A Simple Guide to Buying a House in Japan (For Foreigners)
Buying a house is one of the biggest financial decisions you’ll ever make.
If you’ve spent time in Japan and are thinking of staying long-term, you might be asking:
- Can foreigners buy property in Japan?
- Is it a good investment?
- How does the process actually work?
This guide breaks it all down in a simple, practical way.
Can Foreigners Buy Property in Japan?
Unlike many countries, Japan does not restrict foreign ownership of land or property.
You don’t need:
- Japanese citizenship
- Residency status
- A specific visa
However, financing is where things get difficult.
Can You Get a Mortgage in Japan?
Technically yes — but realistically:
Very difficult without:
- Permanent residency
- A spouse visa
- Stable income in Japan
Most Japanese banks require:
- Long-term residency
- Proof of income in Japan
- Strong credit history
Without these, expect to buy in cash.
Is Buying Property in Japan a Good Investment?
Short answer:
Usually no (for capital appreciation).
Unlike countries such as the UK:
- Buildings in Japan depreciate over time
- Land holds value — buildings often do not
Exceptions:
- Central Tokyo / Osaka property
- Rental-focused investments
If investing, many focus on:
- Building rental properties
- Buying land
How can I buy a house in Japan?
Step 1: Decide Your Approach
Before starting, decide:
- Cash purchase or mortgage?
- New build, pre-owned, or land + build?
In Japan, buying land and building is very common.
Step 2: Get Japanese Language Support
This is essential.
- Most documents are in Japanese
- Legal explanations are detailed and technical
You’ll likely need:
- A translator
- Or a Japanese-speaking partner/agent
Step 3: Searching for Property
Common options:
- Real estate websites (often in Japanese)
- Local agents
- Open house events
Popular developers include:
- Sekisui House
- Toyota Woodyou Home
Open houses are very common and worth attending.
Step 4: Making an Offer
For new builds:
- Submit an application (購入申込書 kounyuu moshikomisho)
- Some properties may use a lottery system
For pre-owned homes:
- Submit a purchase intention letter (買付証明書 kaitsuke shoumeisho)
If accepted:
Expect to pay a deposit (~10%)
For more information on taxes in Japan click here.
Step 5: Mortgage Application (If Applicable)
You’ll need:
- ID (passport, residence card)
- Proof of income
- Tax documents (e.g. 源泉徴収票 gensen choushuuhyou)
- Health declaration (for loan insurance)
All documents may need Japanese translation.
Step 6: Contract Review (Very Important)
You’ll receive a detailed contract covering:
- Property condition
- Legal obligations
- Payment structure
By law, sellers must provide:
- Written explanation
- Oral explanation of key details
⚠️ If you don’t speak Japanese:
Get professional help here — this is critical.
Step 7: Signing the Contract
- Contracts are signed using a hanko (seal)
- Deposit is paid
- Loan process continues (if applicable)
Taxes & Additional Costs
Here’s where things add up.
Key costs include:
- Real estate acquisition tax: ~3–4%
- Registration tax: ~0.4%–2%
- Stamp duty: based on contract value (up to ~¥600,000)
- Agent/broker fee: typically ~3% + ¥60,000 (+ tax)
NOTE:
- There is no flat 7% tax on property purchase
- Instead, multiple smaller taxes apply
Important:
- But applies to new buildings
- No consumption tax on land
Step 8: Final Checks & Completion
Before completion:
- Inspect the property carefully
- Raise any final issues
After that:
- Pay remaining balance
- Register ownership
- Loan is finalised
After Purchase
Once you move in:
File taxes (確定申告 kakutei shinkoku)
This may allow:
- Mortgage tax deductions
Final Thoughts
Buying property in Japan is more accessible than many think — especially for foreigners.
But:
- Financing is the biggest hurdle
- Language can slow things down
- Property isn’t always a strong investment
If you’re buying for lifestyle rather than profit, it can be a great decision.
For more on life in Japan and other useful content check out:
