Can Foreigners Buy Property in Japan? The 2026 Answer

The short answer is yes. Absolutely, and with almost no restrictions. Japan's property laws apply equally to foreign nationals and Japanese citizens. There is no requirement to hold a visa, have residency, or have any prior connection to Japan. A non-resident foreigner can walk into a Japanese real estate transaction, or conduct it entirely remotely, and emerge as the registered freehold owner of Japanese property.

We help international buyers do exactly this. It is well established, legally clear, and in the Hakuba and Nozawa Onsen area specifically, increasingly common.

That said, "no restrictions" needs some qualification. There are specific procedures, costs, and administrative requirements that differ from buying property in Australia, the UK, or the US. This guide covers what they actually are, the genuine requirements rather than the misconceptions.

Why Japan is open to foreign buyers

Japan's real estate law, which is not to be confused with immigration law, has never restricted foreign ownership of private property. The Civil Code and the Real Property Registration Act that govern property ownership apply without nationality distinction. Unlike some countries that limit non-resident foreign purchase of residential property, Japan took a different approach, rooted in its post-war legal framework and trade relationships.

This means you can purchase:

• Freehold residential property, whether a house, apartment, or farmhouse, with full legal ownership of both building and land.
• Freehold commercial property, under the same framework.
• Condominium units, with freehold ownership of the unit plus a share of common areas under the condominium management structure.

The ownership structure is the same one a Japanese buyer would have. There is no "foreign buyer" category that comes with different rights or limitations.

What changed in 2026: the FEFTA notification

The most significant recent development for foreign property buyers is an amendment to the Foreign Exchange and Foreign Trade Act, known as FEFTA or 外為法, that came into effect in April 2026.

Under it, non-resident foreign buyers must file a post-acquisition notification with the Ministry of Finance within 20 days of completing a property purchase in Japan. This covers all purchases of real estate by non-residents, regardless of nationality, price, or purpose.

It is important to understand what this is and is not. It is a record-keeping and reporting measure, not a restriction on buying, ownership rights, or use. The Ministry of Finance collects data on foreign property acquisition for statistical and national security purposes. The notification does not require Ministry approval, does not impose conditions on ownership, and does not affect what you can do with the property.

In practice, your judicial scrivener, the licensed professional who handles title registration, typically files this as part of the settlement process. Confirm it is included in their service scope when you engage them. There are penalties for failing to file, so this is not a bureaucratic suggestion; make sure the notification is on your settlement checklist.

Practically, it changes very little. It adds an administrative step handled by your professional advisors as part of the normal settlement process. It does not slow down the transaction, does not require pre-approval, and does not affect what you can do with the property after purchase.

The buying process for a foreign non-resident

Here is what buying property in Japan looks like for a foreign buyer who does not live in Japan.

1. Property identification. Finding the right property means either working with a licensed Japanese real estate agent, the 宅地建物取引士, or working with an intermediary like us who bridges the language and market-knowledge gap. Japanese listings sit mainly on domestic portals such as SUUMO, AtHome, and HOME'S, and are in Japanese. Properties that reach international portals are a subset, and often not the best ones, since strong listings tend to sell locally first. In Hakuba and Nozawa Onsen especially, many of the most interesting properties, such as older farmhouses with renovation potential in good locations, change hands through local networks before reaching any online listing. Local relationships matter.

1. Due diligence, typically two to four weeks. Before making an offer, you want a title search confirming the seller owns what they are selling, with no outstanding mortgages, liens, or unusual encumbrances such as easements or shared access rights. Old Japanese farmhouses in particular benefit from a professional building inspection covering structure, moisture and rot, roof condition, and electrical and plumbing systems. We have seen buyers skip this and regret it, and we have seen buyers who did it find issues that changed the purchase price significantly. You also want to confirm the urban planning classification, since the zone the property sits in, such as 市街化区域 or 市街化調整区域, affects what you can build, renovate, or convert. And if any part of the property is classified as agricultural land, the 農地, there are additional regulatory requirements; in the mountain valleys this can apply to properties with attached farmland.

1. Offer and letter of intent. Japanese property negotiation is typically less adversarial than in many Western markets. Offers are usually made through the agent in writing, and price negotiation, while real, is generally more measured than in hot markets. Once a price is agreed, a letter of intent, the 購入申込書, is signed. This usually is not legally binding, but it establishes the terms for the formal process.

1. Explanation of Important Matters, the 重要事項説明, typically one to two weeks. This is a distinctively Japanese step. Before any binding contract is signed, a licensed real estate agent must provide a formal written explanation of the property's legal status. The document, the 重要事項説明書, covers legal title and ownership, urban planning classification and restrictions, any liens or encumbrances, building history and any code violations, shared use arrangements such as access roads and common walls, water and sewerage supply, and any known defects. It must be explained verbally by a licensed agent before the contract is signed, which for buyers who do not speak Japanese means a qualified interpreter or a bilingual agent. You need to understand this document, not a summary but the actual content, because legal issues that surface after purchase are very difficult to pursue. This step is your main protection.

1. Sales and purchase agreement, the 売買契約, and deposit. The formal contract, the 売買契約書, is signed by both parties and is legally binding. An initial deposit is paid, typically 10 percent of the purchase price, which is forfeited if the buyer withdraws without qualifying cause. Japan's residential market has very limited cooling-off rights for buyers, so once you have signed and paid the deposit, withdrawal is expensive. That is precisely why due diligence before signing matters. Contracts can be executed by mail or electronically with appropriate authentication, so buyers who are not in Japan at signing can complete this remotely with advance arrangement.

1. Final settlement, the 決済, typically four to eight weeks after contract. On settlement day the balance of the purchase price is paid, title is transferred and registered by the judicial scrivener, the 司法書士, and keys are handed over. Remote settlement requires a Power of Attorney, the 委任状, authorising a representative in Japan to complete settlement on your behalf. That document must be notarised by a notary public in your home country, apostilled if your country is a signatory to the Hague Apostille Convention with Japan, which most Western countries are, and translated into Japanese by a certified translator. The notarisation and apostille process takes one to four weeks depending on your country and local notary availability, so plan for it in advance.

1. Title registration. The judicial scrivener files the title transfer with the Legal Affairs Bureau, the 法務局. This is the official point at which ownership transfers, and registration typically completes within one to two weeks of settlement.

1. FEFTA notification. Within 20 days of completing the purchase, the notification is filed with the Ministry of Finance, handled by your judicial scrivener.

The costs added to the purchase price

Foreign buyers often underestimate acquisition costs. Budget 5 to 8 percent of the purchase price in addition to the price itself. The components are:

• Real estate agent commission, capped by law at 3 percent of the purchase price plus 60,000 yen plus 10 percent consumption tax.
• Real estate acquisition tax, the 不動産取得税, at roughly 3 to 4 percent of the assessed value, where the assessed value is typically 60 to 70 percent of the purchase price.
• Registration and licence tax, the 登録免許税, at 2 percent of assessed value for ownership transfer, with reduced rates possible for residential properties.
• Judicial scrivener fees, usually 100,000 to 250,000 yen, for title registration and settlement handling.
• Stamp duty, the 印紙税, of 10,000 to 60,000 yen depending on the purchase price bracket.
• Power of Attorney preparation, 50,000 to 150,000 yen, covering notarisation, apostille, and translation.

On a 20,000,000 yen property, expect roughly 1,000,000 to 1,600,000 yen in additional transaction costs.

Ongoing ownership costs

Buying the property is step one. Owning it involves annual obligations.

Every property owner in Japan pays annual fixed asset tax, the 固定資産税, calculated at approximately 1.4 percent of the property's assessed value, which is set by the local municipality and is typically lower than market value. For a renovated farmhouse in Hakuba, a typical annual bill runs 80,000 to 250,000 yen. The bill is sent annually, usually in June, in four quarterly payments, and your management company can handle payment on your behalf.

In areas designated as urban planning zones, which covers most of the main valley, an urban planning tax, the 都市計画税, also applies at 0.3 percent of assessed value, typically adding 20,000 to 70,000 yen a year.

If you rent the property, even occasionally, you have Japanese tax reporting obligations. Non-residents earning rental income pay withholding tax, and filing an annual Japanese return lets you claim deductions, such as building depreciation, maintenance, and management fees, that may reduce the tax below the withheld amount. In practice this means a Japanese tax accountant, the 税理士, with experience handling non-resident property owners, at annual fees of roughly 100,000 to 200,000 yen.

Situations foreign buyers often ask about

On buying jointly with a partner of a different nationality, this is straightforward. Both buyers appear on the title registration in proportion to their ownership shares, and there is no restriction on different nationalities co-owning.

On buying as a company, a foreign company can own Japanese real estate. There are also structures using Japanese entities, the most common being the Godo Kaisha, or GK, a Japanese limited liability company equivalent often used for property holding. Tax and administrative implications differ between personal and corporate ownership, so this is a decision to make with professional tax advice before structuring the purchase.

On whether there are areas where foreigners cannot buy, as a general rule there are not, with two practical notes. First, there are notification requirements for purchases within certain distances of national-security-sensitive areas, including some Self-Defence Force installations; this applies to all buyers, not specifically foreigners, and is handled through separate notification procedures. Second, some municipal akiya, or empty-house, banks restrict purchase to buyers intending to reside in the municipality. That is a condition of those specific programmes, not of Japanese property law. Nozawa Onsen's akiya bank, for instance, has residency requirements, so it cannot be used to purchase a vacation home, something many foreign buyers discover only after starting to look at these programmes. Standard market purchases carry no such restriction.

On buying while in Japan on a tourist visa, your visa status does not affect your legal ability to purchase. Be aware, though, that completing the process while physically present on a short-term visa can require careful timing, since settlement may take six to eight weeks after contract. Remote completion via Power of Attorney is often more practical.

On selling later, you can sell at any time, with no restrictions on non-resident foreigners selling Japanese property. You will pay Japanese capital gains tax on any profit, at rates that vary with holding period and that are lower for properties held more than five years, and your home country may also have reporting and tax obligations on the proceeds.

Misconceptions worth clearing up

There is no Golden Visa for property buyers. Japan has no investor visa or residency programme linked to property purchase, and buying property does not give you any visa rights beyond what your passport normally entitles you to.

Foreign buyers do not need a Japanese spouse or relative. No such requirement exists, and foreign nationals purchase Japanese property as sole buyers routinely.

You do not necessarily need to be in Japan to complete the purchase. With a notarised Power of Attorney, the entire purchase can be completed remotely, and many overseas buyers never visit Japan for the purchase itself.

Property near ski resorts is not specifically restricted for conservation reasons. Japan has planning and zoning restrictions that apply to all developers, Japanese and foreign alike, but there is no foreign-ownership restriction tied to ski resort or national park proximity.

On building depreciation, it is true that Japanese building values depreciate to zero faster than in many Western countries, over 20 to 47 years depending on construction type in the tax framework. But in resort locations land values can appreciate, with Hakuba's commercial land rising 30.2 percent in 2024, so the total value of land plus building can grow despite building depreciation. The land is the asset, the same mechanism that makes property in established Alpine resorts valuable.

What you can do with the property: building permits and renovation

For most buyers in the Nagano ski valleys, the intention is to renovate, and Japan's building regulation framework applies equally to all owners, with no distinction between Japanese and foreign nationals.

The Building Standards Act, the 建築基準法, governs what can be built or renovated. Cosmetic renovation, such as interior fit-out, kitchen and bathroom replacement, flooring, and insulation upgrades within the existing structure, generally requires no building permit, and this is the typical initial scope of most Hakuba farmhouse projects. Work that changes the load-bearing structure, expands the footprint, or increases floor area above certain thresholds requires a building confirmation permit, the 建築確認申請, which a licensed architect, the 建築士, must submit. Converting a residential property to accommodation-business use brings specific change-of-use requirements.

Zoning matters here too. Properties in an Urbanisation Control Area, the 市街化調整区域, face more restrictive building rules: new buildings are generally not permitted, while renovation and reconstruction within the existing footprint is typically allowed but reviewed case by case. This affects some properties on the valley periphery, so confirm the urban planning designation before purchasing. A building confirmation permit for a structural renovation typically takes three to six weeks for approval once filed, and applications can only be made by a licensed architect.

One more point specific to this region: in Nagano ski country, buildings must be designed to handle significant snow loads, the 積雪荷重, with Hakuba and Nozawa receiving 5 to 12 metres of annual snowfall in heavy years. A structural renovation here should be designed by an architect or contractor with real experience in snow-country construction standards, not a general contractor unfamiliar with these conditions.

Inheritance and succession

One aspect overseas buyers rarely think about at purchase is what happens when ownership transfers at death or family succession.

Japanese property is subject to Japanese inheritance law and inheritance tax, the 相続税, regardless of the owner's nationality and regardless of what a home-country will or estate plan says. This is a straightforward jurisdictional rule: assets located in Japan follow Japanese law.

The thresholds are relatively low. The basic exemption is 30,000,000 yen plus 6,000,000 yen for each statutory heir. For a married couple with two children inheriting a 50,000,000 yen Hakuba property, the exemption is 30,000,000 plus 6,000,000 times three, or 48,000,000 yen, so only 2,000,000 yen would fall over the threshold. For higher-value properties or estates with multiple assets, the tax becomes more significant.

Succession rights also matter. In Japan, statutory inheritance rights flow to the legal spouse and children, and partners who are not legally married under Japanese law have no automatic inheritance rights here. Foreign couples in de facto relationships should consider whether to formalise the relationship and how Japanese inheritance law interacts with their home-country status. The practical step is simple: if you purchase Japanese property, discuss with both a Japanese tax accountant and your home-country estate planning lawyer how the property should sit in your overall succession plan. Structuring ownership correctly at the time of purchase is far simpler than restructuring afterwards.

The 2023 FEFTA changes, in context

The FEFTA notification requirement has existed for decades as a capital-transaction report, and it changed again in 2026. From April 1, 2026, the old exemption for real estate bought as the buyer's own residence was removed, so the report now applies to every acquisition of Japanese real estate by a non-resident, wherever it sits and however it is used. The separate question of land near Self-Defence Force bases, nuclear facilities, certain border islands, and water utilities is governed by a different law, the Act on the Review and Regulation of the Use of Land around Important Facilities (重要土地等調査法), which applies to all buyers, not only foreigners.

For buyers of ski resort vacation properties in Hakuba or Nozawa Onsen, the FEFTA report is now required just like any other non-resident purchase, but it is light: filed within 20 days of completion, usually by the judicial scrivener, with no approval to wait for. The separate Important Facilities land law rarely bites in these resort areas, since they are not near the installations it covers. Your judicial scrivener should still confirm whether any additional designation applies to a specific parcel; this is a routine check competent advisors perform as part of normal settlement.

This is worth stating plainly because it is sometimes reported as Japan restricting foreign property ownership. It is not. The notification regime has been tightened; the ownership regime has not changed.

The bottom line

Foreign nationals can and do buy vacation property in Japan. The legal framework is clear and welcoming. The process is different from your home country, with more paperwork, a formal disclosure requirement, and a judicial scrivener rather than a solicitor, but it is orderly and manageable with the right professional support.

The real challenges are not legal. They are about finding the right property, which takes local market knowledge, navigating a process in a language most buyers do not speak, which takes qualified support, and setting up the management infrastructure for absentee ownership, which takes planning. These are the things we help buyers with.

If you are at the stage of seriously considering a purchase in Hakuba or the Nagano valleys, browse our properties, or get in touch and we will talk through the process with you.

Frequently asked questions

Do I need a Japanese bank account to buy property?

For settlement you will need to transfer the purchase funds to Japan, either to the seller's account or into a trust held by the judicial scrivener who manages settlement on your behalf, so you do not strictly need a personal Japanese bank account for the purchase itself. Having one does simplify ongoing ownership, since property tax payments, utility bills, rental income, and management fee disbursements all flow through a Japanese account. Opening one as a non-resident has become harder in recent years as banks tightened anti-money-laundering requirements, but some management companies can structure ongoing payments without the owner holding a personal Japanese account. Discuss this with your management company during pre-purchase planning.

How long does the full purchase process take?

From identifying a property to completed title registration, typically two to five months, depending on due diligence, contract negotiation, and whether settlement is remote. A realistic working timeline is four to six weeks for due diligence and inspection, two to three weeks for contract execution, and five to eight weeks for settlement and title registration. If you complete remotely, add two to four weeks for Power of Attorney preparation through notarisation, apostille, and certified translation. Plan for three to four months as a working assumption from property identification to keys.

Do I need a Japanese lawyer?

A lawyer, the 弁護士, is not a standard part of a Japanese property transaction the way a solicitor is in the UK or a conveyancer is in Australia. The judicial scrivener, the 司法書士, handles title registration, and the agent's mandatory Explanation of Important Matters provides formal disclosure. For straightforward residential purchases in Hakuba this framework is adequate. For complex situations, such as large purchases involving significant negotiation, unusual property histories like multiple inheritance or boundary disputes, company-structure purchases, or transactions with unusual encumbrances, engaging a Japanese lawyer for additional due diligence is sensible. Fees for a lawyer review are typically 150,000 to 400,000 yen for residential matters.

Is there any restriction on renting the property after purchase?

There is no restriction from property ownership law itself. Short-term rental is regulated separately under two overlapping frameworks: the Minpaku Law, the 民泊新法, implemented in 2018 for general short-term rental, and the Ryokan Business Law, the 旅館業法, for properties operated as registered accommodation businesses. For most Hakuba vacation rental properties the Minpaku Law applies. Registration with the local municipality is required and your management company handles this as part of setting up the rental operation. Minpaku properties are subject to operating-day limits in some municipalities, up to a maximum of 180 days under the Minpaku Law, though Hakuba's specific rules should be confirmed with your management company.

What is the Jūyō Jikō Setsumeisho and how important is it?

It is one of the most important documents in the transaction and deserves specific attention from foreign buyers. The Explanation of Important Matters, the 重要事項説明書, is a formal disclosure document that a licensed real estate agent, the 宅地建物取引士, must explain verbally before the sale contract is signed. It covers legal title and ownership status, urban planning zone and related restrictions, any liens or encumbrances, building code compliance history, shared use arrangements such as common walls and access roads, water and sewerage connection type, and any known defects or disputes. Rather than a buyer-beware system, the Japanese framework places formal disclosure obligations on the seller's side through this document. Since both the document and the verbal explanation are typically in Japanese, ensure you have a qualified bilingual interpreter or agent present for the session, and understand the actual content rather than a summary.

Are there special requirements for buying near ski resorts or national parks?

Not specific to resort proximity as such. The standard urban planning zone restrictions apply to all properties, Japanese or foreign owned. What matters practically is whether the property sits in a designated urbanisation area, the 市街化区域, or an urbanisation control area, the 市街化調整区域. The latter has more restrictive building permissions: renovation and expansion are possible but new construction is very limited. Properties in Hakuba village proper are typically in urbanisation areas, while those on the mountain periphery or in more agricultural areas may not be, which affects renovation plans and should be confirmed in due diligence. There are no specific national park purchase restrictions for the Jōshinetsu Kōgen National Park area near Hakuba; what matters is the specific property's zoning classification.