The Complete Guide to Buying Property in Japan as a Foreigner

Can foreigners buy property in Japan? — 外国人でも不動産は買える？

Yes — with essentially no restrictions. Japan is one of the most open countries in the world when it comes to foreign property ownership. Unlike many Asian countries (Thailand, Vietnam, China), Japan places no legal restrictions on foreigners buying land or buildings. You can buy freehold property (土地 + 建物) with full ownership rights, and you don't even need to be a resident of Japan to purchase.

This applies to all property types: apartments (マンション), houses (一戸建て), land (土地), commercial buildings, even farms and forests. Foreign ownership is recorded in the same 登記 (registry) system as Japanese ownership, with the same legal protections.

There is one recent exception: the 重要土地等調査法 (enacted 2022) restricts purchases of land near military bases and sensitive facilities. This affects a very small number of properties and primarily requires advance notification, not outright prohibition. For standard residential purchases, this is unlikely to be relevant.

Property types in Japan — 物件の種類

Understanding the different property types is essential before you start searching. Each has different cost structures, maintenance responsibilities, and depreciation characteristics.

マンション (Mansion / Apartment)

Despite the English word "mansion," a マンション in Japan is a condominium apartment — typically a reinforced concrete (RC or SRC) building. You own your individual unit and share ownership of common areas with other residents through a 管理組合 (management association). マンション are the most common property type in urban areas like Tokyo, Osaka, and Yokohama.

• Pros: Lower maintenance burden (管理会社 handles common areas), security features, urban locations, earthquake-resistant construction
• Cons: Monthly 管理費 (management fee) and 修繕積立金 (repair reserve fund) on top of mortgage, limited renovation freedom, neighbor considerations
• Typical lifespan: RC buildings are built to last 47+ years; many remain livable for 60-80 years with proper maintenance

一戸建て (Detached House / Ikkodate)

A 一戸建て is a standalone house with its own land. You own both the building and the land beneath it (sometimes with a 借地権 / land lease, but freehold is more common). Houses are more common in suburban and rural areas, though they exist in cities too — often on smaller plots.

• Pros: No monthly management fees, full control over renovations, private outdoor space, no neighbor noise (walls), land retains value
• Cons: All maintenance is your responsibility, wooden construction depreciates faster, potentially less secure, may need car access
• Typical lifespan: Wooden houses depreciate to near-zero building value in 20-25 years (the land value remains), though well-maintained homes last much longer structurally

New vs Used (新築 vs 中古)

新築 (new construction) comes with a premium — typically 20-30% more expensive than comparable used properties. You get the latest earthquake resistance standards (新耐震基準, post-1981; and even stricter 2000年基準 for wooden houses), energy efficiency, modern layouts, and builder warranties (10-year structural warranty / 瑕疵担保責任). However, new properties depreciate significantly in the first few years.

中古 (used properties) offer better value for money, especially if the building is 10-20 years old. The key is to check the 耐震基準 (earthquake resistance standard) — properties built before June 1981 use the old standard (旧耐震) and may not qualify for mortgage tax deductions or certain insurance benefits. A professional inspection (ホームインスペクション, typically ¥50,000-100,000) is highly recommended for used properties.

The buying process step by step — 購入の流れ

The typical property purchase in Japan takes 2-3 months from finding a property to receiving the keys. Here's the full process:

Complete costs breakdown — 諸費用の内訳

The purchase price is only part of the total cost. Budget an additional 7-10% of the property price for upfront costs. Here's the full breakdown:

Getting a mortgage as a foreigner — 外国人の住宅ローン

Foreigners can get mortgages in Japan, but the options are more limited than for Japanese nationals. The key factors that determine your eligibility:

• Permanent residency (永住権) — the single biggest factor. With PR, nearly all major banks will consider your application on the same terms as Japanese nationals. Without PR, your options narrow to a handful of banks.
• Visa type and residency length — work visas with 3+ years of residency are generally accepted by the more foreigner-friendly banks, even without PR.
• Japanese spouse — having a Japanese spouse (or a spouse with PR) significantly improves your chances, as they can co-sign the loan.
• Income and employment — stable employment (正社員) at a known company, with 2+ years of continuous employment. Annual income of ¥3M+ is the typical minimum, though ¥5M+ opens more options.
• Down payment — while 100% financing (フルローン) is possible for qualified borrowers, having a 10-20% down payment improves your approval odds and loan terms.

Banks known for lending to foreigners without PR include SMBC Prestia, SBI新生銀行 (Shinsei Bank), 住信SBIネット銀行, and りそな銀行. The government-backed フラット35 (Flat 35) fixed-rate program through 住宅金融支援機構 is also available to foreigners with PR. Current variable rates range from 0.3-0.7%, and fixed rates from 1.2-1.8%.

For a comprehensive breakdown of mortgage options, required documents, and tips for getting approved, see our detailed Home Loan Guide for Foreigners.

Mortgage tax deduction — 住宅ローン控除 (住宅借入金等特別控除)

Japan offers a significant tax benefit for homeowners with mortgages. The 住宅ローン控除 (housing loan deduction) allows you to deduct 0.7% of your outstanding loan balance directly from your income tax each year, for up to 13 years (new construction) or 10 years (used properties).

This is a tax credit (税額控除), not a deduction — it reduces your tax bill directly, yen for yen. For a ¥40M mortgage, that's up to ¥280,000 per year in tax savings. If the credit exceeds your income tax, the remainder can be applied against your 住民税 (resident tax) up to a limit. Over 13 years, the total tax savings can reach ¥2-4 million.

To qualify, the property must meet these conditions (as of 2026, per 国税庁タックスアンサー No.1213):

• The mortgage term is 10 years or more
• The property is your primary residence (自ら居住する) — investment properties don't qualify
• The floor area is 50 sqm or more (40 sqm for certain new construction until 2025)
• For used properties: must meet the 新耐震基準 (post-1981 earthquake standard) or have an 耐震基準適合証明書
• Your annual income is ¥20 million or less
• You move in within 6 months of acquisition

The maximum loan balance eligible for the deduction varies by property type and environmental performance:

Working with real estate agents — 不動産会社の選び方

In Japan, almost all property transactions go through a licensed 不動産会社 (real estate company). Unlike some countries where you can buy directly from sellers, the agent-mediated system is deeply embedded in Japanese real estate law and practice. Here's what you need to know:

Agent fees: The maximum commission is set by law at (property price x 3%) + ¥60,000 + consumption tax per the 宅地建物取引業法. This is split between the buyer's and seller's agents. If the same agency represents both sides (両手取引), they collect from both parties. You only pay the fee upon successful closing — no upfront costs for the agent's services.

English-speaking agents: Several agencies specialize in serving foreign buyers:

• Plaza Homes — one of the oldest English-language real estate agencies in Tokyo. Strong reputation, wide inventory.
• Real Estate Japan — online platform with English listings and agent referrals across Japan.
• Housingjapan — English-speaking team specializing in Tokyo residential properties.
• Tokyo Portfolio — focuses on investment properties but handles residential as well.

Using an English-speaking agent typically costs the same as a Japanese agent (the commission is standard). The advantage is that they can explain the 重要事項説明 in English, handle negotiations, and guide you through paperwork. The trade-off is that their inventory may be smaller — they're showing you properties from the same nationwide database (REINS), but may not cover every local listing.

After you buy: ongoing costs — 購入後の維持費

Owning property in Japan comes with recurring annual and monthly costs beyond your mortgage payment. Make sure to factor these into your budget:

Fixed asset tax — 固定資産税

Every property owner in Japan pays 固定資産税 (fixed asset tax) annually. The rate is 1.4% of the assessed value (固定資産税評価額), which is typically 50-70% of the market value. So for a property with a market value of ¥50M, the assessed value might be ¥30M, resulting in an annual tax of about ¥420,000. In addition, properties in urban planning zones (市街化区域) are subject to 都市計画税 (city planning tax) of up to 0.3%, bringing the combined rate to about 1.7% of assessed value.

New residential properties receive a temporary reduction: the 固定資産税 on the building portion is halved for the first 3 years (一般住宅) or 5 years (認定長期優良住宅 for マンション). Tax bills arrive from the local government in April-May and can be paid in 4 installments.

Management fee (マンション only) — 管理費

If you buy a マンション, you'll pay a monthly 管理費 (management fee) that covers building maintenance, cleaning, security, garbage collection, and management company fees. Typical range: ¥10,000-30,000/month depending on the building size, age, and amenities. Luxury buildings with a concierge and gym can charge ¥50,000+.

Repair reserve fund (マンション only) — 修繕積立金

The 修繕積立金 is a monthly contribution to the building's repair fund, used for major renovations (大規模修繕) every 12-15 years — exterior painting, waterproofing, elevator replacement, pipe work. Typical range: ¥10,000-25,000/month. This tends to increase over time as the building ages and repair costs grow. Before buying a マンション, check the 長期修繕計画 (long-term repair plan) and current reserve balance — underfunded reserves can lead to large special assessments (一時金).

Frequently Asked Questions — よくある質問