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How to buy a house in Japan as an expat in 2026
Here you have the guide you were waiting for to buy a house in Japan without risks: Requirements, prices, taxes and steps.
Whether you’re searching for your new home in Japan, a second residence, or an investment property, this article explains how to buy a house in Japan without residency. Japan’s property market remains relatively open and allows foreigners to purchase properties with very few restrictions. However, the process may feel complex because of the language, legal differences, and specific Japanese tax regulations.
Therefore, we’ve prepared a guide explaining which requirements you must meet, which documents you need, and how mortgages work. We also explain the taxes involved. In addition, we cover every important step before buying a house in Japan and the most common risks, so your purchase stays safe and stress-free.
Requirements for Expats for Buying a House in Japan
If you’re planning to buy a house to live in Japan, use as a second home, or rent as an investment, you can do so with very few limitations, just like local residents. Still, you must meet several basic legal, financial, and administrative requirements. Below, we explain them in greater detail.
1. Property Types You Can Buy in Japan
As an expat, you can purchase houses, apartments, or commercial properties. Japan even allows freehold land ownership, which remains uncommon across other Asian destinations. This ownership type is called freehold, where you buy both the house and land. Although less common, leasehold also exists, which grants land usage rights without ownership.
2. Visa and Personal Documents
If you aren’t a resident, you can still buy a house in Japan, but ownership won’t grant residency rights. Therefore, you’ll need the appropriate Japanese visa for work, studies, or long-term stays. On the other hand, the main documents required include a valid passport, bank account, proof of fund origin, and the property deed.
3. Basic Financial Requirements
If you need a mortgage from a Japanese bank, you’ll usually need to prove stable income, either in Japan or your home country. Banks also review your credit history and usually require a deposit of around 20% to 30%. Many banks impose restrictions on foreign applicants or charge very high interest rates. Therefore, financing from your home country often works better.
4. Buying Through a Company or Japanese Partner
You can buy a house in Japan personally, through a local or foreign company, or with your Japanese partner. Some investors use company purchases for better tax efficiency, especially when managing multiple rental properties. In addition, banks usually offer more flexible mortgage conditions when one applicant already lives in Japan.
5. Hire a Lawyer or Property Adviser
Although not mandatory, a Japanese property adviser will help you understand regulations, legal changes, contract translations, and price negotiations. Japan doesn’t use a notary system like many European countries. Therefore, a legal registration specialist usually handles the property transfer process.
How Much Does a House Cost in Japan?
Buying a house in Japan differs greatly from buying one in Europe. In fact, many houses lose value over time, which remains unusual across many European countries. The price depends on location, nearby transport links, property age, earthquake resistance, local services, and proximity to Tokyo. Below, we show average property prices across Japan’s main cities and cheaper regions:
- Tokyo: Average prices reach around $3,765 (€3,200) per m², although Minato or Chiyoda can reach $29,400 (€25,000) per m².
- Osaka: $4,235 (€3,600) per m² in central areas and from $2,120 (€1,800) per m² in suburbs.
- Yokohama: Around $3,530 (€3,000) per m²
- Nagoya: Approximately $2,825 (€2,400) per m²
- Fukuoka: Around $2,350 (€2,000) per m²
- Sapporo: From $2,000 (€1,700) per m²
- Rural areas: From $590 (€500) per m²
Considering that the average local salary reaches around $2,940 (€2,500) monthly, many families buy properties outside city centres, where homes cost far less. For example, a 70 m² apartment in central Tokyo costs between $706,000-1,412,000 (€600,000-1,200,000), while an apartment in Osaka costs around $235,300-411,800 (€200,000-350,000). Meanwhile, an old rural house requiring renovation, known as an akiya, starts from $23,530 (€20,000). Besides these prices, you should also consider the following expenses:
- Community fees and maintenance: $850-4,700 (€720-4,000) yearly Home insurance: $235-940 (€200-800) yearly
- Repairs and renovations: Costs vary depending on property age
Property Taxes in Japan
Japan’s tax system follows a structured process, although it may feel complicated, especially for non-residents. You’ll need to pay several taxes when buying a house in Japan, during ownership, and when selling the property. The main purchase taxes include:
| Tax | Approximate cost |
|---|---|
| Acquisition tax | Between 3% and 4% of the property value |
| Registration tax | 0.4%–2% |
| Valuation | $235-705 (€200-600) |
| Stamp duty | $7.00-3,530 (€6.00-3,000) |
| Mortgage arrangement fees | Between 1% and 3% of the loan |
| Mortgage interest | Between 0.5% and 1.5% yearly, although foreigners may pay more |
| Example: A property costing $235,300 (€200,000) | Between $9,410-14,120 (€8,000-12,000) |
Taxes when purchasing a property in Japan.
Once you become the owner, you’ll pay a yearly fixed asset tax of 1.4% of the cadastral value and an additional 0.3% urban planning tax in urban areas only. For example, if you purchased a property valued at $235,300 (€200,000), yearly taxes will cost around $3,294-4,000 (€2,800-3,400). These taxes stay fixed, although amounts vary depending on cadastral value. Therefore, taxes remain higher in cities like Tokyo or Osaka than rural regions.
Finally, if you sell a property in Japan, you must declare the profit earned. Tax rates depend on ownership duration. Properties owned for fewer than five years face a 39% rate, while longer ownership reduces the rate to 20%. Therefore, if you earn $58,800 (€50,000) after selling a house owned for seven years, you’ll pay $11,760 (€10,000).
Another important point concerns tax residency. Residents pay taxes on worldwide income, while non-residents only pay taxes on Japanese income or profits from rentals or property sales. Therefore, you should check whether your home country has a double taxation agreement with Japan, such as Spain, the United States, or the United Kingdom, to avoid paying taxes twice.
Steps to Buy a House in Japan
As we’ve explained throughout this article, buying a house in Japan follows specific rules, although the process differs from European systems because Japan doesn’t use notaries. Most procedures involve estate agents and legal specialists known as judicial scriveners. Below, we explain the main steps for purchasing a property in Japan.
1. Search Through Portals and Agencies
Start by searching for properties on estate portals like Propestar, Akiyajapan, Allakiyas, or through local agencies. Compare prices across different areas to understand current market conditions. This process usually takes between one and three months before finding the right property.
2. Check for Debts or Restrictions
Before making an offer, confirm the property’s legal status and ensure it has no debts, charges, or urban restrictions. In addition, Japan requires careful reviews of structural conditions and earthquake regulations. The estate agent must provide this information within one or two weeks.
3. Make an Offer and Negotiate
If you’ve found your ideal home, submit a formal offer to the seller through the estate agent. Negotiations in Japan remain formal and limited, especially for second-hand properties, so sellers usually respond within a few days with agreed payment conditions.
4. Pay the Reservation Deposit
The next step involves signing the initial purchase agreement, where you’ll usually pay a deposit between 5% and 10% of the final price. Before signing, the agent must provide a document called the “Important Matters Explanation”, which details every clause within the transaction.
5. Prepare the Purchase and Sign the Deed
Finally, you’ll only need to prepare all legal documents, register the property, confirm both identities, and arrange the signing date with the judicial scrivener, which usually takes between two and four weeks. On signing day, you’ll complete payment by bank transfer, sign the deed in your name, and receive the keys. Afterwards, the agent legally registers the property, and the process finishes within one or two weeks.
How to Pay for a House in Japan
You can pay through an international bank transfer from your home country or a local Japanese bank, which may reduce transaction fees. Japanese financial regulations (FEFTA) may review large transfers, so you must prove the origin of those funds to prevent money laundering concerns.
Regarding financing, mortgages for non-resident foreigners remain difficult to obtain. Most Japanese banks only approve mortgages for residents with stable income in Japan. Therefore, many foreigners choose cash payments or private financing from their home country. If you already live in Japan, interest rates usually range between 1% and 2%, compared with around 0.5% for local residents.
In addition, you should carefully consider currency exchange rates, since a 1%-3% difference may represent thousands of dollars or euros during a property purchase. Therefore, we recommend using multi-currency accounts.
Tips Before Buying a House in Japan
We’ll finish this guide on buying a house in Japan with useful advice about travelling with secure internet access and completing a safe purchase while avoiding common risks for foreigners. This way, you’ll feel ready to enter the Japanese property market and find your future home.
Get a Secure Internet Connection
From your first online searches and pre-purchase visits to estate agency meetings, you’ll need secure internet access from the moment you land. If you only need connectivity for a few days, Holafly’s Japan eSIM provides unlimited data only for the days you need from $3.90 (€3.79) daily.
However, if you move permanently into your new home and need stronger connectivity, Holafly’s monthly plans offer 25 GB or unlimited monthly data without contracts. In addition, you can travel across more than 160 destinations using the same eSIM and plan! Better still, Always On includes 1 GB free forever, even after cancelling your subscription.
Tips for Buying a House in Japan
- Review all legal documents carefully: Don’t sign anything until you confirm the property has no outstanding payments or debts.
- Seek local advice: A specialised agent will help with language barriers and explain Japanese regulations clearly.
- Analyse the area properly: Check earthquake risks, flooding risks, nearby transport, hospitals, and overall neighbourhood safety.
- Study the market before buying: Compare different areas and property types to identify the best prices available.
- Understand legal risks for foreigners: Keep in mind that local mortgages remain difficult to obtain and contracts stay written in Japanese.
- Watch for fraud: Carefully review properties priced far below market value, missing documentation, or unofficial payment requests.
- Rent before buying: If possible, rent temporarily in your preferred area before purchasing. This reduces investment risks significantly.
Frequently Asked Questions about Buying a House in Japan
Yes, Japan allows foreigners to buy properties without residency or a visa. You can purchase both houses and land.
No, buying a property in Japan doesn’t grant any type of visa. Therefore, if you want to live there, you’ll need to apply independently through the Japanese embassy.
Not always, since many properties lose value, especially older buildings.
It’s very difficult because local banks require residency or Japanese income. Therefore, cash purchases or financing from your home country usually work better.
Japan doesn’t use notaries like Europe. Instead, a judicial scrivener manages the legal property registration process.
