Japan – Buying Property

Can foreign nationals legally buy and own property in Japan?

Japan imposes no limitations on property ownership by foreigners. Regardless of citizenship, visa category, or whether you hold any immigration status at all, you may acquire freehold land and buildings outright. This sets Japan apart from much of the region: the openness is remarkable by global standards, given that countries such as Thailand, Indonesia, and the Philippines place strict controls or outright bans on foreign land ownership.

Overseas buyers enjoy identical property rights to Japanese nationals. Ownership of both the building and the underlying land is fully permitted, property rights have no expiry, and assets can be sold, gifted, or passed on through inheritance without restriction. One important point to understand is that acquiring property in Japan confers no immigration benefit — there is no pathway to residency or any visa programme connected to real estate investment.

Title is recorded at the Legal Affairs Bureau (法務局) under your name, carrying the same legal weight as any Japanese citizen’s registration. One domain where special provisions exist involves nationally sensitive land. Japan’s “Act on the Review of Important Real Estate and Facilities” grants the government authority to monitor and, in exceptional cases, impose use restrictions on land close to military installations, nuclear facilities, and remote islands. Agricultural and forested land additionally requires prior government approval under the Foreign Exchange and Foreign Trade Act.

The regulatory framework is evolving. From fiscal year 2026, Japan intends to require newly registering property owners to declare their nationality in the updated real estate registry database, giving authorities the ability to monitor foreign-held properties. This disclosure obligation does not prevent a purchase from taking place — it is a condition of completing registration, not of the transaction itself. For the most up-to-date guidance, refer to Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and the Legal Affairs Bureau (法務局).

What are average property prices in Japan, and how do they vary by region?

Japan’s real estate sector reached USD 436.0 billion in total value in 2024, and the nationwide average land price increased approximately 2.7% as of January 2025 — the fourth straight year of growth and the strongest gain recorded since 1991. This sustained recovery indicates that values across most parts of the country have moved beyond their pre-pandemic levels.

In the Tokyo metropolitan area, the average price of a newly built condominium unit surged more than 20% year-on-year in July 2025, reaching ¥93,960,000 (approximately USD 640,000). Looking at the longer arc, new apartment prices climbed from ¥67.32 million in 2015 to ¥111.81 million in 2024 — a cumulative rise of 66%. Price variation within Tokyo is dramatic: centrally located wards command values nearly four times higher than outer areas of the city.

In the Osaka metropolitan area, the average new condominium unit price stood at ¥58,130,000 (approximately USD 396,000) as of July 2025. As Japan’s second-largest urban centre, Osaka City saw new condominium prices averaging around ¥55–57 million (roughly $390,000–$410,000) in late 2024, with some months posting year-on-year increases exceeding 40%.

Kyoto’s average new-condominium price reached ¥56.1 million in 2024, a modest decline of 1.9% year-on-year. Sapporo, the regional capital of Hokkaido, remains comparatively affordable by Japanese urban standards, though values have been trending upward. The average new condominium in Sapporo was priced at around ¥51.5 million in 2022 and has continued to rise since then.

Vast swaths of rural Japan contend with depopulation and an expanding inventory of unoccupied dwellings. For buyers prepared to take on a 50-to-100-year-old farmhouse in a town that has been shrinking for decades, competition is minimal. Rural properties — including so-called “akiya” (vacant homes) — can sometimes change hands for just a few million yen, though the cost of bringing such structures up to habitable condition can be considerable. For the most current listings and pricing, consult platforms such as REINS (Real Estate Information Network System) and leading portals like SUUMO, given how rapidly conditions are shifting.

Where are the most popular locations to buy property in Japan?

Japan’s property landscape in 2025 is defined by sharp contrasts. Tokyo, Osaka, and Fukuoka have each experienced meaningful price appreciation, underpinned by strong urban housing demand and constrained new supply. These three cities dominate the attention of foreign buyers for distinct reasons.

Tokyo commands the market. Gross rental yields in the capital average around 3.4%. Short-term letting faces ward-specific regulations — Shinjuku, for example, permits short-term rentals only from Friday through Monday in residential zones — so long-term leasing is typically the safer income strategy. Tokyo’s advantages of deep market liquidity, concentration of global employers, and availability of bilingual services remain hard to match.

Osaka is drawing increasing interest. The city combines the energy of a major metropolis with price points more accessible than Tokyo. The Umekita/Grand Green Osaka redevelopment project is redefining the Umeda precinct and stimulating demand across the city. Gross yields in Osaka average 4.5%, with some outer-ward pockets reaching above 5%.

Kyoto attracts buyers motivated by lifestyle, culture, and heritage. The city’s historic character and sustained tourist appeal drive demand — particularly for renovated machiya (traditional townhouses) and boutique real estate assets. However, Kyoto operates the most restrictive short-term rental regulations in Japan. Anyone eyeing Kyoto for rental income should carefully verify ward-level approvals before proceeding with a purchase.

Fukuoka presents a persuasive combination of liveability and investment fundamentals. As Japan’s first city to launch a Startup Visa, Fukuoka has positioned itself as a business-friendly hub, with ongoing Tenjin and Hakata redevelopment maintaining the urban core’s appeal to employers and tenants alike. Average gross yields of 4.2% are attractive, and compact units can deliver 5–6%.

Hokkaido ski resorts — Niseko in particular — continue to draw international buyers in search of holiday properties, fuelled by world-renowned powder snow and robust short-term rental demand from overseas visitors. Prices here are premium relative to Hokkaido broadly.

Are there any emerging or up-and-coming areas worth considering in Japan?

Smaller cities such as Fukuoka have at times outpaced Tokyo for price growth, and rural areas have registered their most notable gains in years. Beyond the established markets, several locations are capturing fresh interest from buyers seeking value alongside growth potential.

Sapporo is maturing into a significant regional hub. Secondhand condominiums in the city have historically traded in the ¥30–40 million range but have been climbing, driven partly by redevelopment activity and rising investor interest, as well as Sapporo’s broader appeal as a northern gateway city. The city’s candidacy for Winter Olympics infrastructure investment adds another dimension to its growth story.

Sendai, the largest city in the Tohoku region, offers accessible pricing, strong rental demand anchored by its university population, and improving connectivity. Its position on the Tohoku Shinkansen line to Tokyo makes it a viable alternative for buyers who find the capital unaffordable.

Naha, Okinawa has attracted growing buyer attention owing to its subtropical setting, resort lifestyle, and tourism-driven economy. Short-term rental regulations apply here too, but sustained demand from domestic and international travellers keeps the hospitality property segment active.

A combination of a weaker yen, a tourism boom, and heightened global appetite for Japanese assets has contributed to price and land value increases even in rural areas that continue to face economic decline and population loss. The akiya (vacant home) market across rural Japan also sustains steady interest from buyers seeking deeply affordable entry points — sometimes available through municipal akiya banks at minimal upfront cost, though renovation obligations can be extensive.

What are the current trends in the property market in Japan?

The average nationwide land price rose approximately 2.7% as of January 2025, marking the fourth consecutive year of growth and the strongest gain since 1991. This trajectory confirms that values have generally surpassed pre-pandemic benchmarks. By 2025, 64% of surveyed land plots had exceeded their 2020 valuations.

New housing supply in Japan remains under pressure. Annual housing starts dropped 3.35% year-on-year in 2024 to 792,195 units — the first time in 15 years that completions fell below 800,000 — and that declining trend carried into 2025. Escalating construction costs and persistent labour shortages have made developers cautious, and this supply constraint is a key force behind price appreciation in urban areas.

The rental market produced average gross yields of 4.2% nationwide in Q1 2025. Within Tokyo’s 23 wards, residential rents rose 6.4% year-on-year in the fourth quarter of 2024, accompanied by occupancy rates climbing to 96.6%.

Japan’s property market is diverging markedly. Premium urban locations — Tokyo foremost among them — are registering pronounced price increases, supported by foreign capital flows and the competitive exchange rate of the yen, while regional and rural markets continue to grapple with population contraction and excess housing stock. Analysts broadly agree that Japan is not in the grip of a nationwide property bubble.

Remote and hybrid working patterns have influenced buying behaviour, with some households relocating to smaller cities or rural settings — generating modest price gains outside the principal metropolitan zones. Sustainability considerations are gaining prominence in new developments, and earthquake-resistant construction standards (seismic compliance) have become a baseline expectation for buyers of recently built properties. For the latest market data, consult the MLIT Land Price Publication and research from the Land Research Institute (不動産研究所).

Is buying property in Japan a good investment?

Japan has built a reputation as a stable, comparatively high-yield destination, and a weaker yen has amplified the affordability of Japanese assets for overseas purchasers. Foreign real estate transactions have hit record levels: in the first half of 2025, overseas investors doubled their acquisitions of Japanese property year-on-year to over ¥1 trillion — the highest figure ever recorded for a six-month period.

Tokyo offers the lowest rental yields of Japan’s major cities — approximately 3.5–4% gross — a reflection of its very high asset prices relative to rents. Osaka and Nagoya sit at moderately higher levels (around 4.5%), while regional cities including Sapporo, Fukuoka, and Sendai offer the most attractive yields (around 5% or slightly above) because purchase prices are lower while rents hold up reasonably well.

For income-focused investors, regional cities may produce better returns, whereas Tokyo properties are often chosen for their capital appreciation potential or as stable stores of value rather than as yield vehicles. This dynamic parallels patterns in other global gateway markets — akin to how central London or central Sydney trade at compressed yields but with stronger long-term capital growth prospects.

Currency exposure is a significant factor for overseas buyers. International wire transfers typically carry a 2–4% bank markup above the mid-market exchange rate. A USD 500,000 property acquisition involves multiple transfers — covering the deposit, settlement, and post-completion expenses — with cumulative conversion charges potentially exceeding USD 15,000. Using a specialist foreign currency transfer service rather than a high-street bank can substantially reduce this cost.

Japanese inheritance tax applies to property located in Japan irrespective of the owner’s nationality or country of residence. Japan operates one of the world’s most progressive inheritance tax schedules, with rates reaching 55% at the highest bracket. This is a material planning consideration that sets Japan apart from many other investment destinations and warrants early engagement with qualified legal advisers. As with any asset class, property values can decline as well as rise, and independent financial advice is essential before committing to a purchase.

What types of property are commonly available to buy in Japan?

Japan’s real estate market encompasses a diverse range of property categories, each with its own characteristics and typical locations:

• Mansions (マンション, manshon) — the Japanese term for condominium apartments, usually occupying concrete mid- to high-rise blocks. These are the predominant property type in urban settings and attract both investors and owner-occupiers. Monthly management fees and repair reserve contributions are standard obligations.
• Detached houses (一戸建て, ikkodate) — standalone homes on their own land plots, found in suburban and residential city neighbourhoods as well as rural locations. New builds carry a 10-year structural warranty under Japan’s Housing Quality Assurance Act.
• Kominka (古民家) — traditional rural farmhouses, often several centuries old, featuring distinctive timber construction. These frequently appear in the akiya (vacant home) category and can be acquired cheaply, though thorough renovation is almost always required.
• Machiya (町家) — traditional townhouses concentrated in historic cities such as Kyoto. Machiya ownership comes with preservation responsibilities; Kyoto provides renovation subsidies but imposes notification requirements before any demolition.
• Resort and ski chalets — principally in Hokkaido (Niseko area) and the Japan Alps. These are typically condominium-style hotel units or freestanding chalets managed by resort operators for short-term rental.
• Land-only plots (土地, tochi) — buyers may acquire a serviced land parcel and commission a bespoke build. Both the building and the underlying land can be held as freehold.
• Akiya (空き家, vacant homes) — Japan holds millions of empty properties, particularly across rural and declining suburban areas. These can sometimes be acquired at very low cost through municipal akiya bank programmes.

What is the typical step-by-step process for buying property in Japan?

In contrast to conveyancing systems in countries such as the UK or Australia — where a solicitor or conveyancer manages the legal transfer — Japan relies on a judicial scrivener (司法書士, shihōshoshi) for property registration. The judicial scrivener is the state-licensed professional who is legally mandated to handle the formal title registration, ensuring ownership is transferred in a legally sound and complete manner. There is no civil-law notary equivalent for residential sales; the scrivener fulfils an analogous administrative function. The process from accepted offer to completion typically spans one to three months.

1. Establish your budget and engage a licensed real estate agent. All agents in Japan must hold a licence under the Building Lots and Buildings Transaction Business Act (宅建業法). Confirm that the agent displays a valid licence number on their premises and promotional materials. If purchasing from outside Japan, seek agents with bilingual capabilities or specific experience serving international clients.
2. Search for properties and arrange viewings. Major listing portals include SUUMO, At Home, and LIFULL HOME’S. Agents handling resale properties access the industry’s REINS network for broader inventory.
3. Submit an offer and negotiate. Tokyo buyers typically negotiate 1% to 5% below asking price; steeper discounts tend to be achievable only on distressed, overpriced, or structurally imperfect listings. Offers are channelled through the agent, and informal expressions of intent are common prior to any formal commitment.
4. Receive the Explanation of Important Matters (重要事項説明書, jūyō jikō setsumei-sho). Japanese law requires the seller’s licensed agent to deliver and explain this comprehensive disclosure document — encompassing zoning, building regulations, encumbrances, and other material information — before any contract is signed. Read this document carefully; if comprehension is uncertain, arrange for a full translation.
5. Sign the Sales and Purchase Agreement (売買契約書) and pay the deposit. Contract execution is usually conducted in person with a judicial scrivener present to explain key provisions to the buyer as required under law. A revenue stamp must be affixed as stamp duty — for example, ¥30,000 on a ¥50 million contract (as of 2025; reduced rates apply through March 2027). A deposit of around 10% of the purchase price is payable at this stage. Withdrawing after signing forfeits your deposit; if the seller withdraws, they must return twice the deposit amount.
6. Arrange financing if needed. Overseas buyers with Japanese residency may qualify for home loans from local banks. Non-residents purchasing from abroad generally find Japanese mortgage finance very difficult to obtain and typically proceed on a cash basis. Where Japanese lenders do engage with international borrowers, they may apply interest rates 0.5–1% higher than standard and charge guarantee fees of 2–3% of the loan amount.
7. Carry out due diligence and a building inspection. Inspections are not a legal requirement but are financially prudent, especially for foreign buyers. Professional inspections cost ¥50,000–¥100,000 and can reveal significant defects. Japan’s seismic environment and the prevalence of older building stock make inspections particularly valuable for properties more than ten years old.
8. Complete settlement (決済, kessei) and pay the remaining balance. Final settlement typically takes place at your bank with a judicial scrivener overseeing proceedings. You pay the outstanding balance, settle all fees, and execute the transfer documents — at which point legal ownership passes to you. If personal attendance is impossible, a Power of Attorney enables your nominated representative to execute the documentation on your behalf.
9. Register ownership at the Legal Affairs Bureau. The judicial scrivener submits the ownership transfer registration on your behalf. The registration and licence tax for a residential ownership transfer is 1.5% of the assessed value (reduced rate) as of 2025. Registration is generally completed within one to two weeks.
10. Settle post-completion tax liabilities. Real estate acquisition tax is charged at 3% of assessed value for residential buildings and land (4% for commercial property), invoiced a few months after purchase. From fiscal year 2026, you will also be required to declare your nationality as part of the property registration process.

Do I need a lawyer to buy property in Japan, and how do I find a reputable one?

Engaging a lawyer (弁護士, bengoshi) is not a legal prerequisite for a standard residential property purchase in Japan. That said, the entire transaction operates in Japanese — with processes that can confuse even Japanese nationals — so retaining a bilingual legal professional is strongly advisable for foreign buyers, particularly for older properties, complex deals, or purchases conducted remotely from abroad.

For the core function of title registration, the judicial scrivener (司法書士, shihōshoshi) is the state-licensed professional legally required to execute the official transfer of title. Typical scrivener fees for standard transactions range from ¥160,000 to ¥330,000, encompassing ownership transfer registration, mortgage registration where applicable, and document preparation (as of 2025). Foreign buyers who require bilingual support or supplementary translation services should allow an additional ¥100,000–¥200,000 for those costs.

For legally complex situations — title disputes, corporate purchase structures, inheritance planning, or commercial acquisitions — a full bengoshi (attorney) is the appropriate choice. All bengoshi must be registered with the Japan Federation of Bar Associations (日本弁護士連合会, Nichibenren): www.nichibenren.or.jp/en/. Their directory allows you to search for registered practitioners and identify English-speaking lawyers.

Judicial scriveners are regulated by the Japan Federation of Shiho-Shoshi Lawyer’s Associations (日本司法書士会連合会): www.shiho-shoshi.or.jp. In many transactions, the selling agent proposes their preferred scrivener, but buyers are entitled to appoint their own. Seeking competitive quotations can produce savings, and foreign buyers in particular may benefit from identifying specialists with experience handling international purchases.

What are the most common pitfalls and problems expats encounter when buying property in Japan?

Japan’s property market is generally well-regulated and transparent, but foreign buyers face a set of specific challenges worth understanding in advance:

• Language barriers in legal documentation. Every document in a Japanese property transaction must be professionally translated. Never sign anything that has not been fully translated and explained to your satisfaction. Any contract revision prompted by misunderstandings requires a new revenue stamp, adding expense and delay.
• Skipping the building inspection. Many overseas buyers forgo inspections to cut costs, only to uncover costly structural, electrical, or plumbing deficiencies after completion. This risk is especially pronounced with older properties given Japan’s seismic history.
• Seismic compliance — pre- and post-1981 standards. Japan overhauled its earthquake resistance building codes in 1981. Properties constructed before the revised standard (旧耐震基準, kyū taishin kijun) may fall short of modern safety benchmarks and can prove harder to mortgage or resell. Always verify the seismic compliance status of any older property before committing.
• Short-term rental licensing requirements. Japan’s Minpaku Law (民泊新法) tightly regulates short-term accommodation. Rules vary considerably by ward — Shinjuku, for instance, permits short-term rental operations only on Fridays through Mondays in residential zones. Operating an unlicensed rental in the style of Airbnb can result in fines.
• Currency conversion costs. Much of the additional expense borne by foreign buyers stems from currency conversion, translation fees, international banking requirements, and unforeseen costs. International wire transfers carry a 2–4% bank markup above the mid-market rate. Using a specialist foreign exchange service rather than a conventional bank can meaningfully reduce these charges.
• Japanese inheritance tax exposure. Japanese inheritance tax applies to property situated in Japan regardless of the owner’s nationality or country of residence, and can reach 55% at the top bracket. While the basic deduction is sufficient to exempt many modest rural purchases, heirs may find themselves navigating a Japanese probate process from overseas and without Japanese language proficiency. Draft a will that specifically addresses your Japanese property holdings.
• Unlicensed or unregistered agents. Every real estate agent in Japan must hold a valid licence under the Building Lots and Buildings Transaction Business Act. The licence number should be prominently displayed. When in doubt, verify the agent’s credentials with the relevant prefectural government office.
• No golden visa pathway. Purchasing property in Japan grants no immigration entitlement — there is no investment visa or golden visa programme tied to real estate. Be cautious of any agent who implies otherwise.

Can I buy property in Japan through a company, and is it worth doing?

Yes, purchasing Japanese property via a corporate structure is both possible and relatively common among foreign buyers. The most frequently used vehicle is a Gōdō Kaisha (合同会社, GK) — a limited liability entity broadly comparable to a US LLC — or a Kabushiki Kaisha (株式会社, KK), a full joint-stock company similar to a UK limited company or an Australian Pty Ltd. Both structures can be wholly foreign-owned.

The potential benefits of corporate ownership include: separation of personal and property-related liabilities; possible tax efficiency when channelling rental income through a corporate entity; centralised management of multiple properties under a single structure; and, in certain scenarios, more streamlined inheritance planning by transferring company shares rather than individual assets. Corporate ownership may also facilitate bringing in co-investors or business partners.

On the other side of the ledger, drawbacks include company formation and annual maintenance costs (registration fees, accountant charges, and potential audit obligations); consumption tax of 10% applies to the building portion when acquiring from a business such as a developer, though this generally does not arise when buying a resale property from a private individual. Corporate structures also add complexity to mortgage applications and can generate additional tax reporting obligations in your home country. The Japan National Tax Agency (www.nta.go.jp/english) publishes guidance on corporate tax rates and compliance requirements. Independent legal and tax advice is essential before adopting a corporate purchase structure, as the optimal approach varies significantly depending on individual circumstances.

What taxes and ongoing costs should I budget for when owning property in Japan?

Japan does not impose any additional transfer taxes specific to foreign purchasers — the tax system treats overseas and domestic buyers identically at every stage of acquisition. The principal taxes and ongoing costs are set out below (all figures as of 2025; verify current rates with the National Tax Agency):

Japan’s tax obligations attach to property within its borders regardless of the owner’s nationality or where they live. If you hold property in Japan, you are liable for Japanese taxes — no exemptions exist for foreign nationals. Japan has concluded tax treaties with more than 80 countries, typically assigning Japan primary taxing rights over property income and capital gains. Your country of residence may also seek to tax worldwide income, but treaty provisions generally include foreign tax credit mechanisms to avoid genuine double taxation. Consult the National Tax Agency website for current rates and treaty details.

What are the official sources I should consult when buying property in Japan?

The following official bodies and resources serve as the primary references for property buyers in Japan:

• Ministry of Land, Infrastructure, Transport and Tourism (MLIT — 国土交通省)
  Responsible for land policy, real estate licensing, building standards, and administration of the Important Land Survey and Regulation Act.
  www.mlit.go.jp/en/
• Legal Affairs Bureau (法務局, Hōmu-kyoku)
  Manages property title registration and the land and building registry. Your judicial scrivener files with the relevant local branch.
  houmukyoku.moj.go.jp
• National Tax Agency (国税庁, NTA)
  Authoritative guidance on all property-related tax matters including acquisition tax, registration tax, stamp duty, capital gains, and rental income tax.
  www.nta.go.jp/english
• Japan Federation of Bar Associations (日本弁護士連合会, Nichibenren)
  Directory of registered attorneys (bengoshi), including English-speaking practitioners.
  www.nichibenren.or.jp/en/
• Japan Federation of Shiho-Shoshi Lawyer’s Associations (日本司法書士会連合会)
  Regulatory body overseeing judicial scriveners who handle property registration.
  www.shiho-shoshi.or.jp
• REINS (Real Estate Information Network System — 指定流通機構)
  Japan’s official property listing network used by licensed agents. A publicly accessible portal is available.
  www.reins.or.jp
• Land Research Institute (不動産研究所, Fudōsan Kenkyūjo)
  Publishes authoritative quarterly data on land prices, condominium valuations, and rental yields.
  www.reinet.or.jp
• Bank of Japan (日本銀行, BOJ)
  Source for interest rate policy, currency data, and housing loan market statistics.
  www.boj.or.jp/en/

Frequently asked questions

Can I buy property in Japan without a visa or residency status?

Foreign nationals may purchase property in Japan without living in the country, and no visa or residency status is required to do so. That said, managing a property, opening a Japanese bank account, and handling administrative matters is substantially easier for those resident in Japan, and securing mortgage finance as a non-resident is very challenging.

Does buying property in Japan give me the right to live there?

Property ownership in Japan confers no immigration benefit and does not give you the right to reside there. Japan operates no investment visa or golden visa scheme under which property purchases lead to residency. Qualifying to live in Japan requires pursuing a separate immigration route — through employment, family ties, or another recognised status of residence.

Can I get a mortgage in Japan as a foreign national?

Foreign nationals who hold resident status in Japan may qualify for home loans from Japanese banks. Non-residents purchasing from abroad generally find it very difficult to access Japanese mortgage finance and tend to complete purchases in cash. Where Japanese lenders do consider international borrowers, they typically apply interest rates 0.5–1% above the standard rate and charge guarantee fees of 2–3% of the loan amount, reflecting the perceived higher risk.

What is an akiya, and is it a good option for foreign buyers?

Akiya (空き家) are unoccupied or abandoned properties that have accumulated across rural and suburban Japan as a result of ongoing population decline. Some local authorities actively promote the sale of such homes that might otherwise stand empty indefinitely. Entry prices can be extremely low — in some cases, a nominal sum — through municipal akiya bank schemes, but buyers should plan carefully for renovation, which can run to several million yen for properties that are structurally compromised or very old.

How long does the property buying process take in Japan?

From agreeing on a price to formally completing the purchase, the process typically takes one to three months. The interval between contract signing and final settlement commonly spans four to eight weeks, during which the buyer arranges financing where necessary and both parties prepare their documentation. The settlement itself is generally scheduled one to two months after contracts are exchanged. Title registration by the judicial scrivener takes approximately one to two weeks following settlement.

Are there restrictions on buying land near military bases or sensitive sites?

Japan’s “Act on the Review of Important Real Estate and Facilities” empowers the government to monitor and, in exceptional circumstances, restrict the use of land situated near military installations, nuclear facilities, remote islands, and comparable sensitive locations. This 2022 security legislation is due for a built-in review in 2027, and there are indications that the government may tighten its provisions further — potentially introducing pre-approval requirements for foreign entities seeking to acquire property adjacent to defence sites or border islands. If you are considering a purchase near any such location, obtain specific legal advice before proceeding.

What is the role of a judicial scrivener, and do I need one?

The judicial scrivener (司法書士, shihōshoshi) is the state-licensed professional legally required to carry out the formal registration of property title, ensuring that the transfer of ownership is executed correctly and in accordance with the law. Unlike systems where a solicitor or notary oversees the entire transaction, in Japan it is the judicial scrivener — not a lawyer — who is the indispensable legal professional for completing a standard residential purchase. Fees for standard transactions typically fall between ¥160,000 and ¥330,000 (as of 2025), with an additional ¥100,000–¥200,000 for foreign buyers who require bilingual assistance.

What are Japan’s annual property taxes, and how are they calculated?

Foreign property owners are subject to the same local real estate taxes as Japanese residents. These are assessed by the city or ward in which the property is located and billed to whoever is recorded as the owner on 1 January each year. The rates are set nationally: fixed asset tax at 1.4% of assessed value and city planning tax at up to 0.3% of assessed value in designated planning zones (as of 2025). Importantly, these taxes are based on the government’s assessed value (課税標準額), which is typically lower than the open market price. Many municipalities offer the option of paying in four annual instalments. For current rates and further information, consult the National Tax Agency or your local ward office.