Acquisition Process
Your typical journey from property search to key handover. Steps marked KEY are milestones we'll guide you through directly.
Essential Considerations
Key points to keep in mind before and during your property search.
Before You Search
Choosing the Right Property
Financial & Long-term Factors
FAQ
Have a question not covered here? Get in touch — we're happy to help.
Property Rights
Yes, absolutely. Japan allows both individuals and corporations of any nationality to acquire land and building ownership rights.
- No residency requirement — you can purchase even while on a tourist visa
- Property rights and registration procedures are identical to those for Japanese nationals
- No restrictions or additional fees for foreign ownership
There are two main types of property rights in Japan:
| Right Type | Description |
|---|---|
| Freehold (Shoyuken) | Permanent ownership of both land and building. You can freely sell or inherit the property. This is the most common form of ownership. |
| Leasehold (Shakuchiken) | Ownership of the building while leasing the land. Typical lease periods are 30–50 years with renewal required. Ground rent (chidai) must be paid. |
Even for condominiums, some properties have freehold building rights but leasehold land rights.
Not necessarily. Leasehold properties are typically 20–30% cheaper than freehold properties and can be a rational choice if you prioritize location in central urban areas or near stations. However, you should consider risks such as future renewal fees and potential ground rent increases.
Purchase Costs
The maximum commission is legally regulated in Japan. For properties over 8 million yen:
Example: For a 50 million yen property → approximately 1.716 million yen (tax included) Commission is success-based and only charged if the transaction is completed.
The main costs are as follows:
| Cost Item | Details |
|---|---|
| Registration Fees | Registration tax (1.5% for land, 2.0% for buildings) + judicial scrivener fees (typically ¥100,000–¥200,000) |
| Stamp Tax | Affixed to the sales contract. ¥30,000 for properties over ¥50M to ¥100M |
| Property Tax Proration | Prorated with seller based on the delivery date |
| Management Fees & Reserve Fund | For condominiums, prorated from the delivery date |
Taxes
Annual local taxes apply (including for foreigners and non-residents):
- Property Tax (Kotei Shisanzei): Assessment value × approx. 1.4%
- City Planning Tax (Toshi Keikaku Zei): Up to 0.3% in urbanization promotion areas only
Yes, Capital Gains Tax applies. The rate varies based on ownership period:
| Ownership Period | Tax Rate (Residents) | Non-Residents |
|---|---|---|
| Over 5 years (Long-term) | Approx. 20.315% | 10.21% withheld from sale price |
| 5 years or less (Short-term) | Approx. 39.63% | — |
Non-residents may be eligible for refunds through tax return filing.
Yes, they apply. In Japan, taxation is based on the property location, so real estate in Japan is subject to tax even for foreigners (non-residents). Tax matters are highly individual — we strongly recommend consulting with a specialist (tax accountant).
Registration & Required Documents
If you do not have a residence certificate (juminhyo) in Japan, you will need:
Required documents vary by nationality and country of residence; consultation with a judicial scrivener is recommended.
Banking & Financing
It depends on your residency status:
- Non-residents: Generally cannot obtain residential mortgages
- Japan residents: May be evaluated based on residence status, income, and employment
- Investment property loans: May be possible through establishing a Japanese corporation
Opening personal accounts for non-residents is generally difficult. However, if you establish a Japanese corporation, opening a corporate account may be possible. For rental income collection, using a property management company as an intermediary is the standard approach.
Visa & Residence Status
No. Japan does not have an investor visa program based on real estate purchases.
The closest option is the "Business Manager" visa. Requirements were significantly tightened on October 16, 2025:
- Capital Requirement: Minimum 30 million yen in capital or total investment (Previously: 5 million yen)
- Employment Requirement: Must employ at least one full-time employee (Japanese national or permanent resident)
- Japanese Language Requirement: Either the applicant or full-time employee must possess B2 level proficiency (JLPT N2 or higher)
- Academic/Professional Requirement: Master's degree in business management OR 3+ years of business management experience
- Other Requirements: Secure business office space, business plan demonstrating continuity and stability, business plan verification by qualified professionals
A 3-year grace period is provided for existing Business Manager visa holders. For details, consult a specialist (immigration lawyer or administrative scrivener).
Short-term Rental (Minpaku)
It is possible under certain conditions, but there are many restrictions:
- Maximum 180 operating days per year (Housing Accommodation Business Act)
- Often prohibited by condominium management rules (must verify before purchase)
- Restrictions based on zoning (e.g., weekday operation prohibited in exclusively residential areas)
- Registration with local government required
- Management company engagement mandatory if owner does not live nearby
This is a system permitted only in designated National Strategic Special Zones, allowing rentals from 2 nights/3 days minimum.
Property Management Support
While some cases of free transfers exist, in reality, registration fees, renovation costs, taxes, and ongoing management expenses can be substantial burdens. Buildings are often in very poor condition, requiring careful consideration.
Yes, professional inspections can be arranged for an additional fee. Please contact us for details.
Depending on the property, we may be able to accommodate your request. Please discuss renovation scope and budget with us.
Yes, we can provide management services including regular inspections, cleaning, and ventilation for an additional fee. Please contact us for details.
Important Notes
- Tax obligations vary by property location, ownership structure, and personal circumstances. Please consult a tax accountant.
- Documents required for registration differ by nationality and country of residence. Please consult a judicial scrivener.
- New visa standards took effect on October 16, 2025. We recommend consulting an immigration lawyer or administrative scrivener.
- This FAQ is for general reference only and does not constitute legal or tax advice.
Ready to Take the Next Step?
Our consultants are here to guide you through every stage of acquiring property in Japan. Reach out anytime — no obligations.