“Can I Buy a Real Estate in Japan If I Don’t Live There?”—This is a common question among foreigners. The answer is “YES.” Nevertheless, preparations are required because of some hurdles. This article provides a comprehensive guide to the necessary documents, procedures, and key considerations when purchasing real estate in Japan from abroad.

Is It Possible for Foreigners to Purchase Property in Japan?

Under Japanese law, real estate can be purchased regardless of nationality. There are no general legal restrictions on foreigners owning land or buildings (except for certain special zones, such as areas near military facilities).

Ownership is also permitted without residency, which means it is possible to purchase a property from abroad and keep it as an asset for the future.

List of Required Documents: Be Sure to Prepare These in Advance

The following documents are required for purchasing real estate in Japan.
We recommend preparing them early, prior to engaging with your real estate agency or judicial scrivener.

• Copy of your passport (photo page)

• Proof of address (English version or Japanese translation)
  → Examples: official residence certificate, utility bills such as electricity or water

• Personal seal (inkan)
  → For contracts in Japan, a traditional inkan is preferable (not a self-inking stamp like Shachihata)

• Financial Documentation (Proof of Funds)
  → Bank balance certificate, or other official records indicating the source of purchase funds

Non-residents of Japan are required to designate a Tax Agent, a person who lives in Japan and is responsible for handling the payment of property-related taxes such as fixed asset tax on your behalf.

General Process for Purchasing Property in Japan (for Overseas Residents)

① Define your requirements 

Determine the key factors such as location, budget, and purpose (e.g., vacation home, investment, or future residence).

② Contact a Reliable Real Estate Agency for Property Proposals

Choose a trustworthy agency, share your preferences for property recommendations. Nowadays, video calls via Zoom or LINE and virtual tours are also available.

③ On-Site Viewing or Virtual Tour of the Property

When possible, visit the property in person. If not, many real estate agents offer virtual viewings via photos, video walkthroughs, and virtual tours.

④ Submit a Purchase Application and Negotiate Terms

Negotiate the price, handover timing.

⑤ Sign the Sales Contract and Pay the Deposit (Typically 5–10% of the Property Price)

All required documents should be prepared at this stage. Contracts can be viewed with a translation.

⑥ Settlement, Registration, and Property Handover

The process is completed with registration by a judicial scrivener, full payment of the remaining balance, and handover of the keys.

Important Considerations for Fund Transfers and Currency Exchange

• Legal restrictions and reporting requirements in your country of residence
• Compliance with Japanese bank requirements, (e.g., anti-money laundering checks)
• Risks related to currency exchange and optimal timing for transfers

To manage these issues, options such as staged transfers or purchasing under a Japanese-registered company may be considered.

Can Foreigners Get a Mortgage in Japan?

Securing a mortgage from a Japanese bank is very challenging for non-resident foreigners.

Without stable income in Japan or a residential history, it’s rare for banks to approve applications.

Thus, full cash payment is a common method. Those with limited funds may consider affordable properties or joint ownership.

Post-Purchase Management and Maintenance

Hiring a property management company for handling ongoing responsibilities is a common practice after purchasing.

For investment properties, services can include rental management, tenant communication, maintenance, and tax compliance. Even if you don’t speak Japanese, selecting a company with English support can minimize the burden on you as the owner.

Summary: Buying Property in Japan Is Possible for Overseas Residents

Legally, anyone can purchase real estate in Japan.

Overseas buyers need to take extra care. The keys to a smooth purchase are: partnering with a trustworthy local real estate agent, preparing documents thoroughly, and ensuring language support.

By understanding the process in advance, you can enjoy the benefits of owning property in Japan.