How To Buy A House In Japan As A Foreigner

Many foreigners, both in and outside Japan, are interested in buying a house in Japan. If that sounds like you, you've come to the right place!

This article discusses how to buy a house in Japan as a foreigner and what documents you need to make the process smooth.

Can a foreigner purchase property in Japan?

Yes, foreigners can buy property in Japanese real estate. You do not need to hold permanent residency status or hold any visa type when buying into the Japanese property market.

One regulation that affects foreigners would be the Foreign Trade Control Act, which bans foreigners from buying property that is close to Japan's Self Defence bases, and property that is designated as "agricultural" or "forest."

The Foreign Exchange and Foreign Trade Act (FEFTA) restricts:

• Agricultural land (requires government permission)

• Forestry land (requires government permission)

• Properties within 1km of Self-Defense Force bases

• Some condominium buildings may have internal rules restricting foreign ownership

Aside from those legal restrictions, the only other barriers foreigners may face are the language barrier and lots of paperwork, which we'll get into later.

How to buy a house in Japan as a foreigner living abroad

Let's go over the general steps for buying a house in Japan.

Step-by-step guide for buying a house as a foreigner

Buying a house in Japan: a step-by-step guide

1. Use akiya banks and real estate websites

There are many akiya banks and real estate market websites for foreigners with property listings.

These sites will show you the available residential properties in and around Japan, including akiya houses for sale and newly built houses.

If you're currently living overseas, depending on the real estate agency, real estate staff can arrange an online viewing of the property.

Note: Interested in learning how to evaluate an akiya purchase? Check out this interview with Akiyaz.io founder, Matt Ketchum.

2. Submit your purchase application

Submit a purchase application once you decide on your property purchase.

The real estate agency you work with will help you with the application process, from filling out necessary forms to submitting required documents and ensuring all legal requirements are met.

Once the application is approved, the sales agreement outlining the terms and conditions of the sale will be drafted.

3. Payment and transfer of ownership

For this final step, it's best to be in Japan so that you can attend the signing of the sales agreement.

Additionally, for the property to legally be in your name, you and a judicial scrivener must submit a property register certificate (登記簿謄本, tokibotohon) to the Legal Affairs Bureau.

👉 Looking for an English speaking realtor? Check out this article!

Important documents when buying a house in Japan as a foreigner living abroad

Foreigners who are not residents of Japan and have no visa status will need to prepare several key documents when buying property in Japan.

a) Affidavit of residency or citizenship status

A legal document proving your residency or citizenship status outside Japan is usually prepared by a lawyer.

b) Power of attorney

This is a document granting the local real estate agent in Japan the authority to complete real estate transactions on your behalf.

c) Utility bill management

How to pay bills through MailMate’s online dashboard

While you may not always plan to stay in your Japanese property, you'll still need a plan in place to pay for your utilities—such as your gas, electricity, water, and internet bills—while you are away.

Using a virtual mailbox service like MailMate allows you to receive your mails and bills online and MailMate will help pay your bills on your behalf.

d) Translation service

If you are in contact with a Japanese akiya and real estate company that does not provide bilingual services, using a translation service is extremely helpful for better communication. About 2-3 days of their service is needed.

e) Tax agent / tax representative

After you've purchased your house, if you don't plan on living there full time, you'll want to appoint someone in Japan to handle your property tax, real estate acquisition tax, fixed asset tax, and city planning tax payments on your behalf when you are away from the country.

Designate MailMate as your tax agent to help you handle all property-related taxes!

Purchase costs (in addition to property price)

Here's a breakdown of what your real estate purchase will cost, including fees and taxes.

Total Additional Costs: 8-12% of property price

Annual ongoing costs for a house in Japan

Your investment property in Japan will have ongoing annual costs. Here's an overview of what to expect.

How to buy a house in Japan as a foreigner

Now, it's time to tackle how to buy a house in Japan as a foreigner who is a resident of Japan (i.e., with a Japanese visa).

Buying a house in Japan is similar to renting a place here—give or take a few more documents.

Here's what to expect as a resident foreigner:

Requirements for foreigners buying a house in Japan

As a foreigner living in Japan, you will need to prepare these items when buying a house in Japan.

1. Valid residence card

Example of residence card from ISA Japan

All foreigners living in Japan are required to have a residence card (在留カード, zairyu card).

2. Registered seal

Example of registered seals

For formal documents in Japan, instead of signing with a signature, you will need a jitsuin (実印), a registered hanko with the municipal office of a city, ward, town, or village.

Depending on the real estate company and agent, you may be able to get by without one. However, the paperwork process will go a little more smoothly if you have at least a hanko.

Obtaining a hanko is inexpensive. I got mine for about 600 yen (less than $5). I used my hanko for my rental apartment agreement, and I also needed one when getting a Japanese bank account.

After registering your seal, you will receive the registration certificate (印鑑証明書, inkan shomeisho), which is equivalent to a notarized signature.

If you don't have a hanko, you may be able to use a notarized signature instead.

3. Bank account in Japan

Opening a bank account in Japan can be difficult for foreigners, but once you have one, you're all set. A few English-friendly bank accounts for foreigners include:

• Shinsei Bank

• SMBC Trust Bank

• Sony Bank

• Japan Post Bank (Yucho)

Having a bank account in Japan when buying a property in Japan demonstrates financial stability and credibility.

4. A loan from a Japanese bank

Loans are not always required, such as when paying in full or making the payment in cash.

However, some Japanese banks and Japanese financial institutions offer special financing options or incentives for those who are interested in buying property in Japan.

So contact your Japanese bank to see their options.

5. Guarantor from a guarantor company

Sometimes, a guarantor from a guarantor company is needed when buying property in Japan for additional financial security to lenders or sellers.

The guarantor company assures the lender or seller that payments will be made, even if the buyer cannot.

In some cases, Japanese banks and real estate companies will require a guarantor. However, not all banks and real estate agreements will require you to have one so you'll want to ask your bank for details.

Timeline expectations

Understanding the typical timeline for a property purchase can help set realistic expectations and reduce stress throughout the process.

Below is a general week-by-week breakdown, highlighting the key milestones from the initial research phase to final ownership transfer.

Typical purchase timeline: 6-12 weeks total

Week 1-2: Research phase

• Property search and shortlisting

• Initial agent contact

• Document preparation begins

Week 3-4: Viewing phase

• Property visits or virtual tours

• Professional inspections

• Neighborhood research

Week 5-6: Application phase

• Purchase application submission

• Price negotiation

• Contract preparation

Week 7-8: Contract phase

• Contract review and signing

• Earnest money payment

• Loan application (if applicable)

Week 9-12: Completion phase

• Final inspections

• Property registration

• Ownership transfer

• Post-purchase setup

Due diligence checklist

Before committing to a property purchase, it’s essential to conduct thorough due diligence to uncover any legal, structural, financial, or neighborhood-related issues that could affect your investment.

Legal verification

• Property title search (登記簿謄本) - confirm clean ownership

• Building confirmation certificate (建築確認通知書) - legal construction

• Land survey (測量図) - verify boundaries

• City planning designation - zoning and building restrictions

• Outstanding debts or liens - mortgage or tax obligations

• Earthquake hazard map - seismic risk assessment

Physical inspection

• Structural integrity - foundation, walls, roof

• Plumbing and electrical - age and condition of systems

• Insulation and energy efficiency - heating/cooling costs

• Pest inspection - termites, mold, rodents

• Accessibility - stairs, doorways, bathroom access

• Natural disaster risk - flood zones, landslide areas

Financial analysis

• Comparable sales - recent transactions in area

• Rental market analysis - if investment property

• Property tax assessment - annual obligations

• Utility connection costs - gas, water, electricity setup

• Insurance requirements - earthquake, fire, liability

• Renovation needs - budget for immediate repairs

Neighborhood research

• Transportation access - train, bus, highways

• Shopping and services - convenience stores, medical facilities

• School districts - if relevant for families

• Noise levels - traffic, construction, neighbors

• Future development - planned construction projects

• Community associations - chonaikai fees and rules

Professional inspections to order

1. Structural engineer (¥50,000-¥80,000)

2. Pest control specialist (¥20,000-¥30,000)

3. Property appraiser (¥30,000-¥50,000)

4. Legal title search (¥15,000-¥25,000)

Frequently asked questions

What types of properties can foreigners not buy?

The Foreign Exchange and Foreign Trade Act (FEFTA) placed restrictions on buying land that is designated as “forest” or “agricultural” without permission from the Japanese government. Additionally, some buildings will have rules restricting units to non-Japanese residents. While these are less common, that will depend on the property owner.

Can Americans buy property in Japan?

Americans can buy property in Japan as there are no citizenship or residency requirements for property ownership. If you are an American abroad, you can contact akiya banks or real estate agents to help you purchase your Japanese property.

Can I get residency if I buy a house in Japan?

Purchasing or owning property in Japan does not create a pathway to visa status. To get a visa, you must apply for one of Japan's visa types (e.g., employee, student, spouse, business manager, highly skilled person, etc.).

How much does it cost to buy a house in Japan?

Housing costs will vary depending on the location of the house you are interested in, the property value, whether the construction is new or not, etc. For example, the purchase price for houses in the Tokyo area can range between 40 million to 80 million yen. Whereas the property price for akiya houses can range from as low as 1 million yen to being entirely free.

How much deposit do I need to buy a house in Japan?

If you are a foreigner with a Japanese visa looking to purchase property in Japan, the deposit may be 20 to 35 percent of the purchase price, depending on the bank you use.

For non-resident foreigners, many Japanese banks may refuse to provide you with a house loan. For those that do, expect the deposit to be between 30 to 40 percent of the purchase price.

In closing

This was a very simple recap of how to buy a house in Japan as a foreigner, whether abroad or in the country.

Understanding the steps and knowing what to prepare will help make the property-buying process easier.

If you're interested in making the process even smoother, consider using MailMate and its property management services.

MailMate can help you pay property taxes, serve as your domestic point of contact and energy liaison, and connect your property to water, gas, electricity, and more.

MailMate's fluently bilingual tax representative service helps property owners stay up to date on their real estate tax bills by liaising between clients and the local government.

The service includes the following features:

• Tax representative for annual real estate tax payments

• Domestic point of contact for authorities (required by law)

• Bill pay support for property tax payments

• Tax notifications with English summaries

• A virtual mailbox to receive the mail that arrives at your Japanese property

• Manage important property documents and notifications in one place

Other services MailMate offers include utility and Internet setup of your Japanese property!

Founded in 2019, MailMate has simplified property ownership for foreigners living abroad and is an increasingly popular option recommended by users and well-known industry figures.

Additionally, if you use MailMate's tax representative service for property owners, MailMate will file the tax representative form with the relevant tax office on your behalf.

Navigate Japan's tax system with an experienced tax representative service tailored for foreign property owners!