In recent years, Japan’s real estate market has been attracting growing attention from overseas. Urban areas such as Tokyo, Osaka, and Kyoto are especially popular owing to rich tourism resources, safety, and well-developed infrastructure, leading to a growing interest in high-end properties.

This article provides a clear and easy-to-follow step-by-step guide for foreigners looking to purchase real estate in Japan, especially for first-time buyers.

Step ① Clarify Your Purpose for Purchase

First, determine the purpose of buying property in Japan.

• For living in Japan with your family

• For long-term investment or asset preservation

• As a vacation home or second residence

• For rental income (income gain)

The area and type of property you should purchase (e.g. house, condominium, or sectional ownership) will vary greatly depending on purpose.

Step ② Decide Your Budget and Funding Source

In Japan, obtaining home loans is difficult for foreigners. Thus, many buyers opt for:

• Pay in full with cash

• Purchase under a local corporation name (for commercial purposes)

To obtain a mortgage in Japan, holding permanent residency or having stable income in Japan is often indispensable. Therefore, securing the funds in advance is essential.

Additionally, consulting with professionals such as accountants is crucial because of remittance rules and tax-reporting obligations.

Step ③ Select a Trustworthy Real Estate Agent

Foreigners may face challenges such as language barriers, differences in legal systems, and gaps in business practices.

The key to success is to select a real estate agency familiar with Japanese systems and culture, and that can support you in English, Chinese, or other languages.

A reliable real estate agent can offer the following support:

• Hearing of your requirements

• Property proposals and arrangement of on-site visit

• Translation and legal review of contracts

• Handling legal registration and tax paperwork

• Post-purchase property management and rental support

Step ④ View Properties and Decide to Purchase

Once you find a property that interests you, schedule a viewing.

For those living overseas, more real estate companies now offer proxy viewings or video tours. Even if it’s difficult to visit the property in person, your decision can be supported with photos, videos, and reports on the surrounding area.

Once you decide, submit a “Purchase Application” and proceed to price negotiations and condition adjustments.

Step ⑤ Conclude the Sales Contract and Make the Payment

Once terms are agreed upon, the process moves forward to the sales contract.

Main documents required at this stage include:

• Passport

• Proof of address (issued in your country of residence)

• Documents verifying the source of funds (proof pf remittance origin, etc.)

At contract signing, a deposit (usually 5–10%) is paid, and the remaining balance is paid upon property handover.

A judicial scrivener will handle the legal registration, and the ownership of the property is officially transferred to the buyer once the title is transferred.

Step ⑥ Post-Purchase Management and Tax

After the purchase, the following ongoing obligations apply:

• Annual payment of fixed asset tax and city planning tax

• Payment of management fees and repair reserve funds (for condominiums)

• Handling of rental contracts and tenant issues if the property is rented out

Especially for those living abroad, partnering with a trustworthy property management company ensures stable operations, including tax filings and rental management.

Summary: The Right Partner Makes It Easy

Foreigners can legally and systemically purchase real estate in Japan. However, considering cultural and business practice differences and language barriers, having reliable partners (local real estate agents, judicial scriveners, tax accountants) is essential.

In this era, “Who you buy with” is more important than “What you buy.”

With the right support system, you can safely enjoy the benefits of owning real estate in Japan.