Can Foreigners Buy Property in Japan? Conditions and Essential Facts
Can foreigners buy property in Japan? A detailed explanation of ownership regulations, bank loan requirements, taxes and fees, and the truth about visas as of August 2026.
Aug 7, 2026·✍️ olablog·⏱ 13 min read
Can foreigners buy property in Japan? A detailed explanation of ownership regulations, bank loan requirements, taxes and fees, and the truth about visas as of August 2026.
If you live and work in Japan, you have probably wondered: “As a Vietnamese citizen, can I buy a house in Japan if I’m working or studying there?”, “Will buying a house get me a permanent resident visa?”, or “Can I get a mortgage without permanent residency?”
These are very practical concerns if you want to build a long-term career or invest for the future instead of spending hundreds of thousands of yen every month on rent and the 敷金 (shikikin) deposit. Many people worry that strict regulations for foreigners make property ownership out of reach. In reality, Japanese law is far more open than most people assume. In this article, OlaChill takes a detailed, practical look at the conditions, costs, and essential facts you need to know before purchasing property in Japan.
1. The Reality of Foreigners’ Right to Buy Property in Japan
No restrictions based on nationality or residency status
As of August 2026, Japanese law does not restrict foreigners from purchasing real estate. Whether you are a Vietnamese national, have never visited Japan, or are currently living in Japan under any type of visa, you have the same basic legal right to register property in your own name.
Unlike some countries in Southeast Asia and North America that impose foreign-buyer quotas on condominiums or levy a separate foreign buyer surcharge, Japan applies the same standard taxes and registration procedures to both Japanese citizens and foreigners.
Buying a house does NOT automatically grant you a residency visa
This is the most common misconception among Vietnamese people. Many assume that spending several billion VND on a house or villa in Tokyo or Osaka will automatically give them the right to stay in Japan.
The reality is that property ownership and Japan’s Immigration Control and Refugee-Recognition Act are entirely separate matters. Buying real estate does not grant you a residence card, work visa, or permanent residency 永住権 (eijuken). To live in Japan long term, you must still meet the standard visa requirements, such as those for engineers, business managers, spouses, or permanent residents.
Owning property ≠ Being granted a residence status (Visa)
2. Permanent Ownership: Full Ownership of Both Land and House
One major advantage of Japan’s real estate market is its ownership structure. Foreigners who purchase a house or land in Japan will generally receive full ownership 所有権 (shoyuken).
- Ownership of both land and house: You become the permanent owner of both the plot of land (tochi) and the structure built on it (tatemono). There is no 50-year or 70-year limit as with some long-term land-lease models.
- Condominiums (Mansion): You permanently own the interior space of your unit and hold a proportional share of the common land on which the building stands.
- Distinguishing ownership from land lease rights 借地権 (shakuchiken): Some unusually cheap properties on the market are inexpensive because only the house is being sold while the land is leased. If you buy this type of property, you must pay monthly land rent, and the lease is for a fixed term (usually 20–30 years). Therefore, carefully check the 重要事項説明 (juyo jiko setsumei) to determine whether the property comes with 所有権 (shoyuken) or 借地権 (shakuchiken).
3. What Does and Does NOT a Visa Affect When Buying a House?
Understanding the role of your visa will help you plan your finances accurately.
What a Visa Does NOT Affect
- The right to register and legally own the property: Japanese law allows technical interns, international students, tourists, and people currently living in Vietnam to register as the legal owners on the property ownership certificate.
- Tax obligations and benefits: Property acquisition tax and annual fixed asset tax are the same as those paid by Japanese citizens and do not depend on your visa type.
What a Visa DOES Significantly Affect
Your visa directly affects your ability to obtain a housing loan 住宅ローン (jutaku ron).
- If you have permanent residency 永住権 (eijuken): You can access lending policies similar to those available to Japanese citizens. Loan approval may cover up to 90–100% of the property value, with exceptionally low preferential interest rates (variable rates of only around 0.3% – 0.8%/year as of August 2026) and loan terms of up to 35 years.
- If you do not yet have permanent residency (Engineer Visa, long-term Work Visa): Most major banks (MUFG, SMBC, Mizuho) will reject the application or impose strict requirements. Some banks do accept applications from borrowers without permanent residency (such as SMBC Trust Bank, Shinsei Bank, and certain specialized lenders), but they may require:
- At least 2–3 years of employment with your current company in Japan.
- Annual income (Gensen) of 4,000,000 JPY (~660 million VND) to 5,000,000 JPY or more.
- A down payment of 10% – 20% of the property value.
- A potentially higher interest rate than that offered to permanent residents.
- If you are an international student or technical intern: It is 100% practically impossible to obtain a loan from a Japanese bank to buy a house because you do not have a stable, long-term income source under standard lending criteria. To purchase a house, these groups generally have only one option: paying 100% in cash (or using funds sent by their family).
4. Paying in Cash vs. Taking Out a Bank Loan (Jutaku Ron)
The table below provides a detailed comparison of the two payment methods when buying a house in Japan:
| Criteria | Paying in full with cash (一括払い) | Housing loan 住宅ローン (jutaku ron) |
|---|---|---|
| Visa requirements | Not required (international students, technical interns, and people outside Japan can all purchase) | Requires permanent residency 永住権 (eijuken) or a long-term work visa with high income |
| Screening process | Simple and quick (only the source of funds must be verified) | Complex; income, health, and credit history are assessed (2–4 weeks) |
| Upfront costs excluding the property price | Approximately 5% – 7% of the property value | Approximately 8% – 10% of the property value (including loan insurance and bank appraisal fees) |
| Financial documents required | Bank statements and proof of legitimate source of funds | Payslips, the income summary certificate 源泉徴収票, tax payment records, and nenkin payment records |
| Required documents | Passport, 住民票 (juminhyo), or an Affidavit for people living outside Japan | 住民票 (juminhyo), 印鑑証明書 (inkan shomeisho), and an employment certificate |
| Time to complete the transaction | 2–4 weeks | 1.5–3 months |
5. Detailed Fees and Taxes When Buying a House in Japan (Updated August 2026)
In addition to the listed price of the house, you should budget for additional costs—transaction fees and taxes—equal to approximately 6% – 10% of the property value. As of August 2026, these costs include:
1. Brokerage Fee 仲介手数料 (chukai tesuryo)
Under Japan’s Real Estate Brokerage Act, the maximum brokerage fee is publicly regulated:
- For property valued at more than 4,000,000 JPY: 3% + 60,000 JPY + 10% Consumption Tax 消費税.
- Example: If you buy a house worth 30,000,000 JPY (
5 billion VND), the maximum brokerage fee is: $(30,000,000 \times 3% + 60,000) \times 1.1 = 1,056,000\text{ JPY}$ (175 million VND).
2. Registration License Tax 登録免許税 (toroku menkyo zei)
This tax is paid to the government when transferring the property and registering the change of ownership with the Legal Affairs Bureau.
- Land registration tax: Approximately 1.5% of the assessed value of the land (the preferential rate in effect as of 2026).
- House registration tax: Approximately 0.3% – 2.0% of the assessed value of the structure, depending on whether it is a new or used house and whether it is for residential use or investment.
3. Stamp Tax 印紙税 (inshi zei)
A revenue stamp is affixed to the real estate purchase contract.
- For contract values from 10 million - 50 million JPY: The stamp tax is 10,000 JPY (approximately 1.6 million VND).
4. Real Estate Acquisition Tax 不動産取得税 (fudosan shutoku zei)
This tax is paid once only after purchasing the property. The prefecture generally sends the tax notice to the property address 3 to 6 months after you take possession.
- Standard tax rate: 3% of the assessed value (評価額 - hyokagaku) of the residential building and land.
- Note: The assessed value set by the municipality (hyokagaku) is usually only 50% - 70% of the actual market purchase price, so the tax you pay in practice will be lower than you might expect.
5. Annual Fixed Asset Tax 固定資産税 (kotei shisan zei) & City Planning Tax 都市計画税 (toshi keikaku zei)
These are the two recurring taxes you must pay every year when you own real estate in Japan:
- Fixed asset tax: 1.4% of the assessed value/year.
- City planning tax: Up to 0.3% of the assessed value/year (if the property is located in a designated planning area).
- Reduction: Residential land measuring less than 200m² may receive a reduction of up to 5/6 of the amount subject to fixed asset tax.
6. Gyoseishoshi / Shiho-shoshi Fees
The cost of hiring a legal scrivener or judicial scrivener to handle title transfer and legal checks. This generally ranges from 100,000 JPY – 200,000 JPY (~16 - 33 million VND).
6. The 6-Step Process for Vietnamese Buyers Purchasing a House in Japan
Once your finances are ready, the home-buying process in Japan generally follows these standard steps:
[Step 1: Find a property & Find a real estate agent]
↓
[Step 2: Submit a purchase application 買付証明書 (kaitsuke shomeisho)]
↓
[Step 3: Submit a housing loan application 住宅ローン (if borrowing from a bank)]
↓
[Step 4: Receive an explanation of important terms 重要事項説明 (juyo jiko setsumei) & Sign the contract]
↓
[Step 5: Pay the remaining balance & Transfer the title (Transfer of 所有権)]
↓
[Step 6: Receive the keys & Pay the ownership tax after 3-6 months]
Step 1: Find a Property and Choose a Reputable Agent
You can search through Japanese real estate websites such as SUUMO, ATHOME, and HOMES, or contact agencies with Vietnamese- or English-speaking staff.
Step 2: Submit a Purchase Application 買付証明書 (kaitsuke shomeisho)
Once you find a house you like, you submit an application expressing your intention to buy, along with your proposed price, to the seller. This is not yet a legally binding contract carrying a financial penalty, but it demonstrates that you are a serious buyer.
Step 3: Apply for a Bank Loan (if using a 住宅ローン)
Submit documents for the preliminary screening (Kari-shinsa) and formal screening (Hon-shinsa) at the bank. Required documents include payslips, a tax payment certificate, 住民票 (juminhyo), Residence Card, and passport.
Step 4: Receive an Explanation of Important Terms and Sign the Contract
A qualified real estate agent (Takken) will read and explain the 重要事項説明 (juyo jiko setsumei). Carefully check the land ownership rights, building management fees (for condominiums), and the road frontage. The two parties then sign the purchase and sale agreement (Baibai keiyakusho), and you pay a deposit of approximately 5% – 10% of the house price.
Step 5: Pay the Remaining Balance and Complete Disbursement
On the handover date, you—or the bank—transfer the remaining balance to the seller. The judicial scrivener (Shiho-shoshi) submits the documents to the Legal Affairs Bureau to register the transfer of 所有権 (shoyuken) in your name.
Step 6: Receive the Keys and Complete the Process
You receive the keys and complete the transaction. After 3–6 months, the real estate acquisition tax bill 不動産取得税 (fudosan shutoku zei) will be delivered to your home.
7. Frequently Asked Questions
Q. Can Vietnamese citizens living in Vietnam (who have never been to Japan) buy a house in Japan?
Yes. You can purchase a property outright with cash. However, because you do not have a 住民票 (juminhyo) in Japan, you will need to obtain an Affidavit from a notary office in Vietnam or from the Japanese Embassy/Consulate to verify your address and personal seal.
Q. Is it a good idea to buy a cheap house in rural Japan (Akiya—a 0-yen abandoned house or one costing a few million yen)?
Proceed with caution. Although the initial purchase price may be very low, Akiya properties are often located in remote areas, and upgrading the plumbing and insulation can be extremely expensive—potentially many times the purchase price. You must also continue paying annual fixed asset tax 固定資産税 (kotei shisan zei), and reselling the property can be very difficult if you no longer need it.
Q. If I do not have permanent residency 永住権 but am married to a Japanese citizen, is it easier to get a bank loan to buy a house?
Yes. If you hold a Japanese Spouse Visa, many Japanese banks will consider your application, provided that your spouse (the Japanese husband or wife) guarantees the loan or joins you as a co-borrower (Pair loan).
Q. Will I be penalized if I do not live in the house after buying it and rent it out?
It depends on how you purchased it. If you took out a 住宅ローン (jutaku ron) under a preferential personal home loan, the bank generally requires you or your family to live there. If you rent it out as a business without notifying the bank, you may be considered in breach of contract and required to repay the entire loan immediately. If you intend to rent out the property, you must either buy it in cash or use a real estate investment loan (Toshi-yo loan).
8. Conclusion
Buying a house in Japan is not restricted by nationality or visa status. Anyone can own both the land and the house outright with permanent ownership rights 所有権 (shoyuken). The only genuine obstacle is having sufficient funds and meeting the requirements for a housing loan 住宅ローン (jutaku ron) if you are not paying the full amount in cash.
If you are an engineer or a working professional planning to remain in Japan long term, building a strong credit history and working toward permanent residency 永住権 (eijuken) will be an excellent stepping stone toward owning your dream home at exceptionally low interest rates.
Further reading:
- To learn more about practical advice on daily life, administrative procedures, and ways to save money in Japan, visit OlaChill Blog.
- If you would like to spend a relaxing weekend exploring beautiful destinations around the capital before deciding where to settle, check out our list of Day Tours from Tokyo.
- The latest information on life, travel, and experiences in the Land of the Rising Sun is always available on the OlaChill homepage.
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