Can Foreigners Buy Property in Japan? The 2026 Rules for Overseas Buyers

Last reviewed 21 September 2026

Can foreigners buy property in Japan? Yes. Japan has no visa, residency or nationality requirement for buying land or buildings. A foreign buyer can own property freehold, with the same private rights as a Japanese citizen.

That answer has not changed. What changed in 2026 is the paperwork around it. New reporting duties, a nationality field at registration and a consumption tax change now affect overseas buyers. This guide explains each rule and links to the official source.

At Nisade Real Estate we sell property in Niseko, Furano and Hakuba, so we also cover the land and resort rules that mountain buyers meet. The core rules apply across Japan, however, whether you buy in a city or in the mountains.

Quick facts for overseas buyers

Question	Short answer
Can foreigners buy?	Yes. Land and buildings, freehold, with no visa or residency needed.
Legal basis	Article 3(2) of the Civil Code gives foreigners the same private rights as Japanese nationals, unless a law or treaty says otherwise.
Real limits	Farmland permits, notification in special watch zones, some prefectural land rules and bank lending.
New in 2026	A 20-day report for non-resident buyers, a nationality field at registration and consumption tax on brokerage for non-residents.
Does buying give a visa?	No. Owning property gives no residence rights.
Mortgages	Flat 35 requires permanent residence. Some private lenders accept other long-term residents.

Can foreigners buy property in Japan? The legal basis

Article 3(2) of the Civil Code gives foreign nationals the same private rights as Japanese nationals. An exception applies only where a law or treaty prohibits it. According to a February 2026 research report by the House of Representatives, the Alien Land Act of 1925 still exists. However, it has had no implementing ordinance since 1945, so it has no practical effect.

The same report adds a second point. When Japan joined the WTO services agreement in 1995, it made no reservation on real estate acquisition. A law that singles out foreign buyers could therefore conflict with that treaty. This helps explain why the 2026 changes focus on reporting and transparency rather than bans.

What changed in 2026 for foreign buyers

Can foreigners buy property in Japan in 2026 on the same basis as before? Yes, but several rules took effect this year. Some apply only to non-residents. Others apply to every owner. Here they are in date order.

1 April 2026: report for non-resident buyers

A non-resident who acquires real estate in Japan must report it to the Minister of Finance, through the Bank of Japan, within 20 days. The duty is not new, but its scope is. According to the Ministry of Finance FAQ, the residential-use exemption now covers only rights attached to real estate, such as a leasehold. It no longer covers buying the property itself.

The FAQ also confirms four details:

• There is no minimum price or floor area.
• An acquisition for ¥0, such as an inheritance, still needs a report.
• A holiday home or second home does not count as residential use.
• Each buyer files a separate report, including each co-owner.

1 April 2026: address change registration

Every owner must now register a change of name or address within two years. Owners with a Japanese address can use the search information system, so the registrar updates the register for them. Owners who live abroad are excluded, so they must file the change themselves. The Ministry of Justice explains the system.

1 April 2026: condominium law

The revised Condominium Ownership Act took effect on 1 April 2026. The House of Representatives report says it created a domestic administrator system for owners who live abroad. If you buy an apartment, ask the management company whether the building’s rules require you to appoint one.

1 October 2026: consumption tax on brokerage for non-residents

The FY2026 tax reform outline removes the export exemption for services relating to Japanese real estate provided to non-residents. The change applies from 1 October 2026. Contracts signed by 31 March 2026 are carved out. The Ministry of Finance outline gives the detail. Brokerage is the most common example.

5 October 2026: nationality at registration

From 5 October 2026, a person who applies to register ownership must also state their nationality. It joins the other search information: name, a romanized name for non-Japanese owners, address, date of birth and email address. The Ministry of Justice says the nationality field helps identify which country’s law governs inheritance. The House of Representatives report says the government plans to hold nationality as internal information, not as an item on the public register.

Since July 2025: nationality on land-use notifications

The same report notes that nationality has been part of the National Land Use Planning Act notification since July 2025. That law applies to larger land purchases, which we cover below.

Still under discussion: security-based land rules

A government expert panel on land acquisition rules met four times in 2026: on 4 March, 9 April, 30 April and 21 July. The government’s own plan lists options including a permit system, a prior-notification system with screening and on-site inspection. As of 21 September 2026, the panel’s page lists those four meetings and no published conclusion. Check it again before you sign anything.

The real exceptions to buying property in Japan

Can foreigners buy property in Japan anywhere? Almost anywhere. Only a few genuine limits apply, and most of them bind Japanese buyers too.

Farmland

Farmland cannot change hands without permission from the local agricultural committee under the Agricultural Land Act. According to the House of Representatives report, a sale without the permit is void. This catches buyers of rural houses that come with fields. If a listing includes farmland (農地), ask how the agent will handle that portion before you make an offer.

Special watch zones near defence facilities

Japan’s security land law creates special watch zones around important facilities and border islands. In those zones, buying land or a building of 200 square meters or more needs prior notice to the Prime Minister from both buyer and seller. The Cabinet Office notification guidance sets the threshold and the penalty for skipping notice. That penalty is up to six months’ detention or a ¥1,000,000 fine. The rule applies to Japanese and foreign buyers alike. You can check an address on the Cabinet Office web map.

Land-use notification after a larger purchase

The National Land Use Planning Act requires a buyer to notify the prefectural governor after buying land above set sizes. According to the House of Representatives report, the thresholds are 2,000 square meters in urbanization promotion areas, 5,000 square meters in other city planning areas and 1 hectare outside city planning areas. Your agent or judicial scrivener normally handles this notice.

Prefectural water-source rules

Some prefectures require notice before a land contract in designated water-source areas. The report says 21 prefectures had such ordinances as of October 2025, and the Research Institute for Local Government keeps a list of them. Hokkaido and Nagano are among them. In Hokkaido’s designated areas, the landowner must notify the subprefectural office three months before the contract, according to the Hokkaido government. Ask your agent to check this before you make an offer on land.

Bank lending

This is not a legal restriction, but it is the largest practical one. We cover it in the mortgage section below.

Does buying property in Japan give you a visa?

No. Owning a home in Japan gives you no right to live there. There is no property-based golden visa. You enter as a visitor, like anyone else, and follow the normal visa rules.

The closest option is the Business Manager status, and its rules tightened on 16 October 2025. According to the Immigration Services Agency’s guidance, applicants now need all of the following:

• Capital of ¥30,000,000 or more. For a sole proprietor, this means the total invested in the business.
• At least one full-time employee who is a Japanese national, a special permanent resident or a holder of certain long-term statuses, such as permanent resident.
• Japanese ability at CEFR B2 level, held by the applicant or a full-time employee. Ways to show it include JLPT N2 or a BJT score of 400.
• A master’s degree or higher, or three years of management experience.
• A business plan checked by a licensed small-business consultant, certified public accountant or tax accountant.

Existing holders have until 16 October 2028 before the new standard applies to renewals. In short, buying an apartment to rent out does not meet this bar.

Resident or non-resident? Which rules apply to you

Your obligations depend on a test that has nothing to do with your visa. The Foreign Exchange and Foreign Trade Act defines residency. The Ministry of Finance FAQ explains that a foreign national is presumed to be a non-resident. Two groups count as residents instead: people who work at an office in Japan, and people who have been in Japan for six months or more. Diplomats and officials of foreign governments stay non-resident. Owning or renting a home abroad makes no difference.

In practice, a permanent resident who has lived in Japan for years is a resident. A buyer who lives overseas and visits for holidays is a non-resident. If you are unsure, ask a resident agent or contact the Ministry of Finance.

How to buy property in Japan as a foreigner, step by step

Can foreigners buy property in Japan through the same process as locals? Yes. A Japanese purchase follows a fixed sequence, and timelines vary by property and lender.

1. Search and viewLicensed agents share listings through a common network, so one bilingual agent can show you most of the market.
2. Make a purchase applicationThis written offer states your price and conditions. It is not a binding contract.
3. Pre-screen your loanIf you need finance, do this alongside the offer. It tells you what you can afford.
4. Receive the explanation of important mattersBefore contract, a licensed transaction specialist must explain the property’s legal position. This covers title, zoning, road access and building restrictions. Video call explanations are now possible in many transactions, if you agree in advance. Ask for an English explanation, although the statutory document will be in Japanese.
5. Sign the contract and pay a depositThe deposit is part of the price. Withdrawing after this point normally costs you the deposit.
6. Sign the loan contract, if you have oneThe lender registers a mortgage against the property.
7. Settle and registerYou pay the balance, receive the keys and documents, and a judicial scrivener files the ownership transfer with the Legal Affairs Bureau.

Documents foreign buyers need

Documents differ for residents and for buyers abroad.

If you live in Japan

Residents usually provide a residence card and a certificate of residence from the local ward or city office. Your judicial scrivener will list anything else. The registration application also carries your search information, as described above. The romanized name you give is recorded on the register next to your name. Choose it carefully, and use the same version on every document.

If you live abroad

You cannot obtain a Japanese certificate of residence. The Ministry of Justice therefore sets separate rules for foreigners who live abroad. Since applications filed from 1 April 2024, the ministry has required proof of address that comes from a government or a notary in your home or residence country. The ministry’s notice explains the requirements. Your judicial scrivener will confirm exactly which documents and translations your registry needs.

Owners abroad also cannot use the automatic address update system, so keep your address current on the register yourself.

The 20-day report for non-resident buyers

If you are a non-resident, your agent should agree at the offer stage who files this report. Here is what the Ministry of Finance FAQ says:

• The form is Form 22, and it must be completed in Japanese.
• A resident agent can file it online on your behalf.
• The 20 days run from the acquisition date. You may use the contract date, transfer date or registration date, as the FAQ allows any of them.
• If day 20 falls on a Bank of Japan non-business day, the deadline moves to the next business day.
• A late report is still required. Add a short note explaining the delay.
• Failing to report, or reporting falsely, carries up to six months’ detention or a ¥500,000 fine.

Can foreigners buy property in Japan with a mortgage?

Yes, but the options narrow quickly. Ownership is open. Lending is the harder part.

Flat 35

Flat 35 is the long-term fixed-rate loan from private banks and the Japan Housing Finance Agency. According to its eligibility conditions, foreign applicants need permanent or special permanent residence. The agency warns that the full loan becomes repayable if it later emerges that you lacked that status. Other conditions include:

• The borrower must be under 70.
• Apartments must be at least 30 square meters, and houses at least 50.
• Total annual repayments across all loans must stay within 30% of income under ¥4,000,000, or 35% at ¥4,000,000 and above.
• The loan cannot fund an investment property, and the agency checks that you or a relative lives in the home.

In September 2026, the agency’s rate table shows 3.14% to 5.37% for 15 to 20 year terms and 3.46% to 5.69% for 21 to 35 years. The most common rates are 3.14% and 3.46%.

Private lenders

Most private banks do not publish their rules for foreign borrowers. One exception is SMBC Trust Bank’s Prestia brand. According to its customer FAQ, a foreign national living in Japan with any status other than temporary visitor can apply without permanent residence. The applicant must communicate in Japanese or English and earn at least ¥10,000,000 a year. Contracts are in Japanese, with English translations available. Its products include second-home and investment property loans.

Because lenders publish so little, ask each bank for a pre-screening before you fall for a property. It costs little and tells you whether you are shopping with a loan or with cash.

Costs when you buy: taxes and fees

Can foreigners buy property in Japan on the same tax terms as locals? Largely yes. According to the House of Representatives report, Japan’s property taxes do not depend on nationality, although some procedures differ for non-residents. Budget for each item separately. Most rates are set by law, so you can calculate them before you offer.

Brokerage commission

The Ministry of Land, Infrastructure, Transport and Tourism caps commission at 5.5% on the first ¥2,000,000, 4.4% on the next ¥2,000,000 and 3.3% above ¥4,000,000, including consumption tax. A shortcut is price × 3.3% + ¥66,000, as explained by Osaka Prefecture. The figures are maximums, and you can negotiate.

For a ¥50,000,000 purchase, the tax-inclusive maximum is ¥1,716,000. Without tax, the same maximum is ¥1,560,000. For non-residents contracting from 1 October 2026, the consumption tax component is therefore up to ¥156,000. Ask your agent how they will charge it.

Registration and license tax

Under the National Tax Agency’s rate table, registering a sale transfer costs 2% of the assessed value. The base is normally the fixed asset tax ledger value, not your purchase price. Reductions apply for a limited time:

• Land transfer by sale: 1.5% for registrations up to 31 March 2029.
• A home you live in yourself: 0.3% for the building, up to 31 March 2027. The home must be at least 50 square meters, and you must register within a year.
• A mortgage on that home: 0.1% of the loan, up to 31 March 2027.

The reduced building rate is for a home you occupy yourself. Holiday homes and rentals should not assume they qualify. Confirm with your judicial scrivener.

Stamp duty

Paper sale contracts carry stamp duty, which rises with the contract price. A reduction applies to contracts made up to 31 March 2027. The National Tax Agency publishes the amounts.

Real estate acquisition tax

The prefecture charges this one-off tax on the assessed value. According to the MLIT summary, the standard rate is 4%, but 3% applies to land and homes acquired up to 31 March 2027. Over the same period, the taxable value of building land is halved. New homes get a ¥12,000,000 deduction, and existing homes get a deduction that depends on when they were built. The bill arrives separately after the purchase, so plan for it.

Yearly costs of owning property in Japan

Japan taxes ownership lightly, but it taxes it every year. The owner listed on 1 January is liable for that year’s fixed asset tax.

According to MLIT, the standard fixed asset tax rate is 1.4%. Land under a home gets relief. The tax base falls to one sixth for up to 200 square meters per dwelling, and to one third for the rest. A city planning tax of up to 0.3% applies in urbanization areas, with its own residential relief. Because municipalities set their own rates within these limits, check the notice from the local office.

Apartment owners also pay monthly management fees and contribute to a repair reserve. Ask for the long-term repair plan before you sign.

Appoint a tax agent if you live abroad

The House of Representatives report describes a system in which owners abroad appoint a domestic tax agent to receive and pay local and national tax bills. Without one, notices go to an address you do not have, and deadlines pass. When an owner lives overseas, a domestic contact address also goes on the register.

Owning property in Japan from abroad

Can foreigners buy property in Japan and keep it from overseas? Yes, and many owners do. This checklist covers what to arrange.

• The 20-day report. Decide who files it.
• A tax agent. Appoint one before the first bill.
• A condominium administrator. Check the building’s rules, as described above.
• Address changes. File them yourself within two years.
• A local manager. Someone should air the property, forward mail and meet trades. For an example of managed ownership, read our https://www.nisaderealestate.com/insights/selling-in-niseko-how-to-prepare-price-and-position-your-property/.
• An inheritance plan. The nationality field exists partly to identify the governing law for inheritance. Since April 2024, registering an inheritance has also been compulsory, according to the House of Representatives report. Take advice on both before you buy.

Selling later: capital gains and withholding

Can foreigners buy property in Japan and sell it later? Yes. Two rules decide most of what you keep.

The five-year line

The National Tax Agency taxes a property held for more than five years as a long-term gain. Long-term gains face 15% income tax plus 5% residence tax. Short-term gains face 30% plus 9%. The agency adds a 2.1% surtax on the income tax portion. Together, that works out to 20.315% for long-term gains and 39.63% for short-term gains on a 2026 sale.

The test uses 1 January of the sale year. For a sale in 2026, property acquired on or before 31 December 2020 is long-term. Property acquired on or after 1 January 2021 is short-term, even if you owned it for more than five years by the sale date. The agency also notes that from 2027 the surtax is restructured into defense and reconstruction special income taxes, so recheck the combined rate for later sales. Selling your own home may qualify for a ¥30,000,000 special deduction.

The withholding trap

If the seller is a non-resident, the buyer must withhold 10.21% of the price. The buyer pays it to the tax office by the tenth of the following month, according to the National Tax Agency. An individual buying a home for their own use at ¥100,000,000 or less does not need to withhold, as the agency’s leaflet for property buyers explains.

Check the seller’s status in writing before contract. In a 2016 Tokyo District Court case, reported in the tax press, a buyer failed to check whether a seller was a non-resident. The seller had a Japanese address, and the court still found the buyer had not taken enough care.

Buying in mountain and resort areas

Can foreigners buy property in Japan’s mountain resorts? Yes. Resort buyers meet the same national rules, plus a few local ones. Before you buy in a region such as Niseko, Furano or Hakuba, work through this list:

• Check whether the land falls in a water-source area with a prefectural notice rule.
• Check the Cabinet Office web map for special watch zones.
• Ask whether the size of the land triggers a land-use notification.
• Confirm whether any part of the plot is classed as farmland.
• Ask the municipality for its fixed asset tax rate and any city planning tax.
• For apartments, review management fees, the repair reserve and how the building handles owners abroad.

Each of these markets behaves differently. Our comparison of Niseko, Hakuba and Furano sets out how they differ for investors. For Hakuba specifically, see our analysis of government land price data. For Furano, read our piece on the branded hotel effect.

Is buying property in Japan right for you?

Buying can suit you if you plan to hold for several years and can arrange local support. It suits you less in three situations:

• You want a visa. Ownership does not give one.
• You plan a short hold. Short-term gains face the higher rate above, and purchase costs add up.
• You cannot arrange management from abroad. An empty property still needs a tax agent, reports, upkeep and someone to answer the door.

Before you commit, get a loan answer first. Then confirm the seller’s residency, check the zone maps and agree who files your report.

FAQ about foreigners buying property in Japan

Next steps

Can foreigners buy property in Japan? Yes, and the rules are clearer than the headlines suggest. The 2026 changes add reports and declarations, not barriers. Start with a loan answer, then check the land rules and line up your local support.

If you are considering property in Niseko, Furano or Hakuba, browse our current listings or contact our team.