Japan – Buying or Importing a Car

How do I buy a new car in Japan as a foreigner?

In principle, any person holding a valid driving licence or permit may purchase a vehicle in Japan, including foreign nationals with qualifying residency status. In practice, however, completing a purchase also requires a registered Japanese address and a parking space certificate, which effectively limits car ownership to those holding long-term residency status. Short-term visitors or non-residents face significant practical barriers and will find the process far more complicated.

Before setting foot in a dealership, you must first secure a parking space certificate — referred to in Japanese as Shako Shomeisho. To obtain one, you must attend your local police station and provide evidence that you have the right to use a parking space situated within 2 kilometres of your registered home address. The police will carry out an inspection and, once satisfied, will issue the certificate. This process generally takes between 3 and 7 days.

When buying from a dealership, the documents you will generally be asked to provide include:

• A Residence Card (在留カード, or zairyuu card): the card issued upon your arrival in Japan, which displays your current visa status.
• A Juminhyo (住民票) — a Certificate of Residence, which you can obtain from your local city hall.
• A registered seal (実印, jitsu-in): an officially registered personal seal lodged at your local city hall, used in Japan as a legal substitute for a signature on significant documents such as vehicle ownership transfers.
• The parking space certificate (Shako Shomeisho) obtained from your local police station.
• A valid driving licence.

Foreign residents seeking a car loan will typically need to demonstrate a longer-term visa and a reliable source of income. Many expats find it difficult to secure financing owing to the absence of a Japanese credit history, which makes lenders cautious, and language differences can create additional hurdles when dealing with financial institutions. That said, several major manufacturers — including Toyota and Honda — offer financing arrangements that may be more accessible to foreign buyers. Holding permanent or spousal residency, being able to provide a guarantor, and showing consistent employment income all improve your chances of approval.

Where financing is unavailable, outright cash payment or bank transfer is a widely accepted alternative. Request complete documentation throughout and, where possible, choose a dealership that offers bilingual assistance. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) provides guidance on vehicle standards and registration requirements.

How do I buy a used car in Japan?

For most expats living in Japan, buying through a dealership or used car outlet is the most practical option. These sellers typically handle the documentation and inspection process and often have English-speaking staff available. Vehicle auctions are another avenue, but require the assistance of a professional broker and are only advisable if you are working with a trustworthy agent and are familiar with Japanese vehicle inspection reports. Private sales from individuals can offer lower prices but come with greater risk and responsibility.

Before finalising any purchase, it is important to review the following carefully:

• Shaken validity: vehicles with a recent inspection are more desirable and spare you the immediate expense of obtaining one.
• Accident history: reputable sellers are obligated to disclose any previous accidents — ask directly before proceeding.
• Repair history (修復歴): request an inspection sheet or auction report to confirm whether the vehicle has undergone any major structural repairs.
• Maintenance records: authorised dealers almost always have a comprehensive service history on file; independent sellers may not.
• Mileage: vehicles on the Japanese market tend to have comparatively low mileage.

Online platforms such as Goo-net and CarSensor allow you to search by make, model, year, price, and shaken expiry date, which makes narrowing down your options considerably easier before you visit sellers in person. Once you have identified a vehicle, you will need the same core documents as for a new car purchase: your Residence Card, a Juminhyo, a registered seal (hanko), and your parking space certificate.

Foreign residents should be aware that sales contracts and related paperwork are almost always written entirely in Japanese. If you are not confident reading Japanese, bring a bilingual friend or request assistance with a translation. Most dealers will take care of the bulk of the administrative work — including title transfer, registration, and number plates — in exchange for a handling fee. Make sure you keep copies of every document you sign.

Can I import a vehicle into Japan, and how does the process work?

Bringing a vehicle into Japan from overseas requires working through a regulatory framework that combines relatively modest import tariffs with extensive domestic taxation, compulsory vehicle inspections (shaken), and rigorous safety standards. Japan is a left-hand-traffic country with right-hand-drive vehicles — the same configuration as the United Kingdom and Australia — which means that right-hand-drive vehicles from compatible countries can be used on Japanese roads without a fundamental layout issue. However, every imported vehicle, regardless of origin, must pass the mandatory shaken roadworthiness inspection before it is permitted on public roads.

When a vehicle is brought into Japan as part of a household relocation, it may qualify for a tax exemption under certain conditions. To claim this, you must submit an import declaration form, passports belonging to the applicant and any accompanying family members, three Application Forms for Duty-free Importation of Household Goods including Vehicles, one Declaration of Accompanied and Unaccompanied Goods that was approved by customs upon entry into Japan, and documentation confirming that the vehicle has actually been used, such as a registration certificate from the country of export.

It is important to note that if the vehicle is transferred to another party within two years of the import date, it will become liable for duty. Anyone considering this exemption solely as a way to import and quickly resell a vehicle should be aware that it is not a viable route for that purpose.

The full import process works as follows:

1. Arrange international shipping to a Japanese port. Vehicles travelling to Japan are mostly transported via RoRo (roll-on/roll-off) vessels.
2. When a vehicle arrives in Japan, an arrival notice is issued by the shipping company. The consignee should confirm the storage location and conduct clearance procedures at the customs office with jurisdiction over that area.
3. Clearance procedures can be carried out by the individual or by a customs broker. Documents required include an import (duty payment) declaration form, invoice, freight account, statement of premium due, and bill of lading.
4. Pay any applicable customs duties and the 10% consumption tax. For passenger cars (HS 8703), the MFN duty rate is traditionally 0% (duty-free), but you should always check the current tariff list to confirm the current status.
5. Obtain the customs clearance certificate (Customs Form C-8050). When registering an imported vehicle, one of the required documents is the vehicle customs clearance certificate.
6. Submit the vehicle for a preliminary shaken inspection at an authorised testing centre to confirm it meets Japanese safety and emissions standards.
7. After clearing customs, your vehicle must be registered at a Land Transport Bureau Office. Your vehicle must be registered within 3 months of undergoing a preliminary inspection test.
8. You will need to be issued with national number plates, which can only be provided once the car has been registered. Temporary number plates can be issued to allow vehicle transportation to a testing centre or Land Transport Bureau Office.

For temporary imports of up to 12 months, Japan allows temporary vehicle imports under international Carnet de Passages documentation without payment of customs duties and consumption tax. You must obtain a Carnet de Passages en Douane (CPD) from the vehicle’s country of origin, then contact the Japan Automobile Federation (JAF) to have the CPD authorised. The authorised CPD is an important customs document and must be kept in the vehicle at all times.

The key official bodies to consult are: Japan Customs (for import clearance and duty enquiries), the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) (for vehicle standards and registration), and the Japan Automobile Federation (JAF) (for Carnet de Passages and licence translation services).

What are the costs involved in importing a car to Japan?

When all expenses are considered, importing a vehicle into Japan can add up to somewhere between 33 and 46 percent of the vehicle’s value, depending on the type and age of the vehicle and the extent of any compliance modifications required. Thorough budgeting across every cost category is essential. Always verify current rates with Japan Customs and the MLIT before committing to an import.

One important distinction in Japan is that the customs clearance stage and the mandatory shaken inspection are entirely separate processes, unlike some countries where a single combined certificate covers both compliance and roadworthiness. This means expenses are incurred at multiple points throughout the importation process. Compliance modifications can be especially costly for vehicles that were not originally manufactured to Japanese domestic market (JDM) specifications, as headlight configurations, speedometers (which must read in kilometres), and various safety components may all require adjustment before the vehicle has any chance of passing shaken.

The household goods exemption (described in the previous section) can eliminate customs duty and consumption tax for qualifying vehicles brought in as part of a relocation, but the condition that the vehicle cannot be transferred within two years must be respected. Always confirm current eligibility criteria with Japan Customs before shipping.

How do I register a vehicle in Japan?

Any imported vehicle must be registered with the Land Transport Authority before it can be driven on Japanese roads. For vehicles purchased domestically, the dealership will usually take care of registration on your behalf for an administrative fee, which makes this the simplest route for most expats. If you have imported a vehicle yourself, you will need to complete the registration process personally or through a licensed agent after customs clearance has been finalised.

Documents typically required for vehicle registration at the Land Transport Bureau Office include:

• The customs clearance certificate (Customs Form C-8050) — for imported vehicles only
• The vehicle inspection certificate (shaken-sho) from a pre-registration inspection
• Proof of ownership (purchase invoice or bill of sale)
• Your Residence Card and Juminhyo (Certificate of Residence)
• Your registered seal (hanko) and seal registration certificate (inkan shomeisho)
• Parking space certificate (Shako Shomeisho)
• Proof of compulsory insurance (Jibaiseki Hoken)

Your vehicle must be registered within 3 months of undergoing a preliminary inspection test. Once registration is complete, number plates are issued and must be affixed to the vehicle. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is the principal authority overseeing vehicle registration through its network of regional Land Transport Bureaus. Since procedures can differ slightly from one prefecture to another, it is worth contacting your nearest bureau for localised guidance.

What insurance do I need to drive legally in Japan?

Japan’s motor insurance framework operates on two distinct levels, which is meaningfully different from the purely private market arrangements found in many other countries. The first level is a government-mandated compulsory scheme; the second is a voluntary private policy that, while not legally required, is very strongly recommended.

The compulsory element is known as jibaiseki hoken (自賠責保険) — a mandatory liability insurance that every vehicle owner in Japan must hold. Its pricing and coverage are determined entirely by law and are uniform regardless of who the driver is. As of 2025, the premium is ¥17,650 for a two-year period for standard passenger cars. While numerous insurance companies offer this product, there is no practical difference between providers, since the terms are identical across the board.

Because jibaiseki hoken covers only limited liability, most drivers also take out supplementary private cover. This voluntary insurance — known as ninni hoken (任意保険) — is not a legal requirement but provides protection in situations not addressed by the compulsory scheme. Approximately 90% of drivers in Japan carry both layers of insurance.

The cost of optional cover varies considerably depending on the driver’s age, record, and the type of vehicle insured, but a rough benchmark for a middle-aged driver with a standard car might be ¥50,000–¥100,000 per year. Younger drivers and high-performance vehicles attract significantly higher premiums. Expats should be aware that most Japanese insurers do not automatically carry over a no-claims record built up overseas, though some international insurers with a Japanese presence may take foreign histories into consideration — it is worth enquiring directly with providers. The Financial Services Agency (FSA) of Japan supervises the insurance sector; visit fsa.go.jp for regulatory information.

What driving licence do I need in Japan as an expat?

Japan only accepts International Driving Permits (IDPs) issued under the 1949 Geneva Convention — permits issued under the 1968 Vienna Convention are not recognised. The IDP must be obtained from the licensing authority in your home country before you travel to Japan, as they are not issued within Japan itself.

A 1949 Geneva Convention IDP allows you to drive in Japan for up to one year, provided the permit was issued within the past year and you have been in Japan for no longer than one year. Whichever of these two time limits expires first determines how long you are permitted to drive. IDPs are designed for temporary visitors and are not an appropriate long-term solution for residents. Foreign nationals who have established a registered address in Japan should begin the licence conversion process as early as possible rather than relying on an IDP.

The process of converting a foreign licence to a Japanese one is called gaimen kirikae. From October 2025 onwards, the rules governing this process became considerably more restrictive. Short-term visitors are no longer eligible to apply, and a Certificate of Residence (Juminhyo) is now a mandatory requirement — applicants without residency status cannot proceed.

Countries with full reciprocity (as of 2025), whose licence holders can convert with only an eye test and a short interview — no written or driving test required — include: Iceland, Ireland, the United States (limited to Ohio, Oregon, Colorado, Virginia, Hawaii, Maryland, and Washington), the United Kingdom, Italy, Australia, Austria, the Netherlands, Canada, South Korea, Greece, Switzerland, Sweden, Spain, Slovenia, the Czech Republic, Denmark, Germany, New Zealand, Norway, Hungary, Finland, France, Belgium, Poland, Portugal, Monaco, Luxembourg, and Taiwan.

Belgium, France, Germany, Monaco, Switzerland, and Taiwan do not issue IDPs based on the 1949 Geneva Convention, but instead have a separate arrangement that allows drivers from these countries to drive in Japan with an official Japanese translation of their driver’s licence for a maximum of one year. A translation can be obtained from the Japan Automobile Federation (JAF).

As part of the conversion process, you will need a JAF-issued Japanese translation of your foreign licence. From March 2025, JAF no longer processes translation requests in person or by post — all submissions must be made through their online portal, which is accessible only from within Japan. You upload photographs of both sides of your licence and pay a fee of ¥4,000. The translation is typically ready within one to two weeks. Visit the Japan Automobile Federation (JAF) website for full details, and get in touch with your nearest prefectural Driver’s Licence Centre to schedule your conversion appointment.

How do I sell a car in Japan?

Transferring vehicle ownership in Japan is a formal legal procedure — handing over the keys without completing the paperwork is not sufficient. Until the change of ownership has been officially recorded, the original registered owner retains legal responsibility for the vehicle, including any liability arising from incidents or unpaid taxes. Completing all documentation promptly is therefore in the seller’s clear interest.

As a seller, you will generally need to prepare the following:

• Vehicle registration certificate (shaken-sho)
• Certificate of Inspection (issued as part of the current shaken)
• Your registered seal (hanko) and seal registration certificate (inkan shomeisho)
• A transfer of ownership form (meigi henko — 名義変更)
• Your Juminhyo (Certificate of Residence)

Vehicle ownership transfers in Japan formally require a registered personal seal. Foreign residents are able to register a hanko and obtain the required certification. While it is the buyer’s responsibility to complete the re-registration at the Land Transport Bureau, you as the seller should follow up to confirm this has taken place — keep copies of all transfer-related documents for your own records. If you are selling to a dealership, they will generally handle the transfer paperwork on your behalf.

Road tax (Jidosha Zei) falls due annually in May. If a vehicle changes hands part-way through the tax year, a pro-rated refund may be available, or this matter can be agreed upon between buyer and seller. Any outstanding fines or penalties remain the responsibility of whoever was the registered owner when the offence occurred, so it is advisable to check that no such issues are outstanding before completing the transaction.

In terms of capital gains, Japan does not impose a specific tax on private individuals selling a personal car used for everyday purposes. However, if you are selling a vehicle that has risen in value — such as a classic or collectible car — it is prudent to consult a tax professional or the National Tax Agency (NTA) to establish whether any capital gains obligations apply to your circumstances.

What are the ongoing costs and obligations of vehicle ownership in Japan?

Owning a car in Japan involves a range of recurring expenses and legal duties that expats should account for from the very beginning. Japan’s mandatory inspection system — the shaken — is by far the most distinctive ongoing obligation, and frequently comes as a surprise to those who have only encountered less demanding vehicle inspection regimes elsewhere.

Shaken (mandatory roadworthiness inspection)
The shaken is a compulsory government inspection that every car in Japan must undergo every two years — with the exception of new vehicles, for which the first inspection is due three years after purchase. It combines a safety and emissions check with the renewal of mandatory insurance and certain vehicle taxes, and only vehicles that hold a valid shaken certificate are legally permitted on public roads. Unlike the UK’s annual MOT, which functions purely as an inspection, the shaken encompasses a broader set of renewals in a single process.

The total cost of a shaken cycle typically falls between ¥100,000 and ¥200,000, which encompasses the inspection fee itself, a weight tax (generally ¥8,000 to ¥50,000), and the mandatory insurance premium (around ¥30,000) (as of 2025). Older or heavier vehicles can incur considerably higher costs. Reminder notifications are not routinely issued, so it is easy to lose track of the expiry date — setting a personal reminder well ahead of time is strongly advisable.

Annual automobile tax (Jidosha Zei)
This annual tax is calculated according to engine displacement and typically ranges from ¥10,000 to ¥50,000 per year (as of 2025). Payment falls due each May for all registered vehicles. Owners of kei cars — miniature vehicles with engines of 660cc or less — benefit from a reduced rate under the separate kei automobile tax, making them an economical option for those who can manage with a smaller vehicle.

Vehicle weight tax (Jidosha Juryo Zei)
This tax is calculated on the basis of the vehicle’s weight and is collected at the time of each shaken inspection. For a typical passenger car, the amount falls roughly in the range of ¥8,000–¥20,000 per shaken cycle, with lighter vehicles and those meeting eco-friendly criteria paying less, and heavier vehicles paying more (as of 2025).

Optional insurance
The vast majority of drivers in Japan supplement the legally required cover with a voluntary insurance policy providing broader protection — including collision, property damage, and passenger injury coverage. A rough estimate for a middle-aged driver with a standard vehicle is ¥50,000–¥100,000 per year (as of 2025), though this varies widely.

Parking costs
In the central areas of major cities, parking is expensive, often running to several hundred yen per hour. Costs decrease as you move further from city centres and into smaller towns, and in rural areas parking is frequently free of charge. Monthly rental of a designated parking space varies considerably depending on location — budget accordingly based on where you are living.

Always confirm current tax rates and inspection fees with the MLIT and your regional Land Transport Bureau, as these figures are subject to change.

Frequently asked questions

Can I buy a car in Japan without permanent residency?

In principle, any person with a valid driving licence or permit can purchase a vehicle in Japan, provided they can also supply a registered Japanese address and a parking space certificate. This effectively means that only holders of long-term residency status can realistically complete a purchase and drive the vehicle. Short-term visitors on tourist visas are unable to register a vehicle. Check current eligibility requirements with your nearest Land Transport Bureau.

Do I need a Japanese driving licence to buy a car in Japan?

A Japanese driving licence is not specifically required in order to purchase a vehicle, but you will need either a Japanese licence or a valid IDP issued under the 1949 Geneva Convention in order to drive it legally. IDPs are intended for short-term visitors only; residents should apply for a licence conversion at the earliest opportunity.

Is there a vehicle age restriction for importing a car into Japan?

Japan does not apply a blanket age limit to imported vehicles in the way that some countries restrict older vehicles for emissions reasons. However, vehicles of advancing age may encounter greater difficulty satisfying the mandatory shaken inspection, given the stringent safety and emissions criteria applied at each inspection. Every imported vehicle must pass shaken before it can be registered and used on public roads. Consult the MLIT for current technical requirements.

Will my foreign no-claims history be recognised by Japanese insurers?

As a general rule, Japanese insurance companies do not incorporate overseas no-claims histories into their domestic pricing systems. Some international providers with a presence in Japan may be willing to take prior foreign records into account — contact individual insurers directly to find out. The premium and coverage for the mandatory jibaiseki hoken are set by law and are entirely independent of any individual driver’s claims history. For optional cover, obtaining quotes from several providers is highly recommended.

What is the shaken, and how much does it cost?

The shaken is a government-mandated inspection and maintenance process designed to verify that vehicles meet Japan’s safety and emissions standards. No vehicle may legally be driven on public roads without a current shaken certificate. The total cost — incorporating the inspection fee, weight tax, and mandatory insurance renewal — typically falls between ¥100,000 and ¥200,000 (as of 2025), though the figure varies depending on vehicle type, age, and condition. Always request an estimate from your inspection centre before proceeding.

Do I pay import duty when bringing my car to Japan as part of a relocation?

A vehicle imported as part of a household move to Japan may qualify for a duty exemption under specific conditions. However, if the vehicle is sold or transferred to a third party within two years of the import date, duties will become payable. Verify the current conditions for this exemption directly with Japan Customs before arranging your shipment.

How does the licence conversion process work, and has it changed recently?

From October 2025, the requirements for converting a foreign driving licence to a Japanese one were substantially tightened. Short-term visitors no longer qualify, and applicants must now hold a Certificate of Residence. Nationals of countries with full reciprocity agreements can complete the conversion through an eye test and brief interview, while applicants from other countries must pass both written and practical tests. Contact your prefectural Driver’s Licence Centre and the Japan Automobile Federation (JAF) for the latest requirements.

What happens if I leave Japan — can I take my registered Japanese vehicle with me?

If you are departing Japan permanently and wish to take your vehicle with you, you will need to formally deregister it — a process known as eikyū teishi — and obtain an export certificate from the Land Transport Bureau. You must also comply with Japan Customs’ export declaration procedures. Any unused portion of road tax may be refunded on a pro-rated basis. If your vehicle was originally imported under the household goods duty-free exemption and you are leaving within two years of that import date, consult Japan Customs to understand any duty implications that may arise. Always verify current export procedures with the MLIT before making arrangements.