Acquisition Process

Your typical journey from property search to key handover. Steps marked KEY are milestones we'll guide you through directly.

STEP 1
Define Requirements
Share your property preferences, budget, and goals
STEP 2
Interview & Needs Assessment
In-depth consultation to understand your vision
STEP 3
Finalize Criteria KEY
Refine search parameters based on assessment
STEP 4
Schedule Viewing Dates KEY
Confirm dates for in-person or virtual property viewings
STEP 5
Property Sourcing & Shortlist
We find and curate matching properties for you
STEP 6
Property Viewings
Visit selected properties in person or virtually
STEP 7
Letter of Intent KEY
Submit formal expression of interest to purchase
STEP 8
Document Preparation
Legal documents and due diligence review
STEP 9
Contract Signing & Payment KEY
Execute purchase agreement and complete financial transactions
STEP 10
Title Transfer & Key Handover
Official registration and receive keys to your new property

Essential Considerations

Key points to keep in mind before and during your property search.

Before You Search

Define Your Purpose
Clarify whether the property is for personal use or investment — this fundamentally shapes your search criteria and what to prioritize.
Imagine Living There
Visualize your daily life in the home — commute, groceries, neighborhood atmosphere — and how it fits your lifestyle needs.
Understand the Area & Access Important
Learn about Tokyo's neighborhoods, train networks, and how different areas connect — essential groundwork before choosing where to search.
Choose Your Area
City center, suburbs, or countryside — each offers different price ranges and lifestyle advantages. Every area has its own unique appeal.

Choosing the Right Property

Determine Room Count & Size
Calculate based on your household size, usage goals, and whether you need guest rooms or home office space.
House vs. Condo
Houses offer land ownership and freedom; condos provide lower maintenance and better security. Each has distinct management implications.
Know the Market & Set Your Budget Important
First, understand the market prices for your target area and property type, then establish a clear budget.
Plan Your Schedule
Before diving into your property search, decide your travel dates and set a viewing schedule. Some steps require your physical presence in Japan.

Financial & Long-term Factors

Consider Asset Value
Even if the property is not purely for investment, think about long-term appreciation potential, resale value, and how it may serve as an asset over time.
Check Accessibility
Verify wheelchair access, elevator availability, parking, and any physical constraints that matter for your use case.
Consider Leasehold Options
Leasehold properties are 20–30% cheaper. A cost-effective alternative if you prioritize location over perpetual ownership.
Renovation Potential
Older properties can offer significant value through renovation. Factor in structural condition, renovation costs, and zoning restrictions.

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 TypeDescription
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:

(Property Price × 3% + ¥60,000) + 10% Consumption Tax

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 ItemDetails
Registration FeesRegistration tax (1.5% for land, 2.0% for buildings) + judicial scrivener fees (typically ¥100,000–¥200,000)
Stamp TaxAffixed to the sales contract. ¥30,000 for properties over ¥50M to ¥100M
Property Tax ProrationProrated with seller based on the delivery date
Management Fees & Reserve FundFor 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 PeriodTax 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:

Affidavit / Notarized StatementA document certifying that your name, nationality, address, and signature belong to you. Prepared at a local notary public office or law firm.

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:

Business Manager Visa - Key Requirements (Effective 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.

IMPORTANT NOTEOsaka City officially ended new applications for Special Zone Minpaku effective May 29, 2026 (approved by the Prime Minister on November 28, 2025). Currently available areas include Tokyo's Ota Ward, Kitakyushu City, and others. Local government certification is required, and conditions vary by region.

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.