Japanese real estate is affordable and open to foreigners. Learn the basics of buying property in Japan for investment.

Unlike many Asian countries, Japan has NO restrictions on foreigners buying land or property. You can buy a house in Tokyo or a ski chalet in Niseko even if you are a tourist. Here is how to invest in Japanese real estate.

Why Invest in Japan?

• Affordability: You can buy a renovated house in the countryside (Akiya) for under $50,000, or a studio condo in Tokyo for $150,000.
• Stability: Japan is a safe, stable country with strong property rights.
• Weak Yen: Your foreign currency goes a lot further right now.

The Process

1. Find a Property: Use sites like Real Estate Japan or Suumo (Japanese only).
2. Make an Offer: Submit a "Letter of Intent" (Kaitsuke Shoumeisho).
3. Contract: Sign the Sales Contract and pay the deposit (usually 10%).
4. Closing: Pay the remaining balance and receive the title deed.

Financing (The Hard Part)

• Residents: If you live in Japan and have PR, you can get a loan (0.5% - 1% interest).
• Non-Residents: It is extremely difficult to get a loan. You usually need to pay 100% Cash. Some banks (like Orix Bank) offer investment loans to non-residents, but the interest rates are higher (3-4%) and require a large down payment.

👉 Mortgages: Mortgage Rates in Japan for Foreigners: 2026 Update

Taxes

• Acquisition Tax: One-time fee when you buy.
• Fixed Asset Tax: Annual property tax (approx. 1.4%).
• Income Tax: If you rent it out, you must file a tax return in Japan.

Conclusion

Japan is a cash-buyer's market for foreigners. It's a great way to diversify your portfolio, but don't expect massive capital appreciation like in the US or Canada. The value is in the yield and stability.