VISA and Tax Guidance for Foreigners
Japan offers a unique property-buying opportunity for overseas buyers. With a transparent and well-regulated real estate market, and no restrictions on foreign ownership, Japan is an attractive destination for property investment. Whether you’re seeking a vacation home, a rental property, or a future residence, Japan has a wide range of options to suit your needs.
In this article, we’ll guide you through the visa and tax processes involved in purchasing property in Japan as a foreigner.
Do You Need a Visa or Residency to Buy Property?
You don’t need a visa or residency status to buy property in Japan, but owning property won’t automatically grant you residency either. If you’re planning on living in Japan, you’ll need to apply for a visa through the appropriate channels, separate from the property purchase process.
To obtain a long-term VISA and eventual permanent Residency
To obtain a long-term visa and eventual permanent residency, common routes include:
Work visa (e.g., Engineer/Specialist in Humanities)
Spouse or family visa if you have a Japanese partner or dependent
Highly-skilled professional visa—can lead to PR in 1–3 years
Japan offers no real-estate–based “golden visa”, and no retirement visa.
Investor/Business Manager Visa is an option—but it requires:
- A business setup with an operational office in Japan
- At least ¥5 million investment and employee(s) hired
Buying Process
No nationality restrictions—foreigners can buy land/buildings like citizens.
Required documents:
- Residents: Residence Card, seal, ID
- Non-residents: Passport, notarized affidavit
Funding: Mortgage approval is possible but more stringent. Many non-residents prefer cash payment.
Foreign exchange notification(sometimes optional): Non-resident buyers must file a form with the Bank of Japan within 20 days, unless the property is for personal residence or non-profit use.
Costs, Fees & Taxes
| Tax / Fee | Who Pays | When / Trigger | Rate / Amount | Withholding / Payment Flow | Notes |
|---|---|---|---|---|---|
| Acquisition Tax | Buyer | At registration of property | 3–4% of property value (varies by prefecture) | Paid directly by buyer to local government | One-time payment; based on assessed value |
| Registration & License Tax | Buyer | At registration of property | 0.4–2% of property price | Paid by buyer via legal procedure | Often handled by judicial scrivener |
| Income Tax on Rental Income | Owner | Annually, for rental income | Progressive: 5–45% | For non-residents: payer of rent (tenant or agent) withholds 20.42% | Withholding is considered final tax for non-residents; no further filing unless election made |
| Local Inhabitant Tax | Non-resident | N/A | Non-residents generally exempt | N/A | Only residents pay |
| Capital Gains Tax on Sale | Seller | When selling property | Short-term (<5 yrs): 30%+9% local; Long-term (≥5 yrs): 15%+5% local | Buyer withholds tax at sale for non-resident seller: 15.315% of gross sales price (approx.) | Non-resident may file for refund if over-withheld |
| Consumption Tax | Applies if commercial real estate | When buying taxable real estate | 10% | Paid directly by buyer | Only for certain commercial properties |
| Withholding Flow for Non-Resident Income | N/A | N/A | 20.42% for rental, 15.315% for sale | Paid by tenant/agent (for rental) or buyer (for sale) to tax office | Non-resident receives net after withholding |
We will handle much of the legal work
Our agent and judicial scrivener (usually provided by our agency) will handle much of the legal work, including title transfers and ensuring the property has a clear history with no unresolved ownership issues.
Our team at RE/MAX L-Style are experts in handling purchases for foreigners and will guide you through every step to ensure a smooth, secure transaction. From property selection and virtual tours to document preparation and funds transfer, we are committed to making the entire experience as seamless as possible. Whether you’re looking for a vacation home, investment property, or a future residence, we’re here to help you make it happen—no matter where you are in the world.