Purchase advisory is handled by Edo Partners.
TokyoExpat focuses on long-term rentals, short-term housing, and corporate housing. For a home to live in, this guide introduces the process and Edo Partners K.K. handles buyer representation. For an investment property, Edo Partners provides separate investment advisory.
Yes — foreigners can generally buy property in Japan.
There is generally no nationality-based restriction on owning ordinary real estate in Japan. Ownership is available regardless of citizenship — apartments, houses, land — generally giving the owner the right to hold, sell, or use the property, subject to applicable laws, zoning rules, condominium bylaws, lease terms (for leasehold land), and other property-specific restrictions, including any limits on short-term rental use.
But foreigner and non-resident are not the same thing, and the distinction matters. The rules that apply to a home purchase — financing, tax withholding, foreign-exchange reporting, and certain tax exemptions — depend on your Japanese tax residency, whether it will be your principal home, and whether you buy personally or through a company, not on nationality alone.
What is complex is not the right to buy, but the process of buying: Japanese-language contracts, opaque transaction conventions, mortgage eligibility requirements, and an agency market where nearly every agent represents the seller — not you.
In Japan, the same brokerage may be involved on both sides of a transaction. If you want advice focused specifically on your interests as the buyer, it's important to clarify who your broker represents and how their compensation is structured. My advisory is built around your interests specifically — institutional-style due diligence and negotiation focused on the outcome that serves you, not simply on getting the transaction closed.
Evaluating a home to live in
Start with how the home works for daily life: layout, building management, commute, schools and the total cost of ownership. Edo Partners handles the search, due diligence, negotiation and purchase as residential brokerage.
If the primary purpose is rental income or portfolio investment, see Edo Partners' investment advisory.
Purchase costs
On top of the purchase price, budget for the following acquisition costs.
The statutory fee cap generally applicable to each party represented by a broker. Where the same brokerage represents both buyer and seller, it may receive a fee from both sides, each subject to this cap. If Edo Partners acts as your buyer's broker, the fee structure will be confirmed with you before you proceed.
Paid to the government upon registration of ownership transfer. Calculated using the property's assessed value for registration purposes, rather than the purchase price — this assessed value can differ materially from the transaction price. The building rate is 2.0% by default; the 0.3% reduced rate applies only to individuals purchasing for their own residence who meet floor-area and other requirements, and is currently scheduled to apply through March 2027. The 1.5% land rate is currently scheduled to apply through March 2029.
One-time Tokyo Metropolitan tax, billed several months after purchase (reduced 3% rate for land and housing, currently in effect through March 2027; land's taxable base is separately halved through the same date). Qualifying owner-occupied residential properties may benefit from additional reductions, including a building-value deduction of up to ¥12M (¥13M for certified long-life-quality homes) and a related land reduction, subject to age, floor-area and other requirements. These reductions have specific owner-occupancy and property eligibility requirements; confirm them before relying on the lower rates.
A judicial scrivener typically handles the ownership registration process. I coordinate with a bilingual scrivener on your behalf.
Electronic contracts are generally not subject to Japanese stamp tax; I use electronic execution by default where practical. If a paper contract is used instead — for example at a counterparty's request — a reduced-rate schedule applies through March 2027, ranging from around ¥1,000 for smaller contracts up to ¥480,000 for very large transactions, depending on price. The loan agreement with your lender, if any, is a separate document and is not eligible for this reduction.
Often around 1–2% of the loan amount as a rough guide, but structures differ: origination/administrative fees, mortgage registration tax (0.1% reduced rate for qualifying residential mortgages), and fire insurance. Confirm the specific fee structure with your lender.
A useful starting point for many owner-occupied resale residential purchases financed in the usual way. The actual figure can be materially higher or lower depending on whether the property qualifies for residential tax reductions, cash versus financed purchase, and new-build versus resale — I'll model your specific costs once we have a target property.
If the seller is a non-resident of Japan, the buyer may be required to withhold 10.21% of the purchase price and remit it to the Japanese tax authorities, rather than paying that portion to the seller. This obligation relates to the seller's tax status, not the buyer's nationality. Exceptions apply in some cases, including certain purchases under ¥100M for the buyer's own or a family member's residence. Confirm this before settlement — it is separate from your own tax position.
If you are a non-resident of Japan, acquiring real estate here can trigger a reporting obligation to the Bank of Japan under the Foreign Exchange and Foreign Trade Act, generally within 20 days of acquisition. Purchases for your own residence, a family member's residence, or an office you operate may be exempt, depending on the circumstances — but a second home or vacation property typically does not qualify for that exemption.
Tax rates and time-limited reduction measures above reflect Japanese national and Tokyo Metropolitan rules currently in force, and are subject to change following future Japanese tax reforms; the information on this page may not reflect future amendments or property-specific interpretations. Actual liability depends on your specific property, residency status, ownership structure, and eligibility for exemptions. This is general information, not tax or legal advice. TokyoExpat does not provide legal or tax opinions — for guidance specific to your situation, please consult the Tokyo Metropolitan Taxation Bureau, your judicial scrivener, or a licensed Japanese tax accountant (税理士) before signing a binding contract; I identify the issues that need specialist input and coordinate with an appropriately licensed bilingual professional. Last reviewed: August 2026.
How a purchase works
Typical timeline: roughly 6–12+ weeks depending on the property, your financing, and whether you're a resident or non-resident buyer. The weeks below are indicative, not a guarantee — non-resident financing in particular can extend the schedule, while cash purchases often move faster.
What nobody tells you
In Japan, a brokerage may act for both the seller and the buyer in the same transaction. This is not inherently improper, but it means buyers should understand who a brokerage is acting for and how it is compensated before relying on its advice. For purchase engagements, I act for the buyer's interests.
Buildings completed under Japan's post-1981 New Earthquake Resistance Standards (新耐震基準) are generally treated more favorably by lenders, insurers, and the tax code — but the exact cutoff date and documentary requirements vary depending on the specific issue (mortgage, tax reduction, resale value). Pre-1981 buildings aren't necessarily inferior, but need careful structural assessment.
Many older condominiums are underfunded for major repairs. Where reserves are inadequate, a special assessment (一時金) after purchase can be substantial — the amount varies widely by building. I review fund adequacy, the long-term repair plan, and any arrears before you commit.
Mortgage availability varies significantly by lender and by the buyer's residency, visa status, income, employment, and the property itself. Non-resident buyers generally face a narrower range of financing options than Japan-resident buyers, and some purchases may need to be funded in cash.
New-build pricing typically includes a meaningful developer premium, and initial resale liquidity can differ materially from comparable resale properties. The right comparison isn't simply new vs. old — it's price per square metre, location, specifications, management quality, and likely exit liquidity. Resale and new-build properties can have materially different entry-price, operating-cost, and exit-liquidity profiles; the appropriate choice depends on your financing, holding period, and objectives.
Buying: acquisition tax, registration tax, stamp duty. Holding: fixed asset tax and city planning tax each year; rental income tax if you let the property (non-resident landlords face a separate withholding regime on rent). Selling: capital gains tax, plus the non-resident withholding described above if you are the non-resident seller. Estate planning: inheritance and gift tax, which may apply depending on the property, the taxpayer's status, and the applicable Japanese tax rules. All of this varies by residency status, property use, and holding period — a tax accountant consultation before purchase is strongly recommended.
"Tokyo's property market rewards buyers who know how to read the numbers, the building, and the transaction itself. The same analytical discipline I applied at a PE fund is what I bring to each client purchase."
After you close
Edo Partners' transaction role concludes at closing — coordinating the judicial scrivener, confirming fund transfers, and handing over the keys. We don't provide ongoing building management, tenant placement, or rent collection under this service.
If you're buying to occupy, day-to-day matters (management association fees, repair reserves, building rules) are handled directly with the management company, as with any Japanese condominium. Investment purchases are assessed separately by Edo Partners' investment advisory service; ongoing property management and rent collection are not part of this home-purchase guide.