Can foreigners buy property in Japan? A Guide to buy a house in Japan

Japan’s real estate market is gaining more attention from foreigners than ever before. Its respected culture and amazing cuisine makes Japan an attractive place to consider living—or even more, buying a property!

But you may wonder, “Can foreigners buy property in Japan? If so, how?” This article will provide answers to your question with details on taxes, fees, housing prices, cautionary points. We have also prepared a list of recommended property listing sites that are in English. The convenient payment option, Wise will also be introduced in the article.

Table of contents

What the current housing market looks like in Japan Types of property ownership in Japan Taxes and fees you should consider as a foreigner in Japan Can a foreigner get a housing loan or mortgage in Japan? Recommended property listing sites Step by step guide for buying a property in Japan as a foreigner Things to keep in mind when buying a property in Japan Buying property in Japan? Send money with Wise for lower fees and mid-market rate

The information in this article is current as of December 18, 2025. We do not represent or warrant that this content is accurate or up-to-date. Furthermore, the contents of this article are intended for reference purposes only. If you require professional advice or opinions, please contact a financial adviser or a qualified specialist.

What the current housing market looks like in Japan

Below is a chart showing housing property prices by city in Japan. Average price for buying a house in the most recent two months. (As of December 18, 2025).¹

City	City center (per m²)	Outside center (per m²)
Tokyo	58.34 million JPY	45.28 million JPY
Yokohama	49.53 million JPY	33.97 million JPY
Osaka	28.24 million JPY	18.16 million JPY
Nagoya	37.61 million JPY	31.14 million JPY
Sapporo	26.52 million JPY	18.25 million JPY

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Types of property ownership in Japan

In Japan, land and building ownership are separate. There are two different types of property ownership: Freehold Ownership* (Shoyuken) *and Leasehold Ownership (Shakuchiken).

Freehold Ownership

Freehold ownership is when you have permanent rights to own both the land and the buildings. You can modify the land and buildings as well as passing the ownership to your heirs in the future.

Basically you’ll have full control of the land and buildings, ideal for investors who wish to have long-term value growth. It is worth noting that Freehold requires a higher initial cost than Leasehold.

Leasehold Ownership

Leasehold ownership on the other hand is when you have the right to own a building while renting the land. Oftentimes, Leasehold is seen in cities with high land value. Leaseholders can use the land for a set amount of time.

There is more flexibility and lower initial cost (usually 30% less on average) compared to Freehold ownership.

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Taxes and fees you should consider as a foreigner in Japan

Keep in mind that you’ll need to pay taxes and fees before (or in order to) buy a property and after you’ve bought the property. In Japan, taxes on land and buildings are assessed separately.

Type of tax and fees	What is it?
Real Estate Acquisition Tax²	One-time tax that the buyer needs to pay to local governments when purchasing real estate. Generally 4% of the property’s appraised value.
Registration License Tax	Tax that the buyer needs to pay when registering property ownership. For new properties, 0.4% of appraised value and for used properties, 2.0%.
Annual Fixed Asset Tax³	Annual tax that property owners pay. Notification of the tax is sent to the owner as of the 1st of January every year. \ Typically 1.4% of the appraised value but more % may apply depending on location.
City Planning Tax³	Tax that the owner needs to pay to allot for expenses required for city planning or land readjustment projects. Typically 0.3% assessed value of fixed assets, but it can vary depending on the municipality.
Consumption Tax	10% consumption tax to the building portion of the property that the buyer needs to pay when purchasing a new property.
Judicial Scriveners Fees	Fees paid to a judicial scrivener who handles legal paperwork and registration of the property. Generally it costs around 10,000-50,000 JPY.
Stamp Duty	Fees on real estate sales contracts and other documents. The amount is set on the sale price. The higher the transaction amount, the higher the tax.

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Can a foreigner get a housing loan or mortgage in Japan?

A foreigner may be able to get a mortgage only if they have the legal right to live in Japan. It can be challenging without the permanent residency or long-term resident status.

There are requirements for foreigners who wish to receive mortgages.

When applying for loans and mortgages from a Japanese bank, the following will be observed by the bank:

• Annual household income or stable income
• Employment history and current employment status
• Existing debt and credit history
• Japanese language proficiency (required by some banks)

Duration of your residence, ideally a minimum of 5 years in Japan under work or residence status, is a plus. In addition, your history of tax compliance without any penalties or fines will show credibility towards the Japanese economy.

Even if you don’t have permanent residency, there are alternative ways you can look into:

• Some Japanese banks or financial institutions offer special loans, but often require higher down payments and interest rates
• International banks (with Japanese branches) may offer mortgages
• You might be able to co-sign your mortgage application if you have a Japanese spouse or a permanent resident family member.

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Recommended property listing sites

Here are some real estate property listing sites that are recommended for foreigners:

• Real Estate Japan⁴
• wagaya Japan⁵
• BEST-ESTATE.JP⁶

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Step by step guide for buying a property in Japan as a foreigner

As a foreigner, buying a property in Japan may seem complicated with all the tax and fees along with the language barrier. It requires multiple steps and considerations in terms of risks and cautions.

Here is a step-by-step guide for your reference:

1. Search for a property online
   • Details on the property are important, but also consider the neighborhood for its; publication access, nearby buildings, school quality, nearby development plans, etc.
2. Get in touch with a property agent
   • Arrange a viewing with the property agent of the real estate in charge of the property
3. Visit property
   • From the online listing, you may not see all—the floors, walls, fixtures, sunlight, smell, etc.
   • Visiting will let you have more ideas on the size and spaces that are crucial for furniture and storage.
4. Negotiate and submit your letter of intent
   • Price reductions are uncommon in Japan. It is better to submit a formal offer that is realistic and close to the asking price.
5. Arrange a due diligence and property inspection
   • Due diligence is a broad investigation that includes legal, financial, environmental,and zoning checks.
   • When issues are revealed, these information can help to negotiate a lower purchase price or ask for repairs before purchase.
6. Review the explanation of important matters
   • You’ll receive the Explanation of Important Matters, a document including the details of the property’s condition, legal status, restrictions, etc. By law, this must be explained by the licensed professional before you sign the contract.
7. Sign purchase agreement and pay the deposit
   • The Purchase Agreement lists the price, payment schedule, closing date, and other special conditions. Read it carefully and if you agree, you’ll then pay the deposit.
   • A money deposit (usually 100,000-150,000 JPY) must be paid and is usually applied to the purchase price.
8. Get a pre-approval of your housing loan/mortgage
   • Don’t expect a Japanese bank to hand you a sheet prepared in English. Some banks may even require you to have sufficient Japanese language ability.
9. Sign the contract and make a down payment
   • The title transfer is handled by the judicial scrivener who ensures that all documentation is filed.
   • Typically, buyers pay a down payment of at least 10-20% of the property value, but foreigners may be asked to pay 30% or more because they are seen as having higher risk and complexities in evaluating credit risk.
10. Receive your key and settle finally

• Once everything is finalized, you’ll receive the keys and property registration certificate.

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Things to keep in mind when buying a property in Japan

Language barrier

Oftentimes, there is a language barrier and limitation to English documents unless it is a global real estate company. Especially if you’re navigating the tax and fees for buying a property, you don’t want to miss out important information. Working with bilingual professionals can help you in these circumstances.

Cost of the house maintenance

If you purchase used properties, you could expect high maintenance costs. Also depending on the region, there could be higher chances of natural disasters like flooding, typhoons, earthquakes, tsunamis, landslides etc. It is crucial to check the property’s geographical location to consider potential risks.

Property ownership will not give you the citizenship

Keep in mind that buying real estate in Japan does not grant residency, permanent residency or citizenship to the owner. There aren't any visa programs in Japan that provide residency through property investment. You must have a valid visa or residency status to live in Japan long-term.

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Buying property in Japan? Send money with Wise for lower fees and mid-market rate

When purchasing real estate in Japan, you frequently need to send money overseas for down payments, balance payments, and management fee transfers.

However, if you use a typical bank for transfers to Japan, you may incur hidden fees in the exchange rate and high transfer fees, potentially losing a lot of money without realizing it.

That is why we recommend Wise.

With Wise, you can cut the exchange rate markup that banks often add and send money using the real exchange rate (the mid-market rate).

The fees are transparent, and all procedures can be completed online. It is a trusted service used by over 16 million people worldwide.

If you need to send money overseas to Japan, we recommend using Wise to cut high exchange rate markups and transfer fees.

Sign up for Wise 🚀

Key takeaways

• There are various taxes and fees you must pay before buying a property in Japan and after owning the property.
• A foreigner would be able to get a mortgage if they have the legal right to live in Japan, but it could be challenging as there are requirements.
• Language barriers might make it difficult to buy property smoothly. It is best to have a bilingual expert who can help you throughout the process.

Sign up for Wise 🚀

The information in this article is current as of December 18, 2025. We do not represent or warrant that this content is accurate or up-to-date. Furthermore, the contents of this article are intended for reference purposes only. If you require professional advice or opinions, please contact a financial adviser or a qualified specialist.

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Sources:

1. REINS Market Information
2. 不動産取得税計算ツール|不動産取得税|東京都主税局
3. 固定資産税・都市計画税（土地・家屋）|不動産と税金|東京都主税局
4. Real Estate Japan
5. wagaya Japan
6. Best-Estate