Investment property: Japan

Updated 6 October 2026

Japan is one of the few developed countries where, as a general rule, a foreigner buys property on the same terms as citizens: without separate permission and with ownership of the land.

The market is diverse, from apartments in Tokyo and Osaka to houses in resort areas of Hokkaido and Okinawa. Buying property does not give a visa, and purchase and ownership taxes must be budgeted in advance.

Taxes on purchase and ownership

• Real estate acquisition tax - 3% of assessed value for housing at the reduced rate; the standard rate is 4%.
• Registration tax on ownership and legal costs.
• Fixed asset tax - 1.4% of assessed value a year.
• City planning tax - up to 0.3% of assessed value a year in urban zones.

All owners pay these taxes regardless of nationality or residence. A non-resident usually needs a tax representative in Japan to pay taxes and receive notices. More on our Japan taxes page.

Property and visas

Buying an apartment or house does not give the right to live in Japan. Moving requires a separate residence status, such as work or Business Manager, whose requirements rose sharply from 16 October 2025. See company account and Business Manager visa.

How a purchase works

1. Goal. We define the goal: a home, letting or investment.
2. Shortlist and checks. We check the real estate register extract: owner, mortgage and restrictions.
3. Contract. We sign the purchase contract and pay the deposit.
4. Payment and registration. We pay the balance and register ownership through a registration specialist.
5. Taxes and management. We appoint a tax representative and a management company for letting.

Why deals fall through

• the buyer did not budget for acquisition and ownership taxes;
• money from abroad is not documented;
• the register shows a mortgage or third-party rights;
• the buyer expected a visa for the purchase.

Deal costs and reporting

Agent commission is capped by law: for properties over JPY 4 million, about $25,280, no more than 3% of the price plus JPY 60,000, about $380, plus consumption tax. Since 1 April 2026, a non-resident who buys property in Japan must file a report with the Minister of Finance through the Bank of Japan within 20 days, including for a home for personal use. We prepare this report together with the deal documents.

If a non-resident lets a property to a company, the tenant withholds 20.42% tax from the rent, and the final tax is calculated in a Japanese return taking property expenses into account.

What we do

We select and check the property, handle the contract, payment and registration, and help with a tax representative and letting. A manager will calculate the cost in the chat.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes · All country programs

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