How to Buy Property in Tokyo as a Foreigner

Japan imposes no restrictions on foreign property ownership. Any non-resident foreign national can purchase freehold land and buildings. You do not need a visa, a residency card, or government approval. The title deed (登記簿, Tōkibo) is publicly verifiable at the Legal Affairs Bureau (法務局). Once registered, your ownership is legally protected under Japanese civil law. Key point: property ownership does not grant a visa. You will still need to satisfy Japanese immigration requirements for any stays.

The main options for foreign investors are: • New-build condominiums (新築マンション) — highest liquidity, managed by a professional management association (管理組合). Pre-sale units in redevelopment projects often appreciate from contract to completion. • Second-hand condominiums (中古マンション) — lower entry price, immediately income-producing if tenanted, but require due diligence on building age, earthquake resistance, and repair reserve fund adequacy. • Detached houses (一戸建て) — lower yields, management-intensive, generally harder to sell quickly. For most foreign investors, new-build or high-quality second-hand condominiums in central Tokyo wards (Minato, Shibuya, Shinjuku, Chiyoda, Chuo) offer the best balance of liquidity, rental demand, and capital appreciation.

Real estate agents in Japan must hold a宅建士 (Takken-shi, Real Estate Transaction Specialist) licence issued by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). When selecting an agent: • Confirm their宅地建物取引業免許 (brokerage licence number) • Ask specifically about experience with foreign-national transactions — documentation requirements differ from domestic transactions • Larger agencies (Mitsui Fudosan Realty, Tokyu Livable, Century 21 Japan) have dedicated international desks • Buyer's agent fee is typically 3% + ¥60,000 + consumption tax (from the purchase price) PropAnalytics data helps you benchmark any agent's recommended price against our estimated per-m² values.

Before signing any purchase agreement, verify: • Title deed (登記事項証明書) — confirm the seller has clear title, no liens or encumbrances • Building inspection report (建物状況調査) — for pre-2000 buildings, earthquake resistance certification (耐震基準適合証明書) is critical for mortgage eligibility and tax deductions • Repair reserve fund balance (修繕積立金) — for condominiums, low reserves indicate future special assessments • Management association financial statements (管理組合の決算書) — check for pending litigation or delinquent owners • Flood/liquefaction/landslide hazard maps — available from municipal authorities and the国土地理院 (Geospatial Information Authority) PropAnalytics publishes hazard scores for all 82 tracked projects as part of the Investment Score calculation.

The standard purchase process in Japan: 1. Bai-bai Keiyaku (売買契約) — purchase agreement signed, earnest money paid (usually 5–10% of price) 2. Explanation of Important Matters (重要事項説明) — mandated oral explanation by a licensed agent before contract signing; this is when you discover material issues 3. Remaining balance payment + simultaneous registration — typically 1–3 months after contract signing Important: the purchase agreement is binding. Withdrawal after signing forfeits your earnest money (seller withdrawal requires double refund). Foreign nationals should budget for a judicial scrivener (司法書士) to handle registration — typically ¥100,000–300,000 depending on transaction value.

Mortgage options for non-residents are limited but exist: • Non-resident mortgages — available from SMBC, MUFG (UFJ), HSBC Japan, and several international banks with Japan operations. Typical LTV: 50–70%. Rates: 1.5–3.5% fixed. • Offshore financing — some buyers use home-country equity release or investment loans to fund the Tokyo purchase entirely in their home currency, avoiding Japanese mortgage requirements. • Cash purchase — most common for foreign investors. No restrictions on foreign currency remittances into Japan for property purchase. See our separate guide: [Tokyo Property Financing for Foreign Buyers](https://real-estate-tracker-web-zeta.vercel.app/en/guide/tokyo-property-financing).

Upfront taxes and fees at purchase (approximate): | Item | Rate / Amount | |---|---| | Real estate acquisition tax (不動産取得税) | 3% of assessed value (residential) | | Registration and license tax (登録免許税) | 0.4% (land) / 2% (building) of assessed value | | Stamp duty (印紙税) | ¥10,000–60,000 depending on price | | Judicial scrivener fee (司法書士報酬) | ¥100,000–300,000 | | Agent commission (仲介手数料) | 3% + ¥60,000 + tax | Total acquisition cost is typically 6–10% on top of the purchase price for a standard condominium transaction.

For rental management: • Lease agreements (賃貸借契約) in Japan are typically 2-year fixed with renewal options • Property management companies charge 3–10% of monthly rent for full management (rent collection, tenant communication, repairs) • Non-resident landlords are legally required to appoint a 管理人 (property agent) in Japan for tax withholding purposes • Tenants have strong protections under the Land and Building Lease Act (借地借家法) — fixed-term leases (定期借家契約) are recommended for investment properties to retain flexibility Rental income is subject to Japanese income tax (see our tax guide).