Q&A

Can a non-resident buy property for investment in Japan?

It is possible to purchase the property in cash (please consult us if you are considering a loan). In Japan, foreigners are allowed to own not only the real estate, but also the land. Regardless of the specific region or properpty, foreigners are entitled to the same rights as Japanese people.

Are foreigners eligible for real estate investment loans?

Generally speaking, those with permanent residency, stable employment for the past 3 years and annual income of no less than JPY7,000,000 are eligible for real estate investment loans.
Some of the financial institutions in Japan accept companies incorporated in Japan as clients, even if their legal representatives or shareholders are foreign non-residents.

How much does it cost to purchase properties in Japan?

In addition to property acquisition costs, there are taxes (such as real estate acquisition tax), judicial scrivener fees, agent (real estate brokerage) fees, fire insurance and other costs. Basically, the costs incurred at the time of property acquisition stipulated by the country.

What are the costs involved in owning Japanese real estate?

1.7% of the estimated value as calculated by the relevant local government is collected annually (on 1 January) as tax. Building maintenance fees, etc. are collected monthly.

Is there any other cost involved for renting out real estate in Japan?

The amount of tax to be paid for the rental income depends on whether you live in Japan. Calculating the rental income is simple if you do not live in Japan. Non-residents are taxed at a rate of 15% on their rental income, for foreigners and Japanese people alike.

I would like to learn more about the formalities and procedures involved when purchasing properties in Japan.

The general process consist of consulting with an agent (real estate broker), consideration of financing and loans, confirming the intention to buy the property, negotiation of the price by the agent, initial payment, contract conclusion, and final settlement. Upon confirming the buying intention, it takes about 1 week to 1 month to complete the formalitise of preparing legal documents and initial payment.