Foreign Investors may, regardless of Japanese citizenship, residence, or nationality, purchase real estate in Japan. There are differences in the proceedings and required documentation, but there are no restrictions in place as to the properties which may be purchased.

Below we will outline the main differences applied to non-residents when purchasing real estate in Japan.

Affidavit

Non-residents must produce an affidavit and swear upon it in a legal setting. The affidavit is a statement of the address of the individual’s current residence. An affidavit must be certified by a notary public either within the country of which the individual is a resident or by that country’s embassy within Japan.

Loans/Mortgage

It is generally extremely difficult for non-residents to apply for a loan for the purchase of real estate in Japan. Due to the risks involved, and large the sum of money, it is rare for a loan to be approved.

Taxes

Real estate purchased in Japan even by non-residents is subject to Japanese tax laws, including Fixed Asset Tax and City Planning Tax. For more information on the taxes applied to a real estate purchase refer to our page describing taxes.

A third-party tax accountant may be utilised to assist in paying taxes by non-residents. They are able to pay all yearly taxes including Income Tax from rental income.