Buying a home
in Tokyo?

Yes. Foreign individuals can generally buy and own apartments, houses and land in Japan, even if they do not live in Japan.

You do not normally need Japanese citizenship or permanent residency simply to own residential real estate.

Generally, no. Foreign ownership does not by itself create a special higher purchase tax or annual property tax.

Buyers normally face the same types of costs such as brokerage fees, registration costs, property acquisition tax and other transaction expenses. After purchase, owners generally pay annual fixed asset tax and, where applicable, city planning tax.

Overseas owners can have some additional administrative requirements, such as arranging tax representation in Japan in certain circumstances, but this is different from paying a special “foreigner tax.”

For most residential property purchases above ¥4 million, the standard maximum brokerage fee is calculated as: 3% of the purchase price + ¥60,000, plus 10% consumption tax.

Examples include consumption tax on the brokerage fee.

Capital gains tax is charged on the taxable profit from the sale — not simply on the total sale price.

For an individual, the rate depends mainly on how long the property has been owned. If the property is classified as a long-term holding, the standard rate is approximately 20.315%, including national income tax, reconstruction surtax and resident tax.

For a short-term holding, the standard combined rate is approximately 39.63%.

The key test is whether the property has been owned for more than five years as of January 1 in the year of sale. Special rules and deductions may apply, particularly for a qualifying main residence.

No. Buying property in Japan does not automatically give you residency, permanent residency or a Japanese visa.

Property ownership and immigration status are separate systems. You can own a property without living in Japan, but you still need an appropriate visa if you want to reside here.

A local property management or leasing company can advertise the property, arrange viewings, screen prospective tenants, prepare the lease and manage the property after the tenant moves in.

Before purchasing, it is worth checking expected rent, tenant demand, building rules and whether the property is suitable for the type of rental you have in mind.

Long-term residential leasing and short-term accommodation such as Airbnb are very different, and condominium rules or local regulations may restrict short-term rentals.

In addition to the purchase price and brokerage fee, buyers should normally budget for registration costs, judicial scrivener fees, property acquisition tax, fixed-asset tax adjustments, stamp duty where applicable and financing-related costs if using a loan.

As a broad planning figure, total acquisition costs are often around 6–8% of the purchase price, although the actual amount varies considerably depending on the property and financing structure.

Not necessarily. It is possible for overseas buyers to purchase Japanese real estate without already having a Japanese bank account.

However, settlement arrangements and international transfers need to be organised carefully in advance, particularly because large property transactions involve several parties and strict settlement timing.

No. A property transaction does not have to use a digital contract.

Japanese real estate transactions can still use traditional paper documents, while electronic documents and electronic contracting are also permitted when the parties agree and the required procedures are followed.

Electronic contracting can be particularly convenient for buyers living overseas. It can also avoid the stamp tax that would otherwise apply to a taxable paper sales contract.

The seller normally has a real estate agent handling the sale. A buyer can also appoint their own real estate agent to represent their side of the transaction.

Buyer-side representation means having someone who searches and evaluates properties from your perspective, asks questions of the seller’s agent, reviews information, coordinates the transaction and negotiates when appropriate.

For overseas buyers, it also gives you someone in Japan who can communicate with the various Japanese parties involved while explaining the process to you in English.