seal registration certificate / signature registration certificate            
• Passport            
• Residential registration certificate          
• Affidavit    

A number of fees are incurred when purchasing real estate in Japan, including taxes paid on the basis of Japan's particular legal and regulatory requirements as well as processing fees paid to the real estate agent. Other fees, such as management fees and repair fees, are also incurred after purchase. Here, we will provide information related to receiving funds as well as fees incurred before and after real estate purchases and items to be aware of when leasing property you own.

Essentially, it is difficult for non-residents to obtain loans from Japanese banks, and if you cannot take out a loan, you must either make the purchase in cash or arrange for funds through a loan from your home country. We recommend that you have a plan for obtaining funds before you look for property.

It is sometimes possible for foreigners to obtain loans from Japanese banks if they are going to be living in Japan. Generally speaking, having a permanent residence visa is required, but some banks may let you borrow money without having one. You should inquire at specific banks for details.

Generally speaking, you cannot obtain a loan from a Japanese bank if you are a non-resident of Japan.

We here provide a detailed explanation of the procedure and flow of buying Japanese real estate and acquiring proprietary rights to it. It might be possible to gather property information from outside Japan via the Internet, but it will be necessary to visit Japan at least two times in order to inspect prospective property, sign contracts, and conduct the property handover.