Buying property in Japan as a foreigner: Guide for Australians

Can foreigners own property in Japan - either to live in, or as an investment? What rules and restrictions apply, and what taxes do you need to prepare for if you’re thinking of buying property in Japan as a foreigner?

In this guide we’ll look at how to buy property in Japan as well as some important things to consider when sending money overseas for a big ticket purchase like a new home. While property prices in Japan can be very reasonable compared to the costs in Australia, particularly in cities, getting caught out by high transfer fees and bad exchange rates can still push up the amount you pay unnecessarily. We'll also introduce to you Wise that can help you save on international transfers with it's low, transparent fees and mid-market exchange rates.

Can foreigners buy property in Japan?

Let’s start with the key question: can Australians buy property in Japan?

The good news is that Australians can buy property in Japan with more or less no restrictions. You can buy a home in Japan as a resident or non-resident, although the process can be a bit trickier for non-residents, particularly if you’re hoping to finance your purchase with a local mortgage.

It’s also worth noting that there’s ongoing discussion at the time of writing (November 2025) about whether Japan’s foreign property ownership rules should be revised¹. This is due to concerns about foreign ownership of land and properties in sensitive and strategic locations. Make sure you check all the latest news before you plan to buy property in Japan from Australia, in case the rules have changed.

Can foreigners buy land in Japan?

Yes. Foreigners, including Australians, can own land and landed properties in Japan subject to the same rules as Japanese citizens.

How to buy property in Japan?

Buying a new home is exciting, but it’s also pretty daunting. This is especially the case when buying in a new country, where language may be a barrier.

Expect there to be slight differences in the property purchase process compared to your experience of buying property in Australia. Getting familiar with the flow of a property sale can help - plus you’ll need to get local support from an agent and legal professional, and a translator if necessary.

Here’s a step by step overview of buying property in Japan as a foreigner:

Step 1: Search properties online, and view in person

Your first step is likely to be to explore the local real estate market in Japan, based on your budget and personal preferences. This is fairly easy to do with online tools - many real estate websites have great search tools and filters, but some do not offer an English translation. You may need help if your Japanese isn’t up to the task.

Once you’ve found a property you like you can talk to the agent and view it in person. The agent will be a key person in supporting the purchase, and will introduce you to other vital people such as the judicial scrivener who completes the sale transfer once the process is finished.

Step 2: Negotiate a sale price and agree an offer

Working with the property agent you can negotiate a sale price once you’ve found your perfect place. You’ll need to negotiate and agree a sale price, which then allows you to make a formal offer through a purchase application form. You’re likely to be asked to pay an earnest money deposit - your downpayment - which is normally 10% - 20% of the agreed amount.

Talk to your agent about what due diligence checks they advise based on the property type. Getting a building inspection, for example, can be very helpful to spot any defects or issues you may need to know about before you complete the purchase.

Step 3: Get your paperwork together

Before you can proceed in your purchase you’ll need to prepare some paperwork to allow the property deeds to be transferred. These depend on your residence status in Japan.

If you’re not a Japanese resident you’re normally required to provide your passport and an affidavit to validate your identity, certified by a notary public in Australia, or at an Australian embassy or consulate in Japan.

If you are a Japanese resident you can prepare your residence card, proof of identity, your personal seal (hanko), and a certificate of seal impression.

Step 4: Complete the purchase

The final step in the process is usually to complete and sign the formal sales contract. At this point the judicial scrivener will help you transfer the remaining property purchase price to the seller, and formally change the ownership of the property on the deeds. You’ll also need to cover any relevant Japan property tax which is the same for foreigners as for local purchasers.

Tips for buying property in Japan

Buying a property may be one of the most expensive things you ever do. You’ll need to build a good local support team to make sure your experience of buying property in Japan goes smoothly. We’ve also got a few other top tips to help you get organised.

Transferring funds to Japan

If you’re buying your Japanese property from Australia you’ll need to send money from AUD to JPY to pay your downpayment, legal fees, taxes and ongoing mortgage costs. This may mean paying high fees, particularly in currency conversion costs.

Many international payment providers have a low headline cost for sending payments, but include fees in the exchange rate used to convert your currency. This is generally a percentage cost added onto the mid-market rate when calculating the exchange rate used for your conversion. When you're sending a large payment, this can quickly mount up.

Not all providers use an exchange rate markup. Wise uses the mid-market rate and splits out all of the costs involved in converting and sending a payment so you can see them clearly. Plus, with Wise large amount transfers you get automatic fee discounts when you send over 40,000 AUD in one go, or over the course of a month. That can help you spend less when you buy a property in Japan from Australia.

Financing the property: Mortgages in Japan

If you intend to pay for your new home through a mortgage, you may decide to apply locally in Japan for a loan. This is possible, although you might find the process is a bit more complex if you’re not a Japanese resident.

Some banks like SMBC Trust Bank² offer specific mortgage services with English language support which can be very helpful. These loans can run up to 500 million JPY - but not all loan applications are approved, so you’ll need to talk through your eligibility with a member of bank staff before you apply. Another option is Tokyo Star Bank³ which offers a mortgage suited to non-permanent residents of Japan who have been working in Japan for at least 1 year.

If you’re not a resident of Japan you might find that using a specific mortgage broker is helpful in getting connected with banks which may be prepared to offer you a loan based on your specific situation.

Tax when buying property in Japan

The costs of buying a property in Japan aren’t just those included in the sale price. While the exact overall costs depend on many factors, buyers may find it helpful to budget the following⁴:

• Property transfer tax - 3% - 4% of the property value
• Agent fee - around 3% of the property value
• Legal fees - 1% of the property value
• Notary fees - 1.5% - 2% of the property value

Talk the full costs of your purchase through with the agent you’re working with before you proceed so you can check your budget covers everything.

Ongoing taxation on property in Japan

Finally, don’t forget to budget for ongoing property tax costs which can be around 1.4% of the property value, payable to local authorities⁵.

Buying property in Japan from Australia: Summary

Buying property in Japan from Australia is possible, with no additional restrictions compared to buying a property as a Japanese citizen. However, bear in mind that the process may be different to what you’re used to, and the language barrier can further complicate things. Get a strong local support team including a great property agent to help.

It’s also well worth looking at ways to limit the unnecessary costs associated with buying a property overseas, such as excess currency conversion and international transfer fees. Take a look at Wise to get the mid-market exchange rate, and automatic fee discounts when you send a large amount transfer.

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