How To Buy Land In Japan: What To Know To Build Your Home

Building your dream home often begins with finding the right piece of land.

Whether you're an expat or a permanent resident, anyone can purchase land in Japan.

If you're considering building your dream home here, you've come to the right place. In this guide, we'll walk you through how to buy land in Japan, what to know about property ownership, and the essential steps to take after the purchase.

Quick reference summary

🏠 Can foreigners buy land? Yes, no visa or citizenship required

💰 Total timeline: 6-12 months from search to move-in

📋 Key costs: Land price + 6-10% in fees and taxes + construction costs

📄 Essential requirement: Tax representative (if non-resident), plus a Form 22 FEFTA report within 20 days of purchase

⚖️ Legal help: Judicial scrivener or lawyer (¥200,000-500,000)

Can foreigners buy land in Japan?

Foreigners can buy land in Japan as it does not require a specific visa, citizenship, or nationality status. So, anyone can buy land and property in Japan. However, buying property in Japan does not give you permanent residency status.

In a nutshell:

• No visa requirements: You do not need to be a resident of Japan to buy land.

• No additional taxes: foreign buyers pay the same tax rates as Japanese nationals, though non-residents do have an extra reporting step (see below).

Legal requirements and FEFTA rules for buying land in Japan

When making a property purchase in Japan—especially as a foreign buyer—it’s important to understand the country’s land-use laws and reporting obligations.

While Japan does not restrict buying property by nationality, certain types of land require prior approval or post-transaction notification under Japanese law.

FEFTA-at-a-glance

Requirement	Applies to	Deadline	Who typically files
Form 22 report	Nearly all non-resident buyers	Within 20 days of purchase	Buyer, agent, or judicial scrivener
Nationality disclosure	All buyers, at registration	At time of registration	Filed with the Legal Affairs Bureau
Prior Notification (事前届出)	Sensitive zones only	Before the purchase completes	Buyer, with agent's confirmation

1. Foreign Exchange and Foreign Trade Act (FEFTA) requirements

The Foreign Exchange and Foreign Trade Act, sometimes searched as the foreign trade control act, governs land purchases by foreign buyers in Japan. As of April 1, 2026, this reporting requirement applies to nearly all non-resident buyers, not just sensitive zones.

What changed in April 2026

Japan removed the residential-purchase exemption from FEFTA reporting. Non-residents now file a report for most real estate transactions, including a personal home:

• File Form 22 with the Ministry of Finance through the Bank of Japan.

• Submit your report within 20 days of the purchase.

Separately, since April 2026, all buyers, Japanese and foreign, disclose their nationality when they register a property. This step applies regardless of residency status.

A real estate agent or judicial scrivener can file Form 22 on your behalf. This filing does not block your property purchase. It only tracks foreign buyers for government records.

Extra approval for sensitive zones

Some locations still require approval before you buy. These sensitive zones include:

• Land near Self-Defense Force bases

• Coastal defense zones

• Remote border islands

• Land near nuclear power facilities

• Designated government security zones

If your land falls in one of these zones, file Prior Notification (事前届出) before you buy. Approval typically takes 30 to 60 days. Ask your real estate agent to confirm if your property sits inside a FEFTA-designated zone.

2. Agricultural land restrictions (農地法）

Agricultural land (農地) cannot freely be converted or purchased without permission from the Agricultural Committee (農業委員会).

All buyers, including Japanese residents, must show:

• Intent to use the land for agriculture

• Proof of farming capability

• In some prefectures, proof of full-time residence

For most buyers, agricultural land is not a viable option unless you intend to farm professionally.

3. Forest land restrictions (森林法)

Large forest areas require:

• Notification under the Forest Act

• Sometimes approval from the Prefectural Governor

The rules depend on size, location, and whether the land falls under a protected forest classification.

4. Land registration requirements

All land purchases must be registered with the Japanese Government Legal Affairs Bureau (法務局).

Documents typically required:

• Sales contract

• Identification

• Seal certificate (for residents)

• Nationality disclosure (all buyers, since April 2026)

• Tax representative appointment (if non-resident)

• Judicial scrivener filing documents

Registration confirms legal ownership and protects your property rights.

A step-by-step guide to buying land in Japan

Step 1: The right location

Many factors affect the total local property market cost. Here are some key factors to consider:

• Proximity to amenities: See how close amenities such as schools, hospitals, supermarkets, and transportation hubs are to your property land.

• Zoning laws: Japanese zoning laws are likely different from the zoning laws in your home country. (More on this in Step 2.)

• Natural disaster risks: Japan is prone to earthquakes and typhoons, so research the area's history with natural disasters.

• Future development: Investigate if any planned developments, such as train lines or commercial centers, could affect property value.

Additionally, anyone, foreign or Japanese, needs permission to purchase land zoned as "forest" or "agricultural." The Agricultural Land Act and Forest Act govern these rules, not FEFTA. See Steps 2 and 3 below for details.

Step 2: Understand Japanese land categories

When you purchase property in Japan, it's essential to know the three main land categories:

• 住宅地 (Residential Land): Ideal for building homes or small apartments.

• 商業地 (Commercial Land): Suitable for business ventures, shops, or commercial buildings.

• 農地 (Agricultural Land): Primarily for farming; purchasing this type of land may require additional permissions.

If you plan to use the land for residential purposes (a house, etc.), double-check with your real estate agent that the land you will buy is marked as 住宅地 (residential land) so you can build on your property.

Here's a chart that provides other details on Japan's zoning regulations.

Category	Japanese	What You Can Build	Restrictions
Residential	住宅地 (jūtakuchi)	Houses, small apartments, home offices	Height limits (10-20m), coverage ratios
Commercial	商業地 (shōgyōchi)	Shops, offices, mixed-use buildings	Higher density allowed, noise considerations
Agricultural	農地 (nōchi)	Farming only	Special permits required for purchase

Additionally, you'll want to inquire about the building ratios for the land you are purchasing. Understanding these ratios is crucial for planning your home:

• Building Coverage Ratio: Percentage of land your building can cover (typically 30-80%)

• Floor Area Ratio: Total floor space allowed relative to land size (typically 50-500%)

Example: On 200㎡ land with 60% coverage and 150% floor ratio, you can build a 120㎡ footprint with up to 300㎡ total floor space.

Step 3: Know your budget and total costs

Buying land in Japan involves more than the price of the land. Here are other things to consider:

• Real estate agent fees: Most real estate agent fees follow a set formula: 3% of the purchase price plus 60,000 yen, plus 10% consumption tax.

• Legal fees: A lawyer or judicial scrivener handles your sales contract, real estate transactions, and title transfers. Budget 200,000 to 500,000 yen for this legal document work.

• Taxes: You pay a one-time real estate acquisition tax and an annual fixed asset tax. The acquisition tax runs 3% of the assessed value for residential land, a reduced rate in effect through March 2027, or 4% for other property types. Check out our tax calculator for properties in Japan.

• Group credit life insurance: Called 団体信用生命保険 (dantai shinyō seimei hoken) in Japanese, this insurance pays off your remaining housing loan balance if you die or become disabled.

You'll also need to determine the home building and development cost, including construction, permits, and utilities such as electricity and water connections.

Average land prices in Japan for Tokyo, Osaka, Kyoto, etc. (2024-2025)

Region	Average Price per ㎡	Typical Plot Size	Total Land Cost
Tokyo (central)	¥800,000-1,200,000	100-150㎡	¥80-180 million
Osaka (central)	¥400,000-600,000	120-180㎡	¥48-108 million
Kyoto	¥300,000-500,000	150-200㎡	¥45-100 million
Nagoya	¥200,000-350,000	150-250㎡	¥30-87.5 million
Fukuoka	¥150,000-280,000	200-300㎡	¥30-84 million
Rural areas	¥10,000-100,000	300-1000㎡	¥3-100 million

Step 4: The buying process

The buying property process can be condensed into these steps:

• Find a Japanese real estate company: Many real estate companies exist in Japan. Find someone you trust, preferably bilingual, to help you navigate the Japanese market. You can also look at akiya banks if you want to buy an akiya and renovate it.

• Research the land: Conduct a land survey to determine the property's boundaries and see if the land can support the property structure.

• Sign the sales agreement: A sales agreement will be drawn up after agreeing on the price. Fully understand the terms, the payment schedule, and any contingencies.

• Pay the deposit: You'll need to pay the deposit to secure the land, which is standard when you purchase real estate in Japan. The deposit is usually non-refundable.

• Final payments and land transfer: The remaining balance will be paid later, set up by the sales agreement. You'll need to go to the local government and notify them that you own the land.

Due diligence checklist for land purchase in Japan

Make sure you verify the following before purchasing land in Japan.

• Land survey and boundary verification

• Soil quality test (地盤調査)

• Utility availability (water, gas, electricity, sewage)

• Access road width (must be 4m+ for building permits)

• Flood zone and disaster risk maps

• Zoning regulations and building restrictions

• Environmental assessments

• Title verification and ownership history

Step 5: Prepare paperwork and documents

Here are some important documents you'll need to help you navigate through Japanese paperwork:

• ID Verification: A passport or residence card (for those living in Japan) will be required.

• Bank account: Double-check if your bank account can handle overseas transactions.

• Inkan (Personal seal): An inkan is used as a notarized signature to sign official documents for those living in Japan.

Additionally, hiring a legal representative, such as a judicial scrivener, is highly recommended, as they can assist with registering your property in Japan if you are purchasing land from outside the country.

 

Step 6: Building your home

Now that you have your land in Japan, the next step is to build your home, which will require careful planning and coordination.

Here are a couple of things to be aware of during the home building process:

• Building permits: After you purchase Japanese real estate, you need to apply for permits to start any construction. Your local real estate agent or a contractor can help with this process.

• Hiring a contractor: Hiring a reputable and bilingual contractor or construction company will help you understand Japanese construction standards and allow you to communicate your needs and wants for the house.

• Utility setup: You'll want water, electricity, and gas connections set up to avoid delays.

New construction costs in Japan (2024-2025)

On top of property purchase costs, you'll also want to budget for any construction work that you have planned.

Construction Type	Cost estimate per ㎡	150㎡ House Total
Basic Standard	¥150,000-200,000	¥22.5-30 million
Mid-Range	¥200,000-300,000	¥30-45 million
High-End Custom	¥300,000-500,000+	¥45-75+ million

Step 7: Tax obligations

When you own land or property in Japan, there are a couple of ongoing property taxes and fees that you will need to pay:

• Fixed Asset Tax: Paid annually and calculated based on the assessed value of the land and any buildings. About 1.4% of the property’s value.

• City Planning Tax: This tax funds infrastructure in designated city planning zones. The rate is capped at 0.3% of the assessed value, though some cities charge as little as 0.2%.

How to pay Japanese property taxes if you live abroad

Managing taxes and legal documents while owning property in Japan can be complex, especially if you're a non-resident.

That's where MailMate can step in to make things easier.

MailMate offers services designed specifically for foreign buyers and property owners living abroad or away from their Japanese properties for extended periods.

• Tax Representative Services: Non-residents must appoint a tax representative to handle tax-related matters, including paying property taxes and receiving tax documents from local agencies. MailMate provides this service, ensuring that all tax payments and official communications are handled seamlessly on your behalf.

• Mail Handling: MailMate can receive and manage your important mail, including tax documents, utility bills, and other official correspondence related to your property.

You can ensure that your property and taxes are well-managed, allowing you to enjoy the benefits of owning land and a house in Japan without the administrative burden.

Step 8: After-purchase tips

Once you have your property in Japan, you must register with the local government to notify them that you are the land's new owner.

• Register the property: This process is to prove ownership and protect your property rights. You will need to pay a registration fee and license tax in addition to any legal service associated fees.

• Insurance: While there’s no legal requirement to purchase insurance when owning land or property in Japan, it’s wise to be prepared for natural disasters. As such, the most commonly chosen types of property insurance are fire and earthquake coverage.

• Keep track of legal requirements: Important notices and tax obligations, such as Fixed Asset Tax and City Planning Tax, will be sent by postal mail to your property.

If you want to turn your land into an Airbnb location, you'll have to apply for a minpaku license and a private lodging business certificate. If you plan to make it into your vacation home, be aware of your visa status and how long you are legally allowed to stay in Japan.

💲Mortgage & financing options for foreign buyers in Japan

Whether you are a resident or non-resident determines how easily you can secure financing in Japan.

1. Can foreigners get a mortgage in Japan?

Yes—but it is difficult.

Only a few banks lend to non-residents, and requirements are stricter.

Banks that sometimes lend to foreign buyers:

• SMBC Prestia

• SBI Shinsei Bank (formerly Shinsei Bank, renamed in 2023)

• Some regional banks (case-by-case, often requiring strong ties to Japan)

Bank lending policies for non-residents and foreign buyers change often. Confirm current options with a mortgage broker or your real estate company before you apply.

Most banks require:

• Passport

• Verified overseas income

• Tax returns

• Proof of substantial assets

• A large down payment

Down payment expectations:

• 30–50% for non-residents

• 20–30% for foreign residents with stable work in Japan

2. Mortgages for residents (foreigners living in Japan)

Foreign residents with full-time employment and stable income have more options.

Most Japanese banks offer:

• Variable-rate housing loans

• Fixed-rate packages

• Loans bundled with group credit life insurance (団信)

Requirements typically include:

• Residence card

• Employment certificate or tax returns

• Bank statements

• Japanese-language contract signing

• A personal seal (inkan/hanko)

Permanent residents get the best terms for housing loans (10-20% down, similar to what Japanese citizens pay), but many banks lend to non-PR visa holders as well.

3. Can you use overseas income?

Some banks accept:

• US W-2 or 1040 filings

• Overseas salary statements

• CPA-certified income documents

However, many banks only consider income earned inside Japan.

4. Alternative financing options

If Japanese financing isn’t possible:

• Cash purchase — Common for non-residents.

• Loan from home-country bank — Possible using personal assets as collateral.

• Private lenders — Higher interest but easier approval.

• Developer financing — Sometimes offered for new-build projects.

5. Mortgage costs (typical)

• Assessment & paperwork: ¥50,000–¥150,000

• Stamp duty: ¥20,000–¥60,000

• Registration tax (reduced rates may apply)

• Life insurance for mortgage approval (団信)

Understanding financing options early helps avoid delays in the purchase timeline.

Property management services for non-resident owners

Do you own land or property in Japan but live abroad?

MailMate is here to help you manage your property seamlessly—even when you're not in the country.

MailMate's property management services ensure that all important documents, mail, and property-related communications are handled efficiently on your behalf.

Virtual mailbox

Access all your Japanese mail through your secure online dashboard. You can open and read important letters and notices directly from the dashboard. For unimportant mail, simply click the “Shred” icon, and the item will be physically destroyed.

Need a physical item forwarded? Just submit a request, enter the destination address, and you’ll receive a tracking number once it ships.

Bilingual support

As a foreign property owner in Japan, navigating property-related tasks in Japanese can be challenging.

Whether you need assistance with a gas or water leak inspection, setting up internet service, or installing solar panels, MailMate acts as your bilingual communication bridge—ensuring nothing gets lost in translation.

Frequently asked questions

How much does land cost in Japan?

Land cost varies throughout Japan. The Tokyo Prefecture has the highest average value at almost 1.2 million Japanese yen per square meter. Compared to more rural areas where land prices are about 100 thousand yen per square meter or less.

How long can I live in Japan if I buy a house?

Buying a house in Japan is not directly tied to how long you can live here. Your length of stay is determined by your residency or visa status—not property ownership. For example, if you hold permanent residency (PR), you can live in Japan indefinitely. Otherwise, you can stay as long as your visa remains valid. Some people also stay in Japan on a tourist visa, but this does not grant residency status and typically limits your stay to 90 days per visit.

How much is land tax in Japan?

Land tax in Japan, called fixed asset tax (固定資産税, kotei shisan zei), is about 1.4% of the property's value, which is based on the location, size, condition, and property market trends. The amount is recalculated every 3 years.

Can I buy land while on a tourist visa?

Yes, but you'll need a tax representative and may face banking restrictions.

What happens if I want to sell later?

You can sell your property at any time after purchase. Japan's capital gains tax rate depends on how long you owned the property.

• Owned over 5 years: taxed at 20.315% total (national tax plus local resident tax for residents).

• Owned 5 years or less: taxed at 39.63%.

• Non-residents are generally exempt from the local resident tax, so their effective rate is closer to 15.315% or 30.63%.

Tax rates and exemptions change often. Confirm your exact rate with a tax agent before you sell, or read our full guide to real estate tax in Japan.

What's the minimum down payment for a mortgage?

It depends on your residency status. Permanent residents typically need 10-20% down, close to what Japanese citizens pay. Foreign residents with a stable long-term visa, but no PR, usually need 20-30%. Non-residents living abroad typically need 30-50%.

Are there any ongoing restrictions on foreign owners?

No ongoing restrictions, but non-residents must maintain a tax representative.

Do I need to file Form 22 when I buy property in Japan?

Yes, if you are a non-resident buyer. As of April 2026, nearly all non-resident purchases require a Form 22 report to the Ministry of Finance. File it through the Bank of Japan within 20 days of your purchase.

Do I need to disclose my nationality when I buy property in Japan?

Yes. Since April 2026, all property registrations at the Legal Affairs Bureau require nationality disclosure, regardless of the buyer's nationality. This information stays internal and does not appear on the public property registry.

Does buying property help with visa applications?

Property ownership doesn't directly grant visa status, but may support certain applications.

Can I rent out my property?

Yes, but must comply with local regulations and tax obligations.

What happens to my property if I die?

Japanese inheritance law applies. Foreign heirs can inherit but may face tax obligations.

Can I transfer property to family members?

Yes, but gift taxes may apply. Consult a tax professional.

In closing

Understanding how to buy land in Japan—including the related taxes, fees, and steps involved in building a home—can significantly reduce stress and help you move forward with confidence as you purchase and build your dream property in Japan.

As always, if you need additional property management support, MailMate is here to help you.