Can Foreigners Own Property in Japan? A Complete Guide

Japan is one of the few countries in Asia where foreigners can legally and fully own property. Whether you’re dreaming of a seaside retreat, a cozy mountain cabin, or a quiet countryside fixer-upper, Japan’s real estate market offers opportunities — especially with the rise of akiya (vacant homes).

But what are the rules, what’s possible, and what should you watch out for? This article breaks it all down.

Yes, Foreigners Can Buy and Own Property in Japan

There are no nationality or residency restrictions on owning real estate in Japan. Foreigners — even without a visa — can purchase both land and buildings outright, with freehold ownership.

This means:

• You don’t need to be a Japanese citizen.

• You don’t need permanent residency.

• You don’t even need to live in Japan.

Whether you’re a tourist, a short-term visitor, or living abroad, you are legally allowed to buy property — and many do.

What Types of Property Can You Own?

You can own:

• Houses (with land – known as freehold).

• Apartments (manshons – where you own the unit, not the land).

• Commercial property.

• Vacant land.

• Akiya — Japan’s famous abandoned homes.

The key term to look for is “freehold” (所有権 / shoyuuken) — meaning full ownership. Avoid “leasehold” (借地権 / shakuchiken) if you want permanent rights to the land.

Can You Buy Property Without Being in Japan?

Yes — you can purchase property remotely. Many foreigners work with:

• A bilingual real estate agent.

• A Japanese lawyer or judicial scrivener (司法書士 / shihō shoshi).

• A trusted proxy via Power of Attorney.

However, it’s strongly recommended to visit the property in person before making an offer. Photos and videos rarely convey a home’s true condition — especially for older, rural homes that may require repairs.

What About Visas and Residency?

Owning property in Japan does not give you a visa.
Buying a home doesn’t entitle you to live in Japan long-term. If you want to stay for more than 90 days at a time, you’ll need a proper visa, such as:

• Work Visa

• Spouse Visa

• Investor/Business Manager Visa

• Permanent Resident Visa

• Long-Term Resident or Student Visa

As a tourist, you can stay up to 90 days per visit, usually capped at 180 days per year in total. During that time, you can use the property as a vacation home or rental (within legal limits).

Can Foreigners Get a Mortgage in Japan?

It’s very difficult — but not impossible.

If you are a non-resident:

• Japanese banks will almost always deny your mortgage application.

• You’ll likely need to pay in full with cash, especially for cheaper, rural properties.

If you are a resident with a visa:

• You may qualify for a mortgage if you:

  • Have a stable income in Japan.

  • Can provide a Japanese inkan (seal).

  • Have a strong credit history and tax record in Japan.

Banks like MUFG, Shinsei Bank, or SBI may offer financing to foreigners, but only under strict conditions.

Are There Taxes and Ongoing Costs?

Yes — owning property in Japan comes with several regular expenses:

Taxes:

1. Acquisition Tax: ~3–4% of property value (one-time).

2. Registration Fees: ~0.4–2% for recording the ownership.

3. Annual Fixed-Asset Tax (固定資産税): ~1.4% of the property’s assessed value.

4. City Planning Tax (都市計画税): ~0.3% in urban areas.

Other Costs:

• Maintenance or repairs (especially for akiya).

• Utilities (water, electricity, gas).

• Management fees (for condos).

• Insurance.

If you live outside Japan, you’ll need a Japanese tax representative to handle your property taxes.

What Are the Challenges for Foreign Buyers?

Here are a few real-world obstacles to keep in mind:

• Language Barrier: Most listings and contracts are in Japanese.

• Location Bias: Many cheap properties are in rural areas, often far from cities, schools, or public transit.

• Renovation Costs: A $10,000 house may require $50,000 in repairs. Inspections are a must.

• Legal Paperwork: Japan has a strict and formal buying process that’s hard to navigate without a local agent.

• Utilities and Services: Setting up water, gas, and electricity can be complex without a local address or phone number.

Why So Many Vacant Homes?

Japan’s akiya problem is caused by:

• Declining birth rates and an aging population.

• Urban migration — people are leaving the countryside.

• A strong cultural preference for new construction over old homes.

That’s why some areas offer homes for next to nothing — and some municipalities even offer subsidies or grants if you move in and renovate.

So, Should You Buy Property in Japan?

Here’s a quick summary:

Final Thoughts

Owning property in Japan is absolutely possible for foreigners — and increasingly popular. With the right research, support, and expectations, it can be an incredible opportunity to:

• Create a vacation retreat.

• Renovate a dream countryside home.

• Live more affordably in Japan.

But it’s also a serious legal and financial commitment. If you’re planning to buy, make sure to:

• Work with trusted, bilingual professionals.

• Do due diligence on any property (especially akiya).

• Understand that this is often a lifestyle investment, not a financial one.

Want Help Finding a Home?

If you’re curious about buying property in Japan — especially affordable options — consider subscribing to Akiya Weekly, a newsletter featuring 10 handpicked property deals across Japan, every week. You’ll also get tips, maps, and articles like this one delivered to your inbox.

Let me know if you’d like to start your search, or need help connecting with agents and translators.