Can a Foreigner Buy a House in Japan

Are you considering buying a house in Japan as a foreigner? You may want to move to another country and experience a new way of living. You may be looking for new investment opportunities, and Japan’s real estate market seems like a good place to start.

The good news is that you can buy a house in Japan as a foreigner. However, there are a few things you need to keep in mind before making this move. Keep reading this guide to learn how to become a homeowner despite not being a Japanese citizen.

Requirements for Foreigners To Buy Property in Japan

Can you buy a house in Japan as a foreigner? Yes, it is possible as long as you meet the following requirements:

For Non-Residents (foreigners who don’t live in Japan):

• You have to provide proof of identity. Check with the government officials if you need to use document translation services.
• You must also get an affidavit for your ID to ensure it is legally valid in Japan. You can get this statement from the notary public.

For Residents (foreigners who live in Japan):

• You have to show your proof of identity and residence.
• You need to submit your residence card.
• You must have a registered personal seal, i.e., hanko or inkan, which you can use to sign official contracts.
• You should also possess a certificate of seal impression that shows you registered your seal.

You may need Japanese translation services if you want to use your documents for legal purposes in this country.

How To Buy a House in Japan as a Foreigner: Simple Steps

Here’s how to buy a house in Japan as a foreigner:

1. Clarify why you want to buy a house in Japan: First, ask yourself why you want to buy a house in Japan. Is it because you want to live in the country? Are you looking to invest in Japanese real estate? Or do you want a vacation home? This will influence your requirements and budget.
2. List your requirements: You must list everything you’re looking for in your dream home, including the location, amenities, and land and property size. 
3. Set a budget: Establish a budget that determines what property you can buy in Japan.  Make sure to account for all costs, such as legal fees, taxes, and agent fees.
4. Contact a real estate agent and look for houses: Start looking for houses that fall within your budget and meet your requirements with a real estate agent. Ideally, you should visit the property you’re buying before you submit your offer.
5. Submit your offer: You need to provide a formal offer with the help of your real estate agent. The process can vary depending on whether the building is new or old.
6. Wait for the Explanation of Important Matters: Your real estate agent or the seller will provide the Explanation of Important Matters. Review this document because it contains information about your property.
7. Do your due diligence: Inspect the house to ensure everything is as expected. 
8. Accept the contract and make the down payment: You’ll receive a Purchase and Sale Agreement, which you must sign. You must also pay a deposit of 10% – 20% of the property’s selling price.
9. Complete the deal: Make all the payments, and you’ll receive the title. You should also register the property with the Legal Affairs Bureau.

Key Considerations for Buying a Home in Japan

Here are a few key considerations you should keep in mind when buying a home in Japan:

1. Language is a barrier: The documents you receive will be in Japanese. Furthermore, when you go to a bank to open an account and ask for financing, you must know Japanese. Even sellers may only communicate with you in Japanese. The best solution is to work with a real estate agent fluent in English and Japanese. You can also hire an interpreter so that you can easily follow what’s going on. If you have to submit your passport, use a passport translation service.
2. Property values depreciate over time: In Japan, the value of your house will depreciate with time. This is one of the reasons why property tends to be cheaper than in other countries. However, the land on which the building is present retains its value with time. Aim to purchase both the land and the house when negotiating the deal with the seller.
3. Be aware of all the taxes and fees you must pay: Various taxes and fees will be applicable to your property. Ask your real estate agent about these expenses to know if the house is within your budget.

You may also have to translate financial documents to use your Japanese bank account.

Types of Properties Unavailable to Foreign Buyers in Japan

Foreign buyers in Japan cannot buy the following types of properties:

• Areas near military bases: Properties near military bases will have stricter regulations than other residential areas. Try looking for properties away from the country’s military bases.
• Areas that come under agricultural or forest land: If Japan zones an area as forest or agricultural land, you can’t purchase it outright. This is due to the Foreign Exchange and Foreign Trade Act (FEFTA).

Other than these properties, every other residential and commercial property is fair game.

Can Foreigners Buy Investment Property in Japan?

Yes, foreigners can buy investment property in Japan. You can rent or lease your house and earn an income. However, this depends on the location of your investment property. Moreover, you also have to account for the property’s location because this determines how much you’ll earn.

How can a foreigner buy a house in Japan? With this guide, you know exactly how to go about this process. When inquiring about a home loan or registering your property, you must submit your documents. These files must be in Japanese, the country’s official language. 

You can quickly and accurately translate them with Rapid Translate’s services if they’re in another language. We have a team of expert translators, well-versed in over 60 languages. They will ensure the translated documents are legally usable.

FAQs

If you have questions such as ’Can a foreigner buy a house in Japan?’, just check this section. It answers a wide range of queries we keep receiving about this topic.