Japan’s Zoning Laws Explained: The 13 Land Use Zones and Their Impact

If you are thinking about building a home or buying real estate in Japan, it is essential that you are aware of Japanese zoning laws and the different types of Land Use Zones.

Learning about different types of zones will help you imagine the area better and will allow you to be aware of the rules and regulations of the surrounding area. Also, it is important to know about zoning laws for tax matters.

In this article, we will explain all about zoning laws in Japan so that you can avoid any potential problems in the future.

What is zoning law?

Zoning laws, also known as Land Use Laws, are defined as rules and regulations to determine the kind of buildings that can be built in a specific area. Its purpose is to divide areas depending on the category, such as commercial, residential, and industrial, so that there will be organized growth by minimizing potential conflicts. 

An overview of zoning laws in Japan

In Japan, the national zoning system is built around the Land Use Zone (用途地域 Yoto Chiiki) governed under the City Planning Law (都市計画法 Toshi Keikaku Hou), which regulates land usage across the country for city planning purposes.

Zoning laws in Japan are somewhat similar to North American zoning laws that are applied in North American cities. However, it differs in the application of Euclidean zoning, which divides communities into areas with specific permitted land uses by type (residential, commercial, retail, industrial, etc).

Japanese city planning focuses on mixed-use development, especially in urban areas. 

Why is it important to know about zoning laws in Japan?

If you are thinking about buying a property in Japan, it is important to understand zoning laws not only to understand the rules and regulations but also to avoid unwanted tax payments.

If the property is in designated Urban Planning Areas (市街化区域 Shigaika Kuiki), then the property owner is subjected to City Planning Tax (都市計画税 Toshi Keikakuzei) annual payments. If the property is in a Non-Urbanized Area (市街化調整区域 Shigaika Chosei Kuiki), it is exempt from City Planning Tax. This means that zoning classifications directly affect whether you have to pay this tax at all.

Rezoning is possible, and it can change your tax payment in the future. If an area is rezoned from a Non-Urbanized Area to an Urbanized Planning Area, the property owner needs to start paying City Planning Tax. Also, if the area is rezoned from residential to commercial use, the assessed land value may increase, which leads to raising your tax rate.

Furthermore, Fixed Asset Tax (固定資産税 Kotei Shisanzei) and City Planning Tax (都市計画税 Toshi Keikakuzei) are calculated based on the assessed value of the property. Residential zones often have lower tax assessments compared to commercial or industrial zones.

👉Read also: Real Estate Tax in Japan: An Easy, Quickstart Guide

 

Land Use Zones: 13 zone categories

Land Use Zones (用途地域 Yoto Chiiki) are for proper land use planning and contain 13 zone categories.

Zoning	Feature
Type I low-rise residential zone	Quiet residential zone with mostly low-rise single-family homes
Type II low-rise residential zone	Quiet and relatively convenient residential zone with mainly single-family detached houses
Type I medium to high-rise residential zone	Relatively vibrant residential area with a mix of apartments and detached houses
Type II medium to high-rise residential zone	Relatively vibrant residential area with large stores and easy access to shopping
Type I residential zone	A convenient and lively residential area with many stores
Type II residential zone	Very lively and convenient residential area with many stores and entertainment facilities
Quasi-residential zone	Areas along national highways and main roads
Countryside residential zone	A quiet residential area with farmland
Neighborhood commercial zone	Highly convenient and lively commercial zone
Commercial zone	Urban and the most convenient commercial zone
Quasi-industrial zone	Mixture of light industrial facilities, residential buildings, and various other facilities, commonly lived by those who work in factories
Industrial zone	Mainly large factories and high-rise tower apartments
Exclusively industrial zone	For factory use only

Residential use zones

1) Type I low-rise residential zone

This zone is a residential area exclusive to low-rise residential buildings. There is a height restriction, so tall buildings over 10m or 12m are prohibited in this zone. In addition to detached houses, offices and stores can be built, but only if they are used in conjunction with the residence. Additionally, the floor area of commercial space needs to be under 50 sqm. Elementary schools and junior high schools are also permitted.

2) Type II low-rise residential zone

This zone is a residential area exclusive to low-rise residential buildings, but compared to Type I listed above, some building restrictions are relaxed. Type I is limited to 50 sqm, whereas Type II allows certain shop buildings with a floor area of up to 120 sqm. Small stores, such as convenience stores, are allowed in this zone. 

3) Type I medium to high-rise residential zone

This zone is a residential area exclusive to medium to high residential buildings such as condominiums and apartments. There are no height restrictions, and the floor size of stores that can be built can be up to 500 sqm. In this zone, educational institutions, libraries, restaurants, hospitals, and supermarkets are allowed.

4) Type II medium to high-rise residential zone

This zone is the same as Type I, and is exclusively medium to high-rise residential zones, but with additional permission for buildings with a floor area of up to 1,500 sqm. This zone allows large supermarkets and medium-sized businesses.

5) Type I residential zone

Type I residential zone is primarily residential areas but permits the construction of relatively large buildings for convenience and liveliness. There is no limit to the height of buildings, so large apartment buildings can be built in this zone. As long as the area is within 3,000 sqm, shops, offices, universities, accommodation facilities, hospitals, etc., are permitted. However, entertainment facilities such as pachinko parlors and karaoke establishments are not permitted.

6) Type II residential zone

Type II residential zone allows more commercial facilities than Type I residential zone. The floor area is permitted up to 10,000 sqm, and large commercial facilities such as shopping centers and bowling alleys are permitted. Amusement facilities such as pachinko parlors and karaoke are also permitted. 

7) Quasi-residential zone

This zone is often located along national highways and main roads. It is mainly made up of apartment buildings but is also lined with shopping malls, offices, warehouses, and parking lots. Cinemas are permitted as long as the seating area meets the condition of being less than 200 sqm. 

8) Countryside residential zone

This zone is basically the same as the Type I low-rise residential zone but with the addition of agricultural lands and farmhouses. If the floor area is within 500 sqm, sales stores, restaurants, and warehouses for agricultural equipment are allowed. Educational facilities, hospitals, and shrines can also be built in this zone.

Commercial use zones

9) Neighborhood commercial zone

This zone is designated to provide convenience for neighborhood residents. Housing (usually apartment buildings) is permitted in this zone, but it is primarily a commercial zone.

10) Commercial zone

All kinds of facilities are allowed in this zone, such as restaurants, department stores, movie theaters, and nightlife establishments. It is possible to build residences in this zone, but since it is originally a zone for commercial use, there is not much security in terms of noise and safety.

Industrial use zones

11) Quasi-industrial zone

This zone is mainly for light industrial facilities, but residences, schools, accommodation facilities, playgrounds, and hospitals are also permitted. However, since residential buildings are allowed in this zone, factories that have a negative impact on the residential environment or human health are not permitted.

12) Industrial zone 

Any type of factory can be built in this zone, mainly larger factories. Residential buildings are allowed, but most of them are high-rise apartments, and detached houses are not common.

13) Exclusively industrial zone

This zone is entirely for industrial use, so no residential buildings, shops, hospitals, amusement facilities, or commercial facilities are allowed. 

How to check the zoning of properties or land in Japan

In order to check the zoning, you can simply search “(city/town name) 用途地域” on Google. You can also check with the local city hall or ward office if you cannot find the information online.

Most information will be in Japanese, so you can also ask your real estate agent or realtor about specific zoning.

👉Read also: An Easy Guide To Buying A House in Japan: 6 Tips To Know

Frequently asked questions

What are zoning laws in Japan?

Zoning laws regulate land usage in specific areas to promote organized urban growth and minimize conflicts between residential, commercial, and industrial areas.

What is the Land Use Zone (用途地域 Yoto Chiiki)?

The Land Use Zone system is governed by the City Planning Law (都市計画法 Toshi Keikaku Hou), and it categorizes areas into 13 different zones to control land usage and urban planning.

Who enforces zoning laws in Japan?

National zoning regulations are set by the national government, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), whereas local governments and local municipalities enforce them through urban planning.

Can businesses be operated in residential zones?

Yes, but it depends on the zone. Small shops, offices, and clinics may be allowed depending on the zone, with floor space limitations.

Can residential buildings be built in industrial zones?

Yes, but it depends on the zone. Quasi-industrial zone and industrial zone may allow residential buildings, but exclusively industrial zones prohibit any type of residential building.

Where can I check the zoning?

You can search online, check with the local city hall or ward office, or ask your real estate agent.

What are the main zoning classifications in Japan?

There are 13 zoning categories under three main zoning classifications: Residential zones, commercial zones, and industrial zones. 

Are there height restrictions in different zones?

Yes, each zone has specific building height limits, floor area ratios (FAR), and building coverage ratios (BCR). It is important to check the details of each zone.

Are there restrictions on opening restaurants or bars?

Restaurants are generally allowed in commercial and some residential zones, but nightlife establishments such as bars, nightclubs, and entertainment venues may be limited to specific zones due to noise regulations.

Can I build a factory or warehouse anywhere in Japan?

No, factories and warehouses are restricted to certain industrial and commercial zones. 

In closing

If you are thinking of building or buying property in Japan, it is important to understand Japan’s zoning laws to better understand the surrounding areas and potential tax implications. 

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