Buying Property in Tokyo as a Foreigner: Complete Guide (2026)

Japan places no legal restrictions on foreign nationals purchasing real estate. Whether you hold a tourist visa or permanent residency, you can buy an apartment or house in Tokyo in your own name. This guide walks you through the entire process — from understanding what you can buy, to completing the paperwork and handling the costs.

Written by a licensed real estate agent (宅建士) based in Tokyo. This guide reflects current market practice as of 2026 and is based on first-hand experience helping foreign nationals navigate property purchases across Tokyo.

Can Foreigners Really Buy Property in Japan?

Yes — and the rules are simpler than most people expect. Japan has no reciprocity requirement, no minimum investment threshold, and no cap on foreign ownership. You do not need residency, a Japanese partner, or a local company structure to purchase residential property.

The main practical challenge is not legal — it is logistical. Getting a mortgage as a non-resident is difficult (more on that below), and some paperwork requires a registered seal (印鑑) or a Japanese address. But for buyers paying in cash or using overseas financing, the transaction is straightforward.

Types of Property Available to Foreign Buyers

Condominium (マンション)

The most common choice for foreign buyers. You purchase a specific unit and receive a sectional ownership certificate (区分所有権). Shared areas — the lobby, elevators, exterior — are co-owned with other residents via a management association (管理組合). Monthly management fees (管理費) and building repair fund contributions (修繕積立金) apply.

Key things to check before buying a condominium: the financial health of the management association, the repair fund balance, any outstanding large-scale repair works, and the age of the building (buildings over 30 years old carry additional risk).

Detached House (一戸建て)

You own the structure and (usually) the land outright. No management fees, but all maintenance is your responsibility. Houses depreciate quickly in Japan — a 20-year-old wooden structure is worth essentially nothing in the market, though the land retains value. Many buyers in the detached house market purchase specifically for the land, with plans to rebuild.

Freehold vs. Leasehold Land

Most Tokyo property is sold on freehold land (所有権), meaning you own both the structure and the land beneath it. Leasehold properties (借地権) are cheaper to buy, but you only own the building — the land is leased from a separate owner on a 30–50 year term. Leasehold properties are harder to resell, difficult to mortgage, and carry long-term tenure risk. Unless you have a specific reason to buy leasehold, avoid it.

New vs. Resale Market

New construction (新築) is bought directly from a developer — often before completion (青田売り). You get modern earthquake standards, a builder warranty, and no renovation needed. The trade-off is premium pricing with little room to negotiate, and in pre-sale situations you cannot see the finished unit before signing.

Resale (中古) offers broader selection, room to negotiate, and the ability to inspect what you are buying. Older buildings (pre-1981 or pre-2000) may not meet current earthquake standards and will likely require renovation. A professional building inspection (ホームインスペクション) is strongly recommended for any resale purchase. In Tokyo’s current market, resale condominiums in central wards have held value strongly — in some cases exceeding new-build prices in prime locations.

The Buying Process: Step by Step

A typical Tokyo property purchase takes 6–12 weeks from offer to key handover.

1. Property search and viewing (内見) — Use SUUMO, at-home, or Homes; work with a bilingual agent from the outset.
2. Purchase offer (購入申込書) — Written intent to purchase. Not legally binding, but the seller will typically stop showing the property to others.
3. Important Matters Explanation (重要事項説明) — A licensed agent (宅建士) walks through all legal, structural, and management details. Takes 2–3 hours. Remote delivery is permitted since 2022.
4. Sales contract (売買契約) — Both parties sign. You pay the earnest money deposit (手付金), typically 5–10% of price. Backing out after this forfeits your deposit.
5. Settlement and registration (決済・登記) — Remaining balance is paid; a judicial scrivener (司法書士) registers the ownership transfer. Keys handed over same day.

Full Cost Breakdown

Budget approximately 6–8% of the purchase price on top of the property itself to cover transaction costs.

Cost Item	Amount	Notes
Agent Commission (仲介手数料)	3% + ¥60,000 + tax	Paid to buyer’s agent; not always charged
Registration Tax (登録免許税)	0.4–2% of assessed value	Ownership transfer + mortgage registration
Stamp Duty (印紙税)	¥10,000–¥60,000	Based on contract value
Real Estate Acquisition Tax (不動産取得税)	~3% of assessed value	Billed 3–6 months after purchase
Judicial Scrivener Fee (司法書士報酬)	¥80,000–¥150,000	For registration work
Building Inspection (ホームインスペクション)	¥50,000–¥100,000	Optional but strongly recommended
Fire Insurance (火災保険)	¥30,000–¥100,000/year	Required with a mortgage

Ongoing costs after purchase: annual fixed asset tax (固定資産税, ~1.4% of assessed value), condo management fees (管理費 + 修繕積立金, usually ¥20,000–¥50,000/month in central Tokyo), and property management fees if renting out (5–10% of monthly rent).

Mortgages for Foreign Buyers

Permanent residents (永住権) are generally eligible for the same mortgage products as Japanese nationals — major bank loans and フラット35 products are available.

Long-term residents without PR may find some regional banks and credit unions willing to lend, but expect lower LTV ratios (60–70% vs. 80–90%), higher rates, and intensive documentation. A handful of international banks with Japanese branches offer non-resident mortgage products for high-net-worth clients.

Non-residents and cash buyers face no legal obstacle to the transaction itself, but will need to manage currency transfer logistics and Japanese tax reporting obligations from the moment of purchase.

Documentation Required

• Passport (and residence card / 在留カード if resident)
• My Number (マイナンバー) — required for tax reporting at settlement
• Registered seal (実印) or notarised signature certificate — overseas buyers can substitute a notarised signature certificate for the Japanese registered seal
• Japanese bank account — strongly preferred; overseas wire transfers are possible but require additional AML documentation
• Tax representative (納税管理人) appointment — required for non-residents to handle Japanese tax obligations in their absence

Taxes After Purchase

Fixed Asset Tax (固定資産税) is levied annually at 1.4% of the government-assessed value (typically 60–70% of market price), plus 0.3% urban planning tax in most of inner Tokyo.

Rental income tax: non-residents face 20.42% withholding on gross rent, reduced by applicable tax treaties (Japan has treaties with the US, UK, Australia, and most EU countries).

Capital gains tax on sale: approximately 39% for property held under 5 years (short-term) and approximately 20% for property held 5 years or more (long-term). Non-residents face 10.21% withholding at source under most treaty arrangements.

Common Mistakes to Avoid

• Buying leasehold without understanding the implications — the lower purchase price masks long-term tenure risk and resale difficulty.
• Skipping the building inspection — a ¥70,000 inspection can save you millions in unexpected repairs on older properties.
• Underestimating transaction costs — budget 6–8% on top of the purchase price before you negotiate.
• Ignoring tax obligations — particularly for non-residents unaware of withholding tax, fixed asset tax bills arriving months later, and the need for a tax representative.
• Relying solely on the seller’s agent — double agency is legal in Japan. Engage an independent bilingual lawyer or buyer’s advocate to review all documents.

Frequently Asked Questions

Do I need to be in Japan to complete the purchase?

No. With a notarised power of attorney (委任状), a representative in Japan can sign on your behalf.

Does buying property give me residency rights?

No. Japan does not offer an investor visa or golden visa tied to real estate purchase. Property ownership has no bearing on visa status.

Is earthquake insurance required?

No — but strongly recommended. Standard fire insurance does not cover earthquake damage. A separate earthquake rider (地震保険) can be added, covering up to 50% of the fire insurance payout limit.

Related Guides

• Renting in Japan: The Complete Guide for Foreign Residents
• Japan Apartment Initial Costs Explained
• Japan Guarantor System: Options for Foreign Renters
• Japan Lease Agreement Explained in English
• Best Neighborhoods in Tokyo for Expats
• Japan Property Purchase Costs Explained: Every Fee Foreign Buyers Pay
• New vs. Resale Property in Tokyo: A Foreign Buyer’s Comparison Guide
• How to Get a Mortgage in Japan as a Foreigner
• Japan Property Sales Contract Explained in English (売買契約書)