Property Buying Guide in Japan

1.1 Basic Rules for Foreign Property Purchase

• Foreigners are legally permitted to purchase real estate in Japan.
• Some properties may have additional regulations or reporting requirements depending on location and usage (e.g., forestry or agricultural land laws).

1.2 Visa Status and Property Purchase

• Property ownership generally doesn't directly affect visa status.
• Additional documentation may be required for visa renewal if planning to reside in Japan.

4.1 Personal Identification Documents

Passport is the representative personal identification document.

If staying in Japan, both the residence card and passport may be required.

4.2 Income and Financial Status Proof

For using a mortgage, it's necessary to prepare documents to prove repayment ability, such as employment confirmation from the workplace and bank account balance confirmation.

If using documents from a foreign financial institution, it's easier to prepare a translated version in Japanese or English.

4.3 Stamp Registration (Foreigner Registration)

"Seal" may be required for contract documents and registration procedures. Foreigners who are registered as residents in Japan need to register the seal at the local government.

If not staying in Japan for a long time, consider alternative methods such as signature confirmation, etc.

5.1 Selection of Financial Institution

There are financial institutions that allow foreigners to use a mortgage, but the review conditions such as visa status and length of stay in Japan and income may become strict.

If staying in Japan for a long time and having a stable workplace, there is a tendency to receive financing more easily.

5.2 Loan Review Points

When reviewing, repayment burden ratio (ratio of loan repayment to income), job and employment form, and past credit information (e.g., credit card history) are emphasized.

If using a foreign bank account as a funding source, it's better to prepare a document that can clearly explain the source of funds.

6.1 Main Costs at the Time of Property Purchase

• Brokerage Fee: Fee paid to a real estate company (the upper limit is 3% + 60,000 yen + consumption tax)
• Stamp Duty: Stamp pasted on the sale contract
• Registration Tax: Tax paid when transferring ownership registration
• Notary Fee: Fee paid when requesting the creation of registration documents and contract documents
• Fixed Asset Tax and Urban Planning Tax Settlement: Often calculated on a daily basis as of the transfer date

6.2 Maintenance Costs After Purchase

Fixed Asset Tax and Urban Planning Tax: Local tax imposed on the owner as of January 1 of each year

Management Fee and Maintenance Reserve Fund (for condominiums): Monthly expenses for maintenance and renovation of common areas

Insurance: Insurance costs for protecting the property, such as fire insurance and earthquake insurance

7.1 Lack of Understanding of Important Points Explanation

There may be cases where the contract content cannot be fully understood due to language barriers or specialized terminology.

It's safer to use a real estate company or bilingual real estate company for translation support.

7.2 Omission of Additional Costs

If the maintenance costs after purchase (renovation costs, taxes, management fees, etc.) are overlooked, the funding plan may become disorganized.

Please calculate the total amount in advance.

7.3 Delay or Rejection of Mortgage Review

If you are a foreigner, the review period may be prolonged or conditions may become strict.

Please consult with the financial institution early and proceed with a preliminary review.

7.4 Inadequate Transfer of Ownership Registration Procedures

There may be problems in registration procedures due to expiration of the stamp registration or passport.

Please check the validity period of the documents.

8.1 Residential Use

If you move to a new address, please proceed with the procedures at the city or town office early.

8.2 Investment Use

It's common to entrust the rental management company to collect rent from tenants and perform the move-out procedures.

8.3 Renovation and Renovation

There may be restrictions depending on the structure of the building or the management rules of the condominium.

Please confirm in advance.

9.1 Real Estate Company and Real Estate Agent

There are companies that have real estate knowledge and provide translation support.

9.2 Notary and Administrative Lawyer

You can request various legal procedures such as registration procedures and contract document creation, and support for visa status-related documents.

9.3 Financial Institution (Bank and Credit Union)

Consultation for mortgage and financing review. Please search for financial institutions that offer foreigner-specific loan systems.

9.4 Foreigner Consultation Window of Local Government

There are windows that accept consultations in English or other languages in some cities and towns.

9.5 Specialist (Lawyer and Tax Accountant)

Receive advice from professionals for legal risks and tax consultation to prevent future problems.

This guide provides general information and does not provide advice on specific real estate transactions or legal procedures.

Please consult with a professional and confirm accurate information and the latest laws when actually dealing with transactions.

The site and operator are not responsible for any damages arising from the use of this guide.